- 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 ResultsFor 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.