NBTY retailers see growing sales
off, with both the Netherlands-based De Tuinen chain and GNC's
stores in Britain reporting first quarter profits.
The businesses were both bought by US supplement manufacturer NBTY during 2003. The company yesterday reported record overall sales for the quarter, with European retail sales up 42 per cent to $117 million.
This increase also includes sales generated by the UK and Ireland chain Holland and Barrett, which recorded an increase of 16 per cent in same store sales for the fiscal first quarter. Without the positive effect of the strong British pound, the increase came to 7 per cent.
The 51 GNC stores and 67 DeTuinen shops generated sales of $9 million and $11 million, respectively, for the fiscal first quarter.
NBTY also opened seven new stores during the quarter and now operates 596 stores across the UK, Ireland and the Netherlands. EBITDA at the European retail operations reached $28.8 million for the first quarter, up 18 per cent on the same period in 2002.
Analysts at Adams Harkness & Hill have a strong buy rating on NBTY. The firm last year became the first vitamin supplement business to transfer from the Nasdaq to New York Stock Exchange.
According to analyst Scott van Winkle, the firm's multichannel selling strategy reduces the risk for a company whose core competency is manufacturing.
Overall, the group saw sales increase 60 per cent in the first quarter to $385 million and a 42 per cent jump in profits to $24 million. This included results of Rexall Sundown, the supplement maker recently acquired from Numico.
