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]

Core Viewpoint - Nature's Sunshine Products, Inc. will hold a conference call on March 11, 2025, to discuss its financial results for Q4 and the full year ended December 31, 2024 [1][2]. Company Information - Nature's Sunshine is a leading manufacturer of high-quality herbal and nutritional supplements, marketing and distributing products in over 40 countries [3]. - The company manufactures most of its products in its own state-of-the-art facilities to ensure high quality, safety, and efficacy [3]. Conference Call Details - The conference call will be hosted by CEO Terrence Moorehead and CFO Shane Jones, followed by a Q&A session [2]. - The call is scheduled for 5:00 p.m. Eastern time (3:00 p.m. Mountain time) [2]. - Participants can join via toll-free number 1-800-717-1738 or international number 1-646-307-1865, with a Conference ID of 73865 [2]. - A live broadcast of the call will be available, and a replay will be accessible after 8:00 p.m. Eastern time on the same day until March 25, 2025 [3].

Core Insights - Nature's Sunshine Products, Inc. appointed Ms. Katie A. May to its board of directors, effective January 30, 2025, increasing the board to ten members, with nine being independent directors [1][2] Group 1: Appointment Details - Ms. Katie A. May brings extensive experience in scaling high-growth B2C, ecommerce, and logistics companies, which is expected to enhance Nature's Sunshine's digital capabilities and drive shareholder value [2] - Ms. May previously founded and served as CEO of Kidspot, an online publisher in Australia, and later led ShippingEasy, an ecommerce software solution, which she successfully sold to Stamps.com [2] Group 2: Ms. May's Background - Ms. May has held leadership roles in various companies, including serving on the boards of Vivi International Pty Ltd., ROKT Pte Ltd., and Onramp Funds, Inc. [2] - She has a strong educational background with an M.B.A. and a B.B.A. in Accounting from The University of Texas at Austin [2] Group 3: Company Overview - Nature's Sunshine Products is a leading manufacturer of herbal and nutritional supplements, distributing products in over 40 countries [4] - The company manufactures most of its products in state-of-the-art facilities to ensure high quality, safety, and efficacy [4]

Core Viewpoint - Nature's Sunshine Products, Inc. has appointed Mr. Steven Fasching to its board of directors, effective November 6, 2024, expanding the board to nine members, with eight being independent directors [1][2]. Group 1: Appointment Details - Mr. Steven Fasching brings significant financial expertise and public company experience, having served as Chief Financial Officer of Deckers Brands since June 2018 [2]. - Fasching has over 30 years of experience in financial and strategic planning for multi-billion-dollar organizations, enhancing the leadership of Nature's Sunshine as it undergoes business transformation [2]. Group 2: Company Overview - Nature's Sunshine Products is a leading manufacturer of herbal and nutritional supplements, marketing and distributing products in over 40 countries [3]. - The company manufactures most of its products in state-of-the-art facilities to ensure high quality, safety, and efficacy [3].

| --- | --- | --- | --- | |------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | CONNECT WITH | | | | | | | | | | NATURE | | | | | Q3 2024 Earnings Presentation November 7, 2024 | | | | | | | | | | | | | | S A F E H A R B O R S T A T E M E N T S Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements regarding the Company's future business expectations, which are subject to the safe harbor provis ...

Financial Performance - Net sales for the three months ended September 30, 2024, were $114,615, an increase from $111,202 in the same period of 2023, representing a growth of 2.2%[7] - Gross profit for the three months ended September 30, 2024, was $81,759, slightly up from $81,238 in the prior year, indicating a stable gross margin[7] - Operating income for the three months ended September 30, 2024, was $5,284, compared to $5,832 in the same period of 2023, reflecting a decrease of 9.4%[7] - Net income attributable to common shareholders for the three months ended September 30, 2024, was $4,347, up from $2,832 in the same period of 2023, marking a significant increase of 53.4%[7] - For the nine months ended September 30, 2024, net sales were $336,159, slightly down from $336,384 in the same period of 2023, indicating a marginal decline of 0.1%[9] - Operating income for the nine months ended September 30, 2024, increased to $15,545 from $13,041 in the same period of 2023, representing a growth of 19.2%[9] - Basic earnings per share attributable to common shareholders for the three months ended September 30, 2024, were $0.23, compared to $0.15 in the same period of 2023, an increase of 53.3%[7] - The net income for the nine months ended September 30, 2024, was $8,624,000, compared to $7,072,000 for the same period in 2023, representing a year-over-year increase of approximately 22%[18] - Net income for the three months ended September 30, 2024, was $4.6 million, a 47.9% increase from $3.1 million in the same period in 2023[92] Assets and Liabilities - Total assets as of September 30, 2024, were $245,333, a decrease from $249,773 as of December 31, 2023[6] - Total liabilities decreased to $82,716 as of September 30, 2024, from $90,233 as of December 31, 2023, reflecting a reduction of 8.3%[6] - Total shareholders' equity increased to $162,617 as of September 30, 2024, from $159,540 as of December 31, 2023, indicating a growth of 1.3%[6] - The company reported cash and cash equivalents of $78,704,000 at the end of the period, down from $82,373,000 at the beginning of the period[18] - The total stock amount decreased from $119,694,000 at December 31, 2023, to $113,946,000 at September 30, 2024[14] - Working capital increased to $96.4 million as of September 30, 2024, compared to $89.1 million at the end of 2023[124] Share Repurchase and Compensation - The company repurchased common stock totaling $8,436,000 during the nine months ended September 30, 2024[18] - The company repurchased 509,000 shares of common stock for $8.4 million during the nine months ended September 30, 2024, compared to 180,000 shares for $2.2 million in the same period of 2023[36] - Share-based compensation expense for the nine months ended September 30, 2024, was $3,580,000, slightly down from $3,790,000 in the same period of the previous year[18] - Share-based compensation expense related to time-based RSUs for the three-month period ended September 30, 2024, was approximately $0.7 million, a decrease from $1.0 million in the same period of 2023[45] Sales by Region - Net sales in Asia for the three months ended September 30, 2024, were $55.3 million, up from $52.2 million in the same period of 2023[51] - The United States, Taiwan, and South Korea each contributed over 10% of consolidated net sales for the three months ended September 30, 2024[53] - North America net sales for Q3 2024 were $33.6 million, a decrease of 3.3% compared to $34.8 million in Q3 2023[102] - Latin America net sales for Q3 2024 increased to $6.1 million, reflecting a 12.0% growth from $5.4 million in Q3 2023[105] - In Europe, net sales for the three months ended September 30, 2024, were $19.6 million, a 4.5% increase from $18.8 million in the same period of 2023[101] Expenses and Taxation - Cost of sales increased by $2.9 million to $32.9 million, with the cost as a percentage of net sales rising to 28.7% from 26.9%[92] - Selling, general and administrative (SG&A) expenses decreased by $0.3 million to $40.9 million, representing 35.7% of net sales, down from 37.1%[90] - The provision for income taxes for the three months ended September 30, 2024, was 41.2%, compared to 35.9% for the same period in 2023[59] - The effective tax rate for the nine months ended September 30, 2024, was 49.2%, up from 43.6% for the same period in 2023[59] Cash Flow and Financing - The company reported a net cash provided by operating activities of $13,114,000 for the nine months ended September 30, 2024, compared to $31,628,000 in the same period of 2023[18] - Financing activities used $9.3 million in cash for the nine months ended September 30, 2024, compared to $3.4 million in the same period of 2023, including $8.4 million for share repurchases[128] - The company had no outstanding balance under the revolving credit agreement as of September 30, 2024, with a borrowing limit of $25 million[30] Market Conditions and Outlook - The company anticipates continued impacts from inflation, particularly from higher costs of raw materials and labor[87] - The company expects foreign currency fluctuations to continue to impact net sales and operating expenses significantly[91] - The company expects to recognize an additional $2.7 million of potential share-based compensation expense related to performance-based RSUs[46] Company Overview - The company’s product line includes over 800 products across various health categories, manufactured primarily in Spanish Fork, Utah[117] - The company markets its products through a network of independent consultants, providing them with incentives and support[119]

Financial Performance - Net sales for Q3 2024 increased by 3% to $114.6 million compared to $111.2 million in Q3 2023, with a 4% increase in constant currency[1][3] - GAAP net income attributable to common shareholders rose to $4.3 million, or $0.23 per diluted share, up from $2.8 million, or $0.15 per diluted share in the prior year[1][8] - Adjusted EBITDA increased by 5% to $10.7 million compared to $10.3 million in the same quarter last year[1][9] - Operating income decreased to $5.3 million, or 4.6% of net sales, compared to $5.8 million, or 5.2% of net sales in Q3 2023[1][6] - Other income for Q3 2024 was $2.6 million, compared to a loss of $0.9 million in Q3 2023, primarily due to foreign exchange gains in Asia[1][7] - Net income for the three months ended September 2024 was $4,646 million, up from $3,142 million in the same period last year, representing a 48% increase[32] - Reported income attributable to common shareholders for the three months ended September 2024 was $4,347 million, compared to $2,832 million in the prior year, a 53% increase[32] Sales and Revenue - The Asia segment reported net sales of $55.3 million, a 5.9% increase year-over-year, with an 8.6% increase excluding currency impact[3][3] - Full year 2024 net sales are now expected to range between $443 million and $448 million, adjusted EBITDA is projected to be between $40 million and $42 million[1][11] - Net sales for Q3 2024 were $114,615, an increase of 3.7% compared to $111,202 in Q3 2023[26] Profitability Metrics - Gross profit margin decreased to 71.3% from 73.1% year-over-year, impacted by higher inflation and unfavorable foreign exchange[1][4] - Basic earnings per share attributable to common shareholders increased to $0.23 in Q3 2024 from $0.15 in Q3 2023, representing a 53.3% increase[26] - Basic income per share, as reported, increased to $0.23 for the three months ended September 2024, compared to $0.15 in the prior year, marking a 53% rise[32] - Diluted income per share, as adjusted, was $0.27 for the three months ended September 2024, up from $0.15 in the same period last year, indicating an 80% increase[32] Cash and Assets - Cash and cash equivalents as of September 30, 2024, were $78.7 million with zero debt[1][10] - Cash and cash equivalents at the end of Q3 2024 were $78,704, down from $82,373 at the beginning of the period[29] - Total current assets decreased to $163,529 as of September 30, 2024, from $165,817 at the end of 2023, a decline of 1.4%[28] Liabilities and Equity - Total liabilities decreased to $82,716 as of September 30, 2024, from $90,233 at the end of 2023, a reduction of 8.2%[28] - Shareholders' equity increased to $162,617 as of September 30, 2024, compared to $159,540 at the end of 2023, an increase of 1.3%[28] Year-to-Date Performance - The company reported a net income of $8,624 for the nine months ended September 30, 2024, compared to $7,072 for the same period in 2023, reflecting a growth of 21.9%[30] - Adjusted EBITDA for the nine months ended September 30, 2024, was $30,277, slightly down from $30,692 in the same period of 2023[30] - Non-GAAP net income attributable to common shareholders for the nine months ended September 2024 was $8,819 million, compared to $9,750 million for the same period in 2023, reflecting a decrease of 9%[32] - The company reported a total net income of $8,624 million for the nine months ended September 2024, compared to $7,072 million for the same period in 2023, an increase of 22%[32] - Basic income per share, as adjusted, for the nine months ended September 2024 was $0.47, down from $0.51 in the same period last year, a decrease of 8%[32] Adjustments and Other Factors - Total adjustments for the three months ended September 2024 amounted to $802 million, with significant contributions from loss on sale of property and equipment and restructuring expenses[32] - Total adjustments for the nine months ended September 2024 were $802 million, with a significant prior year adjustment of $3,636 million impacting comparability[32] - The company experienced a VAT refund adjustment of $(992) million for the three months ended September 2024, impacting overall net income[32]