Energy drink boosts Leading Brands 2Q

Leading Brands, the Canadian maker of the Trek energy drink, has reported a revenue increase of 41 per cent for the second quarter of its 2002 fiscal year ended 28 February 2003. Sales of the new Trek performance drink have exceeded expectations said the company.

Leading Brands, the Canadian maker of the Trek energy drink, has reported a revenue increase of 41 per cent for the second quarter of its 2002 fiscal year ended 28 February 2003.

Revenue for the quarter ended 31 August 2002 rose to C$24.1million (€15.6m) from C$17 million in the prior year. Net income for the quarter was C$1.18 million versus C$0.90 million for the quarter ending 31 August 2001, an increase of 30 per cent, reported the company.

The six month and quarterly revenue increase was attributed to significant growth in virtually every area of business, and not solely the result of increasing sales of the new TREK Optimized Performance Beverage. Plant production volumes remained strong throughout the summer and the company's spring site set new record volumes each month of the quarter.

Leading Brands chairman and CEO Ralph D. McRae said: "In addition to growing our revenue 41 per cent, we effectively managed our expenses and increased earnings an impressive 30 per cent during an unprecedented product launch into one of the world's largest markets.

We are thrilled with the overwhelming customer response to Trek, which continues to exceed our expectations in the markets where we have commenced distribution. We now have distribution across Canada and are dramatically expanding our market penetration in the United States."

Year to date revenues were C$42 million, up from C$37 million last year. Net income for the first half of the year was C$2.2 million versus $2.08 million in the first half of 2001.

Leading Brands also offers distribution, sales and marketing services and licensing to food and beverage clients. Its own line of beverages include TREK, Pez 100% Juices, Johnny's Roadside Iced Tea and Lemonade, Country Harvest Juices, Caesar's Bloody Caesar Cocktail, and Cool Canadian Water.

The Leading Brands conference call will be hosted today at 11:00 am EDT with Ralph McRae. The contact number is + 416/641-6685.