Horizon Organic Posts Increased Year-Over-Year Sales

Horizon Organic Posts Increased Year-Over-Year Sales

BOULDER, Colo.--Horizon Organic Holding Corp. (NASDAQ:HCOW)reported Feb. 4 that for the year (FY02), ended Dec. 31, sales were up due tosuccessful introductions here and abroad.

For the year, sales rose 18 percent to $187.5 million from$158.9 million. Gross margin was 31.9 percent of sales, an increase over FY01's29.6 percent. Operating expenses rose to $53.4 million from $42.5 million. Netloss came to $33,000, or nothing per share earned, compared to FY01's net profitof $1.7 million, or $.17 per share earned.

The company expanded milk distribution by 10 percent during theyear; by the fourth quarter (4Q02), Horizon Organic products were sold in 60percent of U.S. grocery stores.

Chuck Marcy, president and chief executive officer, reported theintroduction of single-serve milk in the United States and Rachel's Organic milkin the United Kingdom also proved successful. In addition, the company was ableto better balance its U.S. milk supply and reduce processing costs, while in theUnited Kingdom, branded sales increased and processing costs were lowered whileefficiencies improved at the company's yogurt manufacturing facility in Wales.

Horizon Organic confirmed its previous 2003 guidance, with salesgrowth anticipated to be between 20 percent and 25 percent, and earningsestimated to be $.07 to $.09 per share.

click here for chart