Record Year for Central Canada Foods

TORONTO - Feb 3/04 - SNS -- The meat processor, Central Canada Foods Corporation, reports it had its best year in 2003 with annual revenues increased 17% to $17.3 million generating earnings of $0.02 per share and net profits of $349,000.

These record revenues were due to the Company's ongoing successful efforts to generate export sales, primarily in the Asia Pacific market, customer acceptance of the Company's Choice Pak brand, and stable markets for pork.

Stable raw material and labor costs contributed to the decrease in the cost of meat products and labor as a percent of sales, from 90.1% in fiscal 2002 to 86.3% in 2003, despite an increase of $1,673,000 in these costs in 2003 to 14,926,000 from $13,253,000 in 2002.

The company's selling and administrative costs and expenses increased to $1,839,000 in 2003, an increase of $323,000 or 21% from $1,516,000 in 2002. As a percentage of sales, these costs remained constant in 2003 as compared to 2002 at slightly more than 10%. In large part, this increase is attributed higher costs for external cold storage and higher delivery and packaging costs.

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