Chattem’s Annual Sales Increase 14%

Chattem, Inc., Chattanooga, TN, announced total revenues were $223.1 million for the fiscal year ended Nov. 30, 2002. For the fourth fiscal quarter, total revenues were $51.6 million and net income was $4.5 million. The year and quarter results equaled or exceeded the company’s earlier guidance of $50-52 million in net sales.

For the year the company again experienced strong results from its topical analgesic franchise, which enjoyed a 14% increase in gross sales over fiscal 2001, led by the performance of Icy Hot, which recorded a 46% increase. Gross sales of the company’s Gold Bond line of products increased by 2% from fiscal 2001 to fiscal 2002, principally due to the strength of the Gold Bond Foot franchise, which saw the introduction of Gold Bond Foot Spray during the second quarter of fiscal 2002.

Sales of pHisoderm products increased by 38% over fiscal 2001 results, due principally to the launch of three new pHisoderm acne items, repackaging of the entire line and a strong media campaign. Selsun blue, which the company acquired on March 28, 2002, continued to exceed budgeted sales numbers and recorded sales of $16.8 million during the eight months of the company’s ownership.

Regarding fiscal 2003, executives estimated that net sales will be in a range of $240-245 million.