TOPOL SMOKER's MOUTHWASH SELL-IN CONTRIBUTES TO $3 MIL. INCREASE IN JEFFREY MARTIN

Executive Summary

TOPOL SMOKER's MOUTHWASH SELL-IN CONTRIBUTES TO $3 MIL. INCREASE IN JEFFREY MARTIN revenues for the fourth quarter of the fiscal year ended July 31. Commenting on a fourth quarter increase in sales from $12.3 mil. to $15.8 mil., Jeffrey Martin said: "The national sell-in ]of Topol Smoker's Mouthwash[, which began in June, met with very good trade acceptance. The new mouthwash contributed to the quarterly growth in revenues over the corresponding fourth quarter last year." Net income for the fourth quarter dropped 83.3% to $134,000 compared with $804,000 reported for the fourth quarter of 1984. The company explained that "heavy advertising expenses. . . as well as moderate promotional expenses associated with the introduction of the new mouthwash, cut deeply into earnings." For the year, Jeffrey Martin revenues increased 12% to $65.6 mil., while net income decreased 29.4% to $4 mil. Commenting on fiscal 1985 results, Jeffrey Martin Chairman Martin Himmel noted that "the addition of Lavoris ]acquired in July 1984[ and solid performances by Doan's pills and Ayds appetite suppressant candy offset a sales decline in Topol smoker's toothpolish" and contributed to a "return to solid growth in revenues." Martin noted that like the fourth quarter net income, year end results were affected by "media expenditures." Himmel said that Jeffrey Martin "spent heavily on advertising to support the long-term health of our brands, particularly to re-establish Lavoris as a leader in the mouthwash category."