Sun-Rype reports 2009 financial results

TSX: SRF

KELOWNA, BC, March 4 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF) today released its financial results for the fourth quarter and year ended December 31, 2009.

Financial Highlights

Sun-Rype's 2009 net sales were $147.7 million compared to $125.4 million in 2008. The Company's 2009 net income was $6.8 million or $0.62 per share, compared to a net loss of $11.7 million or $1.08 per share in 2008.

Net sales in the fourth quarter of 2009 were $35.2 million, compared to $33.4 million in the fourth quarter of 2008, an increase of 5%. This is the highest level of fourth quarter sales ever reported by the Company. Net income for the fourth quarter of 2009 was $0.9 million or $0.08 per share, compared to a loss of $1.6 million or $0.15 per share in the same period of 2008.

"We are excited to see the results of our efforts reflected in our 2009 financial results," says Dave McAnerney, President & CEO of Sun-Rype Products Ltd. "Our 2009 sales were the highest ever reported by the Company, and profitable operations allowed us to make significant progress in debt repayment during the year. This, combined with our recently ratified five-year collective agreement with Teamsters Local Union 213, positions us well to execute our long-term growth strategy."

Sun-Rype Products Ltd., based in Kelowna, BC, is a manufacturer and marketer of 100% fruit snacks and juices under the Sun-Rype brand. Sun-Rype is a publicly traded Canadian company with its common shares listed on the Toronto Stock Exchange under the symbol SRF.

Additional Information

The foregoing are financial highlights only. Management's Discussion and Analysis, financial statements and accompanying notes of Sun-Rype Products Ltd. for the year ended December 31, 2009, are available on the Canadian Securities Administrator's website at www.sedar.com and on the Company's website at www.sunrype.com. Additional information relating to Sun-Rype's operations can be found in the Company's Annual Information Form, filed with all applicable Canadian securities commissions and available for viewing on the Canadian Securities Administrator's website at www.sedar.com and on the Company's website at www.sunrype.com.

Forward Looking Statements

Statements contained in this press release, which are not based on historical fact, including without limitation, statements containing the words "may", "will", "plans", "intends", "expects", "anticipates", "believes", "estimate", "continue" and similar expressions, constitute "forward looking information" within the meaning of applicable Canadian securities laws. Forward looking statements contained in this document may involve, but are not limited to, statements relating to the Company's objectives, priorities, strategies, actions, targets, expectations and outlook. Forward looking statements are necessarily based upon assumptions and predictions with respect to the future, including but not limited to the factors referred to below. As a result, forward looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied thereby. These risks, uncertainties and other factors include, but are not limited to, changes in the consumer packaged goods industry and external market factors, as well as the factors referred to in the Company's Annual Information Form dated March 4, 2010, and its other filings with the applicable Canadian securities regulatory authorities. In light of these uncertainties, assumptions and risks, readers are cautioned not to place undue reliance on such forward looking statements. Except as required by law, the Company assumes no obligation to update or revise such information to reflect later events or developments.

    
                           Sun-Rype Products Ltd.
              Statements of Operations and Comprehensive Income
                       For the years ended December 31
             (in thousands of dollars, except per share amounts)

                                                         2009         2008
                                                    ------------ ------------

    Net sales                                        $  147,696   $  125,368
    Cost of sales                                       110,826      112,995
                                                    ------------ ------------
    Gross profit                                         36,870       12,373
                                                    ------------ ------------

    Expenses
    Selling, general, and administrative                 25,742       29,053
    Amortization                                            539          570
    Interest                                                528          879
    Foreign exchange loss                                   111            -
    Loss on disposal of property, plant
     and equipment                                            9            -
                                                    ------------ ------------
                                                         26,929       30,502
                                                    ------------ ------------

    Income (loss) before income taxes                     9,941      (18,129)
    Income tax expense (recovery)                         3,174       (6,456)
                                                    ------------ ------------

    Net income (loss) and comprehensive
     income (loss)                                   $    6,767   $  (11,673)
                                                    ------------ ------------
                                                    ------------ ------------

    Earnings (loss) per share
      Basic and diluted                              $     0.62   $    (1.08)
                                                    ------------ ------------
                                                    ------------ ------------
    

%SEDAR: 00001572E

For further information: Don VanderZwaag, Director, Finance & Accounting, Sun-Rype Products Ltd., 1165 Ethel Street, Kelowna, BC, V1Y 2W4, Tel: [phone], Fax: [phone], [email protected]; or Dave McAnerney, Chief Executive Officer, Sun-Rype Products Ltd., 1165 Ethel Street, Kelowna, BC, V1Y 2W4, Tel: [phone], Fax: [phone], [email protected], www.sunrype.com