Martek sales stable, inventory destocking looms
This article was originally published in The Tan Sheet
Executive Summary
The maker of life'sDHA reports second quarter revenues inched up 1.9 percent to $92.4 million, despite a 1.3 percent dip in infant formula sales to $77.4 million. Martek Biosciences set records for revenues and pretax profits during the quarter ended April 30, reporting 19.7 percent growth in net income to $11 million over the year-ago period. The Columbia, Md.-based nutritional oils firm said during a June 3 earnings call it expects a $10 million to $15 million revenue hit due to destocking of infant formula during its fiscal 2009 third and fourth quarters. CEO Steve Dubin expects the destocking to be temporary and infant formula sales growth should resume in 2010