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In Brief: Chattem

This article was originally published in The Rose Sheet

Executive Summary

Chattem: Sales increase 29% to $39.2 mil. for second quarter FY 1997. The company continues to attribute the growth primarily to the Gold Bond body powder and cream line and Herpecin-L cold sore lip balm, which were acquired in April and June 1996, respectively. Sales were also boosted by the relaunch of the company's Cornsilk cosmetics line and by growth in existing brands, including Sun-In and Mudd. Higher sales volume resulted in a 62% gain in operating income to $7.9 mil. in the quarter. Net income from operations rose 52% to $3.1 mil. Separately, Chattem announced June 26 that it has completed the acquisition of herbal supplement manufacturer Sunsource International. The purchase will add approximately $25 mil. in annual sales...

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