Ranaz reports its results for the third-quarter ended September 30, 2009

Nov 27 2009

Ranaz Corporation ("Ranaz") (TSX-V: RNZ), a company specializing in the manufacturing and marketing of protein and dietary supplements, reported its results today for the third quarter ended September 30, 2009.

Sales for the third quarter of 2009 totalled $4.6 millions as compared to $4.9 millions in the same quarter of 2008. Sales for the first nine months of 2009 totalled $14.6 million, down of $1.3 million or 8.2% as compared to the same period for 2008. The sales for Protidiet increased compared to the same quarter of 2008 due to the higher demand for our products in United States. The sales for ProtiLife increased, compared to the same quarter of 2008. The sales for BarTech decreased since the stopping of the production in mid February for the transfer of our activities at the St-Eustache plant and a delay to reach the complete productivity level since the resumption of the production.

Gross profit totalled $1.0 million for the three-month period ended September 30, 2009 as compared to $0.8 million for the same quarter of 2008, and represented 22.3% and 16.6% of sales respectively for these quarters. For the nine-month period ended September 30, 2009, gross profit was $3.9 millions or 26.4% of sales compared to $4.0 millions or 25.2% of sales for the same period in 2008.

"I'm proud of the decrease of Ranaz's net loss of $1,952,445 as compared to 2008 after 9 months. It just highlights our effort to continue to make progress toward profitability." said Jean Bourassa-Marineau, President and founder of Ranaz."

The Company incurred a net loss of $699,820 or $0.014 per share in the third quarter, compared to a net loss of $878,738 or $0.023 per share last year, representing a diminution of 20.4%. The lower loss was mainly attributable to the drop of selling and administrative expenses of 8.8%.

Consolidated cash-flow

Cash flow use from operating activities totalled $861,783 for the third quarter ended September 30, 2009 and a use of $1,670,400 for the first nine months of 2009, compared to $997,952 and $3,349,964 used in the corresponding three and nine-month periods in 2008.

Changes in non-cash from working capital items were $363,607 in the third quarter of 2009 and $281,790 used in the same quarter of 2008. These changes consisted mainly of decreases in accounts receivable, inventories and prepaid expenses, offset by decreases in accounts payable and accrued liabilities. The decrease of account receivable is related to further collection effort and the decrease of inventories is due to a better management of the inventory level both in the objective of an increased of cash flows.

Outlook

"As mentioned in the outlook section of the press release announcing the results of our last quarter, it was our priority to achieve an increase of our liquidities, which we achieved with our private placement. Following the private placement, we were able to use this cash to reduce our accounts payable and accrued liabilities." added Mr. Bourassa-Marineau.