Medical Nutrition USA reports spike in branded product revenue for 3Q 2008

ENGLEWOOD, N.J. Medical Nutrition USA today announced the results for its third quarter 2008, ended Oct. 31.

The company reported that its branded product revenue jumped 11 percent to more than $3 million, up from $2.7 million on a 26 percent unit sales increase, and offset by price reductions, over 2007’s results.

Medical Nutrition USA said its total sales were steady, increasing about 0.01 percent. The company also said that gross margin remained steady at about 53 percent.

The company reported that its incoming net cash from operating activities was $492,200, compared to $598,600, in 2007. And net loss was reportedly $50,900, compared to a net income of $220,000, or $0.01 per share.

For the nine months ended Oct. 31, Medical Nutrition USA said that its branded product revenue increased 13 percent to $9 million, up from around $8 million for the same time the previous year. Total sales rose 5 percent to around $10 million, up from $9 million for the same time period the previous year, the company said. Gross profit totaled $5. million, comprising 53 percent of sales.

“Our results reflect the ongoing successful implementation of our plan to accelerate market penetration through expansion of our sales force and more aggressive pricing. Unit sales of branded products continue to increase handsomely, growing at 26 percent for the quarter and 28 percent for the nine months as a result of sales to both new and existing customers as well as new products. Private label sales are expected to continue to decline modestly over time as part of our long-term strategy to deemphasize private label sales in favor of branded product sales. Overall, we remain very much on track and are pleased with our performance for the quarter,” chairman and chief executive officer Frank Newman said.

Medical Nutrition USA develops and distributes supplement products, such as Pro-Stat bottled liquid protein and UTI-stat liquid antioxidant supplement for cleansing the urinary tract, for “nutritionally at-risk” patients under longterm care and/or medical supervision.