07.09.09
Despite the difficult economic environment, Chattem managed to eke out a gain in sales for the first six months of its fiscal year.
Total revenues for the first six months of fiscal 2009 rose 0.2% to $237.9 million. Total domestic revenues, excluding $1.9 million of sales of Icy Hot Heat Therapy, which was recalled in the first quarter of fiscal 2008, increased 4.1%, in the first six months of fiscal 2009 to $227.0 million.
The increase in domestic revenues was led by sales of Gold Bond, Act, Icy Hot and Cortizone-10. Offsetting these increases were lower revenues from certain smaller brands and a $6.8 million, or 62%, increase in promotional programs that were recorded as a reduction of revenue rather than as advertising and promotion expense in consolidated statement of income.
International revenues decreased 38% in the first six months of fiscal 2009, compared to an exceptionally strong first half for our international business in fiscal 2008, resulting from our change in distributors in Latin America, general sales weakness in European markets due to the weak economy and an adverse foreign exchange rate impact.
Total revenues for the first six months of fiscal 2009 rose 0.2% to $237.9 million. Total domestic revenues, excluding $1.9 million of sales of Icy Hot Heat Therapy, which was recalled in the first quarter of fiscal 2008, increased 4.1%, in the first six months of fiscal 2009 to $227.0 million.
The increase in domestic revenues was led by sales of Gold Bond, Act, Icy Hot and Cortizone-10. Offsetting these increases were lower revenues from certain smaller brands and a $6.8 million, or 62%, increase in promotional programs that were recorded as a reduction of revenue rather than as advertising and promotion expense in consolidated statement of income.
International revenues decreased 38% in the first six months of fiscal 2009, compared to an exceptionally strong first half for our international business in fiscal 2008, resulting from our change in distributors in Latin America, general sales weakness in European markets due to the weak economy and an adverse foreign exchange rate impact.