Nutraceutical Charts Record Growth, Expanded Operations

Nutraceutical Charts Record Growth, Expanded Operations

PARK CITY, UtahNutraceutical Corp (NASDAQ:NUTR) marked its secondquarter with record quarterly sales of $41.0 million, up 6 percent, and netincome of $5.0 million or $0.43 per diluted share, up 42.9 percent. Managementattributed the growth to its strong brand position in health and natural foodstores, despite the highly competitive environment for supplement sales.

We achieved record quarterly sales, which allowed us to leverage our coststructure for improvements in earnings, said Bill Gay, chairman and chiefexecutive officer (CEO). Supplement sales to health and natural food storesremain very competitive, but we continue to believe that this channel offers thebest opportunities. He further noted the company (www.nutraceutical.com)successfully settled long-standing litigation to purchase a group of buildingsin Ogden, Utah, for $4.2 million in cash, which, when fully converted, willprovide approximately 410,000 square feet of gross building space located on19.2 acres, including available land for expansion. We have beenconsolidating operations, including raw material warehousing, manufacturing,packaging, distribution and administrative offices, in this Ogden location sinceentering into a lease arrangement in 1998, he said.