Sales & Earnings In Brief

GNC profit jumps: General Nutrition Centers says sales increases in each of its three business segments drove a 167 percent increase in its third-quarter net income to $16.3 million. The Pittsburgh-based specialty retailer Nov. 11 says its retail sales grew 3.2 percent to $298.8 million, accounting for 73.2 percent of it total sales of $414.2 million. Sales at GNC franchises were up 2.7 percent to $67.5 million and revenues from manufacturing and wholesale operations increased 19.4 percent to $47.9 million. GNC also reports that during the July-September period it made $7.1 million in non-cash adjustments related to the March 2007 merger of its owners, Ares Management affiliates and the Ontario Teachers' Pension Plan Board (1"The Tan Sheet" Feb. 12, 2007, p. 9). Because Ares and the OTPPB took GNC privately through the merger, the company does not report per-share earnings

GNC profit jumps: General Nutrition Centers says sales increases in each of its three business segments drove a 167 percent increase in its third-quarter net income to $16.3 million. The Pittsburgh-based specialty retailer Nov. 11 says its retail sales grew 3.2 percent to $298.8 million, accounting for 73.2 percent of it total sales of $414.2 million. Sales at GNC franchises were up 2.7 percent to $67.5 million and revenues from manufacturing and wholesale operations increased 19.4 percent to $47.9 million. GNC also reports that during the July-September period it made $7.1 million in non-cash adjustments related to the March 2007 merger of its owners, Ares Management affiliates and the Ontario Teachers' Pension Plan Board (¹ (Also see "GNC To Be Acquired For $1.65 Bil. By Ares, Ontario Teachers’ Pension Plan" - Pink Sheet, 12 Feb, 2007.), p. 9). Because Ares and the OTPPB took GNC privately through the merger, the company does not report per-share earnings.

RBC Life Sciences sales, income grow: The multi-level marketer of nutritional supplements, wound care and pain management products reports 26 percent increases both in third-quarter net sales to $9.93 million and in net income to $846,000, or 4 cents per share. The Irving, Texas-based company Nov. 10 says a 36 percent increase in international licensee sales was a key growth driver during the July-September period. In a release, RBC founder and CEO Clinton Howard points out the company has "ample working capital to finance this rate of growth" and "has a healthy balance sheet," with debt only in the mortgage on its headquarters facility.

Atrium's acquisitions drive growth: Canadian nutritional products marketer Atrium Innovations links its 67 percent increase in third-quarter net earnings largely to acquisitions of Dutch natural product firms MCO Health in February and Orthos Europe in September. Quebec City-based Atrium's sales increased 48 percent in the July-September period to $75.4 million, helping push its net earnings to $12.1 million from $7.2 million in the year-ago period and its earnings per diluted share to 37 cents from 30 cents. The company early this year refocused its operations solely on health and nutritional products and in May completed the sale of its active ingredients and specialty chemicals division (² 'The Tan Sheet' June 2, 2008, In Brief).

SunOpta grows despite segment struggles: The nutritional and organic product manufacturer generated earnings of $3.9 million in its third quarter, 6 cents per diluted share, up from $3 million and 5 cents per share in the year-ago quarter, as its overall sales grew 41.2 percent to $287.7 million. The Toronto-based company Nov. 5 says, its Food Group operating income grew 9.7 percent to $5.6 million, driven by a 209.8 percent growth in the International Sourcing and Trading Group sales to $51.1 million and a 62.4 percent increase in Berry Operations revenues to $39.3 million. The April 2008 acquisition of Tradin Organics added $37.6 million to SunOpta's sales in the July-September period. However, those increases were offset by a 27.4 percent decrease in Grains and Foods Group income to $3.2 million and a 52.6 percent drop in Ingredients Group income to $1.4 million due in part to higher material costs. The Ingredients Group performance also was slowed by June 2008 flooding in the U.S. Midwest, according to the company.

SCOLR posts profit, reaches milestones: SCOLR Pharma has submitted its first drug application to FDA, for a 120 mg pseudoephedrine tablet made with its proprietary Controlled Delivery Technology. The Bothell, Wash.-based specialty pharmaceutical developer Nov. 7 reports a 14 percent increase in third-quarter revenues to $236,308 and net income of $890,370 after incurring a $3.1 million loss in the year-ago period. The firm says a $4 million net gain from the termination of a corporate facility lease erased the quarter's losses. SCLOR, which generates revenue primarily through royalties, says FDA has accepted its abbreviated new drug application for the 12-hour PSE product. Also during the July-September period the company received "favorable top-line results" from phase III trials of a 600 mg ibuprofen product also featuring CDT (³ 'The Tan Sheet' Nov. 5, 2007, In Brief). SCOLR President and CEO Daniel Wilds says, the results "will focus the attention of potential partners and facilitate an alliance" for the ibuprofen product.

Sanofi-Aventis raises guidance: The French firm raises its earnings guidance from 8 percent to 9 percent growth despite sales and profit declines in its fiscal 2008 third quarter. Sanofi completed its acquisition of Australian supplement firm Symbion Consumer during the quarter and offered to buy Zentiva, which sells OTC drugs and dietary supplements as well as Rx products in emerging markets in Central and Eastern Europe (⁴ (Also see "Sanofi’s Increased Bid For Zentiva Brings Expansion Closer" - Pink Sheet, 29 Sep, 2008.), p. 8). According to Sanofi's Oct. 31 earnings release, its sales for the July-September period fell 2.4 percent to 6.85 billion euros ($8.7 billion under same-day exchange rates). The company says its net income plummeted 28 percent to $1.7 billion due to costs for acquisitions and restructuring and with a negative 5.7 percent impact from currency exchange. Sanofi says based on its overall performance through three quarters, it forecasts 9 percent full-year growth from its fiscal 2007 earnings per share of $6.75.