Naturade sales boost
to curb losses in its first quarter results, reflecting increased
sales and a successful cost cutting programme.
Naturade, a leading marketer of soy protein products, has managed to curb losses in its first quarter results, reflecting increased sales and a successful cost cutting programme.
Sales grew by14.6 per cent in the first quarter of 2003, totalling $3,866,055, a $493,039 increase over the first quarter of 2002. The net loss for the quarter decreased $473,152 to $192,659.
Gross margin increased from 44.1 per cent to 46.2 per cent in the first quarter of 2003, which the company said was due primarily to lower product cost related to product reformulation and increased warehouse efficiency that resulted from more consistent order flow.
The company's mass market business grew 22 per cent in the first quarter of 2003, compared with the prior year, while the health food store business increased 8.6 per cent. Mass market growth was driven primarily by distribution gains on the Naturade Total Soy brand.
The company added that its health food sales gains primarily resulted from across-the-board increases in purchases from a major distributor, coupled with continued success in adding new retails outlets for existing and new products.
"First-quarter sales gains coupled with significantly reduced losses in the two most recent quarters show significant progress toward our goal of profitable operation," said Bill Stewart, Naturade CEO. "Our cost-cutting efforts in sales, marketing and overhead, combined with a major 2002 program to reduce the cost of goods sold, are yielding real benefits."
Stewart explained: "Our improved bottom line is supported by sales success with the retailer and the consumer. We have added major new accounts on Naturade Total Soy and continue to see increased consumer takeaway since we repositioned the Naturade Total Soy brand in 2002 to emphasize its weight-loss benefits in addition to its value in helping to reduce cholesterol."
With headquarters in Irvine, Naturade markets innovative natural products aimed at improving the health and well-being of consumers. Well-known for its 50 years of leadership in soy protein, Naturade is the number-one brand name of natural soy protein powders sold in food, drug and mass merchandise stores.
