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President and CEO Steve Cahillane noted that NBTY’s move out of contract manufacturing and U.S. retail allows the company to focus on core brands and its strategy to lead in health and wellness products.

Christine Kapperman, Senior Content Director

February 10, 2016

1 Min Read
NBTY continues transformation after disappointing quarter

NBTY released disappointing first-quarter results Tuesday, but President and CEO Steve Cahillane expects to tap an “outstanding industry marketplace” and drive brand innovation in the second half that “will add excitement and growth.”

First-quarter sales decreased 2.9 percent to $802 million, and total gross profit fell 4.8 percent to $358.8 million.

Company brands include Nature’s Bounty, Ester-C, Osteo Bi-Flex and Balance Bar. Vitamin World, another of its brands, will be sold to Centre Lane Partners, with the $25 million deal expected to close in the second quarter.

Highlights for the quarter included Nature’s Bounty growth of 14 percent in the U.S., Pure Protein’s 11 percent sales increase and Solgar’s 21st consecutive quarter of growth reaching 20 percent.

NBTY’s Holland and Barrett retail front, in particular, suffered several one-time events including terrorist attacks, flooding and warmer-than-average weather, Cahillane outlined. The strengthening dollar also affected international business.

No details about future growth were released, but Cahillane noted that NBTY’s move out of contract manufacturing and U.S. retail allows the company to focus on core brands and its strategy to lead in health and wellness products.

About the Author(s)

Christine Kapperman

Senior Content Director, New Hope Network

As the senior content director at New Hope Network, Christine Kapperman combines her 20-year journalism background with her passion for business to cover the natural products industry for newhope.com and Natural Foods Merchandiser magazine. She also led content at worldteanews.com. She loves tracking (and tasting) trends as she shares what’s next to show up in cups, plates and in pantries across the United States.

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