Core Viewpoint - Natural Alternatives International, Inc. reported a significant decline in both net sales and profitability for the fourth quarter and fiscal year 2024, indicating challenges in their private-label contract manufacturing segment and overall market conditions [1][4]. Financial Performance - The company experienced a net loss of $1.9 million, or ($0.32) per diluted share, for Q4 FY 2024, compared to a net income of $2.0 million, or $0.35 per diluted share, in Q4 FY 2023 [1]. - For the fiscal year 2024, the net loss was $7.2 million, or ($1.23) per diluted share, compared to a net income of $2.5 million, or $0.43 per diluted share, for fiscal year 2023 [4]. - Net sales for Q4 FY 2024 decreased by $6.4 million, or 18%, to $29.5 million from $35.9 million in the same period last year [2]. - Annual net sales for FY 2024 decreased by $40.2 million, or 26%, to $113.8 million compared to $154.0 million in FY 2023 [5]. Segment Performance - Private-label contract manufacturing sales fell by 14% to $27.6 million in Q4 FY 2024, primarily due to reduced orders from a major customer aiming to cut excess inventory [2]. - CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue decreased by 48% to $1.85 million in Q4 FY 2024, down from $3.57 million in Q4 FY 2023, attributed to lower raw material sales and unfavorable volume rebate estimates [3]. Operational Insights - The company reported a loss from operations for both the three and twelve months ended June 30, 2024, mainly due to a slowdown in sales within the private-label contract manufacturing segment [6]. - Despite the current challenges, the company anticipates a significant increase in sales for fiscal 2025, projecting a net loss in the first half but expecting net income in the second half [6]. Cash and Working Capital - As of June 30, 2024, the company had cash of $12.0 million and working capital of $38.1 million, a decrease from $13.6 million and $41.1 million, respectively, as of June 30, 2023 [7]. Strategic Developments - The company re-opened its Carlsbad powder facility in Q4 FY 2024 to meet customer demands and is optimistic about new business opportunities, including the introduction of a new ingredient, TriBsynTM, at the ESPEN conference [8].
Natural Alternatives International, Inc. Announces Fiscal 2024 Q4 and YTD Results