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
Montague, Prince Edward Island-based Solarvest has announced that it has used its algal-based production platform to express bioactive therapeutic proteins. The proof of ...
The European (FP7) algae project Sustainable PoLymers from Algae Sugars and Hydrocarbons (SPLASH) has been developing a platform technology for the conversion of third ge...
Brian Krassenstein, writing in 3Dprint.com, goes deeper into the recent paper in Engineering in Life Sciences journal discussing the impact 3D bioprinting will have in th...
None of us would be alive if sperm cells didn’t know how to swim, or if the cilia in our lungs couldn’t prevent fluid buildup. But we know very little about the dynamics ...
In one of the first studies to examine the potential for using municipal wastewater as a feedstock for algae-based biofuels, Rice University scientists found they could e...
Murdoch University researchers are investigating whether the effluent from piggeries can be effectively treated with micro- and macroalgae so that species of the organism...
Algae “red tide” events often create dazzling nighttime light shows of blue-green bioluminescence resulting from the force generated by breaking waves. While many mysteri...
There are around 4500 dairy farms in Victoria, Australia, according to Business Victoria. Together they produced about 86 per cent of Australia’s dairy product exports, w...
Rich McEachran writes in the Guardian that, in the process of surfacing a road, layers of asphalt – which is composed mostly of bitumen (a byproduct of crude oil distilla...
Natacha Tatu writes in Worldcrunch about a 72-year old French chef who has taken on the challenge of bringing spirulina to the malnourished youth of the Central Africa. F...
Earthrise Nutritionals, a wholly owned subsidiary of Tokyo, Japan’s DIC Corporation, is on schedule to complete construction in August, 2015, of a new extraction plant fo...
Studies conducted by EnAlgae partners in Ireland, France and Belgium point the way to seaweed being a viable and sustainable feedstock for the future in North West Europe...
Biocrude oil obtained from hydrothermal liquefaction (HTL) of algae can be an energy-efficient replacement for the fossil crude oil normally used in the production of fue...
Jessie Rack reports for NPR that demand for plant protein of all types is growing in concert with the growing interest in the U.S. to reduce meat consumption. People, fro...
The Asahi Shimbun reports that an experimental facility to produce oil from algae was constructed on former farmland that was abandoned after the March 2011 Great East Ja...