NGS Nears Profitability as CVS Launch and Walmart Expansion Gain Traction
Nutritional Growth Solutions reports a 13.6% revenue dip in Q2 FY25 but completes major CVS rollout and expands Walmart product range, improving cash flow and inventory.
- Q2 FY25 revenue down 13.6% to $386k USD due to reduced marketing and inventory issues
- Completed shipments of Happy Tummies® to 5,500 CVS stores, with sales starting August
- Expanded Walmart KidzProtein® range with new strawberry flavor, now three products
- Operating loss improved 30% QoQ to $54k USD
- Inventory now supports five months of sales; cash temporarily negative due to timing
Revenue and Retail Expansion
Nutritional Growth Solutions (NGS) has reported a mixed Q2 FY25 performance, with revenue declining 13.6% quarter-on-quarter to $386,000 USD. The dip primarily reflects a strategic pullback in marketing spend and lingering inventory shortages. However, the quarter was marked by significant operational milestones, notably the completion of shipments of its Happy Tummies® product to approximately 5,500 CVS stores across the United States. Consumer sales at CVS are set to commence in August, signaling a major step in NGS’s retail footprint expansion.
Meanwhile, NGS has successfully broadened its presence in Walmart stores by adding a strawberry flavor to its KidzProtein® nutritional shake mix line, increasing the assortment to three products. This expansion is expected to drive further growth in one of the country’s largest retail channels.
Improved Cash Flow and Inventory Position
Despite the revenue decline, NGS improved its operating loss by approximately 30% quarter-on-quarter, reducing it to $54,000 USD. This improvement was supported by disciplined cost management and the resolution of previous inventory constraints. The company now holds inventory valued at around $300,000 USD at list price, sufficient to support about five months of sales, positioning it well for the upcoming retail launches.
NGS’s cash position was temporarily negative $12,000 USD at quarter-end, attributed to timing issues including credit card balances and delayed Amazon revenue receipts. Adjusted for these factors, liquidity remains adequate to meet near-term obligations. The company also secured a new $120,000 USD unsecured facility with Amazon, enhancing its financial flexibility.
Outlook and Capital Raising
CEO Stephen Turner expressed cautious optimism, highlighting the company’s progress in retail expansion and inventory readiness as key enablers for growth. He reaffirmed confidence that NGS is approaching profitability and emphasized ongoing efforts to raise additional capital to support US retail growth and working capital needs. This capital raise is expected to strengthen the company’s financial position in the coming months.
Looking ahead, the successful launch of Happy Tummies® in CVS stores and the expanded Walmart range will be critical to driving revenue growth in the second half of 2025. Investors will be watching closely to see if these initiatives translate into sustained sales momentum and improved cash flow.
Bottom Line?
NGS’s retail expansions and inventory replenishment set the stage for a pivotal second half, but capital raising and sales execution remain key to sustaining momentum.
Questions in the middle?
- Will consumer sales at CVS meet expectations once shelf placement is finalized?
- How will the expanded Walmart product range impact overall revenue growth?
- What is the timeline and likelihood of success for the ongoing capital raising efforts?
