However, the company warns that performance in the coming year may suffer due to the lower levels of consumer spending in the current economic climate.
Higher than predicted results for 2007
Net sales for 2007 were $111.5m an increase of 16.9 per cent compared to 2006's results and exceeding the company's outlook range of $108m to $111m.
The company's gross profit for the same period was recorded at $61.2m, an increase of 12.7 per cent from the $53.5m recorded last year.
Net income per diluted common share was calculated at $0.60, again exceeding the company's predictions and an increase on 2006 figures.
The company cite a positive consumer reaction to both the existing product range and the new products unveiled in December 2007 as a driver of present and future growth.
"In December, we began shipping our new products which include and extension of our successful Mineral Wear line; a rejuvenation of our eye makeup category; and our new Organic Wear line; which we believe will be a strong growth platform going forward," said CEO Ingrid Jackel.
Organic Wear makeup line has long term potential
The company launched what is claimed to be the first Ecocert certified natural origin make-up range in the US in December 2007.
The range includes a bronzer and blusher products as well as a concealer and a foundation that are Ecocert certified 100 percent natural origin with organic ingredients.
Physician Formula Holdings believes the line has significant long term potential and therefore is planning to increase marketing spend as a percentage of gross sales in the first half of 2008 in comparison to last year's spend.
Company predictions lower than Wall Street
The company predicts continued growth in distribution and brand strength in 2008, but envisages that the year's results could be negatively impacted by 'continued softness in consumer spending throughout the industry'.
Expectations for full year 2008 sales are between $123m and $125m an increase of 10-12 percent.
In addition the company expects net income per diluted common share between $0.65 and $0.69 below the predictions from Thomson Financial Analysts of $0.72.
