Sepp’s Gourmet Foods Ltd. (TSE-SGO) (“Sepp’s”) announced yesterday that Sales in the fiscal period 2000 were $ 88.5 million, approximately 8% higher than the $82.2 million 1999 (detailed figures below). Sales in the Canadian operations were $36.9 million, up 13% from the $32.8 million in 1999 and UK sales were $51.6 million, up 4% from the $49.4 million in 1999.

Gross profit increased from $12.7 million in 1999 to $13.5 million in 2000. Earnings before interest, taxes, depreciation and amortization (EBITDA) including the gain on sale of an investment were $5.2 million, up from the $4.3 million in 1999. Operating EBITDA was $3.85 million, virtually unchanged from the $3.88 million in 1999. Net earnings were $1.5 million, double the $0.7 million in 1999 due to increased sales and gross profit, and the gain on sale of an investment. The Company recorded a pre-tax gain of $1.33 million on sale of its 50% shareholding in Summer Fresh Salads Inc.

Working capital increased from a $0.26 million deficiency in 1999 to a $0.11 million deficiency in 2000. The Canadian operations had a positive working capital position of approximately $2.8 million, more than double the $1.3 million surplus in 1999. The UK operations had a working capital deficiency of $2.9 million, compared to the $1.6 million deficiency in 1999. Approximately $0.75 million of this deficiency in the UK was due to an increase in short-term debt associated with the purchase of the land and buildings in Aberdeen, Scotland.

Short-term bank indebtedness for the Company decreased from $6.7 million in 1999 to $6.1 million in 2000. The Company generated $3.35 million cash from operating activities during the fiscal year, up substantially from the $0.52 million in 1999. This change was due to tighter balance sheet management control as the change in non-cash working capital was $0.87 million in 2000 compared to ($2.1 million) in 1999.

David Kilshaw, President and CEO of Sepp’s ( stated: “We are very pleased with our 11th year of continued growth. With revenues of $88.5 million (up from $350,000 10 years ago) generated in the US, United Kingdom, Mexico, Japan, Hong Kong, Puerto Rico and Canada, we are proud of our continued ability to grow revenues every year while remaining profitable.” He noted “We fully expect this growth to continue as we are confident that our core business model – the development, production, and distribution of good food – is what consumers need and want. There is real satisfaction in knowing that across two continents we are delivering great tasting meals and specialty prepared food to time-starved consumers.”

Sepp’s Gourmet Foods Ltd. is a producer and marketer of specialty prepared foods for the retail grocery and food service sectors in North America, Southeast Asia, and Europe. Sepp’s is a publicly traded company traded on The Toronto Stock Exchange under the symbol SGO.


($000's except per share)            2000          1999

Sales                             $88,472       $82,226
Gross Profit                       13,490        12,707
EBITDA                              5,176         4,288
Operating EBITDA                    3,849         3,878
Net Earnings                        1,547           708
Working Capital                      (110)         (259)
Total Assets                       39,729        35,462
Long-term Debt                      4,683         2,997
Shareholders Equity                15,819        14,554
   Book value per share             $1.20         $1.11
   Earnings per share               $0.12         $0.05
Weighted ave. shares
 outstanding                   13,192,971    13,152,906