Matrixx reports growth for Q2; strength in cold remedies market

SCOTTSDALE, Ariz. Matrixx Initiatives on Wednesday reported an 18 percent increase of revenue to $33.6 million for its second quarter ending Sept. 30.

“We are pleased to report increased sales and income for the second quarter of fiscal 2009,” stated Bill Hemelt, acting president and chief operating officer for Matrixx. “Our growth has historically been from Zicam brand growth and the introduction of new and enhanced Zicam products,” he said, pointing to the company’s introduction of five new SKUs that are expected to help fuel growth in the coming cough/cold season.

The five new Zicam products include Cold Remedy RapidMelts + Vitamin C and Echinacea, Allergy Swabs, Cold Sore Swabs and Z-ssentials in orange and lemon-lime flavors.

Matrixx also achieved a new milestone and expanded across the U.S. border by introducing four Zicam products to the Canadian market. “We anticipate introducing several additional Zicam products—Congestion Relief, Sinus Relief, and Multi-Symptom—in Canada during the current quarter ending December 31,” Hemelt said.

“We are now focused on executing our marketing campaign for the upcoming cold season,” Hemelt said. “The Rhino campaign will be expanded to include television advertising, off-shelf display support, lifestyle placement at resorts and on airlines, as well as a 'Save the Rhino not the Rhinovirus’ promotion with noted zoologist, Jack Hanna. We expect the marketing campaign will increase awareness and consumption of Zicam products by consumers who can't afford to be sick,” he said.

Matrixx is expected to be less impacted by the confusion surrounding pediatric cough/cold formulations this year—the company does not field any products marketed toward children, either across its allopathic cough-cold symptom relieving remedies or its homeopathic zinc gluconate offerings.