Natural Alternatives International, Inc. Announces 2024 Q2 and YTD Results

Natural Alternatives International Inc
Natural Alternatives International Inc

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CARLSBAD, Calif., Feb. 13, 2024 (GLOBE NEWSWIRE) -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a net loss of $3.1 million, or $0.52 per diluted share, on net sales of $25.2 million for the second quarter of fiscal year 2024 compared to net income of $1.8 million, or $0.31 per diluted share, in the second quarter of the prior fiscal year.

Net sales during the three months ended December 31, 2023, decreased $17.1 million, or 40%, to $25.2 million as compared to $42.3 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased 44% to $23.0 million. Private-label contract manufacturing sales decreased primarily due to reduced orders from several of our larger customers associated with their efforts to reduce excess on-hand inventories, partially offset by increased shipments from other existing customers and shipments to new customers.

CarnoSyn? beta-alanine royalty, licensing and raw material sales revenue increased 48% to $2.2 million during the second quarter of fiscal year 2024, as compared to $1.5 million for the second quarter of fiscal year 2023. The increase in CarnoSyn? beta-alanine royalty, licensing, and raw material sales revenue during the second quarter of fiscal 2024 was primarily due to an increase in orders from existing customers, increased royalty income, and favorable volume rebate activity.

Our net loss for the six months ended December 31, 2023, was $3.8 million, or $0.64 per diluted share, compared to net income of $2.9 million, or $0.49 per diluted share, for the six months ended December 31, 2022.

Net sales during the six months ended December 31, 2023, decreased $26.2 million, or 31%, to $59.2 million as compared to $85.4 million recorded in the comparable prior year period. During the six months ended December 31, 2023, private-label contract manufacturing sales decreased 33% to $55.2 million, as compared to $82.6 million in the comparable prior period. CarnoSyn? beta-alanine royalty, licensing and raw material sales revenue increased 40% to $3.9 million during the first six months of fiscal 2024, as compared to $2.8 million for the first six months of fiscal 2023.

We experienced a loss from operations during the three and six months ended December 31, 2023. This operating loss was primarily due to a slowdown in sales across our private-label contract manufacturing segment. We previously announced the temporary closure of our high-speed powder processing facility in Carlsbad, California due to a reduction in customer orders. We currently expect this facility will re-open and resume operations late in our fourth fiscal quarter of 2024 to support anticipated deliveries of new customer orders in the first quarter of fiscal 2025. Subject to our updated consolidated sales forecast, we now expect to generate a net loss in the second half of fiscal 2024 and an overall net loss in fiscal 2024.