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In 2006, SMART Canola Oil was launched in collaboration with Sunora Foods, Canada. Currently, APAG is diversifying with the introduction of the SMART range of premium quality sauces. APAG strives to deliver excellence at all levels.
| Reply to Jimjones1972 - Msg #6078 - 11/28/2017 18:41|
Sunora Foods Q3 Results ( Ending September 30th 2017 )
All Information Below Can Be Found At www.sedar.com
Common Shares: 42,254,332
Retail Shares Available: 12,254,332
Insider/Institutional Holdings: 71% total, as per information circular. CEO holds 52%
Balance Sheet For Q3
Accounts Receivable: $992,672
Prepaid Expenses: $11,011
Goods & Services Tax Recoverable: $7,331
Income Tax Recoverable: $141,767
Deferred Tax Asset: $159,545
Total Assets: $4,804,184
Accounts Payable: $852,584
Customer Deposits: $56,328
Total Liabilities: $908,912
Quarter – Sales – Profit
Q1 2017 - $3,480,230 - $55,560
Q2 2017 - $3,164,688 - $82,525
Q3 2017 - $3,396,872 - $20,118
Year – Sales – Profit/(Loss) – Additional Information
2017(Q1-Q3) - $10,041,788 – ($156,499) –Loss from $434,000 settlement(2015 Dispute)
2016 - $12,254,101 - $282,794 - Currency loss of $34,000 or else net income was stable
2015 - $10,815,959 - $502,182 - Net income of $200,000 affected by currency exchange
2014 - $13,235,038 - $189,073 - Listing expenses incurred from merger with capital pool
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 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.
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.
Sunora had 14% higher sales for the nine-month period ended September 30, 2017 than the comparative nine- month period. Sales were positively impacted by stronger results in the United States and Canada and continued positive momentum overseas.
The loss and comprehensive loss for the nine months ended September 30, 2017 was primarily the result of the settlement of a trading dispute. The income from operations before taxes and the claim was $201,643 compared to $282,583 for the same period of 2016. Although sales were 14% higher, gross margin declined from 8.9% to 7.0% in this nine-month period. Gross margin percentage declined because of a higher proportion of bulk oil sales.
The legal settlement arises from a statement of claim filed against the Corporation in 2015 by one of its vendors, who alleged that Sunora wilfully did not accept deliveries of soybean oil pursuant to a contractual arrangement. The vendor claimed USD $506,798 in damages relating to losses allegedly suffered. Sunora denied responsibility for such a claim. However, on the recommendation of legal counsel, management settled the claim for CDN $390,000 to be paid by August 31, 2017. The claim settlement comprises a full provision for the claim including already incurred and expected legal fees.