The Carlsbad, CA-based firm does custom formulation and manufacturing of dietary supplements. The company also holds the patent for and collects royalties on CarnoSyn branded beta-alanine for sports nutrition products.
Sales increase, but profit share shrinks
In the statement released yesterday, NAII reported a net income of $3.1 million in its fourth quarter of fiscal 2022 which ended on June 30. That profit was a recorded on $52.5 million in net income for the quarter, which was a new record for the company.
That was an increase of 18.3% over the $44.4 million recorded in the fourth quarter of the company’s fiscal 2021, before inflation had really started to bite. NAII notched almost the same amount of net income—$3 million—on that diminished amount of sales, though the profit did show an increase on per share bases because of a stock buyback that reduced the number of outstanding shares.
Demand for contract manufacturing services rose, with sales in the company’s private-label contract manufacturing segment increasing 25.6% to $49.9 million during the quarter. The company attributed most of that increase to demand from a new customer that markets meal replacement type products in the ecommerce sector. CarnoSyn royalty, licensing and raw material sales revenue decreased 43.6% to $2.6 million during the fourth quarter of fiscal year 2022, as compared to $4.7 million for the fourth quarter of fiscal year 2021, which was mostly attributed to seasonal factors and market conditions, as royalties and raw materials sales for this brand rose on a full year basis.