Nutraceutical Corp. Shows Effects of Industry Slowdown 38820

Nutraceutical Corp. Shows Effects of Industry Slowdown

PARK CITY, Utah--For its first quarter ended Dec. 31,Nutraceutical International Corp. (NASDAQ:NUTR) posted declined results citingthe much reported supplement industry slowdown as a key factor in the decreasednumbers. Revenues slid to $25.3 million from $27.7 million sold in the sameperiod last year, an 8.4-percent fall. Gross profit rose to 47.9 percent from47.5 percent of sales, and operating expenses rose slightly to 34.4 percent ofsales compared to the same quarter a year ago. At the bottom, net earningsdipped to $1.33 million or $.12 per share from $1.61 million or $.14 per basicshare earned in the comparable quarter last year.

Despite the industry-wide slowdown in sales, chairman and chief executiveofficer Bill Gay noted NUTR's gains in the quarter. "While net sales weredown during the fiscal first quarter, the company's gross profit marginincreased as a result of manufacturing improvements," he said. Gross profitrose four-tenths of a percentage of sales, but operating expenses increased bythe same percentage, negating the effects of the increased gross profit.Nevertheless, Gay stated that the company will strive to stay in front ofcompetitors via product innovation, brand merchandising and facilityconsolidation.