Weider to continue investment in joint supplement
brand has had a significant impact on operating profits, company
results revealed today.
Selling and marketing expenses were up 25 per cent in the first six months of 2004 on the same period last year, while operating profits plummeted by more than 50 per cent drop to $7.1 million.
Net sales at the firm, which makes both branded and private label supplements, dropped 3 per cent to $124.4 million for the six month period.
However the company has improved its cashflow and shareholder's equity allowing it to continue with the marketing campaign over coming months.
Bruce Wood, president and CEO of Weider, said: "Our second quarter results demonstrated improvement in our revenue trend, including branded growth, most notably our flagship Move Free brand. This translated into positive earnings performance, reinforcing the benefits of our strategic focus on growing our branded revenues."
"We are committed to continuing a high level of consumer marketing investment on Move Free throughout the balance of the fiscal year."
Weider, which last year divested some of its non-core businesses to concentrate on the competitive joint health sector, has begun to make a profit, reporting $4.9 million for the six months, compared to a net loss of $8.6 million the previous year.
