Ascendia Brands Inc reported results for its fiscal first quarter ended May 26, 2007. The Company also announced that, as a result of the delay in filing its Form 10-K for the year ended February 28, 2007, it requires additional time to prepare its quarterly report on Form 10-Q for the thirteen weeks ended May 26, 2007. The Company expects to complete the preparation and filing by July 23, 2007.
Consolidated net sales for the thirteen weeks ended March 26, 2007 increased by $17.1 million or 68.8% compared to the thirteen weeks ended March 27, 2006, from $24.8 million to $41.9 million.
The Calgon and the healing garden brands acquired from Coty Inc. on February 9, 2007 contributed $16.5 million to current quarter net sales. Excluding the impact of this acquisition, net sales increased by $.6 million or 2.3%.
Consolidated gross profit increased by $7.7 million to $12.4 million for the thirteen weeks ended May 26, 2007, compared to $4.7 million for the comparable period in the prior year. As a percentage of net sales, the first quarter gross profit margin was 29.5% compared to 18.7% in the prior year.
The gross profit and gross profit margin were favorably impacted by the acquired Coty brands, which contributed $7.8 million to the current quarter. The gross profit in the current quarter includes a $2.2 million expense from the step-up in the value of the acquired Coty inventory as part of the purchase price allocation.
Excluding the step-up, the former Coty brands contributed $10.0 million to current quarter gross profit. This step-up in the inventory value has been fully expensed as of the end of the first quarter.
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