RONKONKOMA, N.Y.—NBTY Inc. (NYSE:NTY) posted record results for its first quarter 2010 (1Q10) on the strength of a 16-percent increase in revenues by its Wholesale/US Nutrition division, which beat the industry-wide vitamin/mineral/herbal supplements increase of 14 percent, as reported by the Nielsen Company. Overall revenues for 1Q10 reached record $751 million, up 14 percent from $661 million sold the same quarter last year. Also rising was net income, which rose to $76 million, or $1.18 per diluted share, from $13 million, or $0.21 per diluted share, earned a year ago. The increases were attributed to greater sales and improved supply chain management, both of which contributed to higher gross profits in all divisions. Reduced expenses also contributed to the 1Q10 gains.
"Our significant increase in revenue and profitability reflect NBTY's on-going initiatives to improve operations, control costs and expand our premiere position as the leading nutritional supplement company,” said Scott Rudolph, chairman and CEO. “Our growing financial strength continues to play a vital role in generating future growth and shareholder value.”
Leading the way, the Wholesale/ US Nutrition division, including brands such as Nature's Bounty, Osteo Bi-Flex, Rexall, Sundown, Ester-C, Solgar, and private label products, posted $64 million in sales, a 16-percent gain. Of these sales, private label sales were 42 percent, or $198 million.
Modernization was the key driver in the North American Retail division, in which Vitamin World Stores in the United States and LeNaturiste stores in Canada charted a combined $51 million in sales, a 6-percent increase over a year ago. This is reflected in the division's 5-percent jump in same store sales, which was credited to modernization of Vitamin World stores.
The European Retail division saw solid growth in a difficult retail environment, with an 8-percent increase in revenues and a 6-percent rise in same store sales. NBTY continues to convert a number of newly acquired Julian Graves stores into Holland & Barrett stores and eliminating redundant activities. It expects to begin to see the benefits from this integration by the fiscal fourth quarter this year.
The Direct Response/E-Commerce division produced a significant 7-percent growth in revenues, although management cautioned results from this division should be looked at annually, given the promotional strategy fluctuates throughout the year. IN this division, Puritan’s Pride continues to lead the way, achieving a four-dollar increase in average order size to $79.
