March 31, 2011 / 11:10 AM / in 7 years

UPDATE 2-GLG Life swings to Q4 loss, sees higher rev in 2011

* Q4 loss/shr C$0.12 vs EPS C$0.02 last year

* Cost of sales almost doubles to $15.6 mln

* Sees 2011 rev between C$160-C$200 mln

* Sees capex C$5-C$10 mln for 2011

* Q4 Rev rises 45 pct to C$19.3 mln (Adds outlook details, share milestone)

March 31 (Reuters) - Canada’s GLG Life Tech Corp swung to a quarterly loss as costs soared, but the sweetner maker said China’s plan to tackle a sugar shortage and address health concerns over too much sugar consumption would bode well for future growth.

The company — which supplies Stevia, a natural, zero-calorie sweetener used in food and beverages — said it plans to provide China’s Sugar Reserve with a blend of sugar and Stevia.

GLG forecast higher revenue of C$160-C$200 million and capital expenditures of C$5-C$10 million for 2011. In 2010, it posted total revenue of C$58.9 million.

For the October-December quarter, GLG posted a net loss of C$3.2 million, or 12 Canadian cents a share, compared with a net income of C$488,000, or 2 Canadian cents a share, last year.

Revenue rose 46 percent to C$19.3 million.

Cost of sales was $15.6 million compared with $8.3 million in the same period last year.

The company said pricing incentives given to new distributors raised the cost of sales as a percentage of revenue.

Vancouver, British Columbia-based GLG Life’s shares, which have gained nearly 27 percent in value since reporting a third-quarter profit in November last year, closed at C$10.28 on Wednesday on the Toronto Stock Exchange. (Reporting by Amruta Sabnis in Bangalore; Editing by Jarshad Kakkrakandy) click here ))

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