Nutraceutical company Baywood has reported that revenues rose 48.5 per cent to $1million (€1m) from $0.69 million for the three months ended 30 June 2002 and 55.6 per cent to $1.8 for the first half-year compared to $1.1 million in the same period last year.
Baywood said the increase in revenue was due to the continued growth in sales volume of the Solutions, Complete La Femme, Evolution and PureChoice brands.
Sales increases were also attributed to the introduction of new products selling to existing and new customers. These include the additions of two new flavours, lemon-lime and mixed berry, to the company's calcium and magnesium supplement, Cal-Mag Fizz, the introduction of Topical Super Cool Relief and the addition of the company's ephedra-free fat burner, Metabolic BurnTropin-EF.
Continuing orders from Canada further strengthened the quarter along with a boost in sales from the company's exclusive marketer and distributor for Asia, Healthy International.
The company's gross profit margin for the three and six months ended 30 June 2002 was 43.4 per cent and 46.9 per cent, respectively, compared to 45.1 per cent and 45.9 per cent, respectively, for the same periods of last year.
Average gross profit margin for the quarter increased due to increased sales and gross margins of new products into the North American market, while a boost in international sales, where gross margins are typically lower, brought the overall average down for the quarter, said Baywood. It added that despite lower gross margins, the growing international sales will contribute to net operating income at the same or better levels as North American sales due to lower acquisition and distribution costs.
Operating profit for the three and six months ended 30 June 2002 of approximately $40,710 and $22,391 compared to an operating loss of $(34,245) and $(106,119) respectively for the same periods last year. Net income for the three and six months ended June 30, 2002 was $33,982 and $8,426 compared to a net loss of $(97,570) and $(237,877) respectively, for the same periods last year.
Neil Reithinger Baywood chairman and CEO said: "This second quarter… is the first quarter of profitability since the company's restructuring in 1998. We have much ground to still cover as we continue to become successful, but I am extremely proud of our accomplishments to date. The growth potential of our products into the marketplace is very bright...
"Much of our success is also attributed to our growing and dynamic sales organisation where we have assembled a sales staff with much natural products experience. We believe that our revenues, gross margins and net income will continue to improve during the balance of the year and our rates of improvement in all of these categories will increase," Reithinger added.