First half year report 2009

26.08.2009 - Second quarter 2009...

second quarter 2009
                              HEADLINES

*         EUROPE
Nutri5 was launched in 17 countries in May, and Nutri5 sale to Nikken
was MNOK 8.1.

*         NORDIC
Royalty income is MNOK 2.2, which is 10 % higher than same period
last year.

*         RUSSIA/CIS
MIG reports revenues of MNOK 20.7 in Q2 2009 compared to MNOK 23.4 in
the same quarter in 2008. EBIT is reported at minus MNOK 0.4.

*         CONSOLIDATED
Consolidated sales in second quarter are MNOK 31.0 with a positive
EBITDA of MNOK 3.9, and EBIT of MNOK 2.9.

 

                        FIRST HALF YEAR  2009
                              HEADLINES

*         Consolidated sales in first half year of 2009 are MNOK 56.1
  with a positive EBITDA of MNOK 5.9, and EBIT of MNOK 3.9. This
  compares to  MNOK 46.5 in sales and a EBITDA of minus  MNOK  0.3
  and EBIT of minus MNOK 2.6 in H1 2008.

 

                       FIRST HALF YEAR  report
                                2009


CONSOLIDATED
Nutri Pharma today reports  a consolidated revenue of MNOK 56.1 and a
consolidated EBIT of MNOK 3.9 for H1 2009. Compared to H1 2008
revenue has increased by 20 %.
The EBITDA in H1 2009 is MNOK 5.9, compared to an EBITDA of  minus
MNOK  0.3 in the  corresponding period in 2008.

SEGMENTS

Europe
Royalty income in the Nordic area derived from the long term licence
agreement for Nutrilett was MNOK 3.9 in H1 2009. Royalty income in
the same period in 2008 was MNOK 3.2, an increase of 22 %.

In H1 2009, EBITDA in the Nordic region was positive by MNOK  4.1

Sale of Nutri5 through the distribution agreement with Nikken for the
17 countries across Europe is in H1 MNOK 9.0.
Delpharmea is hit by a credit crunch. As we are not sure about the
future for this company and our business with them in the Czech
Republic going forward, we have conservatively written down all
unsettled matters between Delpharmea and NutriPharma - totally 74.000
¤.

Russia/CIS
Revenue in the first half of 2009 ended at MNOK 42.7, compared to
MNOK 41.1 in H1 2008. EBITDA is reported at MNOK 1.9. EBITDA in H1
2008 was MNOK 4.3.

Amortisation cost  is MNOK 1.9, and finance cost for H1 2009 is MNOK
0.9.

Amortisation in the H1 2009 is MNOK 0.2, and finance cost is MNOK 0.9
out of which MNOK 1.6 is related to the currency fluctuations between
EURO/NOK.

Nutri Pharma operates with two business segments; Europe, with the
existing royalty revenues, including the direct sale of Nutri5
through NIKKEN, and Russia + CIS countries through the direct sales
organisation of MIG.

For further segment information see page 7.

Consolidated net financial expense was MNOK 1.8, with MNOK 1.6
related to the reported currency fluctuations. Finance revenue in Q2
2009 was MNOK 0,4 of which all was related to currency fluctuations.

Cash at end of Q2 was MNOK 14.4, compared to MNOK 14.0 at the end of
Q1 2009. At year end 2008 the liquid assets were MNOK 11.6. Nutri
Pharma ASA has no interest bearing debt.

 


                                     OUTLOOK

Europe

  * Nutri5 is now distributed in 17 countries in Europe through
    Nikken. The launch in May was successful. After a normal slowdown
    during the holiday season (Q3), sales going forward should show a
    steady growth and by year end represent a substantial part of
    NutriPharma's  revenues and earnings. Seeing that Nikken is
    responsible for marketing, sales and distribution, a substantial
    part of the growing revenues, should be reflected in
    NutriPharma's profit.


Nordic region

  * Nutrilett is expected to generate a stable income going forward


Russia / CIS


  * Distribution of Nutri Pharma products in Russia/CIS

As reported in a notification to the Oslo Stock Exchange on August
1st, the European Distribution, Product Supply and Marketing Support
Agreement with Nikken UK Ltd, was extended to include the
distribution of both Nutri5® and Nutri Pharma's weight
reduction/weight management products (Nutrilett®/NutriPro®) in Russia
and the CIS.

This agreement is expected to be of substantial importance to
NutriPharma. Through sale of the company's fully owned subsidiary
Meridian International Group (MIG) to the American company Odus LLC
(a XanGo-owned company), NutriPharma will not only substitute its own
presence with a potentially much stronger operation (Nikken), but
will simultaneously reduce its cost base and should enhance quality
of earnings from these markets considerably.

A full launch of the product lines by Nikken in these markets is
planned from late 2009. Thus, the effects of this extended agreement
will not impact NutriPharma's results before 2010.


The sale of MIG will affect the P&L of Nutri Pharma. The originally
investment of MNOK 23.2 will be written off, as will accounts
receivable against MIG at a total of MNOK 18.8. These one-off write
offs will have a negative effect on the results for the third
quarter. The sale is not expected to have any adverse cash effect on
Nutri Pharma. The full financial implications of this sale will be
reported in the Q3 figures.

With the signing of these agreements Nutri Pharma has progressed its
strategic objective of  becoming a supplier of advanced nutritional
products with scientifically documented health benefits to leading
distributors internationally. The management resources that will be
freed up following this strategic development will enable further
focus on this basic strategy.

Please download the report in Word here.

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.