Vancouver-based sweetener maker GLG Life Tech (TSX:GLG) recorded a $5.8 million loss in the first quarter as its cost of doing business increased, the company announced Monday.
GLG, which supplies stevia – an all-natural sweetener used in food and beverages – saw its revenue drop 10% to $7.4 million in the first quarter of 2011 compared with the same period a year before.
The drop occurred while the company’s cost of sales climbed 24% to $6.1 million, and expenses rose 95% to $5.7 million.
GLG said stevia sales were down 28% for the period.
The decrease was mostly due to a lower sale price for its products and a stronger Canadian dollar.
Meanwhile, the company expanded its presence in China.
GLG shipped $1.5 million of ready-to-drink teas to China in the first quarter, representing the start of national sales there.
The company believes China is the largest market opportunity for its stevia products, and expects its stevia business to grow between 53% and 70% this year.
At press time, the company’s shares were down $0.34 to $8.66.
Joel McKay