Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF FORM 10-Q (Mark One) For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-34483 NATURE'S SUNSHINE PRODUCTS, INC. (Exact n ...

Nature's Sunshine Products, Inc. (NASDAQ:NATR) Q1 2023 Earnings Conference Call May 9, 2023 5:00 PM ET Company Participants Nathan Brower - General Counsel Terrence Moorehead - Chief Executive Officer Shane Jones - Chief Financial Officer Conference Call Participants Linda Bolton-Weiser - D.A. Davidson Operator Good afternoon, everyone, and thank you for participating in today's Conference Call to discuss Nature's Sunshine Financial Results for the First Quarter Ended March 31, 2023. Joining us today are Na ...

Financial Performance - Consolidated net sales for Q1 2023 were $108.6 million, a decrease of 1.7% compared to $110.5 million in Q1 2022, primarily due to declines in North America [99]. - Excluding the impact of foreign currency fluctuations, consolidated net sales increased by 2.4% in Q1 2023 compared to the same period in 2022 [100]. - In Asia, net sales increased by 0.5% to $46.3 million in Q1 2023, with a local currency increase of 9.1% [101]. - North America net sales decreased by 3.7% to $34.6 million in Q1 2023, attributed to reduced average order sizes due to inflationary pressures [106]. - Other income for Q1 2023 was $1.5 million, compared to a loss of $0.3 million in Q1 2022, mainly due to foreign exchange gains [114]. - The effective tax rate for Q1 2023 was 25.7%, significantly lower than 369.9% in Q1 2022, due to changes in foreign operations tax liabilities [115]. Expenses and Costs - Selling, general and administrative expenses rose to $43.6 million in Q1 2023, representing 40.2% of net sales, up from 36.8% in Q1 2022 [113]. - Cost of sales as a percentage of net sales improved to 29.2% in Q1 2023 from 31.2% in Q1 2022, primarily due to prior-year inventory valuation reserves [110]. - Volume incentives as a percentage of net sales were 30.5% in Q1 2023, slightly down from 30.9% in Q1 2022 [111]. Cash Flow and Working Capital - As of March 31, 2023, working capital was $82.8 million, a slight decrease from $83.9 million as of December 31, 2022 [126]. - Operating activities generated cash of $9.3 million for the three months ended March 31, 2023, compared to a cash outflow of $7.9 million in the same period in 2022 [128]. - Investing activities used $2.3 million for capital expenditures related to equipment and software for the three months ended March 31, 2023, up from $1.5 million in the same period in 2022 [129]. - Financing activities used $1.2 million in cash for the three months ended March 31, 2023, a significant decrease from $9.4 million in the same period in 2022 [130]. - As of March 31, 2023, the company had $65.7 million in cash, with $61.0 million held in foreign markets subject to repatriation restrictions [126]. - The company believes that cash generated from operations will be sufficient to fund normal operating needs, including capital expenditures [132]. Shareholder Activities - The company repurchased 90,000 shares of common stock for $0.8 million during the three months ended March 31, 2023, with a remaining balance of $23.2 million available for future repurchases [130]. Business Operations - The company’s product categories include over 800 products across various health segments, with manufacturing primarily in Spanish Fork, Utah [120]. - The company markets its products through a network of independent consultants, providing incentives and support to drive sales [122].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________ FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2022 OR ☐ Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to . Commission file number 001-34483 NATURE'S SUNSHINE PRODUCTS, INC. (Exact name of registrant as specified in its charter) (State or ot ...

Nature's Sunshine Products, Inc. (NASDAQ:NATR) Q4 2022 Earnings Conference Call March 15, 2023 5:00 PM ET Company Participants Nate Brower - General Counsel Terrence Moorehead - Chief Executive Officer Shane Jones - CFO Martin Gonzalez - Executive Vice President, Global Supply Chain Conference Call Participants Linda Bolton Weiser - D.A. Davidson Operator Good afternoon, everyone and thank you for participating in today???s Conference Call to discuss Nature???s Sunshine???s Financial Results for the Fourth ...

| --- | --- | --- | --- | |------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | CONNECT WITH | | | | | | | | | | NATURE Investor Presentation \| December | | | | | | | | | | | | | | 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 provisions of the Private ...

| --- | --- | --- | --- | |------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | CONNECT WITH | | | | | | | | | | NATURE | | | | | Q3 2022 Earnings Presentation November 3, 2022 | | | | | | | | | | | | | | 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 har ...

Financial Data and Key Metrics Changes - Third quarter sales were $105 million on a reported basis or $112 million when excluding foreign exchange impact, reflecting a 2% decline year-over-year on a constant dollar basis [8][9] - Year-to-date sales increased by 3% in local currency, indicating underlying business strength despite external challenges [9] - Gross margins contracted due to inflation and foreign exchange, negatively impacting cost of goods by approximately $3 million or roughly 300 basis points compared to Q3 of the prior year [10] - Adjusted EBITDA for the third quarter was $6.8 million, down from $12.9 million in Q3 of the prior year [11][40] Business Line Data and Key Metrics Changes - Sales in North America decreased by 16% in the third quarter, primarily due to average order declines from existing customers [16] - Asia-Pacific led the company’s results with a 12% sales growth in local currency, driven by strong performance in Taiwan, Japan, and South Korea [14] - Sales in Europe were down 6% year-over-year in constant dollars, but showed a 13% sequential growth compared to the second quarter [18] - Latin America experienced a 14% decline in sales in local currency, despite attracting more new customers [19] Market Data and Key Metrics Changes - Sales in China decreased by 31% due to macroeconomic conditions and the effects of the zero COVID policy [14] - Digital sales in North America increased by 22% in the third quarter, contributing to customer growth [15] - Overall, the company expects European sales to decline approximately 15% to 25% for 2022 compared to 2021 [44] Company Strategy and Development Direction - The company is focused on optimizing gross margins and reducing SG&A expenses, with a target of delivering $10 million to $12 million in gross savings [32] - Key strategic investments include field activation, digital activation, and customer growth initiatives [13][15][17] - The company is committed to navigating market volatility and uncertainty while continuing to invest in growth strategies [31][33] Management's Comments on Operating Environment and Future Outlook - Management highlighted that inflation, foreign exchange, and COVID-related disruptions were primary factors negatively impacting performance [30] - Despite challenges, the company maintains a strong balance sheet and believes in the long-term potential of its business [31][48] - The impact of cost-saving initiatives is expected to be reflected in results starting late 2023 to 2024 [46] Other Important Information - The company’s cash and cash equivalents stood at $57 million with only $1.5 million of debt [41] - Share repurchase program remains active, with $24.6 million remaining of the $30 million authorization [42] Q&A Session Summary Question: Why is the company not looking to save costs and reduce expenses until the end of 2023? - Management explained that the comprehensive plan involves complexities that require time to implement, but some savings will begin to materialize before the end of 2023 [55][56] Question: Why is there so much inventory on hand despite declining sales? - Management acknowledged the high inventory levels due to previous growth expectations and is actively working to reduce inventory through targeted buys and cancellations [59] Question: Why was only a small number of shares bought back given the stock price? - Management indicated volume constraints and prioritized investments necessary for driving down costs from gross margins [61][62]

Sales Performance - Consolidated net sales for the three months ended September 30, 2022, were $104.5 million, a decrease of 8.9% compared to $114.7 million for the same period in 2021[111]. - For the nine months ended September 30, 2022, consolidated net sales were $319.2 million, down 2.1% from $326.1 million in the same period in 2021[111]. - Net sales in Asia for the three months ended September 30, 2022, were $47.9 million, a decrease of 1.1%, while for the nine months, sales increased by 10.7% to $141.4 million[112]. - In Europe, net sales for the three months ended September 30, 2022, were $19.3 million, down 11.4%, and for the nine months, sales were $58.2 million, a decrease of 11.1%[118]. - North America reported net sales of $31.5 million for the three months ended September 30, 2022, a decrease of 16.5%, and $101.6 million for the nine months, down 10.0%[119]. - Latin America and Other markets saw net sales of $5.8 million for the three months ended September 30, 2022, a decrease of 14.5%, and $18.0 million for the nine months, down 10.3%[121]. - In the South Korea market, net sales decreased by $1.0 million (6.4%) for the three months ended September 30, 2022, while in Taiwan, net sales increased by $6.1 million (82.9%) for the same period[113][114]. - The company expects continued fluctuations in net sales due to foreign currency exchange rates impacting international operations[109]. Cost and Expenses - Cost of sales as a percentage of net sales increased to 28.4% for the three months ended September 30, 2022, compared to 25.6% for the same period in 2021[123]. - Volume incentives expense as a percent of net sales was 31.6% for the three months ended September 30, 2022, compared to 31.2% for the same period in 2021[124]. - Selling, general and administrative expenses decreased by $2.7 million to $36.8 million for the three months ended September 30, 2022, representing 35.2% of net sales[126]. - Other loss, net, for the three months ended September 30, 2022, was $2.3 million, compared to $0.9 million for the same period in 2021, primarily due to foreign exchange losses[127]. - The provision for income taxes as a percentage of income before income taxes was 92.7% for the three months ended September 30, 2022, compared to 40.2% for the same period in 2021[128]. Cash Flow and Working Capital - Working capital as of September 30, 2022, was $78.9 million, down from $88.0 million as of December 31, 2021[139]. - Operating activities used cash of $2.9 million for the nine months ended September 30, 2022, compared to providing cash of $20.3 million in the same period in 2021[141]. - Investing activities used $4.7 million for the nine months ended September 30, 2022, compared to $4.6 million for the same period in 2021[142]. - Financing activities used $15.3 million for the nine months ended September 30, 2022, compared to $29.5 million in the same period in 2021[143]. Share Repurchase - The company repurchased 834,000 shares of common stock for $12.9 million during the nine months ended September 30, 2022[143]. - As of September 30, 2022, the remaining balance available for share repurchases under the program was $24.6 million[143]. Inventory Valuation - The company incurred incremental valuation charges of $5.0 million related to inventory for the nine months ended September 30, 2022, with $1.7 million attributed to the conflict between Russia and Ukraine[123].

Nature's Sunshine Products, Inc. (NASDAQ:NATR) Q2 2022 Results Conference Call August 9, 2022 5:00 PM ET Company Participants Nathan Brower - Executive Vice President and General Counsel Terrence Moorehead - Chief Executive Officer Joseph Baty - Chief Financial Officer Conference Call Participants Linda Bolton-Weiser - D.A. Davidson Steven Martin - Slater Operator Good afternoon, everyone, and thank you for participating in today's conference call to discuss Nature's Sunshine's Financial Results for the Sec ...