CANADA: Leading Brands posts revenue drop
Leading Brands has posted a loss in its second quarter figures due to several changes made during the latter part of last year and Q1 of 2007.
The company said today (10 October), that due to stopping its third-party distribution, closing its Vancouver plant and ending its Monster energy drinks line, it reported a loss of US$1.5m compared to a profit of $320,000 at this time last year. The company added that the changes contributed to about $8m in revenue, but the installation of new equipment in its Edmonton plant also contributed to the revenue drop.
Total revenue fell 50% from $14.5m to $7.2m, the company said.
Leading Brands chairman and CEO Ralph McRae said: "Exiting those areas was the primary cause of the quarter over quarter decrease in gross revenues. There is much that we are doing to accelerate our branded sales growth. We were caught a little flat-footed with the loss of Monster going into the summer, but significant recent chain store listings for Stoked energy drink in Canada are dramatically increasing the presence and pull of that brand."
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