- Revenues increased 275% over Q2 2011 to a record $1,466,650
- Achieved operational profitability in Q2
VANCOUVER AND MESA, AZ, Aug. 14,
2012 /PRNewswire/ - Asantae Holdings International Inc.
(TSXV: JVA, OTC PINK: ASNHF) ("Asantae" or the "Company"), a
producer and marketer of innovative nutritional products through a
network of independent distributors, today reported its
Q2 2012 financial results.
Dan Lundell, Asantae's CEO,
stated, "We are extremely pleased with our Q2 results in which we
achieved our first operationally profitable quarter along with
record revenues. Last year we announced our plans to
fundamentally change Asantae and improve all areas of the Company
and our vision has come to fruition. The results we have seen
in Q2 are attributable to our flagship product RealW8™ along with
several key operational improvements. We anticipate continued
progress in our financial and operational performance throughout
the remainder of 2012."
Summary of Financial Results
For the three months ended June 30, 2012 ("Q2 2012"), the Company reported
revenues of $1,466,650 compared to
$533,524 for the same three-month
period of 2011 ("Q2 2011") representing an increase of 275%.
RealW8™ accounted for $1,289,410 of
sales in Q2, representing 86% of total revenues. For the six months
ended June 30, 2012 revenues were
$2,340,922, representing an increase
of 113% over revenues of $1,101,312
for the comparable period of 2011.
The consolidated comprehensive loss of
$21,813 for Q2 2012 (which included
$64,212 of non operating expenses)
was significantly less as compared to $392,992 for Q1 2011. The increased revenues and
reduced comprehensive loss was directly attributable to the
Company's strong network growth in the reporting period. For the
six months ended June 30 2012 and
2011, the comprehensive loss was $291,416 and $1,376,476 respectively.
Gross margins increased dramatically in 2012. In
Q2 2012 gross profit was $1,141,247
(or 78%) compared to $313,953 (or
59%) for the comparable period of 2011. This is a direct result of
improved margins from RealW8™ and improvements and efficiencies in
the supply chain. Gross margin for the six-month period ended
June 30, 2012 was $1,789,572 (or 89%) compared to $601,713 (or 55%) for the same period of
2011.
Operating expenses (general and administrative)
decreased slightly (as measured in real dollars) in Q2 2012
compared to Q2 2011 ($397,689
compared to $430,529 respectively),
but operating expenses decreased dramatically as a percentage of
revenue (27% in 2012 compared to 81% in 2011). This reduction
in operating expenses was a result of management's continued fiscal
discipline during a period of dramatic revenue growth. For the six
months ended June 30, 2012, general
and administrative expenses were $926,926 compared to $885,839 for the same period of 2011.
About Asantae
Asantae Holdings International Inc. (www.asantae.com) is a
producer and marketer of innovative nutritional products through a
network of independent distributors (Asantae Independent
Affiliates). Asantae's flagship product RealW8™ addresses the
primary threat to public health in the industrialized world;
overweight and obesity. Asantae's approach to this threat is
based on a body of research related to the brain chemistry of
addiction, chronic low-grade inflammation and oxidative stresses
which, according to scientific and medical research, are the
underlying conditions for most modern epidemic diseases (obesity,
heart disease, diabetes, stroke, some cancers, etc.). According to
Market data Enterprises, Inc., the U.S. weight loss market alone is
estimated at $60.9 billion per
year.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward Looking Statements - Certain information in this news
release is forward-looking within the meaning of certain securities
laws, and is subject to important risks, uncertainties and
assumptions. This forward-looking information includes, among other
things, information with respect to the Company's beliefs, plans,
expectations, anticipations, estimates and intentions, including
the listing and trading of the Company's common shares on the
Exchange. The words "may", "could", "should", "would",
"suspect", "outlook", "believe", "anticipate", "estimate",
"expect", "intend", "plan", "target" and similar words and
expressions are used to identify forward-looking information. The
forward-looking information in this news release describes the
Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such
forward-looking information may differ materially from actual
results or events. Material factors which could cause actual
results or events to differ materially from such forward- looking
information include, among others, the Company's ability to develop
new products which will receive market acceptance, to receive
market acceptance in new markets outside the United States, to engage and retain
qualified key personnel, employees and affiliates, to obtain
capital and credit and to protect its intellectual property
rights.
The Company cautions that the foregoing list of material factors
is not exhaustive. When relying on the Company's forward-looking
information to make decisions, investors and others should
carefully consider the foregoing factors and other uncertainties
and potential events. The Company has assumed a certain
progression, which may not be realized. It has also assumed that
the material factors referred to in the previous paragraph will not
cause such forward-looking information to differ materially from
actual results or events. However, the list of these factors is not
exhaustive and is subject to change and there can be no assurance
that such assumptions will reflect the actual outcome of such items
or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE
REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS
NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH
DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING
INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY
OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE
TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
SOURCE Asantae Holdings International, Inc