Natraceutical´s operating profit reaches 5 million Euros for 2005

27/02/06 The Natraceutical Group has had an operating profit (EBITDA) of five million Euros in 2005, which means an increase of 12% in contrast to the figure of 4.4 million Euros of the previous year. The business gross margin has improved from 40% to 44%.

Natraceutical acquired the Braes Group in 2005, composed by Obipektin (Switzerland) and Overseal (UK), what made possible to improve the income up to a 100%, from 26.6 million to 53 million Euros. Nevertheless, the financial statements of these two companies only started to consolidate into Natraceutical financial statement from the 1st of July 2005 on, which means that there is only half a year activity included in the 2005 final income statement of Natraceutical Group.

The Natraceutical Group proforma income for a whole year would be of 88 million Euros; an EBITDA and an estimated net benefit of 13 and 4.3 million Euros respectively, in accordance to the 2004 proforma dates provided by the company in the information prospectus of the capital increase in July 2005 and registered into the Stock Market.

The takeover of Obipektin and Overseal has also involved extraordinary expenses for nearly about 2 million Euros including non recurring expenses as consequence of the acquisition and the restructuring, as well as the signing of a sindicated loan to finance the operation, which has caused an increase of the financial cost of the company.

Finally, the amount of Natraceutical net profit  for 2005 has increased to 3.8 million Euros following the International Accounting Standards. Jose Vicente Pons – CEO of the company explains: “Natraceutical has done an important effort due to the transition and the integration of Obipektin and Overseal, to head on now with those new projects in accordance with the new strategy and chase the maximum benefit of the synergies, which results we will see in this new year.”

The company is optimistic in respect to the year 2006 and calculates that their income will beat the amount of 100 million Euros by the end of the year, 14% of increase in relation to published information and that they operating profit or EBITDA, will reach 16 million Euros, 23% over the proforma.  Pons Andreu assures that this figures will be reached thanks to the synergies of “sales team, marketing and R+D created by the merge of both companies”.