2014 1Q: Results note

In line with company forecasts, Natraceutical sales declined by 6% in the first quarter due to a change in procurements in the pharma channel.

  • At the end of the first quarter of 2014, Natraceutical’s turnover stood at 10.10 M€ compared to 10.74 M€ in the first quarter of 2013. This decline was mainly due to the change in the purchasing dynamics of the pharmaceutical channel. While main procurements of slimming food supplements were traditionally carried out during the pre-sales campaign of the first quarter (thereby benefiting from preferential terms), recent quarters showed changes towards a more linear pattern throughout the semester.
  • Consequently, and despite the decrease of operating costs, EBITDA for the first quarter stood at 2.61 M € compared to 2.94 M € in the same period last year and net income stood at 2.52 M € compared to 2.88 M € in the first quarter of 2013.
  • At comparable perimeters regarding the number of countries in which Forté Pharma markets its products, Natraceutical expects to end 2014 with a positive evolution in sales and EBITDA, following the trend of operational strengthening achieved in the previous two years.

1.- Business performance

Natraceutical’s evolution in the first quarter of 2014 was clearly marked by the change in the purchase dynamics of the pharmaceutical channel, especially in France, main Forté Pharma’s market.

Financing constraints in Europe coupled with a lack of visibility on the evolution of consumption in the medium term led the pharmacy channel to change its procurement model in recent quarters. While traditionally higher purchase volumes were concentrated in the pre-sales campaign – in which preferential terms were offered- the first quarter of the year revealed the channel’s will to encompass procurements with sales evolution throughout the semester. This resulted in a reduction of 6.0% in Natraceutical’s turnover between January to March, which the company expects to recover in the coming quarters.

This decline had a direct effect on the operating profitability of the business, with EBITDA going down by 11.2% to 2.61 million euros, despite a decrease in operating costs.

Operating performance of Natraceutical Q1 2013-2014
(in million euro)

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