Natural Alternatives Registers 3.5% Sales Decline In Q1

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.

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