Weider reports 1Q results
first quarter, due to the sale of two brands in July this year.
However gross profit and operating income was up on the same period
last year.
Weider Nutrition, the US maker of vitamins, supplements and sports nutrition products, said that net sales for the 2003 first quarter, ended 31 August 2002, were $76.2 million down from $80.7 million for the same period last year.
Sales were likely affected by the sale of its American Body Building and Science Foods brands in July 2002.
However, excluding a one-time charge due to a new accounting principle, Weider Nutrition recorded net income of $4.5 million for the 2003 first quarter, compared to a net loss of $352,000 for the same period a year ago. Including the one-time charge of $15.4 million, representing write-off of goodwill, the company reported a net loss of $10.9 million.
Gross profit was 39.6 per cent for the quarter, compared to 32.9 per cent for the same period the prior year. Consolidated operating margin was 10.8 per cent and 1.5 per cent for fiscal 2003 and 2002 first quarters, respectively.
Bruce Wood, president and CEO, said: "Weider again recorded improved operating results, including an increase in both gross margin and operating margin performance. This improvement reflects our proactive measures to increase profitability."
"We continue to see the benefits of our lower cost structure, allowing us to move toward our long-term goal of building shareholder value. We are aggressively working to address continuing soft industry conditions, as well as ongoing pressure from private label competition on our flagship Schiff Move Free business, with new product and marketing plans for fiscal 2003," he added.
Weider Nutrition sells its products throughout the world and sells a line of sports apparel in Europe.
