The rice bran specialist NutraCea has posted a huge increase in revenues for the third quarter from US$301,726 to $4.95m which it attributed to its merger with RiceX and the continued strength of direct-to-consumer marketing of its nutraceutical products.
Sales in the third quarter were also bolstered by continued strong infomercial sales and growth from the company’s expanded product lines, as well as increased demand for its value-added ingredients for the functional food industry and animal markets.
The company reported net income for the quarter of $641,106, or $0.01 per share, against a net loss in the third quarter of 2005 of $1.036m, or $0.03 per share.
“We are delighted to report our third consecutive record quarter notwithstanding substantial expenditures in the most recent quarter that were necessary to meet strategic plans to realise continuing growth for the year 2007 and beyond,” said president and CEO Brad Edson. “In this quarter we accomplished many of our current business goals, including expanding our production capacity, and entered into two new licensing agreements for the use of our formulations in specific channels of distribution.
“We believe there will be additional strategic agreements and licensing opportunities of equal and potentially greater size in the future. In the ensuing quarters, based on initiatives already underway, we anticipate sustainable positive financial results.”
Sales for the nine-month period rose from $1.06m to $12.89m. Net income for the three quarters reached $806,971, against a net loss of $3.71m in the corresponding period last year.
RiceX, a company which produces distributes products and food ingredients made from rice bran, is now a wholly-owned subsidiary of Nutracea, which is a leader in rice bran technology and develops and markets ranges of nutraceuticals, such as cholesterol-lowering products.
