First Half Report 2005

24.08.2005 - Nutri Pharma ASA (OSE: NUT) today announced that its loss for the second quarter of 2005 was NOK -6,0 million compared to a loss of NOK -3,3 million in the second quarter of 2004....

Oslo, August 24, 2005Nutri Pharma ASA (OSE: NUT) today announced that its loss for the second quarter of 2005 was NOK -6,0 million compared to a loss of NOK -3,3 million in the second quarter of 2004. Revenues in Q2 2005 are NOK 1.2 million compared to NOK 1,1 million for the second quarter of 2004.

Costs related to the launch of NutriPro in Russia have been expensed, with a total of NOK 5,2 million in the first half year of 2005. Nutri Pharma ASA has aquired 100% of the shares of Meridian International Group (MIG) with effect per 1 July 2005. Consequently, results from MIG will be included in the Nutri Pharma figures as per Q3 2005 reporting.

 

 

INCOME STATEMENT

 

 

 

Q2 2005

Q2 2004

All figures in NOK 1000

1H 2005

1H 2004

2004

 

1 182

1 055

Total revenue

2 213

2 231

4 634

7 223

4 414

Total operating expenses

10 867

8 937

16 253

-6 041

-3 359

Results of operations

-8 654

-6 706

-11 619

19

88

Financial income

75

211

353

-6 022

-3 271

Profit before taxes

-8 579

-6 495

-11 266

Tax on ordinary results

-6 022

-3 271

Results of the period

-8 579

-6 495

-11 266

-0,08

-0,04

EPS (NOK)

-0,11

-0.08

-0,15

 



 

 

 

 

BALANCE SHEET

 

30.06.2005

21.12.2004

31.12.2004

 

Total non-current assets

 

7 654

9 978

8 378

Total current assets

 

13 268

20 902

18 758

Total assets

 

20 922

30 880

27 136

Total equity

 

18 552

29 389

25 226

Total liabilities

 

2 370

1 491

1 910

Total equity and liabilities

 

20 922

30 880

27 136

 



 

 

 

 

TRANSITION TO IFRS
Nutri Pharma will be reporting its financial results and financial position in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union from 1 January 2005. As an attachment to this report, Nutri Pharma presents and explains the transition from Norwegian Generally Accepted Accounting Practice (N GAAP) to IFRS. Nutri Pharma has prepared an opening balance sheet at the date of the transition, which is 1 January 2004. The interim reports and the annual accounts for 2005 will be prepared in accordance with IFRS and include comparative information for 2004.The financial impact of the transition is limited and the only adjustment with impact on result for financial year 2004 is a de-recognition of an accrual of NOK 0,5 million.


SECOND QUARTER 2005 ACCOUNTS
Nutri Pharma had royalty revenues of NOK 1.2 million in Q2 2005, up from NOK 1.1 million in Q2 the previous year. Operating expenses increased from NOK 4.4 million Q2 2004 to NOK 7,2 million in the second quarter of 2005, due to expenses of NOK 4,4 million related to the launch of NutriPro in Russia & CIS countries in Q2 this year.As a result, the operating loss increased from NOK -3.3 million in Q2 2004 to a loss of NOK -6,0 million in Q2 2005. The Company has from 1 January 2005 reassessed the estimated economic life of the Royalty Right with Collett Pharma and adopted a linear depreciation period of 18 years. Depreciation costs in Q2 2005 is 0,4 million compared to 0,8 million the second quarter of 2004.Cash and other liquid assets were NOK 7.4 million as of June 30 2005, compared to NOK 13.5 million as of March 31 2005.


COMMERCIAL UPDATE
Nordic - Nutrilett®

Orkla ASA acquired Collett Pharma AS, where Nutrilett is one of the core brands, in June 2005.

Norway

– Vita Hjertego
The product is a niche product in the small Norwegian market and has only generated limited royalty revenue for Nutri Pharma in Q2.UK – Burgen Cholessterol
As previously announced, the revenue impact for Nutri Pharma is limited, and the agreement with Allied Bakeries has subsequently been terminated.


OUTLOOK
As informed, Nutri Pharma declared its option to purchase 100% of MIG per 1 July 2005, and the result from this operation will be included in the Nutri Pharma Q3 report accordingly. The purchase is agreed in exchange for 24 mill. shares in Nutri Pharma, of which 18 mill. are new shares issued by Nutri Pharma and 6 mill. are treasury shares held by Nutri Pharma. The final consummation of the transaction is conditional upon the general meeting of Nutri Pharma approving the new share issue.Fondsfinans ASA has been hired by Nutri Pharma ASA to prepare a prospectus for the transaction. The prospectus will be distributed to the shareholders prior to listing of the new shares provided that the extraordinary shareholders meeting approves the issuance of new shares. This shareholders meeting is planned to be held in September.Oslo, 24 August 2005
The Board of Directors of Nutri Pharma ASADOWNLOADS: The complete H1 Report 2005 Word document can be downloaded from the

INVESTOR

page.

 Upcoming financial events
 
October 20, 2005  Presentation of 3rd Quarter 2005
  
  
For further information, please contact
Trond Syvertsen, CEO  +47 23310880