Manufacturer and marketer of nutritional supplements NBTY reported a rise of 16 per cent in net sales in the fourth quarter to $245 million, compared to $211 million for the same period last year. Net income for the quarter rose 194 per cent to $29 million.
Net sales overall for the year increased 19.5 per cent while net income for fiscal 2002 rose 129 per cent to $96 million, compared to net income of $42 million, last fiscal year. Included in the results were a one-time recognition of a foreign tax credit and the settlement in the price fixing litigation.
The maker of Nature's Bounty and Vitamin World brand vitamins said it continued to strengthen its balance sheet with increases in current and working capital and by reducing its bank debt.
The company added that sales for the Nature's Bounty wholesale operation, which increased 30 per cent to $74 million in the fourth quarter, benefited from the continued rise in consumer awareness of the health benefits of nutritional supplements.
NBTY said sales information received from its Vitamin World and e-commerce operations helped generate sales for the mass market, drug chains and supermarkets. It also cited figures from Information Resources showing an increase in vitamin sales in the last four months, reflecting the improving market conditions.
Vitamin World operations were profitable in the fourth quarter for the first time since March 2000. Sales increased 13 per cent to $52 million from $46 million, and sales for fiscal 2002 increased 14 per cent to $199 million from $175 million, compared to the like periods a year ago. NBTY said stores have matured, customer traffic was increased and it expects this trend to continue.
The British retailer Holland & Barrett also saw sales for the fourth quarter increase, by 16 per cent to $74 million from $64 million.
NBTY chairman and CEO, Scott Rudolph, commented: "These results reaffirm NBTY's position as the dominant force in the nutritional supplement industry. Our financial strength enables us to acquire companies that complement our operations. We remain optimistic about the long-term outlook for the company."