Chattem, Inc., a marketer and manufacturer of branded consumer products, reported sales jumped 51% to $109 million for the third quarter ended Aug. 31. Net income for the quarter rose 7% to $16.3 million.
For the nine months, sales rose 37% to $322.8 million. Revenue growth for both periods was driven by the five brands (including Act, Cortizone-10 and Balmex) acquired from Johnson & Johnson on Jan. 2. Net income was up more than 10% to $44.2 million.
The financial boost was also assisted by the continued growth of the Gold Bond franchise and the strength of the Icy Hot business.
“With an innovative lineup of new products for fiscal 2008, the ability to deliver with strong operating cash flows and continued gross margin improvement as we bring manufacturing of certain of the acquired brands in house, we remain very optimistic about the company’s prospects for revenue and earnings growth in fiscal 2008 and beyond,” commented Zan Guerry, chairman and chief executive officer.