Hawaii’s Cyanotech produces small profit in latest results despite sales decline in Hawaii

[USA] Hawaii based Cyanotech Corp. saw a decrease in sales in Hawaii in its fiscal second quarter, however, it managed to earn a small profit despite expansion costs.

The Kailua-Kona based company is a producer of nutrition and health products that use microalgae. In its second fiscal quarter, which ended Sept. 30, its sales of the Nutrex consumer products fell 7 percent in Hawaii, compared to the previous year, despite rising 180 percent and 18 percent for the Mainland and international markets, respectively.

Overall, the three months to Sept. 30 generated $14,000 of profit, compared to the same period last year when it reported net income of $63,000.

“The decline in Nutrex Hawaii is primarily due to a temporary product placement change in several retail outlets that has been corrected,” Brent Bailey, Cyanotech president and CEO, said in a statement.

Meanwhile, the impressive surge in international sales was thanks to the first shipments of BioAstin, one of the company’s products, to China. The China Food and Drug Administration recently approved that BioAstin astaxanthin could be imported to China.

Cyanotech is expanding its astaxanthin capacity, the first phase of this project is expected to finish at the end of this month.

“Although investments in these initiatives negatively impacted our profitability in the second quarter, they are expected to position us well for the future,” Bailey said.

View original article at: Hawaii’s Cyanotech produces small profit in latest results despite sales decline in Hawaii

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