CALGARY, Oct. 9 /CNW/ - Canyon Creek Food Company LTD ("Canyon Creek") a food processing company listed in the TSX Venture Exchange under the trading symbol "CYF" announces Fiscal 2007 annual results. Listed below are some of the highlights of the year.
Sales
Canyon Creek sales declined by 13.8% in fiscal 2007. This drop in sales can be primarily traced to the discontinuation of lower margin foodservice customers which accounts for approximately $ 2.1 million reduction in sales for this year or a 59% decline in the foodservice business. Conversely, the retail business that Canyon Creek is focusing on grew 42%.
Gross Profit
The gross profit declined from 12.4% to 10.0% and the net loss for the year was $1,328,292 vs. $777,615 in fiscal 2006. This decline is attributed to lower sales available to cover the fixed components of the cost of goods sold.
Canyon Creek will continue to primarily focus on building its presence in the retail sector. It is the company's belief that this sector will offer the greatest return on capital invested. Canyon Creek's business strategy is to increase sales by expanding distribution of both private label and branded product in new and existing markets with innovative food concepts, organic capability and stronger brand positioning.
This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under Canyon Creek's control which may cause actual results, performance or achievements of Canyon Creek to be materially different from the results, performance or expectations implied by these forward-looking statements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.
The TSX Venture Exchange has neither approved nor disapproved of the
contents of the press release.
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