Hi-Tech sales down due to cough-cold recalls
AMITYVILLE, N.Y. Early indications of the industrywide voluntary recall of children’s cough-cold medicines marketed for infants under the age of 2 are negative as it pertains to retail sales, as another cough-cold distributor pointed to the recall as a significant factor behind a companywide decline in sales.
For the three months ended Oct. 31, Hi-Tech Pharmacal reported net sales of $15.9 million, a decrease of 2 percent as compared with the same period last year. Sales for the healthcare products division, which markets the company’s OTC branded products, decreased 38 percent to $2.3 million, largely due to the discontinuation of the children’s formula of Diabetic Tussin at certain retailers.
“We believe the balance of the year will show growth as our core diabetic products continue to do well, and we prepare to introduce several exciting new products in the balance of the fiscal year,” stated Hi-Tech president and chief executive officer David Seltzer.
Last month, Prestige Brands reported its second-quarter results were negatively impacted in part by the voluntary removal of two kids cough-cold products under the Little Remedies banner.