The Utah-based company reported first quarter 2011 net sales increased by $0.4 million, from $44.8 million in 2010 to $45.2 million this year. Net income remained the same at $3.9 million, said the company.
The fiscal 2011 first quarter ended on December 31, 2010. Operating cash flow increased to $6.3 million compared to $6.0 million for the same period of fiscal 2010. This operating cash flow was principally used to invest $7.1 million in acquisitions of branded natural product businesses and $1.5 million in purchases of property and equipment, said the company.
"Our fiscal 2011 first quarter net sales, net income and EBITDA remained strong,” said Bill Gay, chairman and chief executive officer. “At the same time, the health and natural foods retail market remains very competitive. It appears to us that during this quarter many retailers - both large and small - continued to struggle with mixed operating success as a result of the marginal economic environment,” he added.
Gay noted that the company completed two acquisitions in the first quarter, one of which provided the company with a facility and liquid manufacturing capabilities.
“This facility also provided a platform for us to begin consolidation of many of our existing liquid products as well as products acquired as part of the second acquisition,” he said.