The following is a summary of the Northern Technologies International Corporation (NTIC) Q4 2024 Earnings Call Transcript:

Financial Performance:

• NTIC reported a strong fiscal 2024 with robust sales growth, particularly in the ZERUST Oil and Gas and Natur-Tec businesses.

• Gross profit increased by nearly $6 million or 21.5% year-over-year due to higher sales of ZERUST Oil and Gas and Natur-Tec products and gross profit margin expanded to 43.8% in Q4 from 36.5% in the prior year.

• Net income for fiscal 2024 fourth quarter was $1.8 million, up from $939,000 in the fiscal 2023 fourth quarter. Non-GAAP adjusted net income for fiscal 2024 was $5.8 million.

Business Progress:

• NTIC is focused on strategic investments to support growth, including consolidating Natur-Tec warehouses in India and adding a new facility in Brazil.

• The company is optimistic about demand improvement in China and has made investments to enhance operations and profitability in the region.

Opportunities:

• NTIC sees significant growth potential in the ZERUST Oil and Gas sector, particularly through new customer acquisitions and geographic expansion.

• The demand for Natur-Tec bioplastics is strong, driven by new customer wins and expanding relationships.

Risks:

• Joint venture operating income saw a reduction due to challenging market conditions in Europe and higher energy prices impacting sales and profitability.

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