Aceto Corp. Thursday night reported its profit in the April-June period was half of what it was a year ago, as its generic drugs faced more competition and 2015 sales were boosted by a one-time adjustment.
The Port Washington-based manufacturer of drugs and chemicals said its net income for the three months ended June 30 was $6.8 million, compared with $13.6 million a year earlier.
Sales in the period, the fourth quarter of the company’s fiscal year, fell 7.6 percent to $135 million, year over year.
CEO Sal Guccione said Acteo’s performance reflected “intensified competition in our Rising Pharmaceutical business [and] an unfavorable comparison to exceptionally strong results last year that included a $9.5 million favorable sales adjustment.”
Aceto, through its 2011 purchase of New Jersey-based Rising, has expanded aggressively into drug manufacturing. The company has long been an ingredients supplier to the pharmaceutical industry and sold chemicals used in agriculture.
For the year ended June 30, Aceto said its profit rose 3.8 percent to a record $34.8 million compared with 2015. Sales climbed 2 percent to a record $558.5 million, year over year.
Guccione said seven generic drugs were introduced in fiscal 2016 as the company increased its research and development spending 34 percent. He said between 12 and 15 products will debut in fiscal 2017.
Prior to the earnings announcement, Aceto shares closed up 10 cents, or 0.39 percent, to $25.69 on the Nasdaq market on Thursday.
The earnings announcement came after the stock market close, and the share price was unchanged in after-market trading.