Company Achievements - Nature's Sunshine Products, Inc. has been awarded two Stevie® Awards at the 23rd Annual American Business Awards, including a Gold Stevie® Award for its 2023 Impact Report and a Silver Stevie® Award for Achievement in Product Innovation for its Chlorophyll Detoxifying Stick Packs [1][2][3] - The Gold Stevie® Award recognizes the company's achievements in responsible business practices and sustainability, while the Silver Stevie® Award highlights the innovative powdered form of chlorophyll that is more convenient than traditional liquid formats [2][3] Leadership and Commitment - The company's President and CEO, Terrence Moorehead, emphasized that these awards validate Nature's Sunshine's commitment to transparency and sustainability, reflecting the hard work of the entire team [3] - Tracee Comstock, Senior Vice President of Global Human Resources, noted that Nature's Sunshine demonstrates leadership in the natural products industry through high-quality supplements and responsible business practices [4] Industry Context - The American Business Awards is a premier business awards program in the U.S., with over 3,600 nominations submitted this year across various categories [5] - The awards ceremony will take place on June 10, 2025, at the Marriott Marquis Hotel in New York [5]

Core Insights - Nature's Sunshine Products, Inc. has been awarded two Stevie® Awards at the 23rd Annual American Business Awards, highlighting its achievements in sustainability and product innovation [1][2]. Awards and Recognition - The company received a Gold Stevie® Award for its 2023 Impact Report, which showcases its responsible business practices and sustainability efforts [2]. - Additionally, Nature's Sunshine earned a Silver Stevie® Award for Achievement in Product Innovation for its Chlorophyll Detoxifying Stick Packs, which are a convenient powdered form of chlorophyll [2][3]. Leadership and Commitment - The recognition from the American Business Awards underscores the company's commitment to transparency and sustainability, as stated by the CEO, Terrence Moorehead [3]. - Nature's Sunshine is noted for its leadership in the natural products industry, emphasizing high-quality supplements and responsible business practices [4]. Industry Context - The American Business Awards is a prominent awards program in the U.S., with over 3,600 nominations submitted this year across various categories [5]. - The awards ceremony will take place on June 10, 2025, at the Marriott Marquis Hotel in New York [5]. Company Overview - Nature's Sunshine Products operates in over 40 countries, manufacturing most of its products in state-of-the-art facilities to ensure high quality, safety, and efficacy [6].

Core Insights - Nature's Sunshine Products, Inc. published its 2024 Impact Report, highlighting its commitment to social responsibility and sustainability [1][2] - The report outlines significant progress towards the company's 2025 environmental, social, and governance (ESG) goals [2] ESG Goals and Achievements - The company aims to protect and preserve the environment as part of its mission, with a focus on community engagement and workforce development [2][3] - Nature's Sunshine received TRUE Zero Waste Gold Certification for its U.S. Distribution centers in May 2024 [5] - The company has helped over 1 million women and children worldwide obtain nutrition through partnerships with organizations like Vitamin Angels and Feed My Starving Children [5] - The Spanish Fork manufacturing plant was converted to 100% renewable energy in 2022 [5] - Scope 1 & 2 greenhouse gas emissions have been reduced since 2021, with a goal of a 50% reduction by the end of 2025 [5] - Waste reduction at the manufacturing facility has reached 32% since 2021, with a target of 35% by the end of 2025 [5] Company Overview - Nature's Sunshine Products is a leading natural health and wellness company, marketing and distributing products in over 40 countries [7] - The company manufactures most of its products in state-of-the-art facilities to ensure high quality, safety, and efficacy [7]

Core Insights - Nature's Sunshine Products, Inc. has published its 2024 Impact Report, highlighting its commitment to social responsibility and sustainability [1][2] - The report outlines significant progress towards the company's 2025 environmental, social, and governance (ESG) goals, emphasizing environmental stewardship and community engagement [2][3] ESG Goals and Achievements - The company aims for a 50% reduction in Scope 1 & 2 greenhouse gas emissions by the end of 2025, having already reduced emissions since 2021 [5] - Nature's Sunshine has achieved a 32% reduction in waste at its manufacturing facility since 2021, with a goal of reaching a 35% reduction by the end of 2025 [5] - The company received TRUE Zero Waste Gold Certification for its U.S. Distribution centers in May 2024 [5] Community Engagement - Nature's Sunshine has partnered with organizations like Vitamin Angels and Feed My Starving Children to help over 1 million women and children worldwide obtain essential nutrition [5] - The company emphasizes workforce development initiatives that empower employees to contribute to sustainability efforts [2][3] Brand Alignment - The 2024 Impact Report is titled "Be More Earth," aligning with the company's recent marketing and brand campaign [4]

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $118 million, or $120 million on a constant currency basis, reflecting a 10% increase year-over-year [8] - Adjusted EBITDA for the quarter was $10 million, up 6% year-over-year [8][31] - Full year consolidated net sales were $454.4 million, representing a 2% growth or 4% growth excluding foreign exchange impacts [22] Business Line Data and Key Metrics Changes - Asia-Pacific sales grew 18% to $56.3 million in Q4, or 21% excluding foreign exchange impacts, driven by strong growth in Taiwan, Japan, and Korea [24] - North America sales declined by 2% in Q4, with a full year decline of 1%, although digital sales increased by 17% year-over-year [26][14] - Europe saw Q4 sales increase of 8%, with full year sales up 5% [25] Market Data and Key Metrics Changes - In Asia-Pacific, Taiwan, Japan, and Korea saw sales growth of 29%, 27%, and 21% respectively in Q4 [24][88] - Europe experienced robust growth in Central Europe, with sales increasing 17% [25] - North America faced challenges with customer activation, impacting overall sales performance [26] Company Strategy and Development Direction - The company is focusing on enhancing digital capabilities in North America and plans to introduce a new digital toolkit for distributors in late 2025 [15][16] - Strategies implemented in Asia-Pacific have led to increased customer order growth and market share [11][12] - The company is taking steps to mitigate external headwinds, including extending supplier contracts and building inventory [18] Management's Comments on Operating Environment and Future Outlook - Management expressed a guarded outlook for 2025 due to geopolitical and macroeconomic uncertainties [20] - The company anticipates a more measured pace of sales growth in 2025, estimating net sales between $445 million and $470 million [34] - Management remains optimistic about the business's long-term growth potential despite current challenges [36] Other Important Information - The company has a clean balance sheet with cash and cash equivalents of $84.7 million and zero debt [32] - Inventory at the end of Q4 was $59.4 million, which is $7.5 million less than the previous year [32] - The company repurchased 540,000 shares for approximately $9 million during the year [33] Q&A Session Summary Question: Growth in Asia - Management noted strong momentum in Asia-Pacific, attributing growth to effective strategies and field incentives [39][40] Question: Digital Business Upgrade - The digital platform in North America is largely set, with a new toolkit for distributors expected to launch in late 2025 [46][49] Question: Tariff Impact - The estimated impact of proposed tariffs on gross margin could be $2 million to $3 million, including retaliatory tariffs [55][59] Question: Sales Performance in Asia - Management confirmed that Taiwan, Japan, and Korea drove significant growth in Q4, with expectations for continued positive momentum [88][95] Question: Future of Russian Business - The company retains infrastructure in Russia but has not built any business plans around potential recovery [97]

Financial Results - Nature's Sunshine Products, Inc. reported financial results for Q4 and full year ended December 31, 2024[5]. - A press release detailing the financial results was issued on March 11, 2025[5]. - The financial results include a reconciliation of GAAP to non-GAAP figures[7]. Compliance and Regulations - The report does not indicate any significant changes in accounting standards compliance[4]. - The report was submitted in compliance with the Securities Exchange Act of 1934[10]. - The report is not deemed "filed" under the Exchange Act, indicating it is for informational purposes only[6]. Company Information - The company is listed on the Nasdaq Capital Market under the trading symbol NATR[3]. - The company is based in Lehi, Utah, with a principal executive office located at West Bluegrass Blvd., Suite 100[2]. - The executive vice president and general counsel, Nathan G. Brower, signed the report[12]. Non-GAAP Financial Information - The company emphasized the importance of non-GAAP financial information for evaluating period-to-period results[7].

Sales Performance - Consolidated net sales for the year ended December 31, 2024, were $454.4 million, an increase of approximately 2.0% from $445.3 million in 2023, with a 3.8% increase when excluding foreign currency fluctuations [176]. - Net sales in Asia increased by 3.3% to $207.8 million for 2024, with a 7.5% increase in local currency, despite an unfavorable foreign exchange impact of $8.5 million [177]. - In Taiwan, net sales rose by approximately $8.9 million, or 14.4%, with a local currency increase of 17.9%, attributed to strong consultant activity [178]. - Europe saw net sales of $84.8 million, a 4.6% increase from 2023, with a favorable foreign exchange impact of $1.1 million [182]. - North America net sales decreased by 0.7% to $138.8 million, with a 1.6% decline in the U.S. market attributed to lower activity rates [183][184]. Cost and Expenses - Cost of sales as a percentage of net sales increased to 28.5% in 2024 from 27.9% in 2023, primarily due to inflation and unfavorable foreign exchange [187]. - Volume incentives as a percentage of net sales increased to 30.9% in 2024 from 30.4% in 2023, driven by changes in market mix and promotional timing [188]. - Selling, general and administrative expenses decreased by $3.1 million to $164.0 million in 2024, representing 36.1% of net sales compared to 37.5% in 2023 [190]. Taxation - The effective tax rate increased to 57.2% in 2024 from 18.7% in 2023, primarily due to taxes paid in foreign jurisdictions [192]. - Cumulative unfavorable adjustments related to foreign operations increased the tax rate by 5.2 percent in 2024 [197]. - Adjustments relating to the U.S. tax impact of foreign operations decreased the effective tax rate by 9.2 percentage points in 2024 [197]. Cash Flow and Working Capital - Working capital as of December 31, 2024, was $94.9 million, up from $89.1 million in 2023, with cash and cash equivalents totaling $84.7 million [195]. - For the year ended December 31, 2024, operating activities provided cash of $25.3 million, a decrease from $41.2 million in 2023 [199]. - Cash used in investing activities for capital expenditures was $11.0 million in 2024, compared to $10.5 million in 2023 [200]. - Financing activities used $9.9 million in cash in 2024, an increase from $8.0 million in 2023 [201]. - Cash generated from operations is expected to be sufficient to fund normal operating needs, including capital expenditures [203]. Shareholder Activities - The company repurchased 540,000 shares of common stock for $8.9 million under the share repurchase program in 2024 [201]. Obligations - Total contractual obligations as of December 31, 2024, amounted to $18.1 million, with $5.5 million due within one year [204]. - Operating lease obligations totaled $15.6 million, with $4.5 million due within one year [204]. - The company maintains a revolving credit agreement with no outstanding balances as of December 31, 2024 [202].

Core Viewpoint - Nature's Sunshine Products, Inc. reported strong financial results for Q4 and full year 2024, highlighting significant growth in various regions and a commitment to quality and innovation despite macroeconomic challenges [2][3]. Financial Summary Fourth Quarter 2024 - Revenue reached $118.2 million, an increase of 8.5% year-over-year, and 10% on a constant currency basis [4][6]. - Asia Pacific saw a remarkable growth of 21%, while North America digital sales increased by 17% [2]. - Gross margin improved to 72.0% from 71.9% in the previous year due to cost-saving initiatives [5]. - GAAP net loss attributable to common shareholders was $(0.3) million, or $(0.02) per diluted share, compared to net income of $9.0 million, or $0.46 per diluted share in the prior year [10][11]. Full Year 2024 - Total net sales increased by 2.0% to $454.4 million compared to $445.3 million in 2023, with a 3.8% increase when excluding foreign exchange impacts [13]. - GAAP net income attributable to common shareholders was $7.7 million, or $0.40 per diluted share, down from $15.1 million, or $0.77 per diluted share in 2023 [17]. - Adjusted EBITDA was $40.5 million, slightly up from $40.4 million in 2023 [19]. Operational Insights - Selling, general and administrative expenses (SG&A) for Q4 were $43.7 million, up from $39.9 million in the previous year, reflecting variable costs related to sales growth [7]. - Operating income for Q4 was $4.6 million, or 3.8% of net sales, compared to $5.7 million, or 5.2% of net sales in the prior year [8]. Balance Sheet and Cash Flow - As of December 31, 2024, the company had cash and cash equivalents of $84.7 million and no outstanding debt [20]. - Net cash provided by operating activities was $25.3 million for the year, down from $41.2 million in the prior year [20]. Outlook - The company expects full year 2025 net sales to range between $445 million and $470 million, with adjusted EBITDA projected between $38 million and $44 million [21].

Group 1 - Nature's Sunshine has launched a new brand platform called "Be More Earth," emphasizing its commitment to natural health and wellness [1][2] - The brand platform highlights the company's history of utilizing nature's healing powers and sourcing high-quality ingredients for over 50 years [1][2] - The visual design of the brand is inspired by the Earth, showcasing its uniqueness and restorative power [1][2] Group 2 - The new platform aims to differentiate Nature's Sunshine from competitors using synthetic ingredients, focusing on the purity and honesty of natural elements [2] - The marketing strategy includes a tone of honesty and humility, allowing the ingredients to speak for themselves [2] - The launch of the new work will be visible across various channels, including the company's website, social media platforms, and paid media [3] Group 3 - Nature's Sunshine Products operates in over 40 countries, manufacturing most of its products in state-of-the-art facilities to ensure high quality and safety [4] - The company is publicly traded on NASDAQ under the ticker symbol NATR [4] - Crispin, the creative agency behind the new brand platform, has a long history of redefining creativity in advertising since 1965 [5]

Group 1 - Nature's Sunshine has launched a new brand platform called "Be More Earth," emphasizing its commitment to natural ingredients and the healing power of the Earth [1][2] - The brand's new tone focuses on honesty, humility, and appreciation for nature, showcasing the purity of its ingredients and the symbiotic relationship between humans and the Earth [2] - The integrated marketing campaign will be launched across various platforms, including the company's website, email, storefronts, and paid media channels such as Meta, Pinterest, and YouTube [3] Group 2 - Nature's Sunshine Products (Nasdaq: NATR) operates in over 40 countries, manufacturing nutritional and personal care products in its own facilities to ensure high quality and safety standards [4] - Crispin, the creative agency behind the new brand platform, has a long history of redefining creativity in advertising since 1965 and is recognized as one of the most awarded agencies [5]