Fri, Sep 27, 9:29 PM (84 days ago)
Natural Alternatives International, Inc. (NAI) reported significant financial challenges for the fiscal year ending June 30, 2024, with net sales decreasing by 26% to $113.8 million, driven primarily by a 27% decline in private-label contract manufacturing sales due to reduced customer orders and unfavorable currency exchange rates. The company incurred a net loss of $7.2 million, compared to a profit of $2.5 million in the prior year. Operating expenses rose to $15.4 million, reflecting increased costs in advertising and personnel. The company remains heavily reliant on a few key customers, with the largest accounting for 42% of total sales. NAI's gross profit margin fell sharply to 6% from 12%, impacted by increased manufacturing costs and a lower sales volume. Looking ahead, NAI anticipates continued revenue pressures in the first half of fiscal 2025 but expects to return to profitability in the latter half. Key strategies include enhancing operational efficiencies, expanding its beta-alanine product offerings, and diversifying its customer base. The company faces risks from geopolitical tensions, supply chain disruptions, and regulatory compliance challenges, which may affect its financial stability and market position.