EDMONTON, ALBERTA – PLANET ORGANIC HEALTH CORP (TSX Venture Exchange - POH), Canada’s leading natural and organic foods supermarket chain announces their financial results for the year ending June 30, 2005. Net income increased 140.3% to $193,606 versus a loss of ($480,553) for fiscal 2004. Sales increased by $15.1 million to $27.2 million for the year. Compared to $12.1 million for the 12-month period last year this represents an increase of over 120%. These increases were driven by acquisitions, store expansions, and same-store sales growth.
“I’m pleased to be able to report that we are now achieving excellent overall results in each division”, reports Darren Krissie, CFO. “Our strategy of build-outs and acquisitions will continue to fuel improved earnings and cash flow”.
Subsequent to the year-end, the Company added an additional 14 franchised locations to the Sangster division. “More stores will result in improved efficiencies and, of course, additional revenues,” said franchise division president Roy Sangster. “Our division will continue to search for key strategic locations.”
The Planet Organic Market division generated 65.6% total growth over last year, which included 23.6% comparative store sales growth. “Our growth strategy of acquisitions, renovations and new store developments has proven successful and we’ll continue with it” reports Mark Craft, division president.
Last month Planet Organic Market announced the signing of an offer to lease a second location in Calgary, Alberta. Craft said that the company continues to seek out further growth opportunities in B.C., Alberta and Ontario.
Summary of Fiscal 2005 Annual Financial Results
| |
Fiscal 2005 |
| Sales |
$27,212,179 |
| Cost of goods sold |
$17,003,480 |
| Gross profit |
$10,665,483 |
| Operating expenses |
$9,938,985 |
| Income from operations |
$726,498 |
| EBITDA |
$1,182,068 |
| Income before tax |
$470,906 |
| Net income |
$193,906 |
EBITDA reported above is a non-GAAP measure and is earnings before interest, taxes, depreciation, amortization and stock-based compensation.
For further financial information and a copy of our annual report, please visit our investor link at www.planetorganic.ca/invest/howtoinvest.htm
ABOUT PLANET ORGANIC
Planet Organic Health Corp (POHC) is a natural products industry company, comprising manufacturing, distribution and retail. It operates natural food supermarkets in Edmonton, Victoria, Calgary, Port Coquitlam and Halifax under the Planet Organic Market banner. In addition the company operates 49 natural health outlets under the Sangster’s Health Centre banner. Another POHC company, Trophic Canada is the country’s leading manufacturer of natural supplements. Planet Organic’s retail stores provide its customers with the convenience of one-stop shopping by offering a broad product selection in all merchandise categories. POHC’s objective is to consolidate the fragmented natural and organic foods industry in Canada via acquisitions, mergers and new retail operations.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release contains forward-looking information. Actual results may vary significantly from estimates.
For further information, please contact:
Planet Organic Health Corp.
Darren T. Krissie, VP Corporate Development, CFO
Edmonton, Alberta
T6E 4E1
Telephone: (780) 719-4667