Perrigo keeps up the good work in Q1
build on the growth it saw last year and fielded a strong first
quarter for 2005.
Net sales for the first quarter were $227.7 million, an increase of eight percent from $211.8 million last year. Net income was $17.6 million, or $0.24 per share, compared to $16.5 million, or $0.23 per share, a year ago.
The consumer healthcare section of the company also saw an increase in sales up from $192.8 million in fisal 2004, to $199.5 million today.
The company cited higher unit sales of vitamins - as well as strong sales of the loratadine family of allergy medication and the sell-in of cough/cold products - as the key reasons for this growth.
"Our Consumer Healthcare business again demonstrated excellent operating leverage," said David Gibbons, Perrigo's CEO. "Sales increased four percent, gross margin increased seven percent and operating income was up 12 percent. Our purchasing initiatives and manufacturing productivity projects are paying off."
Perrigo's nutrition and vitamin business makes about 20 per cent of the entire consumer healthcare profits and is generally worth about $150 million in annual sales. In 2003, sales reached $144 million.
"The nutrition and vitamin sector is a viable part of our business and we are attempting to grow it," investor relations manager Ernest Schenk told NutraIngredientsUSA.com recently.
Last year Perrigo launched two own brands and acquired the licence to Sesame St for a new range of children's vitamins, currently being rolled out in the US. WalMart is the firm's largest customer.
Perrigo is also seeking to enter the generic drug business, which will include further acquisitions. However, Gibbons believes the company will enjoy continued growth in its core businesses.
"We continue to expect year-over-year revenue growth of four to five percent and earnings growth of three to five percent, even as we invest in our generic drug initiative," he said.
