Nascent Wine Co. Inc. (NCTW.OB), dba Nascent Foodservice, announced that it will hold a conference call on Monday, April 21, 2008 to discuss its financial results for the year ending December 31, 2007. Leading the call will be Chief Executive Officer, Sandro Piancone, and Chief Financial Officer, Peter White.
Nascent Foodservice is the only nationwide distributor of imported products in Mexico. Currently, Nascent markets and distributes over 2,000 national and proprietary food and non-food products. The company focuses on acquiring the most profitable distributors in Mexico which have the best food and beverage portfolios. Presently, Nascent services over 240,000 sales points that include supermarkets, convenience stores and foodservice accounts like Wal-Mart, Costco, and 7-Eleven.
In the 2007 fiscal year, the company saw the completion of three major acquisitions and an increase of long-term exclusive distribution contracts from three to six. The company’s product line increased from 1,300 brand names in 2006 to 2,000 brand items at the end of 2007. The private label/proprietary product line increased to more than 200 private label items. In addition, 6,800 new retail accounts were signed in 2007, which included Sam’s Club, Costco, Soriana, Gigante, Smart and Final, and Wal-Mart.
Fourth quarter 2007 Net Sales were $17 million in comparison to 2006 results of $3.5 million. Key drivers in the increase over the fourth quarter were the completion of the acquisitions of Pasani, Grupo Sur Promociones de Mexico, and Comercial Targa. Gross profits in fourth quarter 2007 increased by $2 million, which was a 14.6 percent increase over the same period in 2006. The increase in gross profits was due to an increase in overall sales, including a higher sales ratio on the private label products.
Fiscal year 2007 Net Sales were $42.4 million, which was a 9-fold increase when compared to the $4.7 million net sales reported for fiscal year 2006. As with the fourth quarter increase, the three acquisitions proved to be the key to the overall increase in net sales. Gross profit for fiscal year 2007 was $6.8 million versus $0.7 million in 2006, a ten-fold increase.
With the increased product line and higher number of retail accounts, the company has expanded its infrastructure to support the expansion. The additional 4,700 employees are dispersed between the 17 additional distribution centers and 42 additional fleet trucks. The company now has 21 distribution centers that will increase the efficiency and service time involved in providing products to customers. The transportation fleet had an 800 percent increase from 6 to 48 trucks.
Sandro Piancone, Chief Executive Officer at Nascent Foodservice, stated, “Looking to 2008, we are very excited about our long term growth prospects and believe we are well positioned to build upon our position as the leading distributor of imported products in Mexico. We believe our gross and operating margins will continue to improve from our fourth quarter results as we leverage the platform we have created.”
The conference call is scheduled to begin at 8 am PT (11 am ET). U.S. Residents can listen into the call by dialing 1-800-762-8779. International callers can access the call by dialing 1-480-629-9031. A replay of the conference call will be available until 11:59 pm ET on Monday, May 12, 2008. U.S. Residents may access the replay by dialing 1-800-406-7325 with passcode 3869739. International callers may access the replay by dialing 1-303-590-3030 with passcode 3869739.
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