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Matrixx Initiatives, Inc. Announces Fiscal 2008 Revenue of $101 Million and Net Income Growth of 59% to $10.4 Million, or $1.04 Earnings Per Share Versus $0.66 in the Prior Year
Date:5/12/2008

cam growth continues to be at the top of the category and growth of Zicam products at retail was higher than our factory shipment growth. For the 12 weeks ended March 23, 2008, retail sales (three-outlet syndicated scanner data, which does not include our largest customer Wal-Mart) of Zicam products increased approximately 25%, while the total cough/cold category increased approximately 12% compared to the prior year. This growth resulted in Zicam products attaining a 3.6% dollar share of the category, versus 3.2% in the comparable period a year ago. For the entire cold season, as measured by the 24 weeks ended March 23, 2008, retail sales of Zicam products increased approximately 8%, while the total cough/cold category increased approximately 4% compared to the prior year."

Mr. Johnson continued, "During the cold season, we initiated new marketing programs that focused on our unique swab delivery Cold Remedy product. Early indications of the new programs reflect strong success in the concept, resulting in high retail sales pull through. During fiscal 2008 retail sales of Zicam Cold Remedy Swabs(TM) increased over 20% and, during our fiscal fourth quarter, retail sales of swab products were up over 50%. Additionally, we continued to see robust growth from our oral delivery Cold Remedy products. We expect to continue focusing our marketing on the unique attributes of Zicam products to foster future growth. Initial shipments of our Xcid(TM) antacid occurred at the end of fiscal 2008 to a single retailer. Launching a new brand takes time and we anticipate marketing efforts focused on Xcid to begin in the current quarter, including a large sampling effort."

"In fiscal 2009, we will focus on growing our brands, increasing consumer awareness, and improving our operating income margin. In fiscal 2008, operating income margin increased to 16%, compared to 10% for the twelve months ended March 31, 2007. We believe there are opportunities to increase operating i
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SOURCE Matrixx Initiatives, Inc.
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