Press Release
FIRST HALF RESULTS 2003
(Oslo, July 18, 2003) Nutri Pharma ASA (OSE: NUT) today announced that its profit for the first
half of 2003 was NOK 1.1 million compared to a loss of NOK 35.9 million the same period last year.
The improvement in the pre-tax result is due to cost reductions. Total revenues were NOK 8.3
million including a one off upfront payment related to the new license agreement with
Nycomed, down from NOK 28.7 million in the same period of 2002. The reduction in revenues is due
to the joint venture with Nycomed being dissolved and lower royalty revenues from Scan Diet™ and
Nutriplan™.
(Amount in NOK 000)
Total revenue
Total operating expenses
Result of operations
Total financial income and exp.
Ordinary
profit before taxes
Exexexpenses
Tax on ordinary result
Result of the period
(Amount in NOK 000)
Total long term assets
Total current assets
Total assets
Total equity
Total liabilities
Total equity and liabilities
1H 2003
8 297
14 330
-6 033
7 173
1 140
1H 2002
28 728
72 412
-43 684
7 719
-35 965
2002
51 263
132 155
-80 892
14 307
-66 586
1 140
-35 965
-66 586
2001
15 874
176 357
-160 483
27 567
-132 916
-233
-133 149
June 30 2003
26 286
232 739
259 025
242 589
16 436
259 025
Dec 31 2002
26 051
234 251
260 301
242 171
18 130
260 301
Dec 31 2001
31 071
308 269
339 340
309 959
29 381
339 340
FIRST HALF 2003 ACCOUNTS
Nutri Pharma had total revenues of NOK 8.3 million in 1H 2003, down from NOK 28.7 million the
previous year. The reduction in revenues is due to the joint venture with Nycomed being dissolved as of
Jan 1 2003 and lower royalty revenues. Sales revenues from Nutrition Partners amounted to NOK 20.5
million in 1H 2002. Royalty revenue declined from NOK 7.5 million to NOK 4.2 million as a result of
declining sales of Scan Diet™ in the US and Nutriplan™ in Australia/New Zealand.
Operating expenses declined from NOK 72.4 million in 1H 2002 to NOK 14.3 million in 1H 2003.
Excluding Nutrition Partners, operating expenses declined from NOK 38.2 million in 1H 2002 to NOK
14.3 million in 1H 2003, a reduction of NOK 23.9 million which is the result of continued cost reduction
efforts.
The operating result improved from NOK –43.7 million in 1H 2002 to NOK –6.0 million in 1H 2003.
Interest income from the investment portfolio resulted in net financial income of NOK 7.2 million in 1H
2003. The profit for the period was NOK 1.1 million compared to a loss of NOK 36 million in 1H 2002.
Nutri Pharma’s total assets were NOK 259 million as of June 30 2003. Cash and liquid assets declined by
NOK 4.4 million during 1H to NOK 216.6 million, or NOK 3.01 per share (not including own shares).
Oslo: Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.
COMMERCIAL UPDATE
US - Scan Diet™
Sales of Scan Diet™ have declined further in 2003 largely due to discontinued product lines, less
marketing support and the rapid growth of low carbohydrate diets in this market. Sales for Scan Diet™
amounted to USD 2.3 million in 1H 2003, down from USD 7.5 million in the corresponding period last
year. Discussions on the future of the Scan Diet™ brand are continuing with GNC management.
Australia/New Zealand - Nutriplan™
Mayne has recently committed to rebuilding their business by reviewing the strategic value and
performance of their assets. As a part of this process Mayne has decided to divest several non-core
businesses and brands, one of which is Nutriplan™. This decision is disappointing, as Mayne has invested
heavily in the development of the brand. Mayne and Nutri Phrama are working to find another home for
Nutriplan™. Sales for 1H 2003 amounted to AUD 1.5 million, down from AUD 1.9 million in 1H 2002.
Nordic - Nutrilett®
As announced on June 25 2003, Nutri Pharma and Nycomed Pharma AS have agreed to dissolve the
Nutrition Partners joint venture and at the same time entered into an agreement whereby Nycomed is
granted an exclusive license to sell Nutrilett in the Nordic countries and the Baltic states. Nutri Pharma
will receive royalty on all sales of Nutrilett. The new agreement with Nycomed is effective retroactively
from January 1, 2003. Sales of Nutrilett® in the Nordic countries in 1H 2003 amounted to NOK 36.3
million compared to NOK 41 million the same period last year. The decline compared to 2002 is due to the
a later start in dieting season in 2003 due to cold weather and increased competition from other dieting
programs.
DISTRIBUTION TO SHAREHOLDERS
The Board of Directors of Nutri Pharma ASA has unanimously decided to propose to the shareholders at an
extraordinary shareholders’ meeting of the Company that NOK 2.75 per issued share (not including
6,801,625 shares owned by Nutri Pharma) will be distributed to the shareholders. The Board of Directors
believes that a significant cash reserve is not required in order to pursue the main objective of securing a
partnership with an industrial partner. The excess cash should therefore be returned to the shareholders. If
approved by the shareholders, the total cash distribution will be NOK 197,642,511 not including shares
owned by Nutri Pharma.
OUTLOOK
Due to the weak market conditions for meal replacement/weight management products reflecting the
impact of low carbohydrate diets, royalty revenues will continue to be weak. In addition, there is a
significant risk that Scan Diet™ and Nutriplan™ will be discontinued unless new partners are found. Nutri
Pharma will continue the strategic process of seeking an industrial partner for its intellectual property.
Discussions with potential partners are ongoing.
Oslo July 18, 2003
UPCOMING FINANCIAL EVENTS 2003:
October 22 2003, presentation of 3rd quarter 2003
FOR FURTHER INFORMATION:
Eirik Uboe, CEO
+44 7766 051466
For information about Nutri Pharma, Nutri Pharma products, Nutri Pharma management and Nutri Pharma
financial performance, please point your web browser to: www.nutripharma.com
Oslo: Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.
Nutri Pharma Consolidated
Income Statement
Q2 2003
Q2 2002
April - June April - June
(Amount in NOK 000)
2003
Jan - June
2002
Jan - June
2002
Jan - Dec
REVENUE
0
1.442
111
12.619
2.577
122
Net sales revenues
Royalty income
Other operating income
4.154
4.143
20.487
7.482
759
38.915
10.845
1.502
1.552
15.318
Total revenue
8.297
28.728
51.262
0
5.219
2.167
10.890
11.337
2.831
24.413
21.370
8.489
OPERATING EXPENSES
0
2.480
6.053
6.781
1.084
3.299
1.551
24.605
Cost of goods sold
Payroll expenses etc.
Depreciation intangible and tangible
fixed assets
Other operating expenses
6.944
47.354
77.883
6.863
38.990
Total operating expenses
14.330
72.412
132.155
-5.310
-23.672
RESULT FROM OPERATIONS
-6.033
-43.684
-80.893
3.339
4.056
7.173
7.719
14.307
-1.971
-19.616
1.140
-35.965
-66.586
0
0
-1.971
-19.616
1.140
-35.965
-66.586
FINANCIAL INCOME AND EXPENSES
Net financial income and expenses
Ordinary Profit before taxes
Tax on ordinary result
RESULT FOR THE YEAR
Oslo: Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.
Nutri Pharma Consolidated
Balance sheet
Amount in NOK '000
June 30 2003
March 31 2003
Dec 31 2002
June 30 2002
13.151
8.064
21.215
13.947
8.352
22.299
14.744
8.640
23.384
16.336
9.216
25.552
0
0
215
215
3.338
3.338
6
5.065
5.071
6
4.963
4.969
6
2.446
2.452
6
18
24
26.286
27.268
26.051
28.914
2.279
12.382
14.661
3.291
13.424
16.715
3.721
7.559
11.280
3.561
11.724
15.285
1.500
210.944
212.444
2.269
210.898
213.167
1.956
210.770
212.726
1.628
211.616
213.244
5.634
5.634
6.380
6.380
10.245
10.245
28.084
28.084
232.739
236.262
234.251
256.613
259.025
263.530
260.302
285.527
FIXED ASSETS
Intangible fixed assets
Patent and royalty assets
Comission
Total intangible fixed assets
Tangible fixed assets
Machinery and equipment
Total tangible fixed assets
Financial fixed assets
Shares and other investments
Other long-term recivables
Total financial fixed assets
Total long-term assets
CURRENT ASSETS
Debtors
Accounts receivable
Other receivables
Total debtors
Investments
Accrued interest on short-term investments
Short-term investments
Total bonds and certificates
Cash and bank deposits
Cash and bank deposits
Total cash and bank deposits
Total current assets
TOTAL ASSETS
Oslo: Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.
Nutri Pharma Consolidated
Balance sheet
Amount in NOK '000
June 30 2003
March 31 2003
Dec 31 2002
June 30 2002
19.668
-1.700
224.204
19.668
-1.700
224.204
19.668
-1.700
224.204
19.668
-1.700
284.413
242.172
242.172
242.172
302.381
Other equity
417
1.920
Total equity
242.589
244.092
242.172
272.061
Current liabilities
Accounts payable
Public duties payable
Other short-term liabilities
Total current liabilities
1.254
467
14.715
16.436
2.758
371
16.309
19.438
4.515
359
13.256
18.130
4.903
245
8.318
13.466
Total liabilities
16.436
19.438
18.130
13.466
259.025
263.530
260.302
285.527
EQUITY
Paid in capital
Share capital
Repurchase of own shares
Share premium reserve
Other paid in capital
Total paid in capital
-30.320
LIABILITIES
TOTAL EQUITY AND LIABILITIES
Oslo: Kronprinsesse Märthas pl. 1, Vika, 0166 Oslo, Norway. Tel: + 47 23 31 08 80, Fax: + 47 23 31 08 90.