Tuesday, Schiff Nutrition International, Inc. (WNI), a provider of nutritional supplements, reported a rise in profit for the second quarter, benefiting from a substantial increase in private label business. However, earnings per share remained flat due to higher share count.
Second quarter net income of the Salt Lake City, Utah-based company rose to $2.91 million or $0.10 per share, from $2.8 million or $0.10 per share a year ago. Earnings in the year-ago period included an unusual pre-tax compensation charge of $657 thousand associated with the declaration of a special dividend.
The number of average common shares outstanding for the quarter increased to 28.63 million from 27.73 million in the same period last year.
Schiff Nutrition's quarterly net sales advanced to $47.3 million from $39.54 million for the same period a year ago.
"We experienced a 19.6% increase in net sales in the second quarter, versus the year ago period. This increase was driven by a substantial increase in our private label business, primarily resulting from the incremental new business acquired during the fiscal 2008 fourth quarter. Our branded business also registered an increase during the quarter," said Bruce Wood, president and chief executive officer.
During the quarter, Schiff Nutrition's gross profit and operating income increased modestly in absolute dollars compared to the year-ago quarter, but the respective percentage margins decreased due to higher private label sales mix, marketing expenses and raw material costs.
For the first six months, the company's net income grew to $6.16 million or $0.22 per share from $4.45 million or $0.16 in the corresponding period last year, which included an unusual pre-tax compensation charge of $3.7 million for the special dividend.
First-half sales were $95.08 million, up from $80.26 million in the comparable period a year ago.
WNI closed Monday's trading down $0.17 at $5.37 on a volume of about 19 thousand shares.
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