Nutritional supplement maker NBTY saw overall sales increase 22 per cent to $308 million in this year's third quarter, helped by new product introductions at Nature's Bounty.
Net income dropped however to $29 million, from $30 million, for the fiscal third quarter of 2002, which included a $15 million pre-tax settlement payment received from price fixing litigation.
The results also show the impact of the acquisition of Rexall Sundown from Dutch firm Numico. The purchase price, $250 million, will be funded by a new credit facility consisting of $275 million in term loans and $100 million in a revolving credit agreement.
NBTY chairman and CEO Scott Rudolph seems to be confident that the acquisition offers substantial synergies with its current business, and can improve its sales infrastructure, manufacturing capacity, and product range. The deal is expected to close tomorrow. Rexall had sales for the last twelve months ended March 31, 2003 of $434 million with pro forma EBITDA of $39 million.
Sales in the current wholesale business, Nature's Bounty, increased 17 per cent to $94 million for the comparable period of fiscal 2002, thanks to greater sales of core products and strong sales response to new product introductions and promotions, said NBTY.
Vitamin World third quarter sales also increased, by 6 per cent, to $54 million and the unit made a pre-tax profit of $902, 000 compared to a loss of $94, 000 for the comparable quarter last year.
In Europe retail operations increased 39 per cent to $99 million from $71 million a year ago, helped by the Health & Diet Group's GNC stores and the De Tuinen chain of health food stores in the Netherlands, acquired in the last year. NBTY is expecting the divisions to make a profit within the next two quarters.
Revenues from Puritan's Pride direct response/e-commerce operations for the fiscal third quarter increased 23 per cent to $61 million from $49 million for the comparable prior period, attributed to additional advertising and promotions and faster product delivery to customers, according to NBTY.