Ester-C® Marketing Curbs Zila 2Q

Ester-C® Marketing Curbs Zila 2Q

PHOENIXZila Inc. (NASDAQ:ZILA) said second quarter revenue at itsZila Nutraceuticals business decreased 26 percent to $7.2 million, representinga decline in factory sales, while Ester-C® sales at retail rebounded during thequarter and posted record sales as the brand gained market share. Gross marginsfor the nutraceuticals business decreased to 63 percent, compared to 68 percentposted in 2Q last year, suffering from sales discount incentives offered to Zilacustomers.A 42-percent hike in spending, driven largely by Ester-C marketing andadvertising costs, led to a net loss of $7.2 million, widened from $2.7 millionlost a year ago. However, Zila has expanded the international presence ofEster-C by signing agreements with distributors Asahi Godo in Japan andCederroth International and Bringwell AB in Europe.