Revenues for the year - ended 31 December 2003 - increased 221 per cent to $17.8 million from $5.5 million the previous year. The company's gross profit also grew 53 per cent, from $1.5 million in 2002 to $2.3 million.
"During 2003 we worked diligently to streamline our operations and develop exciting new products. We believe we're well positioned to take advantage of several new opportunities which are expected to increase revenues in all of our divisions," said CEO of Health Sciences Group Fred Tannous.
Having acquired Quality Botanical Ingredients (QBI) - a manufacturer and contract processor of bulk botanical materials and nutritional ingredients - in February last year, the Health Sciences Group was able to successfully launch its patented weight-loss product, Tri-Xanthin.
Tri-Xanthin is claimed to mimic the thermogenic effects of the controversial weight-loss herbal, ephedra. The product combines three thermogenic extracts derived from cocoa beans, green tea and yerba mate, making it suitable for use in drinks, capsules and energy bars.
"QBI adds an extensive customer base which includes many leading nutraceutical and food and beverage companies to which the company expects to market its new line of proprietary products. We've spent the better part of last year integrating QBI into our business and positioning ourselves to leverage our collective resources to expand our product offerings in 2004," said Tannous.
In 2003 the health Sciences Group received a patent for its Cocare decongestant product, which is a patented combination of an over-the-counter (OTC) pharmaceutical drug and a complementary nutraceutical ingredient, to be rolled out later this year.
Net loss for 2003 was $7.4 million compared to a net loss of $4.3 million for fiscal 2002. The company reported an operating loss of $5.6 million, compared to an operating loss of $4.1 million a year earlier.
Approximately $5.5 million of the total loss in 2003 was attributed to non-cash expenses related to financing costs and the depreciation and amortization of goods.
"To date, we have built a solid platform comprised of longstanding customer relationships. We expect to leverage this platform to become a recognized leader in providing scientifically-supported products and ingredients that promote positive health benefits," said Tannous.
In 2004 the company hopes to introduce a wholesale branding strategy for some of its key products.