Nutraceutical maker reports sales boost
material products, cited improved efficiencies and the benefits of
cost reductions for increase in sales.
Carrington Laboratories, Inc., U.S. maker of nutraceutical raw material products, citing improved efficiencies and the benefits of cost reductions, this week reported third-quarter net income of $77,000(87,000 euros), or $0.01(0.013euro) per diluted share, compared with a loss of $1.2 million (1.36 million euros), or $(0.13) (0.14euros) per diluted share, a year earlier. For the quarter ended September 30, 2001, net sales were $4.4 million (4.97 million euros) compared with $5.0 million (5.65 million euros) a year earlier. The anticipated decline in sales resulted in part, the company claims, from a marketing agreement with a key distributor that also led to substantial cost reductions. "Our three consecutive quarters of positive results are indicative of the success of our new management focus, which resulted in an 8.5 percent increase in unit sales in our wound care business,'' said Carlton E. Turner, president and chief executive officer. "At the same time, we are investing substantially in the future with significant capital improvements, upgrades and training for key personnel.'' Turner also noted that the marketing agreement with Medline Industries, in which Medline merged Carrington's sales force for wound care products into its own, much broader force, has had the anticipated positive effects on the company's bottom line. "We also plan to grow our raw materials business-primarily Manapol® as a nutraceutical raw material and Hydrapol(TM), new cosmetic-grade raw material-and position Caraloe as a quality leader in the industry. Our goal also is to further penetrate the nutraceutical and consumer product markets with our AloeCeuticals® branded products,'' he added.