Private Label Helps Schiff Growth

LOS ANGELES—Schiff Nutrition’s net sales were $47.8 million for its fiscal 2009 (FY09) first quarter (1Q) ended August 31, 2008, compared to $40.7 million for the same period in fiscal 2008. For the FY09 1Q, Schiff reported net income of $3.2 million, or $0.11 per diluted share, doublingFY08 1Q net income of $1.6 million, or $0.06 per diluted share, which included an unusual pre-tax compensation charge of $3.0 million associated with the declaration of a special dividend.

“Our first quarter net sales increased more than 17 percent, as compared to the year ago period," said Bruce Wood, president and CEO. "The significant increase was driven by incremental private label sales volume as new business acquired in the fiscal 2008 fourth quarter continued to positively impact the current quarter. At the same time, our overall branded business remained stable, on a quarter-over-quarter basis. Furthermore, our operating income was consistent with the prior period, including incremental advertising investment in the current quarter and after adjusting for the unusual charge in the year ago quarter."

Wood added the company expects to expand distribution of its new Schiff® MegaRed™ product to certain other customers in the second quarter. "Supported by our strong financial position, we will continue to pursue branded, private label, and strategic growth initiatives that we believe enhance long term shareholder value."