CALGARY, Nov. 2 /CNW/ - Canyon Creek Food Company LTD ("Canyon Creek") a food processing company listed in the TSX Venture Exchange under the trading symbol "CYF" announces Q1 of Fiscal 2008 results. Listed below are some of the highlights of the quarter.
Sales
Canyon Creek sales declined by 14.9% in Q1 of fiscal 2008 vs. in Q1 of fiscal 2007. This drop in sales can be primarily traced to the discontinuation of lower margin foodservice customers which accounts for approximately $630,000 in reduction of sales for this quarter or a 92% decline in the foodservice business. Conversely, the retail business that Canyon Creek is focusing on grew $456,000 or 78%.
Gross Profit
The gross profit margins declined from 14.7% to 10.3%. This decline is mainly attributed to a product quality issue during the quarter which cost the company $35,000 or 3.3% in gross profit margin. The company also had lower sales available to cover the fixed cost components of the cost of goods sold.
Net Loss
The net loss for Q1 in fiscal 2008 increased by approximately $125,000 compared to Q1 in fiscal 2007. The increase in losses can mainly be attributed to a decline in sales and gross profit, an increase in interest paid as a result in increases in shareholder demand loans and equipment loans, an increase in investment in the quality assurance, and a timing difference on yearly professional auditing fees.
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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