Nutraceutical Corp. Sales Remain Flat, Acquisition Still Key Strategy

Nutraceutical Corp. Sales Remain Flat, Acquisition Still Key Strategy

SALT LAKE CITY--Fourth quarter and fiscal year 2005 revenues for Nutraceutical Corp. (NASDAQ:NUTR) remained relatively flat at 2-percent and 5-percent growth, respectively, strengthened by positive contributions from the March 2005 acquisition of Pioneer, the November 2004 acquisition of Pilgrim's Natureway and the May 2004 acquisition of Natural Balance. Earnings for the quarter were off $0.2 million or $0.02 per diluted share, compared to the same quarter in 2004, and yearly net income dropped $1.0 million or $0.09 per diluted share.

"During fiscal 2005, we focused on brand positioning, manufacturing consolidation and raw material sourcing," said Bill Gay, chairman and chief executive officer (CEO). "In addition, we always seek ways to manage our controllable expense structure while trying to offset less controllable expenses, including legal fees, insurance and corporate governance costs, which increased during fiscal 2005." Gay added Nutraceutical (www.nutraceutical.com) plans to increase domestic health and natural food store market share, grow internationally and enter other strong natural product channels. He also noted acquisitions are an integral part of the company's strategy, since nutritional supplement growth rates continue to be relatively flat.