Nutraceutical Q2 results 'pleasing'
manufacturer Nutraceutical International Corporation reported
yesterday, with increases in both net sales and net income compared
to the same period in 2002.
Encouraging 2003 second quarter results for nutritional supplements manufacturer Nutraceutical International corporation, with increases in both net sales and net income compared to the same period in 2002.
The company reported yesterday that net sales for the fiscal 2003 second quarter rose to $30.6 million compared to $27.6 million for the same quarter of fiscal 2002. Meanwhile, net income was $3.5 million, compared to $2.9 million for the prior-year quarter. The increase was explained in part by a partial settlement of price fixing litigation to which the company was a plaintiff.
Net sales for the six months ended March 31, 2003 were also up to $59.5 million, compared to $52.1 million for the same six-month period of fiscal 2002. During this six-month period, income before change in accounting principle was $6.1 million, compared to $5.4 million during the same prior-year period.
Bill Gay, chairman and chief executive officer, commented: "Our management team continues to be pleased with the company's branded sales growth, as well as the sales contribution from our natural food markets.
Our ability to leverage increased company sales, as well as changes in our sales mix, into overall margin increases and enhanced profitability during the quarter was encouraging.
"We were also pleased that during the quarter the company repaid $2.5 million in outstanding bank debt and made additional investments in our business, including facility consolidation."
"Historically, the second fiscal quarter has been the strongest for the company and the Healthy Foods Channel where we compete," explained Gay. However he warned: "It should be noted that we believe that overall trends in the Healthy Foods Channel remain relatively flat. As a result, the company's growth prospects are dependent on market share gains from existing products, product line extensions, category introductions and acquisitions".
Commenting on the future, Gay highlighted the importance of cost improvements in the current economy, and said that as such it intended to continue to focus on them.
As one of the US's largest manufacturers and marketers of nutritional supplements, the company's brand names include Solaray, KAL, NaturalMax, VegLife, Premier One, Sunny Green, Natural Sport, ActiPet, Action Labs and Thompson.
