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CANADA: Clearly Canadian slides in 2004

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Clearly Canadian has reported consolidated financial results for the fiscal year 2004.

Net loss from operations for the 12 months to 31 December was US$5.086m or US$0.66 per share on sales revenues of US$11.586m. In the corresponding period of 2003, the company made a loss of US$3.713m or US$0.55 per share on a basic and diluted basis on sales revenues of US$13.270m.

Operating loss (Gross Profit less Selling, General and Administrative expenses) for the year was US$2.049m or US$0.26 per share compared to US$2.244m or US$0.33 per share for 2003.

The year over year decrease in revenue was blamed on a decrease in sales of brand Clearly Canadian and the company's licensed Reebok products, partially offset by an increase in private label business. In 2003, Reebok International Inc. elected not to renew its licensing agreement with the company to manufacture, distribute and sell certain Reebok products. Sales in 2004 included a depletion period to sell off the remaining Reebok branded products.

Clearly Canadian's private label business experienced significant growth in 2004, as compared with the same period in 2003, and the company has plans to cultivate further growth in its private label business in 2005.

Going forward, the company said it will need to secure additional financing in order to support its operations and relations with existing suppliers and vendors and to allow for more aggressive marketing and sales activities for its beverage products.

"In order to successfully and effectively continue with the implementation of the company's corporate plan for 2005, it will be necessary to obtain funding that will enable us to employ more aggressive field marketing and sales activities designed to broaden distribution and availability of brand Clearly Canadian and allow us to explore alternatives to further utilise the valuable Clearly Canadian brand name," said Clearly Canadian's president and CEO Douglas Mason.

"In response to these needs, the company intends to present at its shareholders meeting on 29 April a corporate restructuring and refinancing plan that we believe will assist in our efforts to achieve our goals and concurrently enhancing shareholder value."


Sectors: Water

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