Ranaz Corporation, a company specialized in the manufacturing and marketing of protein and dietary supplements, reported its results today for the second quarter and six-month period ended June 30, 2008. Full results including the financial statements and management discussion and analysis are available on the Ranaz website at www.ranazcorporation.com.
Ranaz's sales jumped 96.9% in the second quarter of 2008 to $6,723,024 from $3,413,792 last year. Sales for the first half of 2008 amounted to $11,078,440, 76.1% higher than sales of $6,290,715 a year ago. The Company saw sales growth in all its markets and for all its products, particularly ProtiLife, Protidiet and private brands (BarTech).
Ranaz was also successful in cutting its operating loss substantially in the second quarter of 2008, to $146,125 from $950,706 last year and $1,027,265 in the first quarter of 2008. The Company's net loss for the second quarter was also lower, falling to $408,919 or $0.011 per share from $1,149,919 or $0.037 per share a year earlier. The net loss for the first half of the year totalled $1,595,665 or $0.043 per share, compared to $1,977,770 or $0.071 per share for the same period in 2007.
"These results attest to the solid performance posted by Ranaz in the second quarter, in terms of both sales and operations," said Jean Bourassa-Marineau, President and Founder of Ranaz. "In fact, we recorded an operating profit for the months of May and June, which is in line with our
objective of achieving operating profitability as soon as possible while pursuing our growth activities."
Financing with a Prime Strategic Partner
The Company closed a financing on August 26, 2008, when it issued a $1.5 million unsecured convertible debenture to Fondaction CSN. The five-year debenture bears interest at a rate of 12% per year and is convertible into common shares of Ranaz at $0.96 per share for the first 24 months. The conversion price will then increase by 10% per year in subsequent years. The interest will be capitalized for the first year, and a capital repayment holiday has been granted for the first two years.
"Ranaz is presently in a phase of strong growth, which we have taken measures to sustain in the coming quarters. For our ProtiLife and Protidiet
products, we will continue to focus on targeted marketing programs, and will soon launch new innovative products that complement our current product line while maintaining an inventory level that allows us to meet the growing demand for our products," added Mr. Bourassa-Marineau.
"In terms of private brands, the recently-initiated process of acquiring the building near the BarTech (USA) facilities in Michigan is moving forward. We are presently at the due diligence and building financing stage, and do not anticipate any unforeseen delays. As mentioned earlier, we plan to install a second production line in the fourth quarter of 2008, which will enable us to triple our production of nutritional bars to 90 million bars as of the first quarter of 2009. This new line will also enable us to transfer production of our own bars to the new plant, which will generate substantial economies of scale for Ranaz. Overall, we expect these measures to have a very positive effect on Ranaz's performance in the coming quarters," concluded Mr. Bourassa-Marineau.
About Ranaz Corporation
Ranaz is a corporation specializing in the manufacture and marketing of protein and dietary supplements. Its mission is to design, develop and market nutritional, protein and dietary supplements under its own corporate brands and concepts, such as Protidiet and ProtiLife, as well as under private labels. For more information about the Company, please visit our website at www.ranazcorporation.com.
Certain statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, may constitute
forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond Ranaz's control.Such risks include but are not limited to: the impact of general economic conditions, changes in the regulatory environment in the jurisdictions in which Ranaz does business, stock markets volatility, fluctuations in costs, and changes to the competitive environment due to consolidation, as well as other risks disclosed in public filings of Ranaz. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. The reader should not place undue reliance, if any, on the forward-looking statements included in this news release. These statements speak only as of the date made and Ranaz is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise.