- Natural Alternatives International Inc NAII reported first-quarter FY22 sales of $38.34 million, a decline of 3.5% year-on-year.
- Private-label contract manufacturing sales decreased 9.3% Y/Y to $33.6 million primarily due to a 45% decrease in sales to its largest customer primarily associated with their European markets.
- The gross profit rose 37.9% Y/Y to $8.3 million, with the margin expanding 650 basis points to 21.6%.
- The operating margin expanded 580 basis points to 11%, and operating income for the quarter rose 102.8% to $4.2 million.
- The company held $20 million in cash and equivalents as of September 30, 2021.
- EPS of $0.51 versus $0.35 in Q1 FY21.
- Sales backlog for the quarter exceeded $8.0 million and was primarily related to supply chain and logistical constraints.
- Outlook: Natural Alternatives sees FY22 net sales to increase 7.0% - 10.0%.
- The company expects supply chain and manufacturing challenges to resolve during the second half of fiscal 2022.
- Price Action: NAII shares closed higher by 2.86% at $13.65 on Tuesday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.