Weight Watchers International, the US-based weight management group, posted a jump in revenue for 2007 but said higher interest expenses had weighed on profit.
Go deeper with GlobalData
The company booked a 19% rise in net revenues to US$1.47bn, while net income fell to $201.2m from $209.8m.
Weight Watchers said it increased its debt level in the first quarter to finance its self-tender and repurchase of 19.1m shares, resulting in higher interest expenses in the fourth quarter.
For the fourth quarter of 2007, net revenues rose by 21% to $344.0m. Net income in the fourth quarter of 2007 fell to $39.8m from $44.3m.
Weight Watchers said it expected full-year earnings for 2008 to be between $2.80 and $3.00 per fully diluted share.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“During 2007, we delivered solid financial performance while taking the necessary steps to lay the foundation that will enable us to realise our long-term strategic goals,” said president and CEO David Kirchhoff. “As I look to 2008, we again anticipate solid financial performance as we continue to strengthen our business and capitalize on our opportunities.”
Earlier this month, Weight Watchers announced plans to enter the Chinese market under a venture with French food giant Danone.
The US-based firm will take a 51% stake in the business, which will look to sell the Weight Watchers range of weight management products to Chinese consumers.
