Integrated BioPharma Reports Net Income of $116,000 for Q4 2024, Revenue Increases 9.6%

Integrated BioPharma, Inc. reported a net income of $116,000 for the three months ended December 31, 2024, a significant improvement from a net loss of $382,000 in the same period of the previous year. For the six months ended December 31, 2024, the company achieved a net income of $375,000, compared to a net loss of $441,000 for the same period in 2023. The company's revenue for the latest quarter was $12.6 million, reflecting a 9.6% increase from $11.5 million in the prior year. For the six-month period, revenue rose to $26.2 million, up 7.4% from $24.4 million.

The financial performance was bolstered by a 5% increase in the Contract Manufacturing segment, which generated $24.6 million in sales, while the Other Nutraceuticals segment saw a notable increase of 75.1%, contributing $1.6 million. The growth in the Other Nutraceuticals segment was attributed to new customer acquisitions, which replaced previous customers that had lower sales contributions. The company noted that approximately 82% of its consolidated net sales were derived from two major customers, highlighting a continued reliance on a concentrated customer base.

Operationally, Integrated BioPharma maintained stable selling and administrative expenses, which were approximately $1.85 million for the six months ended December 31, 2024, nearly unchanged from $1.86 million in the prior year. The company reported a gross profit of $2.54 million for the six months, with gross margins improving from 5.5% to 9.7% due to increased sales volumes and better cost management. The company’s total assets decreased slightly to $25.7 million from $26.2 million as of June 30, 2024, while cash reserves increased to $2.46 million from $1.68 million.

Looking ahead, Integrated BioPharma is focused on improving operational efficiency and reducing costs to enhance profit margins. The company is also aware of potential risks, including inflationary pressures and supply chain disruptions, which could impact its financial performance. The management expressed optimism about diversifying its customer base to reduce reliance on its two major customers and is committed to maintaining its cost structure in line with sales growth. The company has budgeted approximately $500,000 for capital expenditures in fiscal year 2025, which is expected to be funded through operational cash flows.