Nature's Sunshine(US:NATR)2025-05-06 21:10Sales 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]