Brave face from Nutrition 21
bullish about its prospects for achieving full-year profits despite
tough trading conditions and a disappointing second quarter.
Nutritional supplements producer Nutrition 21 said it remained bullish about its prospects for achieving full-year profits despite tough trading conditions and a disappointing second quarter.
"This was a challenging quarter for Nutrition 21, as softness in retail sales of vitamin and mineral supplements as well as continuing industry consolidation affected sales of our products," said Gail Montgomery, president and chief executive officer of the company.
"In response to these challenges, we have worked continuously to reduce costs and improve efficiencies. As a result, pre-tax profits were slightly positive in the quarter and Nutrition 21 is now well positioned to deliver better results as business conditions improve."
Montgomery said that the company has never been more enthusiastic about its future prospects, despite the difficult conditions.
"Mounting clinical evidence continues to confirm the essential role of chromium in improving insulin resistance, a condition associated with diabetes, Syndrome X, cardiovascular disease, and obesity. Our expanding patent portfolio provides for many new applications of chromium-based compounds."
She continued: "In order to commercialise these opportunities, we have been laying the groundwork to expand beyond the nutritional supplement industry into the food and pharmaceutical markets. We believe that expansion into these new markets will drive our future growth."
Sales in the second quarter of the year were down to $2.91 million (€3.35m) from $4.61 million in 2000, while half-year sales were $6.86 million compared to $11.51 million. The company blamed the declines on a continued lack of consumer interest in vitamin and mineral supplements as well as continuing industry consolidation.
