Edmonton, Alberta / TheNewswire / April 30, 2018 – BioNeutra Global Corporation ("BioNeutra" or the "Company") (TSXV: BGA) is pleased to announce its financial results for the year ended December 31, 2017 (the "Year End"). BioNeutra is a functional and health food and beverage ingredient manufacturer that uses its patented processes to produce isomalto-oligosaccharide ("IMO") which is sold under its trademark VitaFiber(TM).
Year End Selected Financial Results
Fiscal 2017 was another year of strong growth for BioNeutra with revenues of approximately $ 32.14 million which represents a $ 6 million increase over the prior year. This growth was due to significant market and customer demand for its VitaFiber(TM) IMO which is used in various food and beverage products in the key markets of the US, Europe and Canada.
The total Assets of the Company were $ 30.97 million at the end of 2017, compared to $ 36.60 million at the end of the prior year. The decrease in total Asset resulted primarily from the reduction in inventory stemming from: (i) leaner inventory practices and management, and (ii) return of inventory that failed to meet the Company’s standards and specifications. BioNeutra maintains strict quality controls on all imported products which undergo four independent tests to ensure the products meet our strict controls. Any inventory that does not meet the stringent specifications will be returned to the manufacturer. With respect to any inventory returned to the manufacturer, the amount of recovery is not determinable as this time but will be reported in the next quarter. As well, the Company has implemented a new inventory program with all our major clients to bring products to the warehouses using "Just-In-Time" inventory controls.
As of December 31, 2017, the Company had working capital of $ 5.43 million versus $ 7.78 million at the end of the prior year.
The total Liabilities were $ 17.01 million, down from $ 20.81 million in the prior year. The comprehensive loss of approximately $ 900,000 resulted from the translation of the Company’s functional currency (USD) to its presentation currency (CAD). The foreign exchange difference has not been recognized under the Company’s Net Income, but rather under the heading of Comprehensive Income (loss), as the change in foreign exchange rates has little to no direct effect on the present and future cash flow from the Company’s operation. The cumulative amount of the foreign exchange difference may be reclassified as net income.
The Net Loss in 2017 of $ 1.16 million, as compared to the Net Income of $ 1.08 million at the end of the prior year, is a result mainly of the capital expenditures involved the construction the new plant (approximately 36,000 sq. ft.) in Edmonton, Alberta. At this time, test runs have been completed positively and the regulatory certification of the plant is in progress which should be completed by the end of the second quarter of 2018.
A complete copy of the financial statements and Management’s Discussion & Analysis for the year ended December 31, 2017 are available on SEDAR.
BioNeutra is in the business of research and development, production and commercialization of ingredients for nutraceutical, functional and mainstream foods and beverages, with a focus on VitaFiber(TM) IMOs.
The Company’s lead product, VitaFiber(TM), is an advanced functional and health food and beverage ingredient scientifically made from natural agricultural products, is generally regarded as safe (GRAS) by the U.S. Food & Drug Administration, and is European Food Safety Authority and Health Canada approved as a novel food ingredient. VitaFiber(TM) is naturally sweet and lower in calories than regular sugar and is a natural source of dietary fiber as it provides low calorie soluble prebiotic fiber for human digestive health.
The Company produces VitaFiber(TM) using its patented processes that naturally transform starch molecules from agriculture cereal crops including corn, wheat, barley, potato, or tapioca into the functional health molecules of VitaFiber(TM) IMO. The VitaFiber(TM) manufacturing process is based upon a natural enzymatic conversion of starch molecules without any chemical modification involved, making VitaFiber(TM) a natural food and beverage ingredient. VitaFiber(TM) is also non-GMO, vegan-friendly, gluten-free, Kosher and Halal certified and available as certified organic.
The Company’s customers include a mix of small and medium enterprises and a number of high-profile food and beverage manufacturers in Canada, the U.S., Europe, the United Kingdom, and Mexico. VitaFiber(TM) is also available for retail purchase across the globe through Amazon.com and other direct-to-consumer retailers.
Further information about BioNeutra is available on the Company’s website at www.bioneutra.ca and the SEDAR website at www.sedar.com.
For further information on BioNeutra, please contact:
Dr. Jianhua Zhu
President and Chief Executive Officer
Tel: (780) 466-1481 (Ext. 111)
This press release may include forward-looking information within the meaning of Canadian securities legislation concerning the business of BioNeutra. Forward-looking information is based on certain key expectations and assumptions made by the management of BioNeutra. Although BioNeutra believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because BioNeutra can give no assurance that they will prove to be correct. Forward-looking statements contained in this press release are made as of the date of this press release. BioNeutra disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or any applicable securities laws or any state of the United States and may not be offered or sold in the United States or to the account or benefit of a person in the United States absent an exemption from the registration requirements.
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