Nature's Sunshine(NATR)2025-03-11 21:13Sales 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].