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NAI to reopen powder blending facility in Carlsbad

EditorEmilio Ghigini
Published 04/02/2024, 09:26 AM
NAII
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CARLSBAD, Calif. - Natural Alternatives International, Inc. (NASDAQ: NAII), a formulator and manufacturer of nutritional supplements, announced today the expected reopening of its Carlsbad powder blending and packaging facility in May 2024. The site, which has been closed since October 2023 due to a downturn in customer orders, is set for a comeback to meet increasing demand.

The facility, acquired by NAI in August 2021, underwent a 21-month retrofit focused on high-volume powder production and gusseted bag packaging. Equipped with advanced technology, including two 400 cubic foot fluidizing paddle blenders and two high-speed rotary packaging lines, the plant boasts over 67,000 square feet of manufacturing and warehouse space.

NAI's CEO, Mark LeDoux, cited the growing need for capacity as the impetus for the facility's restart. The Carlsbad location is poised to support the burgeoning segment of powder packaged delivery systems within the nutritional industry, with an annual capacity of over 26 million pounds of blended powder products.

The reactivation of the plant will also bring employment opportunities to the local community, with NAI looking to recruit approximately 60 people to staff the operation.

NAI, headquartered in Carlsbad, California, is recognized for its comprehensive partnership approach, providing a range of services including scientific research, proprietary ingredients, and regulatory assistance to its clients. The reopening of the Carlsbad facility is expected to enhance NAI's manufacturing capabilities, benefiting both customers and the local workforce.

This announcement is based on a press release statement from Natural Alternatives International, Inc.

InvestingPro Insights

As Natural Alternatives International, Inc. (NASDAQ: NAII) gears up for the reopening of its Carlsbad powder blending and packaging facility, investors are closely monitoring the company's financial health and market position. According to InvestingPro data, NAII has a market capitalization of $36.9 million and is trading at a low price/book multiple of 0.43 as of the last twelve months ending in Q2 2024, which suggests that the stock might be undervalued relative to the company's book value.

Despite the challenges faced by the company, reflected in a revenue decrease of 29.15% over the last twelve months as of Q2 2024, NAI's valuation implies a strong free cash flow yield, as highlighted by one of the InvestingPro Tips. This could indicate potential for future profitability and an attractive investment for those looking for cash-generative businesses.

Another InvestingPro Tip points out that NAI's liquid assets exceed its short-term obligations, providing some financial stability in the near term. This is an important factor for investors considering the financial resilience of the company amidst its efforts to scale up operations and meet growing demand.

For investors seeking deeper analysis and more InvestingPro Tips, there are additional insights available on the InvestingPro platform. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are six more InvestingPro Tips waiting to be discovered that could further inform your investment decisions regarding NAII.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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