CARLSBAD, Calif., Nov. 9, 2023 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a net loss of $0.7 million, or $0.12 per diluted share, on net sales of $34.0 million for the first quarter of fiscal year 2024 compared to net income of $1.1 million, or $0.18 per diluted share, in the first quarter of the prior fiscal year. 

Net sales during the three months ended September 30, 2023, decreased $9.2 million, or 21.2%, to $34.0 million as compared to $43.1 million recorded in the comparable prior year period.  During the same period, private-label contract manufacturing sales decreased $9.6 million, a 22.9% decrease from the comparable quarter last year. 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.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 31.8% to $1.8 million during the first quarter of fiscal year 2024, as compared to $1.4 million for the first quarter of fiscal year 2023. The increase in patent and trademark licensing revenue during the first quarter of fiscal 2023 was primarily due to an increase in orders from existing customers and increased royalty income, partially offset by increased volume rebates.

We experienced a loss from operations during the three months ended September 30, 2023. This 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 excess inventory on hand at one of our largest customers and their efforts to rebalance supply and demand. We now expect this facility will re-open and our prior level of operations will resume in our fourth fiscal quarter of 2024. Subject to this uncertainty, and our overall sales forecast, we currently anticipate we will experience a net loss in the first half of fiscal 2024, net income in the second half and an overall net loss in fiscal 2024.

As of September 30, 2023, we had cash of $16.7 million and working capital of $42.3 million compared to $13.6 million and $41.1 million respectively, as of June 30, 2023. As of September 30, 2023, we had $20.0 million available under our line of credit agreement.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, "While economic headwinds continue to persist both in our business and our industry, we continue to foster our existing relationships and pursue new customer opportunities to bolster our sales pipeline. While the new customer and product acquisition cycle can be long, we believe our investments in relationship development and product innovation will yield significant future growth."

An updated investor presentation will be posted to the investor relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers.  Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to our clients including scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance. For more information about NAI, please see our website at https://www.nai-online.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that are not historical facts and information.  These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, our ability to develop, maintain or increase sales to new and existing customers, potential re-opening of our Carlsbad powder processing facility and its future level of operations, our future revenue profits and financial condition, as well as future economic conditions and the impact of such conditions on our business. We wish to caution readers these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein.  NAI's financial performance and the forward-looking statements contained herein are further qualified by other risks, including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

SOURCE - Natural Alternatives International, Inc.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or investor@nai-online.com.

Web site: https://www.nai-online.com

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SOURCE Natural Alternatives International, Inc.