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.