NBTY Forced To Hike Prices By Leiner Integration Costs, Shrinking Margins
This article was originally published in The Tan Sheet
NBTY plans to raise prices for its Nature's Bounty brand dietary supplements in January 2009 following a 63.8 percent decrease in net income in its latest earnings period
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Dietary supplement manufacturer and retailer NBTY expects increased competition in the store brand arena to drive down its gross profits, nearly two years after it made private label sales a much larger part of its business by acquiring competitor Leiner Health Products
Dietary supplement manufacturer NBTY's gross margins are unlikely to exceed 50 percent again largely because private-label product sales have nearly doubled since its acquisition of Leiner Health Products
Chattem expects another "very good year": Chattem prepares to roll out at least six new products in 2009 and is "at a tipping point on moving to the next level," the Chattanooga, Tenn.-based company says. CEO and Chairman Zan Guerry explained during a Jan. 29 fourth-quarter earnings call that the firm has "the best new products line-up, the highest scoring advertising on the biggest promotions kicking off in February through June in history," making 2009 likely another strong year. In fiscal 2008, the firm's total revenues grew 7.4 percent to $454.9 million fueled primarily by the addition of brands acquired from Johnson & Johnson. The company's oral care category advanced 29 percent to $62.9 million and internal OTCs were up 7 percent to $48 million in the September-November period. Chattem's net income grew 11 percent to $66.3 million