CCA Industries announces drop in 2Q profits
back of strong peformances for its whitening oral care brands, its
green tea skin care products and its depilatory products, but
profits drop.
The company said that profits for the quarter ending May 31 were hit by an amendment to its accounting system, which meant that is sales and advertising costs for the first six months were absorbed into the bottom line figure, whereas in the corresponding period last year they were not included.
Sales for the second quarter came in at $19.18m, compared with net profits of $1.70m, compared to sales of $18.6m and net profits of $1.75m.
The company said that the drop in profits was mainly due to the fact that its $2.8m advertising budget for the six month financial period, which remained level with last year, was accounted for in the group's net profit figure this year.
This claim is backed up by comparing the gross profit figures for the quarter, which came in at €2.78m for the last quarter this year and $2.68m for the corresponding quarter last year.
Fro the full six month period ending May 31, total sales came in at $34.66m compared to $33.43m in the previous year, whereas total net earnings came in $2.77m compared to $2.69m in 2005.
The company reported that sales patterns had followed those for the first quarter, which had seen sales increase for the company's Plus White Oral Care Xtra Whitening Toothpastes and Speed Whitening Gels, together with a strong show from its Sudden Change green tea-based skin care line.
Likewise, the launch of the company's Bikini Zone shave gels has continued to be well received, alongside strong sales growth for its Hair Off depilatory kits.
The company's mainstay brand is its Mega T diet supplement product, which it reported have continued to meet 'growth expectations'.
The company added that its focus for the rest of 2006 will be to grow internally by developing its core brands, as well as utilizing other resources to grow externally, hinting at possible future acquisitions or new brands.
