Nutrition Business Journal

Sales Slip as Nutraceutical International Deals with Consumer Recession

Net sales for Nutraceutical International Corp. fell 4% to $39.6 million during the supplement manufacturer’s first quarter of fiscal year 2009, which ended December 31, 2008. Net sales had totaled $41.1 million during the same period a year ago.



The global consumer recession was cited as a major factor in the revenue decline. “Net sales to many of our domestic and international customers were adversely affected by the accelerated decline in world economies during the first quarter of fiscal 2009,” Bill Gay, Nutraceutical International’s chairman and CEO, said in a statement. “Management was able to partially mitigate the decline through promotional activities targeted at helping health and natural food stores overcome the reluctance to maintain normal inventory levels.”

The company reported $3.1 million in operating cash flow. That was combined with borrowings of $1.5 million and investments in property and equipment. As is evident from its investment in infrastructure, the company does not plan to change its business strategy in the face of a consumer recession. “The U.S. and global economic environment will continue to present ongoing uncertainties and challenges as we strive to serve our customers and maintain our competitive position within the healthy foods channel,” Gay said. “Our long-term business strategy of selling primarily to the healthy foods channel and growing through add-on acquisitions has served our stakeholders well over the last ten years as a public company, and we are appreciative of those who support us in our efforts.”

For more NBJ coverage of Nutraceutical International, see:
Nutraceutical International Posts Sales Gain
Liquid Assets: Drinkable Vitamins Fuel Profits and Growth
Vitamin Category Struggles with Disappointing News

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