Healthzone Ltd Reports Half Year 2011 Results

SYDNEY, Feb. 28, 2011 /PRNewswire/ -- Healthzone Limited (ASX: HZL; OTCQX: HLTZY), Australia's leading natural products distributor, franchise retailer and producer of health, beauty and natural products, today announced financial results for half year ending December 31, 2010.  Key financial results for the half-year include:

• Record NPAT up 25.4% to $2.51 million
• Record EBITDA up 30.9% to $5.2 million
• Record Sales Revenue up 3.4% to $58.71 million
• Net Asset Growth by 7.9% to $35.4 million
• Healthy Life China Established and Trading
• Integrated Gold Mist Retail Chain
• Increase in Loyalty Club Membership to 518,000
• Launched New Zealand Manuka Honey Range

"Profit growth will continue to exceed revenue growth as Healthzone continues to replace low margin brands with high margin brands in its established wholesale and retail networks including Company owned stores," said Peter Roach, Healthzone's Executive Chairman. "Our strategy to grow high margin brands through increased product development and strategic brand acquisition will continue to contribute significantly into higher profit revenue while traditional lower margin revenue will moderate into 2012 and beyond."

Half Year Financial Results

Consolidated Net Profit After Tax increased 25.4% to $2.51 million. Sales Revenues increased by 3.4% to $58.7 million compared to $56.8 million for the previous corresponding period in FY2009. Healthzone has lifted Earnings Before Income Tax, Depreciation and Amortisation 30.9% from $3.9 million to $5.2 million for the previous corresponding period in FY2009.

In support of the Gross Profit growth strategy Healthzone launched the Natural Alternative New Zealand Manuka Honey range in December 2010. A range of seventeen products with average Gross Profit four times that of the third party range previously distributed. The range is currently being extended and duplicated into the Aurinda brand for China retail sales.

The organic food market continues to increase with IBISWorld research recently forecasting 15.1% growth for the organic food category as the number one growth industry for Australia in FY2011 with reported 2010 category revenues exceeding $1billion for the first time.

Healthy Life franchise retail sales continue to grow in line with the market at 6.6% revenue growth for the half year with an increased level of support for Healthzone generated promotional activity and products. The integration of the Gold Mist Health retail chain is now complete with the increased sales of distributed and own brand products adding measurable depth to the retail segment profit results. Healthy Life China is now established and trading profitably with more than 120 new own brand products currently in the registration process for sale in China. Healthy Life China remains on target for 100 stores by the end of 2012.

Outlook

Mr. Roach said, "While a more difficult retail environment was evident in recent month's compounded by a series of natural disasters, strategically and financially, many initiatives were undertaken in the first half of FY2011 and we believe these initiatives have positioned Healthzone well to deliver ongoing positive comparable sales and profitable growth in to the second half of FY2011."

Financial Statements

Healthzone's financial statements can be found under the financial reports section of Healthzone's investor relations website located at: http://www.healthzone.com.au/Financial.asp

Contact Information

About Healthzone Limited

Healthzone Limited operates a portfolio of distribution, consumer product and retail businesses in the Wellness sector. Each business provides immediate opportunities for earnings growth through business development and integration. For more information please visit www.healthzone.com.au.

SOURCE Healthzone Limited