The Skor Food Group Inc. suffers $1.9 million loss in fiscal 2009

TORONTO - Integrated food service company The Skor Food Group Inc. (TSXV: SKF) swung to a loss in fiscal 2009, citing a challenging year in the manufacturing and wholsesale food business.

The company posted a loss of $1.9 million or seven cents a share for the fiscal year ended Aug. 31, compared with a profit of $439,919 or two cents a share in fiscal 2008.

Revenues were $143.8 million, down slightly from $144 million last year.

Nevertheless, the company said it entered fiscal 2010 in a strong financial position with cash and cash equivalents of $3,282,438 and working capital of $7,574,472.

"The 2009 fiscal year was challenging in the manufacturing and wholesale food business," president and CEO Vince Capobianco said in a statement. "However, our core food service business was strong, with organic growth in excess of six per cent."

"As reflected in this years financials, management closed all underperforming wholesale marketplace units and took all necessary provisions and writedowns where required in both the wholesale and manufacturing businesses," Capobianco added.

"These measures, along with a back to basics focus on growth and earnings, will ensure the company is well positioned to increase shareholder value."

SKOR is a vertically integrated, full service wholesale food supplier to Ontario's food service and independent retail industries.

Its shares last traded Wednesday at 29.5 cents on the TSX Venture market.