Matrixx Intiatives reports net sales jump

SCOTTSDALE, Ariz. Matrixx Initiatives on Monday reported a net sales increase of 11% to $111.6 million for the fiscal year ended March 31, despite a dismal cough/cold season.

“In fiscal 2009, Matrixx produced strong results despite an unusually weak cold season and declining economic environment,” stated Bill Hemelt, acting president and COO, Matrixx. “Significant growth within our core group of products has offset declines in sales of cough and multi-symptom products. During fiscal 2009, the performance of our core products was highlighted by a 16% increase in cold remedy sales, primarily driven by a 49% increase in our patented cold remedy swabs. Additionally, the introduction of our Allergy Swab product contributed to a 29% improvement in total allergy/sinus sales.”

“The 2008/2009 cold season had the lowest incidence of illness since Zicam was introduced in 1999,” he said. “Despite the weak season, sales of Zicam products at retail outperformed the cough/cold category. For the 52 weeks ended March 22, retail unit sales (three-outlet syndicated scanner data, not including Wal-Mart or club stores) of Zicam products decreased approximately 1%, while the total cough/cold category declined approximately 3%, compared with the prior year. This resulted in Zicam products maintaining a 2% unit share of the category. Although the weak cold season slowed our rate of growth during the current year, we believe our advertising campaign increased awareness of Zicam products, particularly our swab delivery items.”