|Sunora Foods Q1 2018 Results (Ending March 31st 2018)|
Financials + Management Discussion. All Information can be found on Sedar.
Common Shares: 42,254,332
Insider/Institutional Holdings: 71% total, as per information circular. CEO holds 52%
Accounts Receivable: $1,798,422
Prepaid Expenses: $21,035
GST Recoverable: $9.770
Income Tax Receivable: $72.915
Total Assets: $5,286,633
Accounts Payable: $1,311,140
Customer Deposits: $87,704
Total Liabilities: $1,398,844
Cost Of Sales: $3,654,250
G&A Expenses: $134,698
Net Income: $106,130
Earnings Per Share: $0.002
Sunora had 13% higher sales for the three-month period ended March 31, 2018 than for the comparative three-month period. Most of this increase was attributable to increased overseas sales. The income from operations before taxes for the first quarter of 2018 was $147,064 compared to $86,129 for the same period of 2017. Sales were 13% higher and gross margin increased to 7.2% from 6.7% achieved in the first quarter of 2017. Gross margin percentage increased because of an increased proportion of packaged oil sales
Sunora's current assets consist of cash, accounts receivable, prepaid expenses, inventory and income tax recoverable. Cash is held for working capital requirements and to fund expansion costs for new markets and customers. A policy of conserving cash is rigorously followed by management in order to sustain operations and not hamper its marketing strategies. Accounts receivable increased by 38% but is in a comparable range to that of December 31, 2017, due to continuing efforts by management to control the Company’s credit and collections. The 38% decrease in inventory is due to a change in the mix of customer orders, with a decline in smaller orders shipped from warehouses.
The net income for first quarter of 2018 was $106,130 compared to $20,704 and $20,118 for the fourth and third quarters of 2017, respectively. The loss for the quarter ended June 30, 2017 of $243,178 was due to the settlement of the trade dispute. The increase in the net income for the first quarter is due to increased International sales, as well as higher gross margin and foreign exchange gains.
Sunora maintains good relationships with customers in North America and overseas. These relationships continue to drive demand for food oil products from Canada, with Sunora well positioned to meet existing and additional demand. Management has focused on increasing visibility in emerging markets, with a specific focus on the economies in Asia, with a view to meet this increased demand for Canadian manufactured food oil products. Sunora’s operations are impacted by geopolitical situations that may hold up deliveries as was experienced in recent quarters. As the middle class in these emerging economies demands higher quality and healthier foods, Sunora is well positioned to meet additional demand.
Management is actively identifying and analyzing operations that might increase gross margins for the Company. Prospective businesses considered include packagers and suppliers in the food oil industry. With each operation identified, a detailed review and analysis is undertaken by management. Specific focus is currently on packagers with operations in Canada that are looking for a strategic partner to expand international operations. Management is also actively considering possible new products and trading opportunities that may benefit from its contacts in domestic and international markets. With the continuing positive momentum in the United States economy and new customers being added in Asia, Sunora is well placed for the future.
| Reply to Jimjones1972 - Msg #6169 - 05/29/2018 14:39|
Sunora Foods earns $106,130 in Q1 2018
2018-05-29 09:19 MT - News Release
Mr. Steve Bank reports
SUNORA FOODS ANNOUNCES 2018 QUARTER 1 FINANCIAL RESULTS
Sunora Foods Inc. has released its financial statements and management's discussion and analysis for the three-month period ending March 31, 2018. These filings are available for review on SEDAR and the company's website.
During the three-month period ended March 31, 2018, Sunora's highlights include the following:
Revenue of $3,936,012 for the 2018 Quarter 1 versus revenue of $3,480,230 for the comparable 2017 first quarter, an increase of 13.1%;
Net Income for the three-month period ending March 31, 2018 of $106,130 versus net income of $66,560 for the comparable period ending March 31, 2017, an increase of 59.5%;
Income from operations for the three-month period ending March 31, 2018 of $147,064;
International sales of $910,522 for the 2018 first quarter versus international sa les of $526,157 for the comparable period, an increase of 73.1%;
Cash and Cash Equivalents of $3,118,936 for the period ending March 31, 2018;
After the end of the first quarter, Sunora initiated a significant commodity-related business with a major Asian company in the agricultural sector.
Gross margin 281,762
Income before taxes 155,334
Net income 106,130
Earnings per share 0.0025
About Sunora Foods
Sunora Foods is a Calgary, Alberta based food oil entity trading and supplying canola oil, corn oil, soybean oil, olive oil, and specialty oils in Canada and internationally under the "Sunora", "Sunera" and numerous private label brands.
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