Nutritional Growth Solutions (ASX:NGS) is positioning itself for a strong finish to FY24, despite reporting a revenue decline of 3.2% quarter-on-quarter and 18% year-on-year for Q3 FY24. Revenue for the period reached $953,000, impacted by delayed capital deployment. However, the company anticipates a revenue surge in Q4, with projections exceeding $1.5m, supported by resumed marketing efforts and expanded distribution.
CEO Stephen Turner remains optimistic about the company’s trajectory, stating, "We are laser-focused on improving gross margins in Q4 and have built sufficient inventory cover to meet the anticipated demand. The expansion into Asia, with our new distribution agreements, is a significant milestone for NGS."
NGS has secured new distribution deals in China and Vietnam, with first-year sales targets exceeding $1.5m. Alongside this, cost discipline continues to play a crucial role. Operating expenses fell by 21% YoY, and the company reduced its average monthly cash burn by 17% compared to FY23.
Looking ahead, the company expects its monthly revenue to reach $565,000 by the end of FY24, driven by partnerships with platforms like Amazon and Walmart. Additionally, NGS is targeting gross margins of over 50% in FY25 with its expanding product portfolio.
