Physician's Formula Posts Small Gain in Third

2008-11-04 | 08:24

While net income soars in quarter.

Physician's Formula's third quarter sales rose 2.5% to $20.3 million. Net income soared from $102,000 to nearly $1.7 million.

In addition to the net sales growth, third quarter results were helped by a pre-tax decrease in product costs of $800,000 due primarily to a favorable change in product mix and a shift in timing for inventory recovery of returns from retailers. Further, the company’s income tax provision benefited by approximately $600,000 from changes in state tax filing positions and changes in Federal and state tax estimates.

“Given the very soft consumer environment, we are pleased with our double-digit net sales growth we have achieved in the first nine months of the year. This growth represents the success of our 2008 new product introductions, as well as 2008 distribution gains,” stated Ingrid Jackel, chairwoman and CEO of Physicians Formula.

While the company anticipates the weakened consumer environment to continue well into 2009, “We remain dedicated to providing consumers the new products and formulas that will expand our market share and maintain our philosophy of product innovation. Ms. Jackel continued, “We are very excited about our new strategic initiatives that form the foundation of our new 2009 line. These initiatives include expansion of Organic wear, innovation in the Mineral Wear and bronzer category, as well as the continued rejuvenation of our eye makeup products.”