CARLSBAD, Calif., Nov. 13, 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 $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 first quarter of the prior fiscal year.

Net sales during the three months ended September 30, 2024, decreased $0.8 million, or 2.4%, to $33.2 million as compared to $34.0 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased $1.6 million, a 4.8% decrease from the comparable quarter last year. Private-label contract manufacturing sales decreased primarily due to reduced orders from one of our larger customers, partially offset by increased shipments from a majority of other existing customers and shipments to new customers.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 41.6% to $2.5 million during the first quarter of fiscal year 2025, as compared to $1.8 million for the first quarter of fiscal year 2024. The increase in patent and trademark licensing revenue during the first quarter of fiscal 2025 was primarily due to decreased volume rebates and an increase in orders from existing customers.

We experienced a loss from operations during the three months ended September 30, 2024, primarily due to reduced sales and a change in sales mix from our private-label contract manufacturing segment and increased manufacturing costs.  Manufacturing costs were negatively impacted by increased labor, supplies, rent, and freight costs. Although our overall sales forecast for fiscal 2025 includes a significant increase in sales as compared to fiscal 2024, we now anticipate we will experience a net loss in the first half of fiscal 2025, net income in the second half of fiscal 2025, and an overall net loss for the fiscal 2025 year.

As of September 30, 2024, we had cash of $10.1 million and working capital of $38.0 million compared to $12.0 million and $38.1 million respectively, as of June 30, 2024. As of September 30, 2024, we had $12.5 million of borrowing capacity on our credit facility of which we had outstanding borrowings of $5.4 million.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “While experiencing recent losses from operations due to anomalies in demand from various markets, I remain encouraged by our efforts to secure additional revenues and commensurate profitability through expanded product offerings and new client relationships.  The recent election in the USA has underlined a consumer driven mandate to ‘make America Healthy Again.’  Such a statement from the likes of Robert F. Kennedy Jr., along with the President Elect demonstrate their desire to eliminate the aggressive suppression of consumer use of nutraceuticals, vitamins, and anything else that advances human health and cannot be patented by Pharma.  With a renewed emphasis on becoming healthy and not just treating diseases, our entire industry stands ready to meet the quality standards consumers will demand as they seek to foster their health.  We remain committed to working with the new administration in fostering a greater understanding and acceptance of properly made products in this noble effort.”