SNF.V - Sunora Foods Inc.

Three weeks to go before we see SNF's Q3 results! Level 2 below

LEVEL 2 QUOTE

Market Maker Shares Bid Price Ask Price Shares Market Maker
41,000 0.145 0.160 25,000
49,000 0.140 0.170 20,000
70,000 0.135 0.180 7,000
55,000 0.110 0.190 5,000
1,500 0.085 0.195 11,500
10,000 0.060 0.200 14,500
10,000 0.050 0.205 3,000
5,000 0.040 0.260 2,500
6,000 0.035 0.265 5,000
225,000 0.005 0.330 10,000

 

Here are two radio interviews with Steve Banks. They both talk about expansion into Asia, how the strong US dollar helps the company and other good notes.

http://marketradio.ca/audio/MRCA13/20140604_sunora.mp3

http://thestockradio.com/tsr-audio-interview-steve-bank-ceo-of-sunora-foods-tsx-v-snf-2630.html

 

Sunora Foods Q3 Financial Statement with MD&A (Ending September 30th 2016)

Price: $0.16
Common Shares: 42,254,332
Insider/Institutional Holdings: 71% total, as per information circular. CEO holds 52%

Financials:

Assets
Cash: $3,091,780
Accounts Receivable: $1,233,869
Inventory: $687,014
Prepaid Expenses: $3,911
Income Tax Installments: $74,503
Deferred Tax: $147,974
Total Assets: $5,239,051

Liabilities
Accounts Payable: $1,232,809
Customer Deposits: $99,613
Total Liabilities: $1,332,422

Note: Sales in Q4 2015, Q1/Q2 2016 were affected by a co-packer issue. This meant that Sunora Foods were required to find other means of distribution, hence hurting sales and margins during those 9 months. This is now resolved, see MD&A below. As well, sales are up year over year even after co-packer setback.

Q3 Sales - $3,281,156 ($2,451,477 in 2015)
9 Month Sales - $8,804,308 ($8,452,570 in 2015)

Q3 2016 Net Income - $122,872
Q2 2016 Net Income - $55,615
Q1 2016 Net Income - $24,971
Net Income for 2015 - $502,182 (Q4 was a loss of $54,000 due to start of co-packer issue)
Net Income for 2014 - $189,073
(Company was private until 2014)

MD&A Highlights

In the third quarter of 2016, sales increased 15.7% due to an increase in bulk oil sales in comparison to the second quarter. In the second quarter of 2016, sales had increased 5.5% due to some increase in bulk oil sales in comparison to the first quarter. Sales for the first quarter of 2016 were 12.6% higher than the fourth quarter of 2015. Sales for the fourth quarter of 2015 were 2.6% lower than the third quarter of 2015 due to a decrease in overseas sales. 2015 third quarter sales were 24% lower than the second quarter of 2015; second quarter 5 sales were 18% higher than first quarter of 2015.

Sunora's sales to the United States have recently trended higher in proportion to sales in Canada. Overseas markets are generally continuing to grow, although international sales were adversely impacted in the first six months by short term conditions. Sales in Canada declined in this nine month period compared to the same period last year due to reduced bulk oil shipments in Canada. The growth of sales in emerging markets is due to a trend in greater awareness of healthy food choices in an expanding middle class. Overseas sales are continuing to grow.

Sunora had 4.2% higher sales for the nine-month period ended September 30, 2016 than the comparative nine month period. Sales were somewhat adversely impacted by delivery issues with a key co-packer. The $203,458 of net income and comprehensive income in the nine months ended September 30, 2016 was 63% lower than the same period of 2015. This was primarily a result of a foreign exchange loss of $45,823, as opposed to a foreign exchange gain of $165,229 in the comparative period. Gross margin declined from 11.2% to 8.9% at least partly because of delivery issues with a co-packer.

Cost of sales consists of purchases of crude and refined oil, packaging, freight and custom duties. Sunora achieved a gross margin of 10% in the three months ended September 30, 2016, compared to 12.9% in the three months ended September 30, 2015. Gross margin for the nine months ended September 30, 2016 were 8.9% compared to 11.2% for the nine months ended September 30, 2015. These margins were impacted by delivery issues with a co-packer.

The Company's target Working Capital Ratio (Current Assets divided by Current Liabilities, which is an indicator of its ability to finance its on-going operations) is 2:1. Current Assets comprise cash, accounts receivable, inventory, prepaid expenses and income tax recoverable; Current Liabilities include accounts payable, accrued liabilities and income taxes payable. The amounts of accounts receivable, inventory and accounts payable and accrued liabilities at a point in time are the direct result of sales and purchases and how the Company manages collections, supplier credit and inventory levels, which in turn is manifested in the available cash. At September 30, 2016, the Working Capital Ratio was 3.8:1 compared to 7.4:1 at December 31, 2015. The Company's business has been consistently managed with a strong working capital position which has enabled the Company to operate without debt. Additionally, the current nature of Sunora's operations has enabled it to expand without making capital investments. Therefore, the Company believes it is in a very favourable position to expand in the future.

Outlook

Sunora maintains good relationships with customers in North America and overseas. These relationships continue to drive demand for food oil products from Canada, with Sunora well positioned to meet existing and additional demand. Management has focused on increasing visibility in emerging markets, with a specific focus on the economies in Asia, with a view to meet this increased demand for Canadian manufactured food oil products. Sunora’s operations are impacted by geopolitical situations that may hold up deliveries as was experienced in some recent quarters. As the middle class in these emerging economies demands higher quality and healthier foods, Sunora is well positioned to meet additional demand.

Management is actively identifying and analyzing operations that might increase gross margins for the Company. Prospective businesses considered include packagers and suppliers in the food oil industry. With each operation identified, a detailed review and analysis is undertaken by management. Specific focus is currently on packagers with operations in Canada that are looking for a strategic partner to expand international operations. Management is also actively considering possible new products that may benefit from new domestic and international markets. With the continuing positive momentum in the United States economy and new customers being added in Asia, Sunora is well placed for the future.

 

Sunora Foods earns $122,103 in Q3

2016-11-28 06:10 MT - News Release

Mr. Steve Bank reports

SUNORA FOODS ANNOUNCES QUARTER 3 FINANCIAL RESULTS

Sunora Foods Inc. has filed its financial statements and management discussion and analysis for the fiscal period ending Sept. 30, 2016. These filings are available for review on SEDAR and the Corporation's website.

During the fiscal period ended September 30, 2016 Sunora's highlights include the following:

• -Net Income for the period ending September 30, 2016 of $122,103, the 4 th consecutive quarter of increasing net income.
• -Gross margin for the period ending September 30, 2016 of $328,982 or 10.0% on sales of $3,281,156.
• -Revenue of $3,281,156 for the 2016 Q3 versus revenue of $2,451,477 for the comparable 2015 Q3.
• -Cash and Cash Equivalents of $3,091,780 for the period ending September 30, 2016 versus $2,620,566 at the end of December 31, 2015.
• -Inventory of $687,014 for the period ending September 30, 2016; due to inventory of bulk oil for future orders.
• -Continued development of sales channels in China and Southeast Asia with international sales of $850,414, the highest in the Corporation's history.

Financial Highlights

Period ending September 30, 2016
Sales $3,281,156
Gross Margin $328,982
Income before Taxes$173,103
Net Income $122,103
Earnings Per Share $0.003

About Sunora Foods

Sunora Foods is a Calgary, Alberta based food oil entity trading and supplying canola oil, corn oil, soybean oil, olive oil, and specialty oils in Canada and internationally under the "Sunora", "Sunera" and numerous private label brands.

© 2016 Canjex Publishing Ltd. All rights reserved.

 

The $0.16 to $0.17 range is a 3 year technical resistance price range. Once this breaks, the stock will enter uncharted territory. I don't count the pop we had a few weeks ago because it was very short lived. With the cash on hand and growing sales across the USA and China, it's only a matter of time before SNF increases in price and benefits such as dividends and share buybacks start to kick in.

LEVEL 2 QUOTE

Market Maker Shares Bid Price Ask Price Shares Market Maker
4,000 0.165 0.170 64,500
20,000 0.160 0.185 2,500
20,000 0.150 0.190 5,000
70,000 0.135 0.200 40,000
26,000 0.090 0.205 3,000
20,000 0.085 0.210 4,000
1,500 0.080 0.240 60,000
10,000 0.060 0.250 55,000
5,000 0.040 0.265 5,000
6,000 0.035 0.500 133,000

 

December 2016 company presentation. Keep in mind that SNF has over $3 million in cash with an asset/debt ratio of 4:1 and 71% insider holdings - http://www.sunora.com/assets/docs/ppt/sunora-foods-ppt-dec-2016.pdf

 

LEVEL 2 QUOTE
Market Maker Shares Bid Price Ask Price Shares Market Maker
5,000 0.170 0.180 55,500
8,000 0.155 0.190 4,000
30,000 0.150 0.195 6,000
3,000 0.135 0.240 60,000
3,000 0.125 0.265 5,000
4,000 0.115 0.350 17,500
1,500 0.080 0.500 50,000
10,000 0.060 0.600 9,000
5,000 0.040 -- -- --
6,000 0.035 -- -- --

 

http://www.boardmarker.net/fact sheets and presentations/Sunora Foods January 2017 Fact Sheet.pdf

January 2017 Company Presentation. It's missing the insider holdings amount which is 71%

 

Did another Google search on Sunora Foods and there seems to be a new company based in China that is specifically selling Sunora's Canola oil. Their website was updated on December 20th 2016.

www.nthwell.com

Hebei Northville International Trade Co., Ltd. is advocating the import of health food, leading the kitchen revolution of the professional importers, the company has an experienced professional management team. To provide consumers with natural, safe, green, nutrition, health food and energy saving, environmental protection, fashion kitchen appliances, to create "product traceability, quality excellence, healthy living" consumption concept. Allowing you to simultaneously enjoy the world's high-quality health of a new life.

http://nthwell.com/en/supply_chain.html
SAFE AND RELIABLE SUPPLY CHAIN

Nothwell owns professional imported elite team and lots of overseas branches, from the inspection of place of origin, signing the contract, product quality inspection, overseas transportation, to the strict control of domestic storage, to ensure that each step can be carefully, quickly, and efficiently completed.
Sunora Foods Ltd is a Canadian listed company specializing in production of canola oil.
Besler Foods & Chemicals Corp.is a Turkish sunflower oil production enterprises with 60 years history .

http://nthwell.com/product/canola_oil/productpage.html

 

Sunora Foods estimates Q4 2016 sales of $3.44-million

2017-02-08 07:33 MT - News Release

Mr. Steve Bank reports

SUNORA FOODS ANNOUNCES QUARTER 4 SALES AND CHANGE OF AUDITOR

Sunora Foods Inc. has released unaudited, preliminary fourth quarter sales for the period ending Dec. 31, 2016.

For the three-month period ending Dec. 31, 2016, the corporation had unaudited sales of $3,444,559 versus sales for the fourth quarter 2015 of $2,394,656. Sales were broken down as shown in the attached table.

FOURTH QUARTER 2016 SALES

United States $2,034,864
Canada $427,002
Overseas $982,692

The corporation also announces it has changed its auditor from Collins Barrow Calgary LLP to Calvista LLP Chartered Professional Accountants of Calgary, Alta.

At the request of the corporation, the former auditor tendered its resignation as auditor of the corporation, effective on Jan. 24, 2017, and the board of directors of the corporation appointed the successor auditor as the corporation's auditor, effective Jan. 24, 2017, until the next annual general meeting of the corporation.

There were no reservations in the former auditor's reports in connection with the most recently completed fiscal year (2015) or for any period subsequent to the most recently completed period for which an audit report was issued preceding the date of the former auditor's resignation. There are no reportable events (as that term is defined in National Instrument 51-102, continuous disclosure obligations) between the corporation and the former auditor.

In accordance with National Instrument 51-102, the notice of change of auditor, together with the required letters from the former auditor and the successor auditor, has been reviewed by the audit committee and the board of directors, and has been filed on SEDAR.

About Sunora Foods Inc.

Sunora Foods is a food oil entity trading and supplying canola oil, corn oil, soybean oil, olive oil and specialty oils in Canada and internationally.

© 2017 Canjex Publishing Ltd. All rights reserved.

 

SNF Yearly Revenue/Profit Comparison From 2014-2016

M=Million K=Thousands


2014: Revenue - $13.2M & Net Income - $189K
2015: Revenue - $10.8M & Net Income - $502K (Co-packer issue started in Q4 2015 that hurt sales)
2016: Revenue - $12.3M & Net Income - $350K ( Co-packer issue did not end until Q3 2016)
(Note – 2016 is an estimate based on Q3 results, added with the news release announced today)


2014: Cash - $1.78M – Total Assets - $4.14M – Total Liabilities - $1.07M
2015: Cash - $2.62M – Total Assets - $4.22M – Total Liabilities - $548K
2016: Cash - $3.1M – Total Assets - $5.24M – Total Liabilities - $1.3M (These are Q3 results, not including Q4)

Keep in mind that the CEO owns 52% of the common shares. A Chinese investment group owns 19% of the common shares, so that leaves 29% or 12,253,756 shares held by retail investors.

 

SNF Level 2, not much cheap stock left.

LEVEL 2 QUOTE
Market Maker Shares Bid Price Ask Price Shares Market Maker
4,500 0.170 0.190 50,000
25,000 0.160 0.195 13,500
70,500 0.150 0.200 4,000
64,000 0.145 0.260 60,000
35,000 0.140 0.350 7,000
3,000 0.130 0.500 50,000
3,000 0.125 -- -- --
4,000 0.120 -- -- --
5,000 0.115 -- -- --
5,000 0.110 -- -- --

 

With the approval of CETA today (Trade agreement between Canada and the European Union), Sunora Foods will no longer have any obstacles entering any of the European countries if they so choose to. Management has been opposed to Europe for years because of the very high tariffs and other trade barriers. These will soon cease to exist, thus giving the company more potential customers around the world.

https://www.thestar.com/business/2017/02/15/eu-parliament-approves-trade-deal-with-canada.html

http://cafta.org/wp-content/uploads/2016/06/Canada-EU-Briefing-note_EN.pdf

On Page 1:
Canada’s agricultural exports to the EU totalled an annual average of $2.5 billion between 2011 and 2013, led by wheat, soybeans and other oilseeds, canola oil, frozen fruits and maple syrup. Canadian agricultural exports to the EU currently face high tariff rates, with average EU agricultural tariffs of 13.9 percent.

 

Looks like we can finally move forward here with SNF, that seller at .19 was finally taken out. Well no volume for 3 weeks after some decent trading, means the buyers were there but did not want to pay above a certain price. Finally once the cheap stock stopped coming down, people decided it was best to hit the ask and that's where we are today. Given what SNF has and where they are going, price is undervalued compared to it's peers. But this gap will be made up in the next 80 days when we get year end results, Q1 results and possibly an update with other matters. Europe is a new area for Sunora to trade it's products without any tariffs and that was a huge unexpected bonus.

LEVEL 2 QUOTE
Market Maker Shares Bid Price Ask Price Shares Market Maker
5,000 0.180 0.245 40,000
9,000 0.170 0.250 66,000
25,000 0.150 0.300 60,000
83,000 0.145 0.500 50,000
26,000 0.140 -- -- --
80,000 0.135 -- -- --
3,000 0.130 -- -- --
3,000 0.125 -- -- --
4,000 0.120 -- -- --
5,000 0.115 -- -- --

 

Thanks for posting that. I know that once we get year end results end of April and Q1 2017 end of May, there's no reason why SNF can't be trading in the low 30's with a couple more positive quarters and perhaps some new trade deals.