Natraceutical closed 2013 with a net profit of 0.95 M€ compared with a loss of 0.01 M€ in 2012

Solid organic growth. Natraceutical closed 2013 with a net profit of 0.95 M€ compared with a loss of 0.01 M€ in 2012.

  • The company ended the year with turnover of 31.37 M€, an increase of 4.8% over the previous year.
  • The recovery in sales, combined with the strong operating leverage of Forté Pharma, favored an increase in Natraceutical’s EBITDA of 198.8 % to 2.57 M€, compared with 0.86 M€ in 2012.
  • The cancellation of the entire syndicated loan in December 2012 enabled the company to reduce the net figure between financial income and expenses from 4.65 M€ negative in 2012 to 0.15 M€ positive in 2013 and to end the year with profit before taxes of 2.09 M€ compared with a loss of 1.00 M€ at the end of 2012.

1.- Business performance

As a result of the total divestment of the stake in Naturex in December 2012, throughout the year 2013 Natraceutical’s profit and loss account contained exclusively Forté Pharma’s activity, a leading company in Europe in the food supplements industry sold in pharmacies and parapharmacies.

Following the severe contraction between 2009 and 2012 of the food supplements industry for weight control in France -Forté Pharma’s main market segment-, the recovery of the industry since the last quarter of 2012 had a positive translation in the evolution of Natraceutical, which closed 2013 with sales of 31.37 million euro, an increase of 4.8% compared with 2012.

It is important to recall that the company is strongly developing the health and beauty ranges to balance its strong positioning in the weight control segment. Therefore, the first and third quarters of the year reflect the seasonality of the sales campaigns for weight control and health, respectively, while the second and fourth quarters concentrate the main advertising investments to support the sales of the pharmacy channel to final consumer. Specifically, the fourth quarter is often used by both Forté Pharma and pharmacies to adjust orders and marketing investments depending on the evolution of the industry throughout the year.

The recovery of revenues, along with the optimization of both the marketing strategy and the sales network in the last two years, currently enables Natraceutical to have a highly leverageable operating structure. This was evidenced in the improvement of the business profitability, with EBITDA at year end of 2.57 million euro, compared with 0.86 million euro at the end of 2012, an annual growth of 198.8%.

Operating performance of Natraceutical 2012-2013
(in million euro)

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