Second Quarter 2007
23.08.2007 - Nutri Pharma today reports revenues of MNOK 19.0 million and a loss of MNOK 0.8 million for the
second quarter of 2007...
Oslo, 23 August 2007)
Nutri Pharma (OSE: NUT) today reports revenues of MNOK 19.0 million and a loss of MNOK 0.8 million for the second quarter of 2007. This compares to revenues of MNOK 25.7 and a profit of MNOK 0.2 million in the second quarter of 2006.
Out of total sales of MNOK 19.0 in the second quarter, MNOK 17.4 million were recorded in MIG
(Russia/CIS). Royalty revenues of MNOK 1.6 were recorded in the Nordic region, which is 12 %
higher than the same revenue in Q2 2006.
Sales have increased by 40 % from the first to the second quarter 2007. The loss in MIG has been reduced from MNOK 5.4 in the first quarter to MNOK 1.1 in the second quarter of 2007. Both figures include amortisation of the software platform and distributor lists with MNOK 1.9.
Royalty income in the Nordic area deriving from the long term licence agreement for Nutrilett with
Collett (Orkla) in Q2 2007 was MNOK 1.6, up 33 % from Q1 2007. The profit in Q2 2007 in the Nordic area was MNOK 0.3 for Nutri Pharma ASA, compared to a loss of MNOK 0.5 in Q1 2007.
As from 1 October 2005 Nutri Pharma operates with two business segments; Nordic, with the existing royalty revenues, and Russia + CIS countries through the direct sales organisation of MIG. For further segment info. See page 8.
Second Quarter 2007 Results
The consolidated operating loss is MNOK 0.8 in Q2 2007. In the same quarter of 2006, the profit was MNOK 0.2. The amortisation
plan for the distributor lists was changed in Q4 2006, and amortisation for the whole year was entered into the accounts for
Q4 2006. To make the figures comparable quarter by quarter the figures from 2006 have been changed. The effect for
Q2 2006 is a lower profit of MNOK 0.7.
Nutri Pharma had royalty revenues from the Nordic area of MNOK 1.6 in Q2 2007, compared to MNOK 1.4 in the second quarter the previous year. MIG achieved revenues of MNOK 17.4 in Q2 2007, compared with MNOK 24.3 in Q2 2006. These sales are achieved through its direct sales organization in Russia and the former CIS countries. Sales of Nutri Pro accounted for 92 % of the MIG revenues in the second quarter.
Total operating expenses were reduced from MNOK 25.3 in Q2 2006 to MNOK 20.1 in the second quarter of 2007. Total amortization costs in the second quarter were MNOK 2.3, of which MNOK 1.9 relates to the intangible fixed assets in MIG and MNOK 0.4 to royalty assets in Nutri Pharma ASA. The comparable amortization costs in Q2 2006 were the same, MNOK 2.3.
Net financial profit was TNOK 263, compared to finance expenses of TNOK 107 in second quarter of 2006.
Cash and other liquid assets were MNOK 27.3 as of June 30 2007, compared to MNOK 6.6 as of June 30 2006.
Nutri Pharma ASA has on 18 April, 2007 successfully completed a private placement (through Orion
Securities ASA) of a total of 7,865,000 new shares at a subscription price of NOK 3.10 per share. Net proceeds from the equity issue amounted to NOK 23,162,425. This strengthening of the equity gives the company the possibility to take advantage of strategic opportunities.
Nutrilett, which is distributed through Collett Pharma (Orkla) as one of their core product lines,
is generating royalty revenues of approximately MNOK 1.6 in Q2 2007. This royalty revenue has
increased by 14 % compared with the same period last year.
Nutri Pharma has decided to further develop and expand the product portfolio with a new product
line for Women`s health, in particular reducing the symptoms of Menopause and PMS. Based on Nutri Pharma`s extensive research on the health benefits of combinations of soy ingredients, the new product is to be marketed as Nutri5. A new team of 3 sales and marketing people has started 1 August to prepare for a product launch in 1H 2008 in the Nordic countries.
Russia and CIS countries
Compared with Q1 2007 sales have increased with 40 % to MNOK 17.4. Compared to the second Quarter of 2006 revenues in second Quarter of 2007 are reduced by 28 % .
The restructuring of the Russian operation is now showing results, with July orders at the highest level in a single month
since Nutri Pharma acquired MIG 2 years ago. Pre-orders of NutriFemme commenced mid July in Russia, and the official launch
of NutriFemme took place at MIG`s annual
event in Moscow 10-12 August.
The launch of NutriFemme in MIG and the planned launch of Nutri5 in the Nordic region in 1H 2008,
together with increased sales of existing products in both the Nordic countries and MIG is expected to improve the results going forward. In order to develop the value chain, Nutri5 (Nordic) will be sold directly to end users and through subscriptions, opposite to Nutrilett, which is licensed to Collett Pharma (Orkla) and distributed to super markets, drug stores and pharmacies.
Download the Second Quarter Report in PDF here.
Oslo, 23 August 2007
The Board of Directors of Nutri Pharma ASA
FOR FURTHER INFORMATION:
Trond Syvertsen, CEO +47 23 31 08 80 / + 47 91
72 14 57
Lars Helmer Enger, CFO +47 23 31 08 84 / + 47 90
84 37 71
For information about Nutri Pharma, Nutri Pharma
products, Nutri Pharma management and Nutri Pharma
financial performance, please point your web
browser to: www.nutripharma.com
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