Natural Alternatives' Q1 revenue falls on private-label sales drop
NAII•Natural Alternatives' fiscal first-quarter revenue fell 25.5% year over year to $28.12 million as private-label orders declined. The company reported a $2.48 million net loss and is reviewing strategic alternatives, including a possible sale.
1. Revenue and loss
Fiscal first-quarter revenue fell 25.5% year over year to $28.12 million, while the company posted a net loss of $2.48 million, compared with a substantially smaller loss in the prior-year period.
2. Sales and operations
Private-label contract manufacturing sales declined as several large customers reduced orders amid excess inventory and delayed product launches. Lower sales volume reduced factory utilization and gross margins. CarnoSyn beta-alanine royalty, licensing and raw material sales rose, mainly on higher TriBsyn product sales.
3. Strategic review
Natural Alternatives is reviewing strategic alternatives, including potential mergers, acquisitions or a sale, and consolidating US production to improve capacity utilization and reduce costs. The company said customer order reticence has begun to subside, with some improvement in demand.
