Horizon Organic Gaining Mainstream Momentum

Horizon Organic Gaining Mainstream Momentum

BOULDER, Colo.--Horizon Organic Holding Corp.(NASDAQ:HCOW) reported Nov. 3 that for its third quarter (3Q03), ended Sept. 30,sales rose as the company's organic milk grew in mainstream acceptance.

Sales rose to $56.0 million from $47.6 million, and gross margin stayed atapproximately 69 percent of sales. Operating expenses rose to $16.0 million from$13.3 million, and net income rose to $573,000, or $.07 earned per share, from$324,000, or $.07 earned per share.

For the quarter, the company reported an 18-percent sales increase in U.S.milk sales due to increased distribution and promotions. In addition, there wasa 40-percent increase in single-serve milk sales due to expanded distribution atCostco. Internationally, Rachel's Organic branded products grew 30 percent andnow account for 52 percent of U.K. sales.

The merger between Horizon Organic and Dean Foods--first announced June 30--is expected to close this month. Once it does, Dean will have acquired 87percent of Horizon Organic's shares that it does not own already for $24 ashare. Chuck Marcy, president and chief executive officer of Horizon Organic,said the merger would provide the company with additional resources toaccelerate the company's growth and to take advantage of new opportunities.