Sales & Earnings In Brief
This article was originally published in The Tan Sheet
Herbalife's "soft" spot: Multilevel nutritional supplement marketer Herbalife reaches record annual net sales of $2.4 billion for 2008 despite an 11.3 percent drop in fourth-quarter net sales to $512.9 million. "Unprecedented currency fluctuations" cut into fourth-quarter income, reducing net sales by 856 basis points and causing a 2.7 percent drop in local currency year-over-year sales, the Los Angeles-based company says Feb. 24. "We ended the year on a soft note," Chairman and CEO Michael Johnson said. The company in December began restructuring to lower costs by improving alignment with its distributors and reducing workload. For the October-December period, the company's net income fell 59.6 percent to $33.7 million, due in part to general and administration expenses and lower sales. Fourth-quarter sales were down in each of the firm's regions other than a flat performance in North America, $109.3 million. Sales dropped 18.9 percent in Europe, the Middle East and Africa region to $117.4 million, 4.5 percent in Asia Pacific to $97 million, 20.7 percent in South America to $78.8 million and 28.5 percent in Mexico and Central America to $69.9 million, Herbalife said. Full-year sales grew 9.9 percent and net income grew 13.4 percent to $221.2 million, or $3.36 per diluted share. Herbalife added 45,657 sales associates in the quarter, 19.5 percent fewer than the year-ago period, but the number increased 6.6 percent for the year to 505,094
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The stabilized rice brand nutrient research and technology company files for Chapter 11 bankruptcy protection. In a Nov. 10 release, the Phoenix-based firm says the action allows it to restructure its operations, reduce overhead and sell non-core businesses, in line with its previously discussed focus on core businesses. The filing, which does not include the firm's subsidiaries, also allows the company to access immediate liquidity through a $6.8 million line-of-credit provided by Wells Fargo, N.A. that will enable the firm to carry out day-to-day operations. The firm had to restate its financial reports for the final three quarters of 2007 and all of 2008 after an internal audit determined it improperly recorded revenues from two transactions (1"The Tan Sheet" March 2, 2009)
Prestige's OTC brands grow: Prestige Brands Holdings reports flat quarterly net sales - $73.2 million compared to $73.5 million in the year-ago period - during its Aug. 5 fiscal 2010 first-quarter earnings call. While the Irvington, N.Y.-based firm's household product revenues declined by 5 percent, its over-the-counter revenues were at $40.3 million, a 3 percent increase from the previous Q1. Increases in Chloraseptic, Clear Eyes, Little Remedies, The Doctor's and Allergen Block brands drove sales. The Little Remedies pediatrics line was up 40 percent and The Doctor's dental devices rose 47 percent, CEO Mark Pettie said during the call. The firm reported increased sales of Cutex nail polish remover, which were "partially offset by a decline on Denorex shampoo." Net income for the quarter was $8.3 million, a 6.4 percent boost from the previous year's $7.8 million, which the firm attributed mainly to a lower interest expense of $5.7 million for the quarter, $3 million lower than first quarter 2008
Private-label prosperity picks up Perrigo: The Allegan, Mich.-based firm says its consumer health care segment sales grew 12 percent to $419.1 million during its fiscal 2009 third quarter, including a $39 million increase attributable to the acquisitions of JB Labs, Unico Holdings, Laboratorios Diba and Brunel Pharma. "Consumers are realizing the value of store brands in a challenging economy," said President and CEO Joseph Papa, citing 11.7 percent growth of the U.S. OTC store brand market in the quarter. "Perrigo is uniquely positioned to deliver that value to consumers," he added during a May 7 earnings call. The private labeler reported net sales of $505.9 million for the January-March period, up 5.3 percent from $480.6 million, and setting a company quarterly earnings per-share record of 50 cents, up from 42 cents in the year-ago quarter. Papa touted the nearly 40 percent market share of omeprazole, equivalent to Procter & Gamble's Prilosec OTC, and added that Perrigo projects full-year sales of that generic to reach the high end of its guidance range of $150 million to $200 million (1"The Tan Sheet" Feb. 9, 2009, p. 12). Perrigo also announced it is seeking to divest its Israel consumer products segment, which includes Careline beauty brands. Sales for the Israel business dropped 22 percent to $18 million from $23 million during the quarter