Enzymotec saw its shares plunge in New York yesterday after it reported a sharp drop in sales and profits for the second quarter and said it saw no rapid recovery ahead.
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In late Nasdaq trading, Enzymotec shares were down 38.7% at $9.19 after the maker of nutritional ingredients and medical foods said revenues dropped 34.4% from a year earlier to $11.5 million. The company cited a drop in sales of premium Omega-3 products in the United States and Australia. Net profit declined to just $400,000 from $2.3 million, said Enzymotec, which went public almost a year ago.
While we expected headwinds in the quarter, particularly related to recent regulatory changes in the Chinese infant formula market and weakness in the U.S. and Australian Omega-3 industry, their overall impact was greater than anticipated and will continue to adversely impact Enzymotec for at least the next two quarters, CEO Ariel Katz said.