Third quarter report
24.11.2009 - The sale of Nutri5 through Nikken was slower during the summer holiday season, and total sale for the quarter was MNOK 3.2....
third quarter 2009
The sale of Nutri5 through Nikken was slower during the summer
holiday season, and total sale for the quarter was MNOK 3.2.
Royalty income is MNOK 1.5, compared with MNOK 1.9 in the same period
As reported in a notification to Oslo Stock Exchange on August 1st,
the agreement with Nikken UK Ltd. was extended to include
distribution of both Nutri5® and Nutri Pharma's weight reduction
products (Nutrilett®/NutriPro®) in Russia and CIS.
As a consequence of the new distribution agreement with Nikken, MIG
no longer distributes Nutri Pharma`s products, and MIG was sold to
an American company (XanGo).
The sale of MIG results in a loss of MNOK 23.4 which is included in
net financial items.
The sale has no adverse cash effect on Nutri Pharma.
EBIT is reported at minus MNOK 0.2.
THIRD QUARTER report 2009
After selling MIG, Nutri Pharma will in the future not report any
consolidated figures. In this and the next quarterly report the
previous figures from MIG will be reported as "profit/loss from
Royalty income in the Nordic area derived from the long term licence
agreement with Orkla for Nutrilett, and was MNOK 1.5 in Q3 2009.
Royalty income in the same period in 2008 was MNOK 1.9. The
difference reflects seasonal variation between Q2 and Q3.
Sale of Nutri5 through the distribution agreement with Nikken in the
17 European countries is in Q3 MNOK 3.2.
EBITDA in the European region in Q3 was negative by MNOK 0.2 .
Revenue in the third quarter derives only from sales in July 2009 and
ended at MNOK 14.5 (one month), compared to MNOK 21.1 in Q3 2008
(three months). EBITDA is reported at minus MNOK 4.2. EBITDA in Q3
2008 was MNOK 1.9.
After the sale of MIG, Nutri Pharma operates with only one business
segment; Europe, with the existing royalty revenues in the Nordic
countries for Nutrilett, and sales of Nutri5 products through Nikken.
During the four years ownership of MIG, Nutri Pharma has experienced
that creating a profitable activity in the Central European markets
is challenging. Although the company's top line revenues will be
reduced through the sale of MIG, we believe that in a longer
perspective activities in Russia/CIS should become profitable and
value enhancing through the cooperation with Nikken.
For further segment information see page 6.
Net financial expense in Q3 was MNOK 0.1. Including the loss by
selling MIG, net financial items ended at minus MNOK 23.5 for Q3.
Cash at end of Q3 was MNOK 12.6, compared to MNOK 11.2 at the end of
Nutri Pharma ASA has no interest bearing debt.
* Nikken will roll out the product line in Q1 in Russia, first
product being NutriPro (Nutrilett). Throughout the first half of
2010, we expect to see a renewed growth in sales. These should
add to NutriPharma's profitability by selling finished products
and by reduced operating costs.
* Income from Orkla (Axellus) is expected to remain stable, and
approximately covers the company`s total operating expenses.
* Nutri Pharma's financial situation is satisfactory and should
further be strengthened trough re-entry in the Russian/CIS
markets. Future cost reductions in these markets should gradually
strengthen the financial situation going forward.
* Nutri5 is since May 2009 distributed in most European countries
through Nikken, and Spain will follow in Q1 2010. Together with
Nikken, Nutri Pharma has devised several new initiatives in
response to market input. Following the launch of Nutri5, Nikken
receives strong consumer testimonials related to this product,
Noting that Nikken's inventories were topped up in conjunction with
the launch and in combination with lower autumn sales than expected,
there is for 2009 no need for further supplies of Nutri5 to Nikken.
* Nutrilett is expected to generate a stable income going forward.
Please download the report here.
For further information:
Trond Syvertsen, CEO +47 23 01 09 60/ + 47 91 72 14 57
Lars Helmer Enge, CFO +47 23 01 09 60/ + 47 90 84 37 71
For information about Nutri5®, please point your web browser to:
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
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
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