/CNW/ – Canyon Creek Food Company Ltd. (Canyon Creek), a food processing company listed on the TSX Venture Exchange under the trading symbol CYF, is pleased to announce its first quarter of fiscal 2010 results. Listed below are some of the highlights of the quarter:
Sales declined in Q1 vs. previous year by $411,113 or 35% ($760,220
compared to $1,171,333 in the prior year). This decrease in sales can
be traced to softness within the retail business and a discontinuation
of a co-packing arrangement with a larger food manufacture.
– Gross Profit
The gross profit margins declined for Q1 fiscal 2010 vs. Q1 fiscal
2009 (12.8 % vs.15.0% 1st quarter year ago). The gross profit declined
from $175,797 to $97,346. This can be attributed to lower revenue to
cover the fixed cost portion of operating costs.
– Net Loss
The net loss for Q1 is $296,352. This compares to a $196,288 net loss
in Q1 previous year. This again is driven by the decline in revenue
for the quarter. Canyon Creek continues to work on driving
efficiencies and has continued to reduce its staffing requirements.
Terence Alty, President, states, The Company will continue to primarily focus on building its presence in the retail sector. It is the companys belief that this sector will offer the greatest return on capital invested and secondly build corporate awareness within a large consumer base. We believe that the relentless focus on reducing our cost base will result in higher margins and stronger financial performance for the balance of fiscal 2010. Through open dialogue and collaboration with our customers we look forward to delivering superior innovative food products that give consumers what they really want: Favorite Foods Made Easy.
Canyon Creek is a food processing company based in Calgary and Edmonton, Alberta providing fresh soups and other prepared food products for todays health conscious consumer. The company provides its fresh food product line to both grocery retailers and a broad range of food service establishments such as restaurants and institutions through out Canada.
This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under Canyon Creeks 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 the 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 this press release.