Cyanotech Reports 5% Net Sales Increase to $24.2 Million for Fiscal Year Ending March 31, 2025

Cyanotech Corporation reported a net sales increase of 5.0% for the fiscal year ending March 31, 2025, reaching $24.2 million compared to $23.1 million in the previous year. This growth was primarily driven by a significant rise in bulk sales of spirulina and astaxanthin, which increased by 63.2% and 73.9%, respectively. However, packaged sales of both products saw a decline of 5.3%, contributing to a pretax loss of $3.2 million, an improvement from the $5.3 million loss reported in fiscal 2024. The gross profit margin also improved, rising to 28.4% from 25.8% in the prior year, attributed to higher production volumes and lower production costs.

In terms of operational changes, Cyanotech has focused on enhancing its production efficiency and reducing operating expenses, which decreased by 10.9% year-over-year. The company employed 83 individuals as of March 31, 2025, with a significant portion involved in production and quality control. The company continues to face challenges related to its debt obligations, as it was not in compliance with certain financial covenants as of March 31, 2025, although it received waivers from its lender. The total debt stood at approximately $6.0 million, with $3.0 million owed to a related party.

Cyanotech's product lines include BioAstin® Hawaiian Astaxanthin® and Hawaiian Spirulina Pacifica®, which together accounted for approximately 97% of total sales. The company has also expanded its product offerings, introducing sugar-free and vegan gummies in 2024. The market for these products remains competitive, with significant players in the dietary supplement industry, including Fuji Chemical and Algalif. Despite the competitive landscape, Cyanotech aims to leverage its unique cultivation methods and product quality to maintain and grow its market share.

Looking ahead, the company is focused on improving its financial performance and operational efficiency. Management has implemented cost-saving initiatives and is exploring opportunities to enhance its eCommerce presence and retail strategy. However, the company acknowledges that its future performance is subject to various risks, including economic conditions, competition, and potential disruptions in production due to environmental factors. The outlook remains cautious, with management emphasizing the need for continued monitoring of cash flow and operational adjustments to navigate the challenges ahead.