Choline awareness boosts Balchem nutrition sales
The company, which is active in the human and animal health ingredient and chemical industries, saw net sales of $62.9k in the quarter ended June 30 – 41.8 percent up on the prior year period.
In the food, pharma and nutrition segment, sales were $9.5m, an increase of 19.6 per cent. Earnings were up from $0.7m to $1.7m, and the company reports that this growth was entirely organic, stemming from strong sales in human grade choline and pharma calcium products.
President and CEO Dino Rossi said that the choline increase is due to consumers becoming more and more aware of its benefits. Choline is classified as an essential nutrient and is usually associated with the B vitamin group. It is found in meat, milk, eggs and vegetables like spinach.
It has been associated with memory and brain health; earlier this year a study published in the American Journal of Clinical Nutrition found that (February 2008, Volume 87, Number 2, Pages 277-278) found that increased dietary intake of choline and its metabolite betaine may lead to a reduction in markers of inflammation linked to a range of diseases.
In addition to its established calcium offering, Balchem plans to launch new products in the fourth quarter, but details of these are not yet available.
It was in the animal health segment that the firm made the biggest leap, however, with sales of $44.6m, up from $16.5m. This progress was actually boosted by the acquisition of some asset from Akzo Nobel Chemical since the comparable period of last year.
On a sequential basis this business grew 14 percent.
Rossi drew attention to the tricky business environment at present, saying the good set of results is despite difficult market conditions and shows the value of its diversified business.
“While rising raw material costs have had an impact on our results, and they are likely to continue to be a challenge in the near term, we will take appropriate actions to improve operating margins and cash flow,” he said.
Such actions include price increases, productivity improvements, and growth through new product development.
As for the rest of 2008, Rossi said he expects it to be “a year of quality double digit improvements in sales and earnings, as we leverage our production capacity and business infrastructure.
Balchem has its headquarters in New Hampton, New York. It employs some 300 people worldwide.
