Skinny Nutritional Corp. SKNY +5.27% , the maker of Skinny Water(R) and a leader in the zero-calorie enhanced water category, announced net revenues of $1,611,515 for the three months ending March 31, 2011. This represents a decrease of $167,203 over revenues of $1,778,718 for the same period ending March 31, 2010. The Company sold 197,576 cases of Skinny Water(R) for the period ending March 31, 2011 compared to 219,912 cases for the same period in 2010, a decrease of approximately 10%, (1 case = twelve 16 ounce bottles). This decrease in revenue is due in part to an increase in slotting fees and bill backs of approximately $247,000 during the quarter ended March 31, 2011 as compared to approximately $186,000 in the first quarter of 2010.
Gross profit percentage for the quarter was 34.2% up 1.4% from 32.8%, resulting in an increase of 4.2% over the same period March 31, 2010. This increase in gross profit percentage was a result of the company's continued efforts to reduce its cost of goods sold in the areas of formulation, packaging and transit. The Company's net loss for the quarter ended March 31, 2011 was $869,055, a decrease of 16%, or approximately $168,000, as compared to the prior year period, as a result of lower sales, marketing and administrative expenses. As of March 31, 2011, the Company maintains a national distribution network of 47 distributors who service our network of retail chains. In addition, the Company increased its key retail chain authorizations during and subsequent to the first quarter of 2011, including the addition of CVS stores nationally. Michael Salaman, Chief Executive Officer, stated, "With the addition of CVS, Skinny Water is now available nationally through two premier retailers, the other one being Target. We believe that these customers perfectly fit the targeted consumer that drinks Skinny Water. Having a number of our great tasting flavors in these stores for the summer should fuel our growth during the summer months." Commenting on the Company's financial results, Mr. Salaman continued, "We have made strides in many areas during the first quarter of fiscal 2011. Financially, increasing our gross profit percentage by 1.4%, for a 4.2% gain over the same period in 2010 and lowering our net loss by 16% as compared to the same period in 2010 shows that the company is committed to working towards its goals of achieving profitability. In addition, we are aggressively pursuing a product development program focused on zero calorie natural sweeteners, new flavors and new proprietary packaging. We believe that the results of these efforts will yield new products being introduced later this year."
The Skinny Water(R) lineup features eight great-tasting flavors, including Acai Grape Blueberry (Hi-Energy), Raspberry Pomegranate (Crave Control), Orange Cranberry Tangerine (Wake Up) and Lemonade Passionfruit (Total-V) and as part of its 'Sport' line: Blue Raspberry (Fit), Pink Berry Citrus (Power), Goji Black Cherry (Shape) and Kiwi Lime (Active). Every bottle of Skinny Water(R) has key electrolytes, antioxidants and vitamins and has zero calories, sugar, and sodium, and no preservatives, with all natural colors and flavors.
ABOUT SKINNY NUTRITIONAL CORP. Headquartered in Bala Cynwyd, Pa., Skinny Nutritional Corp., the creators of Skinny Water(R), a zero-calorie, zero-sugar, zero-sodium and zero-preservative enhanced water with key electrolytes, antioxidants and vitamins. Skinny Water comes in eight great-tasting flavors that include Acai Grape Blueberry, Raspberry Pomegranate, Lemonade Passionfruit and Orange Cranberry Tangerine and as part of its 'Sport' line: Blue Raspberry, Pink Citrus Berry, Goji Black Cherry and Kiwi Lime. Skinny Nutritional Corp. also expects to launch additional Skinny branded beverages. For more information, visit www.skinnywater.com.