Nutraceutical ingredients supplier Health Sciences Group sees gross profits and sales soar on the back of its latest acquisition Quality Botanical Ingredients. The results will go some way to carving away the company's operating loss.
The company reports this week that revenues for the second quarter ended June 30, 2003 increased by $3.5 million, or 250 per cent, to $4.9 million up from $1.4 million for the same period last year.
But the company attributed a considerable 72 per cent of the quarter's revenues to revenues generated by Quality Botanical Ingredients (QBI), the bulk botanical materials and nutritional ingredients company that it purchased in February this year.
In a statement this week the group said it expects QBI to form a platform from which it expects to catapult its 'aggressive growth strategy.'
"Since the acquisition of QBI in February, we have concentrated our efforts on streamlining operations, expanding our customer base, and introducing new and innovative products," said Health Sciences co-chairman and CEO Fred E. Tannous. Adding that he expects the changes to have a positive effect on revenue and earnings potential over the coming months.
Operating loss for the second quarter 2003 was $559,000, or 11.3 per cent of net sales, improving from an operating loss of $1.0 million, or 71.8 per cent of net sales, for the same period in 2002. Compared to the first quarter of this year, operating loss shrank by $333,000, or 37 per cent, from an operating loss of $892,000.
Net loss for the second quarter ended June 30, 2003 totaled $669,000, or 13.6 per cent of net sales, as compared with a loss of $1.0 million, or 73.1 per cent of net sales, reported for the corresponding quarter last year.