Natural Alternatives International private label sales boom in 2021
Natural Alternatives International, a leading formulator, manufacturer and marketer of customized nutritional supplements, had a successful fourth quarter of 2021, including in sales to own brands. Private label contract manufacturing grew greatly from the same quarter of the previous year, increasing by 21.2%. The company provides nutritional supplements to its clients, along with services like scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation.
Net sales during the three months ended June 30 increased $9.3 million, or 26.5%, to $44.4 million as compared to $35.1 million recorded in the comparable prior year period. During the same period, private label contract manufacturing sales increased to $39.8 million, a 21.2% increase from the comparable quarter last year. In both the fiscal year and fourth quarter, Natural Alternatives said private label contract manufacturing sales increased primarily due to higher sales from a majority of their distribution channels worldwide.
A significant portion of the increased contract manufacturing sales related to higher sales of immune and wellness products which is in line with the dietary supplement industry trends, and appear to be driven by consumers taking a more active role in their health and wellness as a result of the COVID-19 pandemic.
The company’s contract manufacturing sales also increased due to sales of newly awarded products from new and existing customers. CarnoSyn beta-alanine royalty, licensing and raw material sales revenue increased 102.6% to $4.7 million during the fourth quarter of fiscal year 2021, compared to $2.3 million for the fourth quarter of fiscal year 2020.
In both the fiscal year and fourth quarter, CarnoSyn sales increased primarily due to an increase in material shipments resulting from higher sales to existing customers. Natural Alternatives said the higher sales were influenced by an increase in activity as gyms and athletic facilities began to reopen.
"We are extremely proud of the fiscal year just concluded including record sales and profitability,” said Mark A. LeDoux, chairman and CEO of Natural Alternatives. “With the recent acquisition of a new manufacturing and warehouse facility and the pending addition of a new blender in our current facility, we believe we are poised to take advantage of new opportunities that are at hand as well as future growth. Our recent acquisition of the new manufacturing facility in Carlsbad, California is being retrofitted to generate significant output of the highest quality whole-food-based meal replacement powders in various packaging configurations and other products envisioned for production in what will be a state-of-the-art cGMP facility.”