Third-quarter revenue for nutritional supplement marketer NBTY rose from $535 million a year ago to $652 million during the quarter just ended. The company’s income did not follow suit, however, staying flat at $46 million for both quarters. The most recent quarter ended June 30.
While direct and e-commerce sales slipped by $2 million, from $55 million a year ago to $53 million, gross profits rose from 58% of sales to 64%. The company attributed the increase to a $11.57 rise in average order size, to $77.37. Among the company’s many brands, its Puritan’s Pride is the strongest.
The most recent quarter’s results include a $10 million charge for terminated IT projects “determined to be ineffective and uneconomical”, according to a statement accompanying the company’s figures. The results also include $4 million in legal charges stemming from the U.K.’s Julian Graves Competition Commission, and $3 million in impairment charges stemming from an idled plant.
Part of the lowered margins stemmed from increased sales of the company’s private-label offerings, which traditionally have lower profits associated with them.
