- 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.
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