CARLSBAD, Calif., May 14, 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 $1.6 million, or ($0.27) per diluted share, on net sales of $25.1 million for the third quarter of fiscal year 2024 compared to a net loss of $2.4 million, or ($0.41) per diluted share, in the third quarter of the prior fiscal year.
Net sales during the three months ended March 31, 2024, decreased $7.6 million, or 23%, to $25.1 million as compared to $32.7 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased 26% to $22.4 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 13% to $2.7 million during the third quarter of fiscal year 2024, as compared to $2.3 million for the third quarter of fiscal year 2023. The increase in CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue during the third quarter of fiscal 2024 was primarily due to increased royalty income and favorable volume rebate activity. The increase during the nine months ended March 31, 2024, was primarily due to an increase in orders from existing customers and increased royalty income.
Our net loss for the nine months ended March 31, 2024, was $5.3 million, or ($0.91) per diluted share, compared to net income of $0.5 million, or $0.08 per diluted share, for the nine months ended March 31, 2023.
Net sales during the nine months ended March 31, 2024, decreased $33.8 million, or 29%, to $84.3 million as compared to $118.1 million recorded in the comparable prior year period. During the nine months ended March 31, 2024, private-label contract manufacturing sales decreased 31% to $77.7 million, as compared to $113.0 million in the comparable prior period. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 28% to $6.6 million during the first nine months of fiscal 2024, as compared to $5.2 million for the first nine months of fiscal 2023.
We experienced a loss from operations during the three and nine months ended March 31, 2024. This was primarily due to a slowdown in sales across our private-label contract manufacturing segment. On August 16, 2023, we 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. On April 2, 2024, we announced we will be reopening this facility in May 2024.
Based on our current overall sales forecast, we anticipate we will experience a net loss in the fourth quarter of fiscal 2024 and an overall net loss for fiscal 2024.
As of March 31, 2024, we had cash of $12.4 million and working capital of $40.7 million, compared to $13.6 million and $41.1 million respectively, as of June 30, 2023. As of March 31, 2024, we had zero outstanding on our credit facility.
Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Our efforts to re-open our Carlsbad powder facility are progressing as planned and we expect to resume commercial product production later this month. We believe the industry has worked through a substantial portion of its excess inventory positions, and with a healthy pipeline of new business opportunities, we are optimistic of our future sales growth and return to profitability.”
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 http://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, our ability to re-open our Carlsbad powder facility, our future revenue profits and financial condition, as well as current and 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.
