The US ingredient company yesterday reported an increase of over 50 percent in revenues for the quarter ended July 31, 2010, driven partly by the acquisition of a consumer health products firm, but also by the growth of its nutritional ingredients.
Third quarter revenue reached $117m, up from last year’s figure of $78m. This included nutritional ingredient sales of $93m, a 25 percent increase on last year.
Amerifit acquisition
Martek CEO Steve Dubin said the performance reflected good nutritional ingredient sales in both infant formula and non-infant formula markets, as well as a strong performance from the consumer branded products of Amerifit, which was acquired in February this year.
Amerifit’s contribution added $20.3m to Martek’s third quarter results, while the firm’s nutritional ingredients sales added an additional $18.6m over last year.
New business opportunities
Dubin said the “strong run rate” out of fiscal 2010 will allow the firm continue expansion efforts of DHA ingredients beyond infant formula, and to begin commercializing new products currently in development as consumer branded products sold through Amerifit's marketing and distribution channels.
“Martek's solid balance sheet and strong financial performance provides us with great flexibility which, among other things, should allow us to launch new Martek products, as noted above, during our next fiscal year, continue to prudently invest in our promising R&D pipeline and explore new complementary business opportunities,” he said.
The third quarter results also prompted the company to project full fiscal year 2010 revenues of between $308m and $312m.
“The projected 2010 annual revenues would represent year-over-year growth in total revenues of 27 to 29 percent and reflects meaningful gains in nearly all markets for our nutritional ingredients, including growth in infant formula revenues of 8 to 9 percent and growth in non-infant formula nutritional revenues of 31 to 34 per cent,” said Martek.