Enzymotec Shares Plummet on Profit Drop

The company cited a drop in sales of premium Omega-3 products in the United States and Australia.

Yoram Gabison
Yoram Gabison
An Enzymotec laboratory, in Migdal Ha'emek. Unique technologies combined with the right organizational culture.
An Enzymotec laboratory, in Migdal Ha'emek. Unique technologies combined with the right organizational culture.Credit: Ofer Vaknin
Yoram Gabison
Yoram Gabison

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.

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.

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