NBTY Inc. Reports Operating Results (10-Q)
Nbty Inc. has a market cap of $2.4 billion; its shares were traded at around $37.9 with a P/E ratio of 10.16 and P/S ratio of 0.93. Nbty Inc. had an annual average earning growth of 14.6% over the past 10 years. GuruFocus rated Nbty Inc. the business predictability rank of 4-star.NTY is in the portfolios of Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates, RS Investment Management, Jeremy Grantham of GMO LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: Net sales for the Wholesale/US Nutrition segment increased $76,774 or 21.9% to $426,575 for the three months ended March 31, 2010. This increase was attributable to the following:
Higher net sales of domestic private label products, which increased $16,282. This increase is attributable to higher sales volume as well as a re-allocation of shelf space at a major customer. Net sales from our major brands increased $32,017. Some of the major brands in this segment include Nature's Bounty®, Solgar®, Osteo Bi-Flex®, Sundown® and Ester-C®. 30
Net sales from our sports nutrition brands (such as WORLDWIDE Sport Nutrition®, Pure Protein® and Met-Rx®) increased $15,333. Wholesale net sales to international customers increased $12,262. We continue to adjust shelf space allocation among our numerous wholesale brands to provide the best overall product mix and to respond to changing market conditions. These efforts have helped to strengthen US Nutrition's position in the mass marketplace. Wholesale/US Nutrition continues to leverage valuable consumer sales information obtained from our Vitamin World retail stores and Puritan's Pride Direct Response/E-Commerce operations in order to provide its mass-market customers with data and analyses to drive mass market sales.
Product returns were $5,437 or 1.1% of sales for the three months ended March 31, 2010 as compared to $10,809 or 2.7% of sales for the prior comparable period. The product returns for the three months ended March 31, 2010 are mainly attributable to returns in the ordinary course of business. Product returns for the prior comparable period were higher than normal due to the reallocation of shelf space by customers of our US Nutrition brands and approximately $2,000 for bars primarily related to the recall of our Met-Rx® bars containing peanut butter. We expect returns relating to normal operations to trend between 1% to 2% of Wholesale/US Nutrition sales in future quarters.
Net sales for this segment increased $2,853 or 5.5% to $54,769 for the three months ended March 31, 2010. Sales for stores open more than one year (same store sales) increased 4.6%, representing $2,385 of the overall increase.
Net sales for this segment increased $24,575 or 18.3% to $159,013 for the three months ended March 31, 2010. Same store sales increased 14.7%, representing $19,144 of the overall increase. In local currency, same store sales increased 5.7% from the prior like period.
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