Aug 31 2010
- Net earnings of $410,443 in second quarter of 2010.
- Increase of gross margin from 30.2% for the second quarter of 2009 to 35.2% for the second quarter of 2010.
- Increase of the adjusted operating earnings from $451,424 for the six-month period ended June 30, 2010 as compared to the same period of 2009.
Ranaz Corporation ("Ranaz") (TSX-V: RNZ), a company specializing in the manufacturing and marketing of protein and dietary supplements, reported its results today for the second quarter ended June 30, 2010.
The Company's main focuses in 2010 is to continue to streamlining its production costs and operating expenses. As we see in the results, the gross margin for the first half of 2010 represent 32.2% as compared to 28.3% for the same period of 2009. This increase of the margin reflects the efforts in the reduction of costs. The operating expenses for the six-month periods ended June 30, 2010 totalled $2,584,326 as compared to $ 2,851,994 for the same period of 2009, a direct effects of the better control of the expenses.
In the next quarters, the Company will now focuses on the strategy to increase the sales. We will concentrate in 2010 to have a better penetration of market in our actual customers. We also accentuate the development of new customers in all of our markets.
Sales for the second quarter of 2010 totalled $5.1 million as compared to $5.7 million in the same quarter of 2009, decrease of $0.6 million or 9.5%. Sales for the first six months of 2010 totalled $9.3 million, down of $0.7 million or 6.6% as compared to the same period of 2009. The sales for Protidiet and ProtiLife are virtually unchanged for the 2010 periods as compared to the 2009 periods presented. The sales for the bar line private label decreased because during the transition period in 2009, the Company took that opportunity to eliminate the low margin products. This elimination have a temporary negative impact on sales but a positive impact in gross margin.
Gross profit totalled $1.8 million for the three-month period ended June 30, 2010 as compared to $1.7 million for the same quarter of 2009, and represented 35.2% and 30.2% of sales respectively for these quarters (gross margin). For the six-month period ended June 30, 2010, gross profit was $3.0 million or 32.2% of sales compared to $2.8 million or 28.3% of sales for the same period in 2009. Since the beginning of 2010, the Company has a better control on the production costs and the effort to increase the productivity level begins to give dividends. The nominal increase in gross margin percentage for the first quarter of 2010 compared to 2009 and the first half of 2010 as compared to the same periods of 2009 was also due to change in product and market sales mix.
The net earnings for the quarter ended June 30, 2010 amounted to $410,443 or $0.007 per share, compared to $368,108 or $0.008 per share for the second quarter of 2009 representing an increase of 11.5%. The net loss for the six-month period ended June 30, 2010 was $33,667 or $0.001 per share compared to a net earnings of $177,862 or $0.004 per share for the first half of 2009.
The adjusted operating earnings for the quarter ended June 30, 2010 amounted to $571,902 or $0.010 per share, compared to an adjusted operating earnings of $214,607 or $0.005 per share for the second quarter of 2009 representing a growth of 166.5%. The adjusted operating earnings for the first six-month period ended June 30, 2010 amounted to $424,604 or $0.007 per share, compared to an adjusted operating loss of $26,820 or $0.001 per share for the first half of 2009 representing a growth of 1683.2%.
Source: RANAZ CORPORATION
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