Fourth Quarter 2008 - Preliminary 2008 Results

27.02.2008 -

FOURTH quarter 2008
                              HEADLINES

*         RUSSIA/CIS
Revenue in the fourth quarter 2008 ended at MNOK 25.6 compared to
MNOK 16.1 in Q4 2007. EBITDA is reported at MNOK 0.5.

*         NORDIC
Royalty income is MNOK 1.8, compared to MNOK 1.4 in Q4 2007.

*         NORWAY
Nutri5 achieved sales of MNOK  0.7 in Q4, and a total of MNOK 3.2 in
the year 2008.

*         CENTRAL/EASTERN EUROPE
Delpharmea Nutraceuticals AS in the Czech Republic has started
pre-sales of Nutrilett (under the Nutriline trademark) to their
biggest pharmacies. The product was launched consumers in February
2009, and achieved a sale af MNOK 1.0.

*         CONSOLIDATED
Consolidated sales in fourth quarter are MNOK 28.1 with a positive
EBITDA of MNOK 2.7, and EBIT of MNOK 2.4, compared to MNOK 17.4 in
sales and a EBITDA of MNOK minus 2.9 and EBIT of minus MNOK 10.1 in
Q4 2007.


                         FOURTH QUARTER 2008
                               REPORT


REVENUES / EBITDA
Nutri Pharma today reports consolidated revenue of MNOK 28.1 and a
consolidated EBIT of MNOK 2.4 for Q4 2008. Compared to Q4 2007
revenue has increased by 60 %.
The EBITDA in Q4 2008 is MNOK 2.7, compared with the EBITDA of  minus
MNOK  2.9 in Q4 2007.

Out of the total revenue of MNOK 28.1 in Q4 2008, MNOK 25.6 were
recorded in MIG (Russia/CIS). Royalty revenue of MNOK 1.8 and sales
of MNOK 0.7 for Nutri5 were recorded in the Nordic region.

The increase Euro/NOK in fourth quarter has a positive influence  in
the P&L by app. MNOK 3.

SEGMENTS

RUSSIA/CIS
Revenue in the fourth quarter 2008 ended at MNOK 25.6 compared to
MNOK 16.1 in Q4 2007. EBITDA is reported at MNOK 0.5.

Compared to 2007, revenue in Russia/CIS in FY 2008 has increased by
38 %. Total revenue in the region was MNOK 87.8. EBITDA ended at MNOK
6.7. Compared to the same period last year, the EBITDA has improved
by MNOK 7.8.
Amortisation cost of the distributor list is MNOK 3.2, and finance
cost for 2008 is MNOK 1.7.

 

NORDIC REGION
Royalty income in the Nordic area derived from the long term licence
agreement for Nutrilett was MNOK 1.8 in Q4. Royalty income in the
same quarter in 2007 was MNOK 1.4.

Nutri5 was launched in February 2008, and sales in Q4 2008 were MNOK
0.7. Norwegian distribution of Nutri5 has been included in a
distribution agreement with Nikken for 17 countries across Europe.
This new operation will be launched in May 2009. Until then existing
Nutri5-customers will be served by Nutri Pharma.

In Q4, EBITDA in the Nordic region was positive by MNOK 2.1

Amortisation for the quarter is positive with MNOK 0.8 due to
over-amortisation in the previous quarters, and finance income is
MNOK 0.3.

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

For further segment information see page  9.

Net financial expense was MNOK 0.3, compared to finance income of
MNOK 0.8 in Q4 2007.
Cash, money market fund and other liquid assets were MNOK 11.6 as of
December 31 2008, compared to MNOK 11.2 at the end of Q3 2008. At
December 31 2007 the liquid assets were MNOK 18.6. There is no debt
in Nutri Pharma ASA.

                            Commercial update - Q4 2008

Russia and CIS countries
Revenue in the fourth quarter 2008 ended at MNOK 25.6 compared to
MNOK 16.1 in Q4 2007. EBITDA is reported at MNOK 0.5.

Nordic
Nutrilett®,
Nutrilett, distributed through Axellus (Orkla) as one of their core
product lines, has generated royalty revenues of  MNOK 1.8, compared
to MNOK 1.4 in the same period last year, and total royalty revenue
of MNOK 6.4 in 2008, compared with MNOK 5.5 the previous year. This
royalty revenue has steadily increased over the last few years.

Nutri5®
From May 2009, Nutri5 will be distributed across 17 countries in
Europe by the direct sales company Nikken.

                                     OUTLOOK

Europe

  * Nutri5 will be distributed in 17 countries in Europe through
    Nikken. Nikken is one of the largest direct-sales companies in
    the world, and will launch Nutri5 in May 2009. Revenues from the
    Nikken agreement are expected to contribute between 15 and 25% of
    total revenues, and a substantial part of the expected profit for
    2009.


Russia / CIS

  * The efforts made in 2007 have improved the turnover, reduced the
    costs and made MIG into a  growing company, and we expect this to
    continue going forward. Revenues from the MIG operations are
    expected to contribute between 65 and 70% of total revenues in
    2009. Initiative will be taken to improve profitability of this
    operation going forward.


Nordic region

  * Nutrilett continues to give the company a stable income.


Central/Eastern Europe

  * Delpharmea Nutraceuticals  in the Czech Republic has launched
    Nutri Pharma`s weight management product ("Nutrilett") in
    pharmacies under the brand name Nutriline. Revenues from this
    agreement are expected to contribute around 2 to 3 % of total
    revenues in 2009.


Oslo, 27 February 2009

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

Please download the full report in PDF here.


For information about Nutri5®, please point your web browser to:
www.nutri5.no, or 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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