Natural Alternatives Reports Record DTC Sales

Natural Alternatives Reports Record DTC Sales

SAN MARCOS, Calif.--Natural AlternativesInternational (NASDAQ:NAII), a formulator and manufacturer of nutritionalsupplements, reported Oct. 27 that for its first quarter (1Q04), ended Sept. 30,it had record sales in its direct-to-consumer (DTC) lines.

Revenues increased to $16.7 million from $13.1 million, with gross marginstaying around 24 percent of sales. Operating costs increased to $3.5 millionfrom $2.8 million, while net income improved marginally to $567,000, or $.10earned per share, from $527,000, or $.09 earned per share.

Sales growth resulted from a 30-percent increase in private label contractmanufacturing sales and a 15-percent increase in DTC sales: The company's Dr.Cherry Pathway to Healing brand and new productintroductions led to record quarterly DTC revenues of $3 million. The company'spresident, Randell Weaver, stated the company is evaluating its expansionopportunities in terms of pumping up product lines, enhancing manufacturingcapabilities and reducing the risks associated with relying on sales from alimited number of customers.