Business
Canyon Creek Food Company LTD. Announces Q1 Fiscal 2008 Results
CALGARY, Nov. 2 /CNW/ - Canyon Creek Food Company LTD ("Canyon Creek") a food processing company ...
About this update from Canyon Creek Food Company Ltd.
[{"type":"text","content":"\n\n\n\nCALGARY, Nov. 2 /CNW/ - Canyon Creek Food Company LTD ("Canyon Creek") a\nfood processing company listed in the TSX Venture Exchange under the trading\nsymbol "CYF" announces Q1 of Fiscal 2008 results. Listed below are some of the\nhighlights of the quarter.\n\n\nSales\n\n\nCanyon Creek sales declined by 14.9% in Q1 of fiscal 2008 vs. in Q1 of\nfiscal 2007. This drop in sales can be primarily traced to the discontinuation\nof lower margin foodservice customers which accounts for approximately\n$630,000 in reduction of sales for this quarter or a 92% decline in the\nfoodservice business. Conversely, the retail business that Canyon Creek is\nfocusing on grew $456,000 or 78%.\n\n\nGross Profit\n\n\nThe gross profit margins declined from 14.7% to 10.3%. This decline is\nmainly attributed to a product quality issue during the quarter which cost the\ncompany $35,000 or 3.3% in gross profit margin. The company also had lower\nsales available to cover the fixed cost components of the cost of goods sold.\n\n\nNet Loss\n\n\nThe net loss for Q1 in fiscal 2008 increased by approximately $125,000\ncompared to Q1 in fiscal 2007. The increase in losses can mainly be attributed\nto a decline in sales and gross profit, an increase in interest paid as a\nresult in increases in shareholder demand loans and equipment loans, an\nincrease in investment in the quality assurance, and a timing difference on\nyearly professional auditing fees.\n\n\nCanyon Creek will continue to primarily focus on building its presence in\nthe retail sector. It is the company's belief that this sector will offer the\ngreatest return on capital invested. Canyon Creek's business strategy is to\nincrease sales by expanding distribution of both private label and branded\nproduct in new and existing markets with innovative food concepts, organic\ncapability and stronger brand positioning.\n\n\nThis news release contains forward-looking statements which involve known\nand unknown risks, delays and uncertainties not under Canyon Creek's control\nwhich may cause actual results, performance or achievements of Canyon Creek to\nbe materially different from the results, performance or expectations implied\nby these forward-looking statements.\n\n\nThis press release shall not constitute an offer to sell or the\nsolicitation of an offer to buy securities in...