Nutraceutical company Baywood International last week said it cut operating losses considerably during 2002, although a tough fourth quarter meant it failed to break even.
The company recorded losses of $242,000, a 62 per cent decrease from $636,164 for the same period last year. Fourth quarter revenues rose 13.2 per cent to $737,000 while for the full year, sales were up 26.3 per cent to $3.4 million from $2.7 million in the same period last year.
The increase in revenue for the fourth quarter and year-end was attributed to the increasing sales of the company's brands Purechoice, Solutions and Complete La Femme.
New products are also driving sales, according to the company, with orders from Canada and from the company's exclusive marketer and distributor for Asia, helping to boost revenue.
The gross profit margin for the year, up by 5.4 per cent to 45.8 per cent was helped by higher margin products on the North American market as opposed to a higher mix of international sales where margins are typically lower, said the company.
Baywood CEO Neil Reithinger said the company had seen increasing brand recognition among retailers and consumers, but that strong growth was not expected until the second half of the year.
"While close to achieving a break-even or profitable year for 2002, a tougher sales environment in the fourth quarter held us back from achieving this goal. Although overall we expect further sales increases for 2003, we are cautious about what the first quarter of 2003 will bring and expect much of our current year growth to occur during the latter part of the 2003 calendar year," he added.
Arizona-based Baywood's products are distributed through independent and chain health food stores, pharmacies, grocery stores, and other direct-to- consumer channels both internationally and domestically.