Nature's Sunshine Reports Third Quarter 2024 Results

Core Viewpoint - Nature's Sunshine Products, Inc. reported a 3% increase in net sales for Q3 2024, driven by customer growth in Asia and Central Europe, despite macroeconomic challenges in China [1][2][3]. Financial Performance - Net sales for Q3 2024 reached $114.6 million, up from $111.2 million in Q3 2023, representing a 3% increase (4% in constant currency) [1][3]. - GAAP net income attributable to common shareholders increased to $4.3 million, or $0.23 per diluted share, compared to $2.8 million, or $0.15 per diluted share in the prior year [1][7]. - Adjusted EBITDA rose by 5% to $10.7 million from $10.3 million year-over-year [1][8]. Segment Performance - Net sales by region showed varied performance: - Asia: $55.3 million, up 5.9% (8.6% excluding currency impact) [3]. - Europe: $19.6 million, up 4.5% [3]. - North America: $33.6 million, down 3.3% [3]. - Latin America and Other: $6.1 million, up 12.0% [3]. Cost and Expenses - Gross profit margin decreased to 71.3% from 73.1% due to inflation and unfavorable foreign exchange impacts [4]. - Selling, general and administrative expenses (SG&A) were $41.0 million, slightly down from $41.3 million, with SG&A as a percentage of net sales improving to 35.7% from 37.1% [5]. Income and Other Financial Metrics - Operating income decreased to $5.3 million (4.6% of net sales) from $5.8 million (5.2% of net sales) [6]. - Other income, net, was $2.6 million compared to a loss of $0.9 million in the previous year, primarily from foreign exchange gains in Asia [6]. Outlook - The company expects full-year 2024 net sales to be between $443 million and $448 million, and adjusted EBITDA to range from $40 million to $42 million [10].