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Arrowhead Water Products Ltd is pleased to report its consolidated financial and operating results for the fiscal year ended 30 September 2007.
Highlights include:
Gross profit increased to $3,581,557 from $3,336,976
Revenue increased to $8,996,269 from $8,834,432
Cash flow from operations decreased to $992,742 from $1,065,185
Sales to retail distributors increased from $5,830,319 to $6,541,639
Incurred a loss from operations for the year of $498,867 prior to loss on sales of assets or impairments.
Arrowhead is engaged in the production, distribution and sale of large format (15 litre and 18.9 litre) bottles of drinking water in Western Canada. Arrowhead's primary distribution channels include the Western Canadian retail and wholesale grocery market (currently 71% of total revenues).
Over the past year, the company continued to position itself to grow the new 15 litre channel. The 15 litre business has increased the company's revenues and bottled water volumes. The new 15 litre bottles are currently being produced from the company's plant in Edmonton, and are a lighter, crushable and blue box disposable PET bottle. The single-use bottle is 100% recyclable and compatible with any water cooler.
The company advises that, as noted in the Financial Statements and MD&A, it has been working to increase profitability as its primary business goal. As a result of tightening cost controls and other costs, Arrowhead has found it necessary to cease to provide products to one of its major retail accounts in Western Canada. This will allow the company to better service its other major retail and wholesale customers, while expanding its new 15 litre bottle business.
*About Arrowhead Water*
Arrowhead Water is Canada's largest Canadian-owned, publicly traded water company which is engaged in the production, sale and distribution of large format (15 and 18.9 litre) bottled drinking water. Arrowhead produces and delivers bottles of reverse osmosis, distilled and natural spring water to the Western Canadian retail and wholesale market. Arrowhead remains committed to continually improve its level of service to its customers and to provide positive returns to its shareholders.
For complete disclosure of Arrowhead's September 30, 2007 year-end financial results and Management's Discussion and Analysis ("MD&A"), please go to <<1>">www.sedar.com]<1> and view documents listed under Arrowhead Water Products Ltd.
<1>: http://www.sedar.com