NBTY boosted by Solgar sales
boosting sales by $17 million in Q4 2005 to avert a $10 million
decline compared to last year.
Over FY 2005, the company reported sales of $1.74 billion, compared to $1.65 billion for 2004, but net income took a tumble from $112 million ($1.62 per diluted share) to $78 million ($1.13 per share).
"These results reflect NBTY's continued weakness in sales and lower margins in an overall stagnant nutritional supplement marketplace," it said in a statement.
Formerly a division of Wyeth Consumer Healthcare, Solgar was acquired in June by the vitamin giant for $115 million, which anticipated that its other wholesale brands would benefit from Solgar products' distribution to around 5,000 health food stores.
Although overall the wholesale division saw a one percent increase in sales in the final quarter, to $197 million, returns were still marked by the low carb decline, with 30 percent of returns being in the low carb category.
Sales for the North American retail market grew by four percent in Q4, and five percent in FY 2005, to $224 million, in spite of a "weak specialty retail marketplace". The closure of 36 under-performing Vitamin World stores and the opening of just 21 new stores in 2005 is indicative of this; a further 70 of the 643 stores trading at the end of W4 are likely to close their doors in 2006 as leases come up for renewal.
But in Europe, the retail business seems to be soaring thanks to premier status, high street positioning and brand awareness; in FY 2005 sales grew 14 percent to $544 million.
