Northern Technologies International Corporation announced consolidated net sales increased 5.7% to $21,338,000 for the first quarter ended November 30, 2024, compared to $20,182,000 in the prior year. This growth was driven by record quarterly sales in the Natur-Tec segment, alongside stable sales in ZERUST oil and gas and ZERUST industrial products. NTIC China also achieved its highest quarterly sales in nearly three years.
Operating expenses for the quarter increased 14.0% year-over-year, primarily due to strategic investments in the ZERUST oil and gas sales infrastructure, as well as increased personnel expenses, new hires, benefits, travel, and professional fees. Despite these investments, the company reported a 200-basis point year-over-year improvement in gross margin.
Net income attributable to NTIC for the first quarter decreased to $561,000, or $0.06 per diluted share, compared to $896,000, or $0.09 per diluted share, in the same period last fiscal year. Joint venture operating income saw a modest increase of 2.7% to $2,414,000. Management expressed optimism for fiscal 2025, anticipating continued sales growth and higher profitability.
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