Nutraceutical Corp. Shows Effects of Industry Slowdown

PARK CITY, Utah--Nutraceutical International Corp. (NASDAQ:NUTR) posted declined results for its first quarter ended Dec. 31, citing the much reported supplement industry slowdown as a key factor in the decreased numbers. Revenues slid to $25.3 million from $27.7 million sold in the same period last year, an 8.4-percent fall. Gross profit rose to 47.9 percent from 47.5 percent of sales, and operating expenses rose slightly to 34.4 percent of sales compared to the same quarter a year ago. At the bottom, net earnings dipped to $1.33 million or $.12 per share from $1.61 million or $.14 per basic share earned in the comparable quarter last year.

Despite the industry-wide slowdown in sales, chairman and chief executive officer Bill Gay noted his NUTR's gains in the quarter. "While net sales were down during the fiscal first quarter, the company's gross profit margin increased as a result of manufacturing improvements," he said. Gross profit rose four-tenths of a percentage of sales, but operating expenses increased by the same percentage, negating the effects of the increased gross profit. Nevertheless, Gay stated that the company will strive to stay in front of competitors via product innovation, brand merchandising and facility consolidation.