Schiff Nutrition raises forecast on Q1 results18 September 2012
US vitamins and supplements manufacturer Schiff Nutrition has raised its full year forecast after the firm reported a surge in EBITDA and net sales in the first quarter.
Schiff increased EBITDA by 81% to $17.4 million in the quarter ending 31 August and net sales were up 46% to $85.1 million. Net income for the fiscal first quarter reached $6 million, up from $4.7 million during the same period last year.
Branded sales increased by 49.3% to $74.8 million reflecting the contribution of the firm's acquisition of immune support supplement maker Airborne in March.
Schiff attributed a 34% year-on-year increase in operating expenses to $27.1 million to increased marketing spend.
The company slightly raised its full-year net sales growth forecast from 40-43% to 43-46%.
"Our brand building, innovation, and customer initiatives continue to drive MegaRed in heart health, Move Free in joint care, Airborne in immune support, and Digestive Advantage in probiotics,” said Tarang Amin, Schiff’s president and chief executive.
“Gross margin improvement was driven by branded growth and strong operational execution including lean manufacturing and sourcing initiatives. Given our first quarter performance and expectations for the balance of the year, we are taking up our fiscal 2013 guidance."
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