NBTY, fresh off of its $371 million acquisition of Leiner Health Products, announced strong fiscal third quarter sales. For the quarter ended June 30, 2008, net sales were $535 million, up 6% from the same period in 2007.
NBTY generated $31 million in new sales for the quarter, and remains atop the list of dietary supplement manufacturers in the U.S., according to NBJ research. Though sales increased, gross profit actually fell from 52% to 51% as advertising costs have gone up. For the nine months ended June 30, 2008, net income was $136 million, down from $159 million over the same period in 2007. This is attributed to increases in advertising, general and administrative costs.
NBTY’s U.S. Nutrition division, made up of brands such as Nature’s Bounty, Solgar, Osteo-Bi-Flex and others, increased 14% for the quarter, reaching $284 million in sales. The new dollars were driven by a 17% jump in direct/e-commerce sales, while North American retail sales dropped 6%.
NBTY also repurchased 600,000 shares of its stock for approximately $17 million. That brings the total repurchased stock to 6.7 million shares for fiscal 2008. NBJ estimated NBTY’s total U.S. supplement wholesale sales to be just under $1.1 billion in 2007.