Money

Cyanotech reports growth of 47% for consumer algal products in 2Q

November 11, 2013
AlgaeIndustryMagazine.com

Cyanotechbottleskdropcapsailua Kona, Hawaii-based Cyanotech Corporation, a leader in high-value nutrition and health products from microalgae, has announced financial results for the second quarter and first six months of fiscal year 2014, ended September 30, 2013.

For the second quarter of fiscal 2014 compared to the second quarter of fiscal 2013, net sales were $7,299,000 compared to $6,936,000, an increase of 5.2%. Gross profit was $2,993,000, with gross profit margin of 41%, compared to gross profit of $2,812,000 and gross profit margin of 40.5%. Net income was $106,000 or $0.02 per diluted share, compared to net income of $476,000 or $0.08 per diluted share.

Regarding the second quarter of fiscal 2014 results (changes shown versus the second quarter of fiscal 2013), Brent Bailey, President and CEO, stated, “Total company net sales growth was only +5% largely due to our inability to meet Astaxanthin demand. In spite of the Astaxanthin supply constraint, our consumer products business (Nutrex) grew +47% in the quarter. Net sales growth for these products, by area, was:

  • Nutrex Mainland: +60%
  • Nutrex Hawaii: +9%
  • Nutrex Direct: +29%
  • Nutrex International +75%

“Retail sales growth of our Astaxanthin products in the U.S. natural products channel was +81% with a market share of 53.8% (+18.4 pts.). Our Spirulina retail dollar growth for the quarter was +28% with a market share of 50.7% (+6.2 pts.).”

Cyanotech showed a +59% growth in their Bulk Spirulina business. Spirulina production has recovered after a difficult FY2013 and was up +109% versus second quarter fiscal 2013. But, Bailey said, they were unable to keep pace with

Astaxanthin demand in the second quarter due to:

  • Continued strong growth of Astaxanthin in both the bulk and consumer markets
  • Poor yields from a major extraction supplier due to a switch from batch to continuous processing. They have since gone back to batch processing and yields have returned to historical levels. Since Bulk utilizes 85% of Cyanotech’s Astaxanthin raw material, second quarter net sales were significantly impacted and the company expects third quarter to be impacted as well.
  • Environmental factors that have affected the quantity, but not the quality, of the company’s output during the second quarter. They continue to adjust the culture parameters to increase production rates; however, lower production rates could persist until the fourth quarter of fiscal 2014.

For the first six months of fiscal 2014 compared to the first six months of fiscal 2013, net sales were $14,208,000 compared to $13,442,000, an increase of 5.7%. Gross profit was $5,845,000, with gross profit margin of 41.1%, compared to gross profit of $5,386,000 and gross profit margin of 40.1%. Pretax income was $471,000 compared to $989,000, and net income was $136,000 or $0.02 per diluted share, compared to net income of $969,000 or $0.17 per diluted share.

More Like This…

HOME Algae Industry Jobs

Copyright ©2010-2013 AlgaeIndustryMagazine.com. All rights reserved. Permission granted to reprint this article in its entirety. Must include copyright statement and live hyperlinks. Contact editorial@algaeindustrymagazine.com. A.I.M. accepts unsolicited manuscripts for consideration, and takes no responsibility for the validity of claims made in submitted editorial.

From The A.I.M. Archives

— Refresh Page for More Choices
Heliae, SCHOTT North America and Arizona State University (ASU) have announced a partnership to bring Heliae’s algae production technology to ASU’s algae testbed facility...
Algae.Tec Ltd has received its first purchase order from Reliance Industrial Investments and Holdings Limited (RIIHL), in connection with the arrangements announced on Ja...
Technical standards define critical terms and metrics to add wisdom for the algae industry. Agreement among science and business leaders represents possibly the most diff...
One of 12 winners of the 2014 Lexus Design Award, the Ooho algae balloon was created by three London-based designers to contribute a solution to the rising number of plas...
Algae is being discussed at the heart of EXPO Milano 2015, the international event that has existed since 1851, spawning world shaping themes and icons, such as the Eiffe...
Yereth Rosen reports in the Anchorage Daily News that scientists at North Carolina State University’s Plants for Human Health Institute have found extremely high levels o...
A series of articles by Stephen Mayfield and the UCSD Laboratory deserve recognition for their articles on algae-based medicines for malaria and cancer. Mayfield and his ...
Santa Fe Community College has been awarded a $50,000, SEED Infrastructure Grant from the Experimental Program to Stimulate Competitive Research (EPSCoR), for commercial ...
A new, outdoor system at the University of Dayton Research Institute has been producing a high volume of algae since its installation in the summer of 2013, even through ...
Kazuaki Nagata reports from Japan that while the Fukushima nuclear disaster has prompted vigorous discussion about alternative energy in Japan, there is a lack of a paral...
The Guardian reports that Prince Edward Island (P.E.I.), Canada-based Solarvest has created an inventive system utilizing a specific algal strain to grow and produce EPA ...
Kyae Mone Win reports in the Myanmar Times that spirulina has been harvested from Twin Daung lake in Sagaing’s Bu Ta Lin township for over a decade, but climate change an...
Starting in the early 70s, agencies in the former USSR invested more than 20,000 person-years of research and development to produce Bio-Algae Concentrates (BAC) that hel...
Algae manufacturer Cyanotech Corporation has announced implementing three major initiatives to improve Astaxanthin production at their Kailua Kona, Hawaii-based cultivati...
In an effort to propel the algae industry forward, the Algae Testbed Public Private Partnership (ATP3) offers a series of hands-on specialized workshops suited for partic...
Matthew Carr was recently named executive director of the Algae Biomass Organization (ABO), the leading trade association for the algae industry. His presence will soon b...
Channelnewsasia.com reports on three young Spaniards who harvest seaweed, a culinary delicacy, as a way for them to stay out of Spain’s troubled financial waters. 35-year...
Bookending the upcoming Algae Biomass Summit, Sept. 29-Oct.2 in San Diego, will be industry tours to give attendees a first-hand look at the latest progress in technical ...