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Natural Alternatives International, Inc. (NAI), headquartered in Carlsbad, California, is a prominent player in the nutritional supplements industry. Established in 1980, NAI specializes in the formulation, manufacturing, and marketing of customized nutritional supplements. The company's unique approach combines clinical research, science-based formulations, and advanced quality assurance testing methodologies to produce superior nutritional products. These are specifically designed to address various health conditions and meet the highest standards.
NAI operates through two primary segments: Private-Label Contract Manufacturing and Patent & Trademark Licensing. The majority of the company's revenue is derived from the Private-Label Contract Manufacturing segment, offering tailored manufacturing services to firms that market and distribute nutritional and healthcare products. The Patent & Trademark Licensing segment earns income through royalty agreements linked to the sale of licensed products, such as their proprietary CarnoSyn® beta-alanine.
In recent developments, NAI temporarily closed its new high-speed powder blending and packaging facility in Carlsbad due to an inventory rebalance by one of its largest customers. Despite this, the company remains optimistic about its long-term growth. For example, CarnoSyn® beta-alanine sales saw a significant increase, showing robust demand for its patented ingredients.
Financially, NAI reported net sales of $35.9 million in the fourth quarter of fiscal year 2023, marking a decrease from the prior year. This decline was primarily due to softened consumer demand and reduced orders as customers adjusted their inventory levels. However, the company saw a marked increase in CarnoSyn® beta-alanine sales, reflecting the strength of its patent and trademark licensing segment.
As of late 2023, NAI's financial health remains solid, with a working capital of $42.3 million and cash reserves of $16.7 million. The company continues to invest in relationship development and product innovation to drive future growth, confident in its ability to navigate current economic headwinds.
NAI's comprehensive partnership approach includes support services such as scientific research, clinical studies, regulatory compliance supervision, and marketing assistance. This holistic service model distinguishes NAI in the industry, making it a go-to partner for businesses looking for customized nutritional product solutions.
Natural Alternatives International, Inc. (NAII) announced the publication of a new study in Nutrients demonstrating the cognitive benefits of SR CarnoSyn® beta-alanine tablets in older adults. Conducted with 100 participants aged 60-80, the double-blind study revealed significant improvements in cognitive function and reduced depression scores among those with baseline cognitive challenges. The study utilized a 600 mg tablet dosage, providing 2.4 grams daily. This research supports the extensive benefits of CarnoSyn® beta-alanine, already shown to enhance executive function and reduce mental fatigue, further solidifying NAII's commitment to science-backed nutritional supplements.
Natural Alternatives International (NAII) reported net income of $1.8 million, or $0.31 per diluted share, on $42.3 million in net sales for Q2 FY2023, an increase of 12.1% year-over-year. Private-label contract manufacturing sales surged 21.3% to $40.8 million. However, CarnoSyn® beta-alanine revenue fell 64%, reflecting a slowdown in the Sports Nutrition sector. For the first half of FY2023, net income decreased to $2.9 million from $5.1 million, with sales forecasts indicating a slight decline for the full fiscal year. The company is facing inflationary pressures and increased operational costs, negatively impacting profitability. Construction on a new plant in California is set to complete by spring 2023.
Natural Alternatives International, Inc. (NAII) has authorized a $1.0 million increase in its stock repurchase plan, raising the total to $19.0 million. This allows for continued buybacks based on market conditions. NAII has already repurchased 2.1 million shares and has $1.2 million remaining for future purchases. CEO Mark A. Le Doux expressed confidence in the company's value and growth, highlighting the upcoming operational launch of their new facility in Carlsbad, CA.
Natural Alternatives International (NAII) reported a net income of $1.1 million for Q1 FY 2023, down from $3.3 million in Q1 FY 2022. Net sales increased by 12.5% to $43.1 million compared to $38.3 million last year, driven mainly by a 24.4% rise in private-label contract manufacturing. However, CarnoSyn® beta-alanine revenues dropped 71.5% to $1.4 million, impacted by inflation and a slowdown in the Sports Nutrition sector. Although NAII anticipates slight sales growth for FY 2023, operating income may suffer due to rising costs and unfavorable currency effects.
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