Good growth at Holland & Barrett
in sales for the 2003 second quarter to $278 million (€253.5m). The
firm which has been expanding retail operations in Europe said it
will continue to make acquisitions to boost its wholesale business.
Holland & Barrett parent company NBTY posted a 10 per cent rise in sales for the 2003 second quarter to $278 million (€253.5m). The US-based firm said it is planning to continue its European expansion in the coming months.
Sales at the UK's Holland & Barrett chain leaped 20 per cent on the comparable prior period to $87 million (€79m), reported NBTY, with same store sales increasing 14 per cent during the quarter.
The retail business recently acquired the Health & Diet Group with a total of 56 GNC stores, and also bought the FSC wholesale business from Royal Numico. And the planned acquisition of the De Tuinen chain of health food stores, which operates 63 stores in the Netherlands, is expected to be completed by the end of May 2003.
Company CEO Scott Rudolph hinted at further acquisitions to come, with strong cashflow and earnings over recent months."We are confident in our ability to further capitalise on market opportunities, complement our operations through strategic acquisitions and enhance our financial strength," he said.
Net income for the quarter ended March 31, was hit by a one-time charge relating to the discontinued lines of ephedra products in the US, although a $5.5 million payment received in partial settlement of on-going price fixing litigation, helped it to stay in the $20 million figure.
The firm is planning to introduce a new line of low carbohydrate nutritional products, CarbWise, to be sold through food, drug and mass-market channels. Shipments are expected to start in July 2003.
Sales for the Nature's Bounty wholesale division increased 18 per cent to $85 million from $72 million for the comparable period of fiscal 2002 and a recent deal with the Ohio-based Marc's store chain adds significantly to its wholesale base. The stores will carry over 180 Nature's Bounty brand products.
The US retailer Vitamin World did not fare quite so well as its UK compatriot, although sales were up 5 per cent to $54 million in the second quarter, with same store sales increasing 4 per cent. The Vitamin World operations saw a pre-tax income of $1 million compared to a loss of $2.3 million for the comparable quarter last year.
Revenues at the Puritan's Pride e-commerce operations were down 7 per cent however, attributed to different timing of promotional catalog mailings compared to the second quarter a year ago. Additional advertising, sales promotions and efforts to generate faster product delivery to customers, are planned for the unit in coming months.
