Horizon Organic Enjoys Increased 3Q Sales

Horizon Organic Enjoys Increased 3Q Sales

BOULDER, Colo.--Horizon Organic Holding Corp.(NASDAQ:HCOW)announced that increased distribution channels contributed to increased revenuefor its third quarter (3Q01), ended Sept. 30. Net sales increased 16.8 percentto $39 million from $33.4 million in product sold in the same quarter last year(3Q00). Gross margin settled in at 32.1 percent of sales for 3Q01, compared to30.8 percent experienced in 3Q00, and operating expenses climbed to $9.8 millionfrom $8 million logged last year. Earnings went up 114 percent to $592,000 (or$.06 per share earned) from $277,000 (or $.03 per share earned).

Chuck Marcy, president and chief executive officer of Horizon, stated thatthe company's strong showing could be partly attributed to increasedproductivity, cost reductions, new product introductions and expandeddistribution in such outlets as Starbucks, Kroger, Albertson's and Target.

Pleased with the company's growth, Marcy is now thinking about the company'sfuture. "We began a limited advertising campaign in the third quarter andwill roll out a more aggressive program in 2002," he said."Additionally, we will be recruiting a corporate development leader whowill be charged with identifying new product lines beyond the dairy case, forpossible introduction as early as next year." In January, the company plansto distribute nationwide organic single-serve milk products, branded"Organic Milk on the Moo-ve."