Clearly Canadian has said that its losses in the first quarter fell as revenues increased by 70% year-on-year.

Losses for the quarter ended 31 Mach fell to C$1.1m (US$1.1m) from C$1.5m on the back of revenues which rose to C$2.5m.

The Toronto-based food and drink company said that this increase was the result of acquisitions made in the first half of 2007, when it purchased healthy snack foods and baby foods units.

Bobby Genovese, chairman and CEO, said that Clearly anticipated a positive cash flow in 2009 and beyond.

"We continue to be on track to meet our revenue projections for existing operations of approximately C$16m for 2008 - a 50% plus increase over 2007 - and are looking at numerous promising acquisition opportunities," he said.

"We will continue to pursue opportunities to expand our footprint into the natural and organic marketplace, in order to capitalise on our existing highly effective distribution and selling agreements into this rapidly expanding sector."