First Quarter 2008
Nutri Pharma today reports consolidated revenues of MNOK 19.9 million (an increase of 47 % compared
with Q1 2007) and a consolidated loss of MNOK 3.2 million for the first quarter of 2008.
FIRST QUARTER 2008 HEADLINES
MIG reports revenues of MNOK 17.7 which is 44 % higher than Q1 2007 and an
increase of 10% compared with Q4 2007. EBIT is reported at MNOK 1.0.The efforts
made last year to reduce costs and improve sales now appear to be producing the
Royalty income is MNOK 1.2, which is the same level as Q1 2007. The retailsales
of Nutrilett in the Nordic countries was app.MNOK 45 in Q1 2008.Over the last
few years the royalty income has increased steadily..
Nutri5 was launched in February, and have been well received in the market.
We have conducted market research on brand recognition on Nutri5 resulting
in a score in excess of > 40% after 2 months, and to date, most Nutri5 customers
have confirmed their subscription (with supply of new product every 2 months).
The results in Q1 for the Nordic region were expensed with app. MNOK 4,0 in
marketing and other costs directly related to the introduction of Nutri5 and
subsequent marketing of the brand.
FIRST QUARTER 2008 RESULTS
Nutri Pharma today reports consolidated revenues of MNOK 19.9 million
(an increase of 47 % compared with Q1 2007) and a consolidated loss of MNOK 3.2
million for the first quarter of 2008. This compares to revenues of MNOK 13.5
and a loss of MNOK 5.9 million in the first quarter of 2007. The results for Q1
in the Nordic region are expensed with app. MNOK 4,0 in marketing and other
costs directly related to the introduction of Nutri5 and subsequent marketing
of the brand.
Out of the total revenue of MNOK 19.9 in the first quarter, MNOK 17.7 million
were recorded in MIG (Russia/CIS). Royalty revenues of MNOK 1.2, and sales of
Nutri5 with MNOK 0.9 were recorded in the Nordic region.
Compared to first quarter 2007 revenue in Russia/CIS has increased by 44 %,
whilst fixed costs have decreased by 14 %, and total costs have increased by
only 8 % excluding depreciation. The restructuring implemented last year are
now having the desired effect to increase sales and reduce cost.Total revenue
in the region was MNOK 17.7 with EBITDA at MNOK 1.8 and a EBIT of MNOK 1.0.
Compared to the same period last year the profit before tax is improved by
MNOK 6.0 . Amortisation cost of the distributor list is MNOK 0.8, and finance
cost for Q1 2008 is MNOK 0.4.
Royalty income in the Nordic area deriving from the long term licence agreement
for Nutrilett was MNOK 1.2. Nutri5 was launched in February 2008, and sales in
Q1 were MNOK 0.9. EBITDA in the Nordic region was negative by MNOK 3.8 due to
the costs of app MNOK 4,0 in marketing and other costs directly related to the introduction of Nutri5 as well as the subsequent marketing of the brand.
Amortisation cost is MNOK 0.4, and finance income is MNOK 0.4.
Nutri Pharma operates with three business segments; Nordic, with the existing
royalty revenues, direct sale of Nutri5 through its own web shop, and Russia
+ CIS countries through the direct sales organisation of MIG. For further segment
info. see page 9. Net financial expense was TNOK 63, compared to finance expenses
of TNOK 175 in first quarter of 2007. Cash, money market fund and other liquid
assets were MNOK 11.7 as of March 31 2008, compared to MNOK 1.7 as of March 31 2007.
There is no debt in Nutri Pharma ASA.
Russia and CIS countriesMIG has increased sales by 44 % compared with the same
period last year and profit is increased by MNOK 6 compared with the same period.
Nutrilett®,Nutrilett, distributed through Axellus (Orkla) as one of their core
product lines, has generated royalty revenues of approximately MNOK 1.2.
This royalty revenue hasincreased steadily over the last few years and gives
the company a stable income.
After the launch in February with an extensive advertising campaign, advertising
will be considerably reduced. Sales efforts going forward will be focused towards
the population that suffers from menopausal problems. In Norway, 250.000 women
suffer from one or more symptoms and approx. 150.000 of these use estrogen regularly, prescribed by their doctors. Based on the fact that 8 out of 10 women have reported reduced symptoms and improved quality of life following daily consumption of Nutri5,
we feel confident that we can capture a meaningful portion of this group over time.
To this end, we have employed from 1 May, an experienced medical consultant who will
work closely with medical practitioners and their patient groups.
In addition, a Japanese placebo controlled clinical trial (1 Izumi T. et al. J Nutr
Sci Vitaminol (2007);53: 57-62) over 12 weeks (using 40mg of soy isoflavones/day,
vs Nutri5`s60mg/day) demonstrated significant improvement in skin elasticity,
as well as reduction of fine lines in the skin. This is a positive side-effect
that we believe will be interesting to our customers.
Russia / CIS
- The efforts made in 2007 have made MIG into a profitable and growing company.
- Nutrilett continues to give the company a stable income.
- Nutri5 is marketed through different channels i.a. medical consultant and
through editorial articles in weekly/monthly magazines, and is sold through
the net shop in Norway as well as our own customer service (tel. 05222).
It is expected that sales will grow and that Nutri5, without side effects,
will help thousands of women to a better life.
Oslo, 21 May 2008 The Board of Directors of Nutri Pharma ASA
FOR FURTHER INFORMATION:
Trond Syvertsen, CEO +47 23 01 09 60 / + 47 91 72 14 57
Lars Helmer Enger, CFO +47 23 01 09 60 / + 47 90 84 37 71
For information about Nutri5®, please point your web browser to:
www.nutri5.no, ore call our customer service 05222.
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
For information about Meridian International Group (MIG),
please point your web browser to: http://www.miglife.net
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