Leading Brands, Inc.
Management’s Discussion & Analysis
For the three months ended May 31, 2010
June 29, 2010
The following information should be read in conjunction with the Company’s February 28, 2010 audited
consolidated financial statements. These statements, along with the Company’s annual report on Form 20-F, are
available on SEDAR at www.sedar.com .
The financial statements have been prepared in accordance with Canadian generally accepted accounting
principles (“GAAP”). The material differences between Canadian and US GAAP are discussed in Note 19 of the
Company’s annual consolidated financial statements.
The Company maintains its financial records in Canadian dollars. In this report, unless otherwise specified, all
dollar amounts are expressed in Canadian dollars.
Leading Brands and its subsidiaries are involved in the development, production, marketing and distribution of the
Company’s branded and licensed beverage brands.
The Company sells branded and licensed beverage products through its Integrated Distribution System (IDS) of
distributors, wholesalers, and grocery chains. Its principal product lines include juices and waters. The
Company’s bottling plant provides bottling services for the Company’s own products and for an external
customer. The Company also uses the services of third party bottlers as required to meet its objectives.
During the three months ended May 31, 2010 the Company improved its margin percentage from 39.0% in the
quarter ended May 31, 2009 to 50.3% in the quarter ended May 31, 2010 resulting in $474,824 more gross
margin for the quarter in spite of the lower revenue numbers.
For the three months ended May 31, 2010, the Company reported gross sales of $5.56 million and a net income
of $408,224 as compared to gross sales of $5.90 million and a net income of $202,474 in the corresponding
quarter of the prior year. The increase in profitability in 2010 as compared to the corresponding period in 2009
was primarily th