Sun-Rype reports Q1 2010 financial results

TSX: SRF

KELOWNA, BC, May 5 /CNW/ - Sun-Rype Products Ltd. (TSX:SRF) today released its financial results for the quarter ended March 27, 2010.

Financial Highlights

Sun-Rype's net sales in the first quarter of 2010 were $34.5 million compared to $41.0 million in the first quarter of 2009. The Company's net income the first quarter of 2010 was $0.3 million or $0.02 per share, compared to net income of $2.8 million or $0.26 per share in the first quarter of 2009.

"Lower sales of both beverage and food products in the first quarter of 2010 compared to record sales in the first quarter of 2009, combined with increased investment in marketing contributed to lower earnings in 2010 compared to the same period in 2009", says Dave McAnerney, President & CEO.

Sun-Rype Products Ltd., based in Kelowna, BC, is a manufacturer and marketer of 100% juices and 100% fruit snacks 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. The full first quarter interim management's discussion and analysis, financial statements and accompanying notes of Sun-Rype Products Ltd. for the period ended March 27, 2010, 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
                                 (Unaudited)
             (in thousands of dollars, except per share amounts)

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                                                    For the quarters ended
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                                                   March 27,       March 28,
                                                      2010           2009
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    Net sales                                       $ 34,465        $ 41,040
      Cost of sales                                   26,289          29,636
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      Gross profit                                     8,176          11,404
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    Expenses
      Selling, general, and administrative             7,761           6,771
      Amortization                                       103             135
      Interest                                            37             222
      Foreign exchange loss (gain)                       (67)            152
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                                                       7,834           7,280
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    Income before income taxes                           342           4,124
    Income tax expense                                    90           1,308
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    Net income and comprehensive income             $    252        $  2,816
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    Earnings per share
      Basic and diluted                             $   0.02        $   0.26
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%SEDAR: 00001572E

For further information: Don VanderZwaag, CA, Director, Finance & Information Services, 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