Horizon Charts 2Q Sales Growth

Horizon Charts 2Q Sales Growth

BOULDER, Colo.--Horizon Organic Holding Company(NASDAQ:HCOW) posted 30-percent sales growth for its second quarter ended June 30. Revenues hit $38.6 million, compared to $29.7 million sold a year ago, while gross margin slipped three points to 31.5 percent of sales. Operating expenses were trimmed to 25 percent of sales from 28.5 percent of sales spent in the same period last year. Net income slipped less than 1 percent of sales to $.44 million or $.04 per share from $.51 million or $.05 per share earned a year ago.

Ultra-pasteurized milk contributed a hefty 42 percent to total milk sales for the quarter, allowing expansion into Seattle and Portland. Horizon's repackaged line of cheese products grew 45 percent in the quarter, while butter products expanded 20 percent. In addition, two major conventional grocery customers added organic dairy sections this quarter. The company noted that rising milk prices have narrowed the price gap between conventional and organic milk, and the organic milk category is growing at a 38-percent rate, compared to a 28-percent rate recorded in fourth quarter 2000.