CarnoSyn® Brands Partners With Barentz for Exclusive Brazilian Distribution of CarnoSyn® Beta-Alanine

CARLSBAD, CA, FEBRUARY 15, 2024—CarnoSyn® Brands and parent company Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), today announced its expansion in Brazil with Barentz, creating an exclusive distribution channel for CarnoSyn® beta-alanine throughout the entire Brazilian dietary supplements’ market. The new agreement strengthens brand expansion and distribution of a top selling ingredient in sports nutrition—CarnoSyn® beta-alanine—the only scientifically proven and globally patented beta-alanine.

“This new partnership illustrates our confidence in the Brazilian market and Barentz, who will provide an opportunity for more companies and brands to have access to CarnoSyn®, the safest and most studied beta-alanine available in the world,” shared Aaron Starr, Vice President, CarnoSyn® Brands. “We are confident that their experience and expertise will help grow and promote CarnoSyn® Brands in this region. Barentz has worked tirelessly to establish awareness for sports nutrition brands and life science ingredients in Brazil and South America for decades, with a proven track record of success. We look forward to a mutually beneficial business relationship.”

A leading distributor specializing in the life sciences market, Barentz in South America offers high-tech ingredients in various market sectors including dietary supplements, pharmaceuticals, personal care, foods, beverages, and animal nutrition. CarnoSyn® beta-alanine represents the latest innovative ingredient added to their specialty ingredient portfolio for distribution.

Moses Benzaquen, President Director of Barentz in Brazil, emphasized CarnoSyn®‘s exceptional quality, representing the pinnacle of muscle health supplements, “As leaders in the distribution market, we consistently pursue the finest global options, and CarnoSyn® distinguishes itself with proprietary clinical studies, ensuring both efficacy and quality. With the sports nutrition market booming in Brazil, beta-alanine not only addresses athletes’ needs but also resonates with consumers pursuing healthier lifestyles. We are confident in the success of our partnership with CarnoSyn® Brands.”

About Barentz
Barentz is a leading global Life Science ingredients distributor. The company sources branded specialty ingredients from leading manufacturers worldwide. Their team of ingredient experts provide value-added technical support which includes pre-mixing, blending, ingredients formulations and ingredient testing from state-of-the-art customized formulation centers and application laboratories in EMEA, Americas, and Asia-Pacific. Established in 1953, Barentz has operations in more than 70 countries with a strong presence in Europe and North America and a rapidly growing network in South America and Asia-Pacific. In 2018, Barentz, a world leader in products for the Life Science market, arrived in Brazil through a joint venture with Tovani Benzaquen. The company serves more than 2,000 customers throughout the entire Brazilian territory and surrounding countries. Tovani Benzaquen officially became Barentz from 2024 onward, expanding its portfolio to over 3,000 molecules while ensuring the quality of local service. With a turnover of € 2.5 billion, Barentz now employs around 2,600 people worldwide and serves over 25,000 customers. For more information, visit: www.barentz.com.

About CarnoSyn® Brands:
CarnoSyn® Brands feature two clinically studied, patented ingredients available exclusively from Natural Alternatives International, Inc.: CarnoSyn® instant release beta-alanine powder and SR CarnoSyn® sustained release beta-alanine tablets. In 2019, CarnoSyn® beta-alanine successfully obtained NDI status from the FDA and received Self-Affirmed GRAS (Generally Recognized as Safe) status. SR CarnoSyn®, an advanced delivery form of CarnoSyn®, received GRAS affirmation in 2017. The GRAS affirmation allows NAI to broaden their product offerings within the food and beverage industries, including medical and other fortified food products. For more information about CarnoSyn® in sports nutrition, please visit: www.carnosyn.com. For information on SR CarnoSyn® in healthy aging and wellness, visit www.srcarnosyn.com.

About NAI:
NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. NAI’s comprehensive partnership approach offers a wide range of innovative nutritional products and services to clients including scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review, and international product registration assistance.
For more information about NAI, please visit www.nai-online.com.

Contact:
Renee Michaelson
Director of Global Marketing
NAI/CarnoSyn® Brands
(760) 736-7700
[email protected] 

Natural Alternatives International, Inc. Announces 2024 Q2 and YTD Results

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CARLSBAD, Calif., Feb. 13, 2024 /GLOBE NEWSWIRE/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a net loss of $3.1 million, or $0.52 per diluted share, on net sales of $25.2 million for the second quarter of fiscal year 2024 compared to net income of $1.8 million, or $0.31 per diluted share, in the second quarter of the prior fiscal year.

Net sales during the three months ended December 31, 2023, decreased $17.1 million, or 40%, to $25.2 million as compared to $42.3 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased 44% to $23.0 million. Private-label contract manufacturing sales decreased primarily due to reduced orders from several of our larger customers associated with their efforts to reduce excess on-hand inventories, partially offset by increased shipments from other existing customers and shipments to new customers.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 48% to $2.2 million during the second quarter of fiscal year 2024, as compared to $1.5 million for the second quarter of fiscal year 2023. The increase in CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue during the second quarter of fiscal 2024 was primarily due to an increase in orders from existing customers, increased royalty income, and favorable volume rebate activity.

Our net loss for the six months ended December 31, 2023, was $3.8 million, or $0.64 per diluted share, compared to net income of $2.9 million, or $0.49 per diluted share, for the six months ended December 31, 2022.

Net sales during the six months ended December 31, 2023, decreased $26.2 million, or 31%, to $59.2 million as compared to $85.4 million recorded in the comparable prior year period. During the six months ended December 31, 2023, private-label contract manufacturing sales decreased 33% to $55.2 million, as compared to $82.6 million in the comparable prior period. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 40% to $3.9 million during the first six months of fiscal 2024, as compared to $2.8 million for the first six months of fiscal 2023.

We experienced a loss from operations during the three and six months ended December 31, 2023. This operating loss was primarily due to a slowdown in sales across our private-label contract manufacturing segment. We previously announced the temporary closure of our high-speed powder processing facility in Carlsbad, California due to a reduction in customer orders. We currently expect this facility will re-open and resume operations late in our fourth fiscal quarter of 2024 to support anticipated deliveries of new customer orders in the first quarter of fiscal 2025. Subject to our updated consolidated sales forecast, we now expect to generate a net loss in the second half of fiscal 2024 and an overall net loss in fiscal 2024.

As of December 31, 2023, we had cash of $16.6 million and working capital of $41.0 million, compared to $13.6 million and $41.1 million respectively, as of June 30, 2023. As of December 31, 2023, we had zero outstanding on our credit facility.

As a result of our loss for the three and six months ended December 31, 2023, we were not in compliance with the income and fixed charge coverage requirements of our credit facility as of December 31, 2023. On February 13, 2024, we entered into an amendment to our credit facility with Wells Fargo Bank, N.A. that, among other changes, waived all prior instances of non-compliance, modified our continuing compliance requirements going forward, decreased our total borrowing capacity on the line of credit to $12.5 million, and increased the interest rate on borrowings on the line of credit to 2.25% from 1.29% above the daily simple SOFR rate.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “We remain sanguine about the future growth potential for our business, despite the challenges we currently face. We are gaining momentum with new customer relationships and our efforts to build a strong pipeline of new sales opportunities. While some of our existing customers continue to work through rebalancing their supply and demand, we anticipate these efforts will soon result in the need to replenish their inventories.”

“Our balance sheet continues to be a source of strength and we believe our recently revised credit facility fortifies our working capital position and allows us to further focus on driving sales growth.”

An updated investor presentation will be posted to the investor relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers.  Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to our clients including scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging, and delivery system design, regulatory review, and international product registration assistance. For more information about NAI, please see our website at https://www.nai-online.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that are not historical facts and information. These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, our ability to develop, maintain or increase sales to new and existing customers, our ability to attract and retain sufficient labor, COVID-19 and related impacts on the availability of raw materials, our future revenue profits and financial condition, as well as future economic conditions and the impact of such conditions on our business. We wish to caution readers these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. NAI’s financial performance and the forward-looking statements contained herein are further qualified by other risks, including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].

Web site: https://www.nai-online.com

Natural Alternatives International, Inc. Announces 2024 Q1 Results

NAI Logo

CARLSBAD, Calif.Nov. 9, 2023 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a net loss of $0.7 million, or $0.12 per diluted share, on net sales of $34.0 million for the first quarter of fiscal year 2024 compared to net income of $1.1 million, or $0.18 per diluted share, in the first quarter of the prior fiscal year.

Net sales during the three months ended September 30, 2023, decreased $9.2 million, or 21.2%, to $34.0 million as compared to $43.1 million recorded in the comparable prior year period.  During the same period, private-label contract manufacturing sales decreased $9.6 million, a 22.9% decrease from the comparable quarter last year. Private-label contract manufacturing sales decreased primarily due to reduced orders from several of our larger customers associated with their efforts to reduce excess on-hand inventories.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 31.8% to $1.8 million during the first quarter of fiscal year 2024, as compared to $1.4 million for the first quarter of fiscal year 2023. The increase in patent and trademark licensing revenue during the first quarter of fiscal 2023 was primarily due to an increase in orders from existing customers and increased royalty income, partially offset by increased volume rebates.

We experienced a loss from operations during the three months ended September 30, 2023. This was primarily due to a slowdown in sales across our private label contract manufacturing segment. We previously announced the temporary closure of our high-speed powder processing facility in Carlsbad, California due to excess inventory on hand at one of our largest customers and their efforts to rebalance supply and demand. We now expect this facility will re-open and our prior level of operations will resume in our fourth fiscal quarter of 2024. Subject to this uncertainty, and our overall sales forecast, we currently anticipate we will experience a net loss in the first half of fiscal 2024, net income in the second half and an overall net loss in fiscal 2024.

As of September 30, 2023, we had cash of $16.7 million and working capital of $42.3 million compared to $13.6 million and $41.1 million respectively, as of June 30, 2023. As of September 30, 2023, we had $20.0 million available under our line of credit agreement.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “While economic headwinds continue to persist both in our business and our industry, we continue to foster our existing relationships and pursue new customer opportunities to bolster our sales pipeline. While the new customer and product acquisition cycle can be long, we believe our investments in relationship development and product innovation will yield significant future growth.”

An updated investor presentation will be posted to the investor relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers.  Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to our clients including scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance. For more information about NAI, please see our website at https://www.nai-online.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that are not historical facts and information.  These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, our ability to develop, maintain or increase sales to new and existing customers, potential re-opening of our Carlsbad powder processing facility and its future level of operations, our future revenue profits and financial condition, as well as future economic conditions and the impact of such conditions on our business. We wish to caution readers these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein.  NAI’s financial performance and the forward-looking statements contained herein are further qualified by other risks, including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].

Web site: https://www.nai-online.com

Natural Alternatives International, Inc. Announces 2023 Q4 and YTD Results

NAI Logo

CARLSBAD, CALIF, September 21, 2023 /PRNewswire/ –Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced net income of $2.0 million, or $0.35 per diluted share, on net sales of $35.9 million for the fourth quarter of fiscal year 2023 compared to net income of $3.1 million, or $0.52 per diluted share, in the fourth quarter of the prior fiscal year.

Net sales during the three months ended June 30, 2023, decreased $16.6 million, or 31.7%, to $35.9 million as compared to $52.5 million recorded in the comparable prior year period.  During the same period, private-label contract manufacturing sales decreased 35.2% to $32.3 million. Private-label contract manufacturing sales decreased for most of our customers primarily due to excess inventory levels associated with softening consumer demand. Many of our customers maintained larger inventory balances during the previous twelve months due to concerns about supply constraints and now that supply chain conditions are improving they have begun to release these excess inventory positions.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 36.1% to $3.6 million during the fourth quarter of fiscal year 2023, as compared to $2.6 million for the fourth quarter of fiscal year 2022. The increase was primarily due to increased raw material sales and favorable changes in estimates for volume rebates.

Net income for fiscal year 2023 was $2.5 million, or $0.43 per diluted share, compared to net income of $10.7 million, or $1.74 per diluted share, for fiscal year 2022. Net income for fiscal year 2023 included a  benefit of $3.5 million related to anticipated refunds from the Employee Retention Tax Credit program and $1.4 million in recovery of accounts receivable written-off in a prior fiscal year.

Net sales during the year ended June 30, 2023, decreased $17.0 million, or 9.9%, to $154.0 million as compared to $171.0 million recorded in the comparable prior year.  During the year ended June 30, 2023, private-label contract manufacturing sales decreased $9.5 million, or 6.1%, from the comparable period last year. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 46.1% to $8.7 million during the year ended June 30, 2023, as compared to $16.2 million in the prior year ended June 30, 2022.

On August 16, 2023, we announced the temporary closure of our new facility in Carlsbad, California which is anticipated to occur in October 2023. The closure was necessitated primarily due to excess inventory levels at one of our largest customers. We expect this facility will re-open and our prior level of operations will resume late in our third fiscal quarter of 2024. Subject to this, and our overall sales forecast, we currently anticipate we will experience a net loss in the first half of fiscal 2024, net income in the second half and an overall net loss in fiscal 2024.

As of June 30, 2023, we had cash of $13.6 million and working capital of $41.1 million, compared to $21.8 million and $52.9 million respectively, as of June 30, 2022. As of June 30, 2023, we had $20.0 million available under our line of credit agreement.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Despite our near-term challenges and continued headwinds within our industry and the economy in general, we remain optimistic about our future growth. We continue to aggressively seek opportunities to diversify and increase our sales both through relationship development and product innovation.”

“We believe the foundation we have built over the past several years, including the strength of our balance sheet, will help us weather the turbulence we expect to encounter over the next several quarters.”

An updated investor presentation will be posted to the investor relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers.  Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to our clients including scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance. For more information about NAI, please see our website at https://www.nai-online.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that are not historical facts and information.  These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, our ability to develop, maintain or increase sales to new and existing customers, our ability to timely attract and retain sufficient labor, the availability of raw materials, our future revenue profits and financial condition, as well as future economic conditions and the impact of such conditions on our business. We wish to caution readers these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein.  NAI’s financial performance and the forward-looking statements contained herein are further qualified by other risks, including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].

Web site: https://www.nai-online.com

Natural Alternatives International, Inc. Announces Temporary Plant Closure and Employee Furloughs

NAI Logo

CARLSBAD, Calif., Aug. 16, 2023 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a temporary closure of its new facility in Carlsbad, California, opened earlier this year to expand NAI’s production and add high-speed powder blending and packaging to its manufacturing capabilities, with an initial objective of handling current and estimated orders from one of its largest customers.

Due to this customer’s efforts to rebalance supply and demand, it is temporarily ceasing purchases from Natural Alternatives. As a result, NAI has determined to temporarily close its new high-speed powder blending and packaging facility and has provided sixty days advance notice to most of the staff at that facility, who will be furloughed starting in early October and lasting until approximately December 31, 2023. NAI currently expects these economic factors will be short lived, and in order to influence furloughed employees to return, NAI will pay for the health insurance costs of all furloughed employees during the employee’s furlough period, through December 31, 2023. NAI expects to begin shipping new orders to this customer during the first quarter of calendar 2024.

Reduction of these anticipated orders and the closure of the facility is anticipated to have an adverse effect on our results of operations and financial condition primarily during the last calendar quarter of this year, and possibly into the early part of 2024.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Despite the recent volatility in our industry, we remain optimistic about the long-term growth trends for nutritional supplements. We anticipate continued near term headwinds associated with both the overall macro-economic environment and factors specific to our industry. We will continue to aggressively seek opportunities to increase our sales, our customer base, and evaluate further cost reduction opportunities.”

NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to our clients including scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance. For more information about NAI, please see our website at https://www.nai-online.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that are not historical facts and information. These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, our ability to increase sales to new and existing customers, our ability to retain and hire new employees when the cause of the current furloughs lift, and our future revenue profits and financial condition. We wish to caution readers these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. NAI’s financial performance and the forward-looking statements contained herein are further qualified by other risks, including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].

Web site: https://nai-online.com

Natural Alternatives International Appoints New VP of Global Sales

Shane Conti Headshot_web

CARLSBAD, CA, JULY 25, 2023—Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII) ), a leading formulator, manufacturer, and marketer of customized nutritional supplements, announced that sales executive Shane Conti has joined the company as the Vice President of Global Sales and will be a key driver of global expansion and growth.

Over the course of his 25 plus year career in the domestic and international nutritional supplement industry, Conti has established a proven track record of success in building new business within multiple markets.

“Shane is a skilled relationship builder and comes to NAI with a rich knowledge of our company, having worked here in a Senior Business Development Manager role from 2016 to 2021. We are thrilled to welcome him back,” said Ken Wolf, President of NAI. “His leadership, wealth of experience and network of global contacts will help to accelerate our new business objectives while strengthening existing customer relationships.”

In his role as Vice President of Global Sales, Conti oversees the development and implementation of sales strategies, and leads the NAI sales team and client service departments to meet or exceed sales revenue, sales profitability, and budgetary objectives.

Conti shared, “I’m excited to be back at NAI to lead global sales. I look forward to showcasing NAI’s contract manufacturing capabilities and capacities—especially with the recent addition of the new state-of-the-art powder blending and packaging facility in Carlsbad, California.”

About NAI:

NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. NAI’s comprehensive partnership approach offers a wide range of innovative nutritional products and services to clients including scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review, and international product registration assistance. For more information about NAI, please visit  www.nai-online.com.

Contact:
Renee Michaelson
Director of Global Marketing
NAI/CarnoSyn® Brands
(760) 736-7700
[email protected]

SR CarnoSyn® Sustained Release Beta-Alanine Selected as Finalist for Ingredient of the Year in Healthy Aging and Cognitive Function by NutraIngredients-USA Awards 2023

CARLSBAD, CA, MAY 31, 2023—CarnoSyn® Brands and parent company Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), are proud to announce that SR CarnoSyn® sustained release beta-alanine has been selected as a finalist in this year’s NutraIngredients-USA Awards in two categories: Ingredient of the Year: Healthy Aging and Ingredient of the Year: Cognitive Function.

The NutraIngredients-USA Awards honors excellence and innovation in ingredients, finished products, companies, people, and initiatives in the nutrition and dietary supplements industry. The Ingredient of the Year category for Healthy Aging celebrates the best the industry has to offer in tailored solutions to remain physically and mentally healthy as we age. The Ingredient of the Year in the Cognitive Function category recognizes the best ingredients dedicated to supporting cognition, memory, alertness, and other cognitive processes. The 2023 NutraIngredients-USA Awards presentation will be a virtual event taking place on Wednesday, July 12, at 11:00 a.m. CT in Chicago.

“The designation of Award Finalist is an honor and a tribute to the many years of rigorous clinical testing and tremendous financial investment in patenting the sustained release formulation,” said Aaron Starr, Vice President, CarnoSyn® Brands. “SR CarnoSyn® beta-alanine is truly a game changer when it comes to healthy aging and cognitive function. Consumers are more focused than ever on improving overall health and seek new solutions to stay healthy and active with vitality. By adding SR CarnoSyn® sustained release tablets to their product portfolio as a turnkey private label or custom formulation, wellness brands can answer consumer demand—with a strong focus on the latest in health science innovation.”

Backed by years of clinical research, SR CarnoSyn® unlocks the many benefits of the antioxidant carnosine to help people get more out of life. As we age, our carnosine levels decrease. SR CarnoSyn® is a patented, sustained release form of beta-alanine that stays in the body longer to enable the synthesis of more carnosine for greater bioavailability within the brain, muscles, and other tissues. SR CarnoSyn® supports the body in five important ways: brain health, heart health, bone health, muscle function, and system immunity—all while limiting the paresthesia normally associated with an efficacious dosage of beta-alanine.

“NAI’s expert team has formulated one of the most science-backed dietary supplements available,” said Dr. Di Tan, Director of Scientific Affairs, CarnoSyn® Brands. “As pioneers in science, NAI goes beyond just following set rules to test extensive parameters and biomarkers; NAI explores what the world of healthy aging and longevity has yet to uncover.”

About CarnoSyn® Brands:
CarnoSyn® Brands feature two clinically studied, patented ingredients available exclusively from Natural Alternatives International, Inc.: CarnoSyn® instant release beta-alanine powder and SR CarnoSyn® sustained release beta-alanine tablets. In 2019, CarnoSyn® beta-alanine successfully obtained NDI status from the FDA and received Self-Affirmed GRAS (Generally Recognized as Safe) status. SR CarnoSyn®, an advanced delivery form of CarnoSyn®, received GRAS affirmation in 2017. The GRAS affirmation allows NAI to broaden their product offerings within the food and beverage industries, including medical and other fortified food products. For information on SR CarnoSyn® in healthy aging and wellness, visit www.srcarnosyn.com. For more information about CarnoSyn® in sports nutrition, please visit: www.carnosyn.com.

About NAI:
NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. NAI’s comprehensive partnership approach offers a wide range of innovative nutritional products and services to clients including scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review, and international product registration assistance. For more information about NAI, please visit www.nai-online.com.

Contact:
Renee Michaelson
Director of Global Marketing
NAI/CarnoSyn® Brands
(760) 736-7700
[email protected]

Natural Alternatives International Strengthens Capabilities by Adding New U.S. Manufacturing Facility in California

NAI Logo

Carlsbad, California Plant Allows Greater Supply Chain Flexibility
and Supports Higher Volume of Production

CARLSBAD, CA, MAY 24, 2023—Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII) today announced the expansion of its global dietary supplement contract manufacturing network, providing the ability to better service existing customers, attract new customers, expand sales, and provide potential for channel and customer diversification.

The state-of-the-art high-volume powder blending and packaging facility will provide an annual plant capacity of over 26 million pounds of powder. The new facility employs 84 and is comprised of 54,154 square feet of manufacturing and warehouse space for raw material and finished product storage. New equipment technologies include two 400 cubic foot fluidizing paddle blenders, high speed rotary pouchers, and gravity flow racking.

Mark A. LeDoux, Chairman and Chief Executive Officer of NAI stated, “We’re very pleased to announce the commercial opening of our new Carlsbad facility. This milestone presents a valuable opportunity to bring more jobs to the area and to allow NAI to further expand our manufacturing capabilities and meet the growing needs of the dietary supplement powder market. The Carlsbad expansion adds to our existing full-service manufacturing facilities in Vista, California and Manno, Switzerland, expanding our capacity to provide high-quality capsule, tablet and powder supplements for an international audience.”

NAI purchased the facility in August 2021 and has spent the past 21 months retrofitting the space with a heavy focus on transferring powder with gravity. The design team utilized every vertical inch to maximize gravity transfer and leverages large containers called super sacks, to transfer powder from one process to the next (i.e., weighing to blending then packaging). This resulted in different ceiling heights for various parts of the plant. For example, the weigh room ceiling height is higher than the packaging room height, although they both are on the ground floor.

Quality was a key priority in the space design and layout. The site has excellent ingredient sampling at receiving and a physical laboratory for on-site evaluation prior to releasing materials to production. Employee Good Manufacturing Practices were well planned. The flow into and out of the plant is supported by a gowning room at the entrance, a de-gowning room for the exit, with an in process gowning room as well. The final packaged product is 100% inspected by an X-ray and check-weigher combination unit to ensure quality prior to casing.

NAI’s dedication to environmental responsibility is noted with a fully integrated building management system (light, HVAC, etc.), high bay lighting motion sensors which effectively cycle on and off based on high ceiling mounted sensors. A maximized solar panel installation is planned in fall 2023.

“A broad NAI team came together to plan and execute this state-of-the-art manufacturing facility—management, engineers, mechanics, and hourly staff—were all involved and supported by our external team of engineers and architects,” shared Kenneth Wolf, President and Chief Operating Officer of NAI. “With over 40 years in the supplement manufacturing industry, our expertise grows stronger every year, supported by quality through proven performance. That’s the NAI difference.”

About NAI:
NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. NAI’s comprehensive partnership approach offers a wide range of innovative nutritional products and services to clients including scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review, and international product registration assistance. For more information about NAI, please visit www.nai-online.com.

Contact:
Renee Michaelson
Director of Global Marketing
NAI/CarnoSyn® Brands
(760) 736-7700
[email protected]

Researchers Behind Recent Publication on SR CarnoSyn® Beta-Alanine Tablet’s Ability to Improve Cognitive Health Presenting at American College of Sports Medicine and Exercise Science (ACSM) 2023 Annual Meeting

CARLSBAD, CA, MAY 17, 2023—CarnoSyn® Brands and parent company Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), are proud to sponsor Dr. Guilherme G. Artioli and announce that several other leading CarnoSyn® beta-alanine researchers will be presenting at the American College of Sports Medicine and Exercise Science (ACSM) Annual Meeting and World Congresses Conference in Denver, CO on May 30-June 2, 2023.

Dr. Guilherme G. Artioli, of Manchester Metropolitan University, is a senior researcher and lecturer in physiology. Dr. Artioli has conducted and published 8 clinical studies around SR CarnoSyn® beta-alanine and carnosine health benefits. His beta-alanine supplementation research highlights include the positive impacts on cardio health, long term safety, and other health benefits beyond exercise physiology.

Dr. Artioli will be joined by other prominent CarnoSyn® research scientists, Drs. Jay Hoffman and Bryan Saunders, presenting at the same symposium, Build Your Base: New Developments on the Use of Buffering Ergogenic Aids, on Thursday, June 1 at 1:30 p.m. In addition, Drs. Jay Hoffman and Ishay Ostfeld will be presenting a thematic research poster, the Role of β-Alanine Ingestion on Cognitive Function, Mood, and Physical Function in Older Adults, on Thursday June 1 at 3:45 p.m. The research poster is based on a clinical study published on February 23, 2023 (Nutrients), which provided the biggest scale of participants with precise experimental designs and showed SR CarnoSyn® beta-alanine supplementation benefited cognitive function in sedentary older adults. This clinical study was the first conducted with SR CarnoSyn® beta-alanine 600 milligram tablets, providing 2.4 grams of daily supplementation. The study results indicated improved cognitive function in older adults whose cognitive function at baseline was at or below normal. In addition, results indicated significant depression score reductions using the Geriatric Depression Scale (GDS).

“CarnoSyn® Brands and NAI are especially proud to be sponsoring Dr. Artioli as he shares his expertise and discoveries at the ACSM symposium,” said Aaron Starr, Vice President, CarnoSyn® Brands. “As a science-based company, CarnoSyn® Brands has built a firm network with the top academic researchers across the globe—including Drs. Hoffman, Saunders, and Ostfeld. CarnoSyn® Brands goes to great lengths to not only verify our product claims via research, but to also sponsor ongoing exploration and examination to better understand the mechanisms behind the functions and benefits for the end user.”

About CarnoSyn® Brands:
CarnoSyn® Brands feature two clinically studied, patented ingredients available exclusively from Natural Alternatives International, Inc.: CarnoSyn® instant release beta-alanine powder and SR CarnoSyn® sustained release beta-alanine tablets. In 2019, CarnoSyn® beta-alanine successfully obtained NDI status from the FDA and received Self-Affirmed GRAS (Generally Recognized as Safe) status. SR CarnoSyn®, an advanced delivery form of CarnoSyn®, received GRAS affirmation in 2017. The GRAS affirmation allows NAI to broaden their product offerings within the food and beverage industries, including medical and other fortified food products. For more information about CarnoSyn® in sports nutrition, please visit: www.carnosyn.com. For information on SR CarnoSyn® in healthy aging and wellness, visit www.srcarnosyn.com.

About NAI:
NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. NAI’s comprehensive partnership approach offers a wide range of innovative nutritional products and services to clients including scientific research, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review, and international product registration assistance. For more information about NAI, please visit www.nai-online.com.

Contact:
Renee Michaelson
Director of Global Marketing
NAI/CarnoSyn® Brands
(760) 736-7700
[email protected]

Natural Alternatives International, Inc. Announces 2023 Q3 and YTD Results

NAI Logo

CARLSBAD, CALIF., May 15, 2023 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a net loss of $2.4 million, or $0.41 per diluted share, on net sales of $32.7 million for the third quarter of fiscal year 2023 compared to net income of $2.5 million, or $0.41 per diluted share, in the third quarter of the prior fiscal year.

Net sales during the three months ended March 31, 2023, decreased $9.7 million, or 22.8%, to $32.7 million as compared to $42.4 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased 19.3% to $30.4 million. Private-label contract manufacturing sales decreased for most of our customers including two key customers, partially offset by increased sales to our largest customer. The primary driver for our sales decline relates to our customers’ excess on-hand inventory levels associated with softening consumer demand. In addition, many of our customers maintained larger inventory balances during the previous twelve months related to supply constraints and have now begun to release these excess inventory positions associated with improving supply chain conditions. Sales were also negatively impacted by lower average exchange rates applied to sales denominated in Euro as compared to the prior year period.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 50.6% to $2.3 million during the third quarter of fiscal year 2023, as compared to $4.8 million for the third quarter of fiscal year 2022. This decrease was primarily due to fewer orders from existing customers as a result of market and inflationary factors along with a general slowdown in the Sports Nutrition sales channel. In addition, the three months ended March 31, 2022, included an unusual ramp up of Sports Nutrition sales activity due to easing COVID restrictions on athletic activities with no corresponding factors in the three months ended March 31, 2023.

Net income for the nine months ended March 31, 2023, was $0.5 million, or $0.08 per diluted share, compared to net income of $7.6 million, or $1.22 per diluted share, for the nine months ended March 31, 2022.

Net sales during the nine months ended March 31, 2023, decreased $0.3 million, or 0.3%, to $118.1 million as compared to $118.4 million recorded in the comparable prior year period. During the nine months ended March 31, 2023, private-label contract manufacturing sales increased 7.7% to $113.0 million, while CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 62.0% to $5.2 million compared to $13.5 million for the first nine months of fiscal 2022.

While our sales decreased further than anticipated during the third quarter of fiscal 2023, we expect our sales during the fourth quarter of fiscal 2023 will increase as compared to the third quarter.

Based on our current sales order volumes and our customers’ forecasts, we anticipate our fiscal 2023 consolidated net sales will decrease between 10% to 12% compared to fiscal 2022, and we will still generate net operating income for our fourth quarter of fiscal 2023 and for the fiscal year ended June 30, 2023. We believe this decline in near term demand from our customer base is consistent with the overall economic trends in our industry. Changes in sales mix, unfavorable foreign exchange rates, and inflationary factors including increased operational costs, increased labor rates, raw material, freight and supply chain costs are anticipated to negatively impact our near-term financial results.

In March 2023, we implemented a workforce restructuring plan eliminating 32 employee positions, representing approximately 9% of our global workforce. The reduction in workforce impacted all of our global locations and is expected to result in reduced operating expenses of approximately $1.8 million on an annualized basis. During the quarter ended March 31, 2023, we recognized restructuring charges of $449,000, primarily related to severance payments associated with this workforce restructuring plan.

We continue to evaluate further cost reduction opportunities, including working with both suppliers and customers, to mitigate the impact of order reductions and higher operational costs.

As of March 31, 2023, we had cash of $15.6 million and working capital of $40.7 million, compared to $21.8 million and $53.5 million respectively, as of June 30, 2022. As of March 31, 2023, we had $10.9 million available under our line of credit.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Despite the recent volatility in our industry, we remain optimistic about the long-term growth trends for nutritional supplements. We anticipate continued near term headwinds associated with both the overall macro-economic environment and factors specific to our industry.”

“While we are seeing some normalization with freight costs, these and other costs continue to trend higher than pre-pandemic levels and future operating costs are expected to be impacted by inflationary pressures and are an area of our focus.”

“We continue to aggressively seek opportunities to increase our sales and customer base. I’m excited to report that construction on our new powder manufacturing facility in Carlsbad, California is now complete, and this state-of-the art powder plant began full operations in April 2023.”

An updated investor presentation will be posted to the investor relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to our clients including scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance. For more information about NAI, please see our website at https://www.nai-online.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that are not historical facts and information. These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, our ability to increase sales to new and existing customers, our future revenue profits and financial condition, as well as future economic conditions and the impact of such conditions on our business. We wish to caution readers these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. NAI’s financial performance and the forward-looking statements contained herein are further qualified by other risks, including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].

Web site: https://www.nai-online.com