Schiff profits halved in second quarter
fell by a fifth during the second quarter, as the firm discontinued
private label business to focus on more profitable brands.
Revenue for the quarter reached $35.5 million compared to $44.3 million for the same period in fiscal 2005.
Coupled with higher raw material costs, operating profit for the period shrunk to just a quarter of the prior year's quarter, or $1.4 million, while net income fell from $3.46 million to $1.5 million.
Schiff chief executive Bruce Wood said however that the firm was encouraged by strong performance in the firm's branded products at the retail level, despite a slight decline in branded sales during the three-month period.
"Our branded sales declined slightly in the quarter but they are up approximately 8 percent for the first six months," he said in a statement.
The company has recently launched an extension to its Move Free brand that seeks to target the growing number of consumers looking for natural products to beat join pain.
Move Free Advanced is said to be 'two times more effective' in relieving joint pain than triple strength glucosamine and chondroitin alone, and contains hyaluronic acid and a high antioxidant plant extract.
"We will be providing substantial marketing support for this proprietary new product, beginning in our fiscal third quarter," said Wood.
The focus on brands is expected to positively impact fiscal 2007 and beyond, he added.
