ALAMEDA, Calif., Apr 6, 2006 (PRIMEZONE via COMTEX) -- Allergy Research Group, Inc. (ALRG) today announced financial results for the year ended December 31, 2005.
ALRG announces revenues of $15,911,221 for the year ended December 31, 2005, an increase of 5% compared to $15,136,592 for the year ended December 31, 2004. The increase in sales is due to the introduction of new products and effective marketing efforts.
"We plan to continue our efforts to increase sales by expanding into targeted regions through foreign distributors and by expanding our existing sales force," said Chief Executive Officer and Chairman, Dr. Stephen A. Levine, Ph.D.
Cost of sales increased $978,215 to $9,645,293 for the year ended December 31, 2005, compared to $8,667,078 for the year ended December 31, 2004. The increase corresponds to the increase in sales compounded by increased cost of materials. Gross profit margins were approximately 39% for 2005 and 43% for 2004. In addition to the increased cost of materials, there is a slight downward pressure on margins due to the mix between sales to retail customers and distributors. We responded to the decrease in margins by raising prices on several items in January 2006.
Net income after tax for December 31, 2005 and 2004 was $1,208,869 and $1,282,736, respectively. The decrease is due primarily to decreased margins, increased operating expenses offset by a smaller provision for income tax expense.
Complete copies of the company's financial statements, including notes to the financials, can be found on its website at www.nutricology.com.
About Allergy Research Group, Inc.
Allergy Research Group, Inc. is an innovative leader in nutraceutical research and product formulation. Since its inception in 1979, the company has been noted for quality, hypoallergenic nutritional supplements and supplies products to physicians and healthcare practitioners worldwide.
The Allergy Research Group, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2517
Except for historical information contained herein, this release contains, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, forward-looking statements that are based on management's beliefs and assumptions, current expectations, estimates and projections. Many of the factors that will determine the Company's financial results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. The Company disclaims any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise. Important factors and risks that may affect future results include but are not limited to: the impact of competitive products, changes in law and regulations, adequacy and availability of insurance coverage, availability of raw materials, dependence on distributors and customers, dependence on key personnel, litigation, limitations on future financing, the effect of adverse publicity, uncertainties relating to acquisitions, managing and maintaining growth, customer demands, as well as other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, copies of which are available upon request from the Company's investor relations department or via the SEC's website located at www.sec.gov.