NBTY's results stay healthy in Q4

Supplement giant NBTY yesterday published its Q4 results, showing a 33 percent rise in profit on the back of an increase in wholesale supplement sales.

The company earned $21 million, or 30 cents per share, in the last three months of fiscal 2004, up from $16 million, or 23 cents per share, a year ago. Excluding certain non- recurring charges and foreign tax credits, NBTY said it would have earned 32 cents per share in the latest period.

Revenue increased 17 percent to $427.5 million from $364.8 million, driven by higher sales of the Nature's Bounty and Rexall brands.

For the fiscal year, profit rose 37 percent to $112 million, or $1.62 per share, from $82 million, or $1.19 per share, in 2003. Revenue increased 39 percent to $1.65 billion from $1.19 billion.

The company's US Nutrition wholesale division, which operates Nature's Bounty and Rexall brands, increased net sales by 19 percent, compared to 2003, to $194 million.

NBTY attributed this success partially to its policy of changing shelf space allocation between the Nature's Bounty and Rexall brands to provide what its considers the best product mix for its customers. This process, it noted, also allows it to respond to changing market conditions.

Things were slightly less rosy over at US Retail-Vitamin World, where Q4 net sales decreased by one percent to $53 million. During the same period Vitamin World, according to NBTY, opened eight new stores and closed three stores. It now operates 557 stores nationwide, in which sales decreased 4 percent compared to 2003, "reflecting continued vulnerability in this specialty retail market", said the company. For fiscal 2004, same store sales increased 1 percent.

"As NBTY introduces more new products directly to the mass market, the specialty retail market's ability to capitalize on market trends and new products remains hampered. The company expects this trend to continue in the near future," said NBTY.