NBTY bucks the downward trend with good growth in 2Q
increased by 12 per cent in the second quarter to $252 million,
helping next profits to rise by 43 per cent to $26 million.
Sales at US-based nutritional supplement manufacturer and retailer NBTY increased by 12 per cent in the second quarter to $252 million, helping net profits to rise by 43 per cent to $26 million.
Pre-tax profits included a $5.5 million payment received by NBTY as a partial settlement of ongoing price fixing litigation in which the company is a plaintiff.
For the six months to the end of March, net sales were $467 million, an increase of 19 per cent on the same period a year earlier. Net income for the six-month period increased 98 per cent to $37 million.
Sales at the group's Nature's Bounty wholesale operation were $72 million in the second quarter, compared with $48 million for the previous year, an increase of 51 per cent. The company said that the increase was a result of greater sales of core products and strong sales response to new product introductions and promotions.
The US vitamin and mineral market has been stagnant at best in the last six months, but NBTY has managed to outperform its competitors and has continued to increase its market share in mass market and chain drug retailers.
It said that it had used consumer sales information received from its Vitamin World and direct response/e-commerce operations to help it drive sales, and had responded to consumer preferences and market trends to increase its sales.
Vitamin World sales increased 14 per cent from the prior like quarter with same store sales increasing 9.7 per cent, although the business remained in the red. Holland & Barrett, the UK-based natural foods retailer owned by NBTY, saw its sales decrease by 3 per cent with same store sales down 5.2 per cent, largely because of a sales promotion which boosted sales in the 2001 second quarter. Direct response/e-commerce sales were down 3 per cent.
Commenting on the results, NBTY chairman and CEO Scott Rudolph said: "Once again our commitment to the wholesale business has contributed substantially to the overall rise in revenue. Our financial strength has allowed us to reduce our debt level and capitalise on our market leadership. The expertise of our management team enables us to quickly react to market conditions and capitalise on opportunities, including acquisitions. We remain optimistic for the long term outlook for the company."
