Nutritional science for mind health products
DSM Nutritional Products
Overall net revenues were $11.8 million, a decrease of 2 percent compared to the same period last year. However, the company noted that excluding sales of Zila Swab Technologies IST from both periods, net revenues increased by 11 percent.
Zila Nutraceuticals had a highly sucessful Q1 with revenue up by 25 percent or $1.7 million, while the pharmaceutical division struggled, it revenues decreasing by $2.0 million or 39 percent.
Zila blamed this decline primarily on the loss of a major IST customer acounted for $1.4 million of the loss, and attributed the remaining negativity to the timing of certain product sales.
This led Doug Burkett, Zila's CEO to comment that: "We are resolute in our determination to drive future growth and aggressively support Zila Nutraceuticals, our growth business of today, and Zila Biotechnology, our growth business of tomorrow, with the resources required to maximize long term return."
The company said that the revenue gain in the nutraceutical division was driven largely by increased national TV and radio advertising spending timed to support the launch of Ester-E and the start of the cold and flu season for Ester-C.
Moreover, gross margins for Zila Nutraceuticals increased to 68 percent in Q 1, compared to 59 percent a year ago.
"This increase was caused primarily by lower costs of ascorbic acid resulting from lower-cost extended supply arrangements," said the company.