US: Skinny Nutritional losses leap while sales climb in Q2
Skinny Nutritional Corp has posted rising net losses despite soaring sales in its second quarter.
The US-based company, which owns the Skinny Water portfolio, said yesterday (17 August) that net losses for the three months to the end of June more than doubled to US$1.3m, compared to $606,895 in the same period a year ago. Net sales in the quarter, however, soared by 563% year-on-year to $1.2m.
The climb in net losses was blamed on increases in marketing, advertising, general and administrative expenses, which increased by approximately $1m for the 2009 quarter to $1.6m.
"We have seen increased consumer acceptance of our Skinny Water ... product line," said company CEO and president Ronald Wilson. "Now we are focusing on the business aspects of manufacturing, distribution and marketing. After further reviewing our manufacturing costs, we have re-negotiated our bottling and supply arrangements, which have enabled us to increase our gross margins."
For the first six months of this year, net sales increased by 938% to $2.3m, while volumes were up by 827% year-on-year to 174,337 cases.
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