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Nutraceutical Reports Fiscal 2009 Year End Results
Date:12/10/2009

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Bill Gay, chairman and chief executive officer, commented, "Health and natural food store sales improved in the fourth quarter despite the ongoing economic uncertainties and we are hopeful that this strength will continue. Net income for the fourth quarter remained solid and cash flows increased as a result of inventory reductions. Gross margins declined slightly due to increased raw material prices and manufacturing overhead costs related to inventory decreases. Selling, general and administrative expense improvements throughout the fiscal year offset gross margin decreases. Our core customers are regaining confidence in their businesses and we remain optimistic about the coming year. Ongoing sales programs and promotions appear to be benefiting stores, consumers and our Company. It is encouraging that the public market has responded favorably to the Company's recent addition to the Russell 2000 stock index and we believe our financial strength and position as a value based stock will bring awareness to new investors this coming year."

Mr. Gay continued, "We believe gross margins will improve in fiscal 2010. We also expect acquisitions to contribute to sales, profitability, EBITDA and cash flow during fiscal 2010. The October 9, 2009 acquisition of the Lifetime® brand strengthens our product offerings, especially for those consumers who prefer liquid and powder delivery forms of nutritional supplements."

ABOUT NUTRACEUTICAL

We are an integrated manufacturer, marketer, distributor and retailer of branded nutritional supplements and other natural products sold primarily to and through domestic health and natural food stores. Internationally, we market and distribute branded nutritional supplements and other natural products to and through health and natural product distributors and retailers. Our core business strategy is to acquire, integrate and operate businesses in the natural products indus
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SOURCE Nutraceutical International Corporation
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