Sherwood Brands Inc. (AMEX:SHD), a manufacturer, marketer and distributor of branded confectionery products and gift items, today announced that it expects to report approximately breakeven results on about a 66% increase in revenue to approximately $42.0 million for the fiscal year ended July 31, 2000.
For fiscal 1999, Sherwood reported a net loss of $1.3 million, or $0.34 per share, on revenue of $25.3 million. The company expects to report audited results for fiscal 2000 in a few weeks.
Uziel Frydman, president and chief executive officer, said: “Just 2 months into the new fiscal year, orders for the year already exceed $42.0 million. With this strong start, we currently plan for sales in fiscal 2001 to be substantially higher than fiscal 2000, continuing the strong revenue growth trend we have reported for the past several years.”
Frydman continued: “We have hired more than 80 people this month at our new 440,000 square foot manufacturing plant in New Bedford, Mass., on our way to a target of about 200 employees at this facility.
“We are pleased by the high quality and availability of labor in the New Bedford area. Labor and other costs at all of our facilities are meeting our expectations, which is allowing us to efficiently manage production scheduling without having to resort to the costly measures that affected our profitability in fiscal 2000.
“In addition, Sherwood will benefit from the strength of the dollar in the form of advantageous costs for finished goods we source in Europe, and we expect that the recent increase in fuel costs will have a negligible impact on the company.
“While our industry remains highly competitive, because of the continued rapid revenue growth that we anticipate and our greatly improved cost structure compared to last year, we are planning for a profitable fiscal 2001.”
About Sherwood Brands
Sherwood Brands Inc., with headquarters in Rockville, manufactures, markets and distributes confectionery products.
The company’s branded products include COWS®, a line of soft and chewy toffees and dairy butter and cream hard candies; RUGER® wafers, a line of wafer cookies in chocolate, vanilla and strawberry flavors; ELANA®, Belgian chocolate bars; and demitasse®, a line of tea biscuits in a variety of flavors.
Sherwood also manufactures hard candies, jelly beans, ALIEN® and TONGUE TATTOO® lollipops and packs gift baskets and gift items in its facility in Rhode Island.
The statements contained in this news release that are not historical facts may be deemed to contain “forward-looking statements” within the meaning of federal securities laws with respect to events, the occurrence of which involve risks and uncertainties, including, without limitation, demand and competition for the company’s products, cost and availability of labor, its ability to adjust production scheduling and to successfully integrate acquisitions, the effects of general economic conditions, and other risks or uncertainties detailed in the company’s Securities and Exchange Commission filings.