Natural Alternatives International sees another private label sales dip
Natural Alternatives International (NAI), a Carlsbad, CA-based formulator and manufacturer of nutritional supplements, has released its financial results from Q2 2022. The results are highlighted by a decrease in net sales, as well as private label manufacturing sales. The decrease follows a dip in sales for Q1 2022.
For the three month period ended Dec. 31, 2021, NAI reported a decrease of net sales 21.5% to $37.7 million compared to the previous year. Private label contract manufacturing sales decreased by 25.7% to $33.7 million. NAI said the private label sales decrease was a result of a 48% reduction in sales to its largest customer, combined with supply chain and labor constraints that impacted production capacity.
“Our results for the second quarter and first half of fiscal 2022 were in line with our expectations despite continuing supply chain and labor challenges in addition to a decline in sales to our largest customer,” said Mark A. Le Doux, chairman and CEO of NAI. “Our backlog going into the third quarter remains strong and we are working hard to add staff in order to support our anticipated sales growth in the second half of the year while also maneuvering the daily reality of COVID-19. We also brought online new blending capacity in our Vista, CA plant that will increase our operational throughput and is necessary to support current demand and future growth expectations."
Net income for the six months ended Dec. 31, 2021 was $5.1 million, or $0.81 per diluted share, compared to net income of $5.9 million, or $0.91 per diluted share, for the six months ended Dec. 31, 2020.
Net sales during the six months ended Dec. 31, 2021 decreased $11.7 million, or 13.4%, from $87.8 million recorded in the comparable prior year period. In the same six month period, private-label contract manufacturing sales decreased $15.1 million, or 18.3%, from the comparable period in 2020..
"While our expected growth in the second half of the year is not as robust as we previously anticipated, we still see significant opportunities with both existing and new customers,” Le Doux added. “Our team is working hard to navigate these near-term challenges and position the company for long term growth and profitability."