Ester-C products continue to lead Zila to profit

- Last updated on GMT

Related tags: Percent, Marketing

Despite losses incurred from the discontinued saw palmetto
products, the nutraceutical unit of the Arizona healthcare company,
Zila, continued to be a star performer in fiscal 2004.

Total revenues for fiscal 2004 grew 5 percent to reach $49.4 million compared to $47.1 million for fiscal 2003. The company said that this growth was based primarily on the back of continued Ester-C sales.

Indeed, net revenues from Zila Nutraceuticals increased 10 percent to $32.4 million last fiscal year, compared to the year before, with Ester-C experiencing a giant increase of 25 percent in the US and 18 percent overall.

Zila​ noted that if sales of discontinued saw palmetto products were not taken into account, then revenues for the business unit were up by 24 percent.

The company also highlighted the launch of Ester-E as as companion product for Ester-C, the negotiation of three-year ascorbic acid supply contracts at prices comparable to Zila's historical costs, which helped to improve margins in the fourth quarter, and the expansion of production facilities leading to the creation of an Ester-E production line and a 30 percent increase in Ester-C capacity.

Zila cited its radio and television advertising, made possible by a 34 percent increase in advertising spending in fiscal 2004 over 2003, shooting up by $2.3 million, as a key factor in the increase in ester-brand product sales.

Related topics: Health and nutritional ingredients

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