KELOWNA, B.C. – Sun-Rype Products Ltd. (TSX:SRF) says its net income in the first quarter was $1.4 million or 13 cents per share, compared to net income of $400,000 or four cents per share, in the first quarter of 2011.
Sun-Rype’s net sales were higher in the quarter at $39 million compared to $35.5 million in the first quarter of 2011.
In the third quarter of 2011, the Company acquired Naumes Concentrates Inc., which recorded net sales of $1.9 million in the first quarter of this year.
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“The increase in Sun-Rype’s net sales in the first quarter of 2012 was due primarily to the impact of a one week longer quarterly reporting period and the 2011 business acquisition,'” said president and CEO Dave McAnerney.
“Higher gross profit resulting from higher net sales combined with lower operating expenses, in particular sales and marketing expenditures, resulted in higher operating income and net income in the first quarter of 2012 compared to the first quarter of 2011.”
Despite reporting net income in the first quarter of 2012 after three previous quarters of reported losses, the company says it is facing continuing challenges.
Market data indicates sales in the shelf-stable juice category, in which the company derives approximately 60 per cent of its net sales, are in decline. It is unclear whether these declines are permanent.
Sun-Rype Products Ltd., based in Kelowna, B.C., makes and sells fruit-based juices and snacks.
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