CV Technologies reports higher revenues for 3Q

Canadian biotech company CV Technologies has reported a 30 per cent increase in revenues for the third quarter of FY 2002, attributed to greater volume of sales.

Also net losses from continuing operations decreased 80 per cent. For the nine-month period ending 30 June 2002 net losses were C$652,159 compared to C$3,287,899 in 2001.

The reduction in losses from operations is a result of a successful cost reduction programme said the company.

Revenues from natural health product sales for the three- and nine-month period ending 30 June 2002 were C$160,314 and C$926,645, respectively, compared to C$185,317 and C$707,871 for the same periods of the previous year. This represents an increase of 31 per cent for the nine month period to end of June, an increase attributed to the larger volume of sales, as well as to changes in the discount structures implemented by CV Technologies in 2001.

Furthermore, compared to the previous fiscal year, the gross margin increased from 40 per cent to 70 per cent, a result of close monitoring of direct expenses, and realignment of CV's manufacturing processes, said the company.

The company said it would continue efforts to further reduce the discount structure and cost of goods sold to maintain and increase the favourable gross margin. It will also aggressively market its natural health line of products in Canada and seek to enhance distribution and sales worldwide.

CV said it expects to be increasingly successful with its natural health products as consumers gain confidence in the industry, particularly due to the changing regulatory environment.