Financial Performance - The company reported a net loss of $2.0 million, or $0.33 per diluted share, on net sales of $33.2 million for the first quarter of fiscal year 2025, compared to a net loss of $0.7 million, or $0.12 per diluted share, in the same period of the prior fiscal year [1] - Net sales decreased by $0.8 million, or 2.4%, to $33.2 million compared to $34.0 million in the prior year period [2] - Private-label contract manufacturing sales decreased by $1.6 million, or 4.8%, primarily due to reduced orders from one larger customer, partially offset by increased shipments from other existing and new customers [2] - CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue increased by 41.6% to $2.5 million compared to $1.8 million in the prior year period [3] - The company anticipates a net loss in the first half of fiscal 2025, net income in the second half, and an overall net loss for the fiscal year [4] Operational Challenges - The loss from operations was primarily due to reduced sales, a change in sales mix from the private-label contract manufacturing segment, and increased manufacturing costs, including labor, supplies, rent, and freight [4] - Selling, general, and administrative expenses increased to $4.095 million, or 12.4% of net sales, compared to $3.681 million, or 10.8% of net sales, in the prior year period [10] Liquidity and Capital - As of September 30, 2024, the company had $10.1 million in cash and $38.0 million in working capital, compared to $12.0 million and $38.1 million, respectively, as of June 30, 2024 [5] - The company had $12.5 million of borrowing capacity on its credit facility, with $5.4 million in outstanding borrowings [5] Strategic Outlook - The company remains optimistic about securing additional revenues and profitability through expanded product offerings and new client relationships [6] - The recent U.S. election has highlighted a consumer-driven mandate to promote health, which could benefit the nutraceutical and vitamin industry [6] - The company is committed to working with the new administration to foster greater understanding and acceptance of properly made health products [6] Industry Context - The company operates in the nutritional supplements industry, providing customized products and strategic partnering services, including scientific research, clinical studies, and regulatory assistance [7] - The industry is poised to meet increasing consumer demand for high-quality health products, driven by a renewed emphasis on health and wellness [6]
Natural Alternatives International, Inc. Announces 2025 Q1 Results