Weider Branded Sales Highlight 1Q Gains

Weider Branded Sales Highlight 1Q Gains

SALT LAKE CITYWeiderNutrition International Inc. (NYSE:WNI), which operates as Schiff Nutrition(www.schiffnutrition.com), posted increases in revenues and earnings for itsfirst quarter ended Aug. 31. Net sales climbed to $48 million from $43.7 millionsold a year ago, and net income rose to $4.9 million or $0.18 per share from$3.7 million or $0.14 per share earned in the same quarter last year. Whilegross margin fell to 26.5 percent from 38.5 percent a year ago, operatingexpenses were down considerably versus the same quarter last year, and tax rateswere favorable.

According to Bruce Wood, president and chief executive officer(CEO), the approximate 9.9-percent net sales increase for the companys firstquarter was fueled by a 16.9-percent increase in branded sales, most notably inthe Move Free® joint care brand.

As expected, we experienced erosion in our gross marginprimarily due to the ongoing higher raw material costs in a price competitivemarket, he said. Our earnings per share increase was aided by a morefavorable effective tax rate and certain unusual income items.

Wood added the company is encouraged by the positive resultscontained in the abstract of the National Institutes of Health (NIH)Glucosamine/Chondroitin Arthritis Intervention Trial (GAIT) joint care studyinvolving glucosamine and chondroitin. This seminal study, coupled with positive results onglucosamine contained in the abstract from the recently completed EuropeanGlucosamine Unum In Die Efficacy Trial (GUIDE), give us reason to remainconfident in the long-term potential of the joint care category, he said.