Manufacturer and marketer of nutritional supplements NBTY today reported an 49 per cent increase in net income to $17 million for the first quarter ended December 31, 2002 up from $11 million last year.
Net sales for the period increased 12 per cent to $241 million compared to $215 million for the previous year's quarter, thanks to an increase in sales in all divisions.
Sales for the Nature's Bounty wholesale business increased 13 per cent to $74 million, due to increased sales to the mass market. NBTY said it will continue to increase its wholesale business by using consumer information from its Vitamin World and direct-response/e-commerce operations, to drive sales. The company added that it continues to focus on gaining market share in the wholesale arena.
While sales at Vitamin World also increased, up 14 per cent to $50 million from $44 million in the comparable prior period, the operation was not profitable although it cut losses by $1 million, or 38 per cent, compared to the comparable prior period. Same store sales increased 11 per cent along with advertising costs of $2.2 million.
The company's UK division Holland & Barrett also boosted sales by 14 per cent to $83 million, with same store sales increasing 13 per cent for the first quarter. These results include the positive effect of the strong British currency.
Revenues from Puritan's Pride direct response/e-commerce operations for the first quarter increased 5 per cent to $34 million.
NBTY Chairman and CEO, Scott Rudolph, said the company was confident in the outlook. "We are confident in NBTY's ability to further capitalize on market opportunities, make acquisitions that complement our operations, and enhance our financial strength."
Assets and working capital have also been improved on last year's same period. Total debt was reduced by $6 million to $181 million during the quarter according to the firm, whose brands also include Puritan's Pride and Dynamic Essentials.