Nutraceutical International Corporation, the dietary supplement manufacturer, has reported a slight rise in second quarter sales and profits. Net revenues were $27.6 million (€30m), up from $27.0 million a year earlier, while net profits were $2.9 million compared to $1.8 million for the same quarter of fiscal 2001.
Profits for the quarter were boosted by a one-off payment of $815,000 received as partial settlement of ongoing price-fixing litigation, Nutraceutical International said.
For the first six months of the year, net sales were virtually unchanged at $52.1 million compared to $52.3 million for the same six-month period of fiscal 2001. Net profits during the half were $5.4 million compared to $3.1 million during the same prior-year period.
Bill Gay, chairman and chief executive officer, said: "The increases in sales and net income during the second quarter reflect market and operating improvements in our core branded business as well as contributions from our recently acquired neighbourhood natural food markets.
"The company's financial performance and new credit facility have allowed us to seek acquisition opportunities while reducing outstanding debt by $4.5 million since our fiscal year ended in September 2001. Management remains optimistic about the outlook of the healthy foods channel but remains guarded as to whether the nutritional supplement industry has turned the corner."
Nutraceutical is one of the largest US manufacturers and marketers of branded nutritional supplements sold to health and natural food stores. Its brands include Solaray, KAL, NaturalMax, VegLife, Premier One, Solar Green, Natural Sport, ActiPet, Action Labs and Thompson.
In addition to its branded products, the company manufactures bulk materials for use in its own products and for sale to other manufacturers and marketers in the nutritional supplement industry under the trade names Monarch Nutritional Laboratories and Great Basin Botanicals.