Beverage producer Leading Brands said today that it had reduced its third quater losses from last year, despite a fall in revenues. The coany said that net loss of reached US$434,000 versus US$570,000 in the same quarter last year.

Revenues for the quarter were US$7,022,000 compared to US$9,370,000 in Q3 2003. The reduction in revenue principally resulted from the discontinuance of the Little Debbie's snack cake distribution business; a change in the mix of co-pack products sold that include the company supplying raw materials; and lower sales volumes in the US due to the Company re-building its sales efforts there, a statement said.

For the first nine months of its 2004 fiscal year ended February 28, 2005, the company reported net income of US$475,000 versus a net loss of US$262,000 during the same period last year.

Leading Brands chairman and CEO Ralph McRae said: "The key number for us is the comparative change in net income before taxes, year to date, which is a positive swing of US$2,282,000.

"We continue to see margin improvements in virtually all areas of our company, but most significantly in our US and Canadian branded products and bottling plants. We anticipate that by the first quarter of fiscal 2005 the negative revenue comparison will have been eliminated due to an equalization of the reasons expressed."