Dear Fellow Shareholders,
As you all know we recently started a new business, and here are some of the obstacles and challenges we encountered. The theme of this year’s annual report, “Bold Moves, Great Future,” could also accurately describe our future. The Pump Up brand of energy drinks continued to gain market share up to date, and continues to exceed the growth in sales of the energy drink category. The energy drink category itself has continued to grow at an extremely high rate. Gross sales of all of our products and the percentage of total gross sales, grew and continues to grow. BOLD INVESTMENTS IN MANUFACTURING
Demand for many of those products has also been flat. We are taking steps to reposition certain of our existing products in the warehouse segment and to introduce new lines of products to meet ever changing consumer preferences towards healthier and lower calorie products. In this regard, we continue to benefit from a solid management team. I express my appreciation to my fellow directors for their counsel and support during this year. We are in the process of introducing a number of new products into the Pump Up Incorporated line in the United States and are also continuing to evaluate and launch Pump Up Incorporated into additional countries with a view to making Pump Up Incorporated a truly global brand. FINANCIAL RATIOS
Financially our company is prevailing at a steady growing pace. Our total asset turnover rate is not at optimal level, but it is increasing, currently at seventy-five percent. Our quick ratio is low, but with our new investments in our warehouse and manufacturing, we shall increase it from 1.28 percent. Our current ratio is at 2.28 percent and growing. Without further due, our gross profit is at a 1.72 percent. The truth of matter is, with all our new branding and distribution, this number is, and will continue to rise. SOME OBSTACLES ENCOUNTERED
The Warehouse Division experienced a difficult year, mainly as a...
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