Nature's Sunshine(NATR)

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Nature’s Sunshine Announces Leadership Transition Plan
Globenewswire· 2025-06-02 13:00
Core Viewpoint - Nature's Sunshine Products, Inc. is undergoing a leadership transition as Terrence Moorehead steps down as President and CEO, with a search for his successor already initiated [3][4][5]. Group 1: Leadership Transition - Terrence Moorehead has notified the Board of Directors of his decision to resign as President and CEO, effective upon the appointment of a successor [3]. - The Board has engaged a nationally recognized executive search firm to assist in identifying the next President and CEO [4]. - Moorehead expressed pride in the company's accomplishments during his nearly seven-year tenure, highlighting improvements in competitiveness and a strong foundation for future growth [5]. Group 2: Company Outlook - Nature's Sunshine reaffirmed its previously announced outlook for full year 2025 net sales and adjusted EBITDA, indicating confidence in its financial performance despite the leadership change [5]. - The company is well-positioned to capitalize on growth opportunities in the market, supported by a robust product portfolio and upgraded digital capabilities [5]. Group 3: Company Background - Nature's Sunshine Products is a leading manufacturer of herbal and nutritional supplements, operating in over 40 countries and ensuring high quality through its state-of-the-art manufacturing facilities [6].
Nature's Sunshine(NATR) - 2025 Q1 - Earnings Call Transcript
2025-05-06 22:02
Financial Data and Key Metrics Changes - Revenue for Q1 2025 was reported at $113 million, a 5% increase compared to the prior year, or $115 million on a constant currency basis [9][17] - Adjusted EBITDA increased by 20% to $11 million compared to $9.2 million in the previous year [9][24] - Gross margin improved by 90 basis points to 72.1% year-over-year, reflecting effective cost management and gross margin initiatives [21][24] - GAAP net income attributable to common shareholders was $4.7 million, or $0.25 per diluted share, compared to $2.3 million, or $0.12 per diluted share in the prior year [24] Business Line Data and Key Metrics Changes - In Asia Pacific, revenue grew by 10% on a local currency basis, with standout performances in Japan (24% growth) and Taiwan (18% growth) [10][18] - Europe saw a 9% increase in sales on a constant currency basis, driven by strong performance in Central Europe, which grew by 16% [11][19] - North America experienced a 4% decline in sales, although there were signs of sequential order growth for three consecutive quarters [11][20] Market Data and Key Metrics Changes - Digital sales in Q1 increased by 19%, significantly outpacing the supplement industry's digital growth rate [12][20] - The Subscribe and Thrive Autoship program accounted for approximately 26% of total sales and about 45% of direct-to-consumer sales [12] Company Strategy and Development Direction - The company is focusing on minimizing tariff exposure by increasing raw ingredient inventory and enforcing pricing contracts with suppliers [6][9] - A commitment to sustainability was highlighted, with goals to reduce carbon emissions by 50% and achieve zero waste certification at U.S. distribution centers [13][14] - The company is optimistic about growth opportunities in North America, despite current challenges, and plans to leverage digital transformation initiatives [15][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for products and a positive outlook for 2025, despite macroeconomic uncertainties [6][9] - The company is taking a conservative stance in its guidance, anticipating potential headwinds from tariffs and economic instability [27] Other Important Information - The company repurchased 38,000 shares for approximately $500,000 during the quarter, with an increased share repurchase authority of $25 million [25][26] - Inventory levels increased to $64.9 million, reflecting a strategic decision to prepare for potential tariff-related costs and delays [24] Q&A Session Summary Question: How did Q1 come in versus internal expectations? - Management indicated that Q1 performance was slightly ahead of internal expectations [32][36] Question: Can you clarify guidance in light of macroeconomic conditions? - Management noted that the midpoint of guidance assumes continued macroeconomic instability, while the lower end reflects a potential recession [37][40] Question: What are the expectations for the new digital toolkit launch? - Management confirmed that the digital toolkit is on track for launch in the second half of 2025, with no anticipated order disruptions [45][46] Question: What are the drivers for continued growth in Europe and Asia? - Management expressed confidence in market opportunities and strong fundamentals driving growth in these regions [54][56] Question: How is the company addressing challenges in North America? - Management highlighted a focus on building fundamentals, new leadership, and the introduction of a new toolkit to support practitioners and retailers [59][60]
Nature's Sunshine(NATR) - 2025 Q1 - Quarterly Report
2025-05-06 21:10
Sales Performance - Consolidated net sales for Q1 2025 were $113.2 million, an increase of 2.0% compared to $111.0 million in Q1 2024, with a 4.5% increase when excluding foreign currency fluctuations[94] - Net sales in Asia for Q1 2025 were $48.7 million, up 5.3% from $46.2 million in Q1 2024, with local currency sales increasing by 10.1%[95] - In Europe, net sales for Q1 2025 reached $24.1 million, an 8.2% increase from $22.3 million in Q1 2024, with local currency sales up 8.6%[99] - North America saw a decline in net sales to $35.0 million, down 4.1% from $36.5 million in Q1 2024, with local currency sales decreasing by 3.7%[100] - Latin America and Other markets reported net sales of $5.5 million, an 8.2% decrease from $6.0 million in Q1 2024, with local currency sales down 3.7%[102] Cost and Expenses - Cost of sales as a percentage of net sales improved to 27.9% in Q1 2025 from 28.8% in Q1 2024, attributed to price increases and cost-saving initiatives[104] - Volume incentives expense as a percentage of net sales increased to 30.8% in Q1 2025 from 30.2% in Q1 2024, due to promotional incentives timing and market mix changes[105] - Selling, general and administrative expenses decreased to $40.6 million in Q1 2025 from $40.8 million in Q1 2024, representing 35.8% of net sales compared to 36.7%[107] Other Income and Tax - Other income for Q1 2025 was $0.9 million, significantly up from $31,000 in Q1 2024, primarily due to foreign exchange gains[108] - The effective tax rate for Q1 2025 was 31.3%, down from 46.5% in Q1 2024, influenced by foreign operations and adjustments to foreign tax credits[109] Cash and Working Capital - As of March 31, 2025, working capital was $100.0 million, an increase from $94.9 million as of December 31, 2024[120] - Cash balance at March 31, 2025, was $86.5 million, with $8.0 million in the U.S. and $78.5 million in foreign markets[120] - Operating activities generated cash inflows of $2.6 million for the three months ended March 31, 2025, compared to $2.2 million in the same period in 2024[121][122] - Investing activities used $1.1 million for the three months ended March 31, 2025, down from $3.7 million in the same period in 2024[121][123] - Financing activities used $0.7 million for the three months ended March 31, 2025, compared to cash inflow of $0.1 million in the same period in 2024[121][124] - The company repurchased 38,000 shares of common stock for $0.5 million during the three months ended March 31, 2025[124] - The remaining balance available for share repurchases under the program was $8.3 million as of March 31, 2025[124] - The company maintains a revolving credit agreement with no outstanding balances as of March 31, 2025[125] - Cash generated from operations is expected to be sufficient to fund normal operating needs, including capital expenditures[126] Taxation - The company is subject to income taxes in both the United States and numerous foreign jurisdictions, requiring significant judgments and estimates[133]
Nature's Sunshine(NATR) - 2025 Q1 - Earnings Call Transcript
2025-05-06 21:00
Financial Data and Key Metrics Changes - Revenue for the first quarter was reported at $113 million, reflecting a 5% increase compared to the prior year, or a 2% increase when excluding foreign exchange impacts [8][15] - Adjusted EBITDA increased by 20% to $11 million compared to $9.2 million in the previous year [22] - GAAP net income attributable to common shareholders was $4.7 million, or $0.25 per diluted share, compared to $2.3 million, or $0.12 per diluted share in the prior year [21] Business Line Data and Key Metrics Changes - In Asia Pacific, revenue grew by 10% on a local currency basis, with standout performances in Japan and Taiwan, where sales increased by 24% and 18% respectively [9][16] - European sales increased by 9% on a constant currency basis, driven by strong growth in Central Europe, which was up 16% [10][17] - North American sales declined by 4%, but there was a positive trend with the third consecutive quarter of sequential order growth [10][18] Market Data and Key Metrics Changes - Digital sales in North America increased by 19%, significantly outpacing the supplement industry's digital growth rate [11][18] - The Subscribe and Thrive Autoship program accounted for approximately 26% of total sales and about 45% of direct-to-consumer sales [11] Company Strategy and Development Direction - The company is focusing on minimizing exposure to tariffs by increasing raw ingredient inventory and enforcing pricing contracts with suppliers [6][7] - A strong emphasis on sustainability initiatives was highlighted, with goals to reduce carbon emissions by 50% and achieve zero waste certification [12][13] - The company is optimistic about growth opportunities in North America, despite current challenges, and plans to leverage digital transformation and strategic initiatives [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for products and a positive outlook for 2025, despite macroeconomic uncertainties [6][14] - The company is taking a conservative stance in its guidance, anticipating potential headwinds from tariffs and economic instability [24][35] Other Important Information - The company repurchased 38,000 shares for approximately $500,000 during the quarter, with an increased share repurchase authority of $25 million [23] - Inventory levels increased to $64.9 million, reflecting a strategic decision to prepare for potential tariff-related costs and delays [22] Q&A Session Summary Question: How did Q1 come in relative to internal expectations? - The company was slightly ahead of internal expectations for the quarter [30] Question: Can you clarify guidance for the balance of the year? - The midpoint of guidance assumes continued macroeconomic instability and potential tariff impacts [35] Question: What are the expectations for the new digital toolkit launch? - The toolkit is on track for launch in the second half of 2025, with no anticipated order disruptions [40][41] Question: What are the drivers for continued growth in Europe and Asia? - Strong fundamentals in sales and marketing are expected to drive growth, with significant market opportunities remaining [48] Question: How is the company addressing the North American market challenges? - Focus on building fundamentals, new leadership, and the introduction of a new toolkit are key strategies [55]
Nature's Sunshine(NATR) - 2025 Q1 - Earnings Call Presentation
2025-05-06 20:16
Financial Performance - Net sales for Q1 2025 were $113.2 million, a 2.0% increase compared to $111.0 million in Q1 2024[6] - Operating income increased by 33.5% from $4.6 million in Q1 2024 to $6.2 million in Q1 2025[6] - Net income attributable to common shareholders increased by 104.5% from $2.3 million in Q1 2024 to $4.7 million in Q1 2025[6] - Adjusted EBITDA increased by 20.0% from $9.2 million in Q1 2024 to $11.0 million in Q1 2025[6] - Diluted EPS increased by 108.6% from $0.12 in Q1 2024 to $0.25 in Q1 2025[6] Balance Sheet and Cash Flow - Cash and cash equivalents totaled $86.5 million as of March 31, 2025[9, 10] - The company has zero debt as of March 31, 2025[9, 10] - Cash from operations totaled $2.6 million for Q1 2025[9, 10] - Free cash flow totaled $1.5 million for Q1 2025[9, 10] Sales by Operating Segment - Asia net sales increased by 5.3% from $46.22 million in Q1 2024 to $48.653 million in Q1 2025[11] - Europe net sales increased by 8.2% from $22.296 million in Q1 2024 to $24.114 million in Q1 2025[11] - North America net sales decreased by 4.1% from $36.525 million in Q1 2024 to $35.018 million in Q1 2025[11]
Nature's Sunshine Reports Strong First Quarter 2025 Results
Globenewswire· 2025-05-06 20:05
Core Insights - Nature's Sunshine Products, Inc. reported a strong start to 2025 with first quarter revenue of $113 million, reflecting a 5% increase on a constant currency basis and a 20% rise in adjusted EBITDA to $11 million compared to the previous year [3][8][6] Financial Performance - Net sales increased by 2% to $113.2 million from $111.0 million in the same quarter last year, with a 5% increase when excluding foreign exchange impacts [6][8] - Gross profit margin improved to 72.1% from 71.2% year-over-year, driven by price increases and effective cost-saving initiatives [6] - GAAP net income attributable to common shareholders rose 104% to $4.7 million, or $0.25 per diluted share, compared to $2.3 million, or $0.12 per diluted share, in the prior year [8][12] Segment Performance - Sales by region showed varied performance: - Asia: $48.7 million, up 5.3% (10.1% excluding currency impact) - Europe: $24.1 million, up 8.2% (8.6% excluding currency impact) - North America: $35.0 million, down 4.1% (3.7% excluding currency impact) - Latin America and Other: $5.5 million, down 8.2% (3.7% excluding currency impact) [4][30] Cost Management - Selling, general and administrative expenses (SG&A) decreased slightly to $40.6 million from $40.8 million, representing 35.8% of net sales compared to 36.7% in the prior year [9] - Operating income increased to $6.2 million, or 5.4% of net sales, compared to $4.6 million, or 4.2% of net sales, in the previous year [10] Capital Allocation - The board of directors authorized a share repurchase program of up to $25 million, supplementing the remaining $8.3 million from a previous authorization [2][4] 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 [15]
Nature's Sunshine Products: Near-Term Weakness But Attractive Entry Point For Long-Term Investors
Seeking Alpha· 2025-05-06 06:03
Group 1 - Nature's Sunshine Products (NASDAQ: NATR) is expected to benefit from its Asia segment, indicating potential growth opportunities in that region [1] - Weak demand in the North America segment is anticipated to negatively impact the company's top-line performance in the near term [1] - The focus is primarily on GARP (Growth at Reasonable Price) opportunities within the industrial, consumer, and technology sectors [1]
Nature's Sunshine Wins Two Stevie® Awards in the 2025 American Business Awards®
Newsfilter· 2025-04-24 17:52
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]
Nature's Sunshine Wins Two Stevie® Awards in the 2025 American Business Awards®
GlobeNewswire News Room· 2025-04-24 17:52
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].
Nature's Sunshine Releases 2024 Impact Report Highlighting Environmental and Sustainability Achievements
Newsfilter· 2025-04-24 16:15
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]