VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 15, 2004) - Imperial Ginseng Products Ltd. (TSX VENTURE:IGP) For the three-month period ended September 30, 2004, the Company reports revenues of $1,197,259 and net loss of $121,341 or $0.01 loss per share. This compares to revenues of $154,578 and net income of $141,825 or $0.05 loss per share for the same period in the prior year.
The international ginseng market has softened and ginseng buying activities have slowed down since the Spring of 2004. Consequently, the Company did not sell out its entire fall 2003 harvest until the first quarter of fiscal 2005. Sales revenue in the first quarter of fiscal 2005 of $1.19 million was comprised of approximately 40,000 pounds of root inventory carried over from the fall 2003 harvest, and approximately $0.3 million in value-added products sales. Sales revenue in the first quarter of fiscal 2004 of $0.15 million was composed entirely of value-added product sales. Gross profit for the Company also increased in the first quarter of fiscal 2005, to $0.15 million, due to higher sales of ginseng root and value-added products.
General and administrative expenses increased to $0.25 million, up 14% from the same period in the prior year, despite lower interest and debt servicing costs. This increase was mainly due to higher marketing costs for root and value added products, as well as increased spending on business development.
As in the prior years, the Company commenced its planting and harvesting activities in the first quarter of fiscal 2005. Due to a soft ginseng market and the much-strengthened Canadian dollar, management expects ginseng root prices will be further depressed before they recover in fiscal 2006.
This press release may contain forward-looking statements that reflect the Company's current expectation regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including, but not limited to the success of the Company's horticultural operations and the strength of the economies and currencies of Asian countries. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to the forward-looking statements. The corporation disclaims any obligations to update these forward-looking statements.