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Nature's Sunshine Reports Fourth Quarter and Full Year 2024 Financial Results

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Nature's Sunshine (NATR) reported Q4 2024 financial results with net sales up 8.5% to $118.2 million (10% in constant currency). The quarter saw a GAAP net loss of $0.3 million ($(0.02) per share), compared to net income of $9.0 million ($0.46 per share) in Q4 2023. Adjusted EBITDA increased 6% to $10.3 million.

For full-year 2024, net sales grew 2.0% to $454.4 million, with GAAP net income of $7.7 million ($0.40 per share), down from $15.1 million ($0.77 per share) in 2023. Key highlights include:

  • 21% growth in Asia Pacific region
  • 17% increase in North America digital sales
  • Gross margin improved to 72.0% in Q4
  • Company repurchased 540,000 shares at $16.42 per share

For 2025, the company projects net sales between $445-470 million and adjusted EBITDA of $38-44 million.

Nature's Sunshine (NATR) ha riportato i risultati finanziari del quarto trimestre 2024, con vendite nette in aumento dell'8,5% a 118,2 milioni di dollari (10% in valuta costante). Nel trimestre si è registrata una perdita netta GAAP di 0,3 milioni di dollari ($(0,02) per azione), rispetto a un utile netto di 9,0 milioni di dollari ($0,46 per azione) nel quarto trimestre 2023. L'EBITDA rettificato è aumentato del 6% a 10,3 milioni di dollari.

Per l'intero anno 2024, le vendite nette sono cresciute del 2,0% a 454,4 milioni di dollari, con un utile netto GAAP di 7,7 milioni di dollari ($0,40 per azione), in calo rispetto ai 15,1 milioni di dollari ($0,77 per azione) del 2023. I punti salienti includono:

  • Crescita del 21% nella regione Asia-Pacifico
  • Aumento del 17% delle vendite digitali in Nord America
  • Il margine lordo è migliorato al 72,0% nel quarto trimestre
  • L'azienda ha riacquistato 540.000 azioni a 16,42 dollari per azione

Per il 2025, l'azienda prevede vendite nette tra 445 e 470 milioni di dollari e un EBITDA rettificato di 38-44 milioni di dollari.

Nature's Sunshine (NATR) reportó los resultados financieros del cuarto trimestre de 2024, con ventas netas que aumentaron un 8.5% a 118.2 millones de dólares (10% en moneda constante). En el trimestre se registró una pérdida neta GAAP de 0.3 millones de dólares ($(0.02) por acción), en comparación con una ganancia neta de 9.0 millones de dólares ($0.46 por acción) en el cuarto trimestre de 2023. El EBITDA ajustado aumentó un 6% a 10.3 millones de dólares.

Para el año completo de 2024, las ventas netas crecieron un 2.0% a 454.4 millones de dólares, con una ganancia neta GAAP de 7.7 millones de dólares ($0.40 por acción), una disminución respecto a los 15.1 millones de dólares ($0.77 por acción) en 2023. Los aspectos más destacados incluyen:

  • Crecimiento del 21% en la región de Asia-Pacífico
  • Aumento del 17% en las ventas digitales en América del Norte
  • El margen bruto mejoró al 72.0% en el cuarto trimestre
  • La empresa recompró 540,000 acciones a 16.42 dólares por acción

Para 2025, la empresa proyecta ventas netas entre 445 y 470 millones de dólares y un EBITDA ajustado de 38-44 millones de dólares.

Nature's Sunshine (NATR)는 2024년 4분기 재무 결과를 발표했으며, 순매출이 8.5% 증가하여 1억 1820만 달러(상수 통화 기준 10%)에 달했습니다. 이번 분기에는 GAAP 기준으로 30만 달러(주당 $(0.02))의 순손실이 발생했으며, 이는 2023년 4분기 900만 달러(주당 $0.46)의 순이익과 비교됩니다. 조정된 EBITDA는 6% 증가하여 1030만 달러에 이르렀습니다.

2024년 전체 연도에 대해 순매출은 2.0% 증가하여 4억 5440만 달러에 도달했으며, GAAP 기준 순이익은 770만 달러(주당 $0.40)로, 2023년의 1510만 달러(주당 $0.77)에서 감소했습니다. 주요 하이라이트는 다음과 같습니다:

  • 아시아 태평양 지역에서 21% 성장
  • 북미 디지털 판매 17% 증가
  • 4분기 총 마진이 72.0%로 개선됨
  • 회사가 주당 16.42달러에 54만 주를 재매입함

2025년에는 회사가 4억 4500만에서 4억 7000만 달러 사이의 순매출과 3800만에서 4400만 달러 사이의 조정된 EBITDA를 예상하고 있습니다.

Nature's Sunshine (NATR) a annoncé les résultats financiers du quatrième trimestre 2024, avec des ventes nettes en hausse de 8,5 % à 118,2 millions de dollars (10 % en monnaie constante). Le trimestre a enregistré une perte nette GAAP de 0,3 million de dollars ($(0,02) par action), contre un bénéfice net de 9,0 millions de dollars ($0,46 par action) au quatrième trimestre 2023. L'EBITDA ajusté a augmenté de 6 % pour atteindre 10,3 millions de dollars.

Pour l'année entière 2024, les ventes nettes ont augmenté de 2,0 % pour atteindre 454,4 millions de dollars, avec un bénéfice net GAAP de 7,7 millions de dollars ($0,40 par action), en baisse par rapport à 15,1 millions de dollars ($0,77 par action) en 2023. Les faits saillants comprennent :

  • Croissance de 21 % dans la région Asie-Pacifique
  • Augmentation de 17 % des ventes numériques en Amérique du Nord
  • La marge brute s'est améliorée à 72,0 % au quatrième trimestre
  • L'entreprise a racheté 540 000 actions à 16,42 dollars par action

Pour 2025, l'entreprise prévoit des ventes nettes entre 445 et 470 millions de dollars et un EBITDA ajusté de 38 à 44 millions de dollars.

Nature's Sunshine (NATR) hat die finanziellen Ergebnisse für das vierte Quartal 2024 veröffentlicht, mit einem Anstieg der Nettoumsätze um 8,5% auf 118,2 Millionen Dollar (10% in konstanten Währungen). Im Quartal gab es einen GAAP-Nettoverlust von 0,3 Millionen Dollar ($(0,02) pro Aktie), verglichen mit einem Nettogewinn von 9,0 Millionen Dollar ($0,46 pro Aktie) im vierten Quartal 2023. Das bereinigte EBITDA stieg um 6% auf 10,3 Millionen Dollar.

Für das Gesamtjahr 2024 wuchsen die Nettoumsätze um 2,0% auf 454,4 Millionen Dollar, mit einem GAAP-Nettoergebnis von 7,7 Millionen Dollar ($0,40 pro Aktie), ein Rückgang von 15,1 Millionen Dollar ($0,77 pro Aktie) im Jahr 2023. Zu den wichtigsten Punkten gehören:

  • 21% Wachstum in der Region Asien-Pazifik
  • 17% Anstieg der digitalen Verkäufe in Nordamerika
  • Bruttomarge verbesserte sich im vierten Quartal auf 72,0%
  • Das Unternehmen hat 540.000 Aktien zu je 16,42 Dollar zurückgekauft

Für 2025 prognostiziert das Unternehmen Nettoumsätze zwischen 445 und 470 Millionen Dollar sowie ein bereinigtes EBITDA von 38 bis 44 Millionen Dollar.

Positive
  • Q4 revenue growth of 8.5% to $118.2 million
  • 21% growth in Asia Pacific region
  • 17% increase in North America digital sales
  • Q4 gross margin improvement to 72.0%
  • Strong cash position of $84.7 million with no debt
  • Active share repurchase program with 540,000 shares bought
Negative
  • Q4 GAAP net loss of $0.3 million vs $9.0 million profit year-ago
  • Full-year net income declined to $7.7 million from $15.1 million in 2023
  • Operating income margin decreased to 3.8% in Q4 from 5.2% year-ago
  • Higher tax provision of $10.5 million vs $3.8 million in 2023
  • Foreign exchange losses impacting financial results
  • NSP China income decreased to $1.0 million from $6.7 million year-ago

Insights

Nature's Sunshine's Q4 2024 results present a mixed financial picture with operational growth counterbalanced by bottom-line challenges. The 8.5% revenue increase to $118.2 million demonstrates solid top-line momentum, particularly impressive in the nutritional supplement space where many competitors are struggling for growth. The 21% growth in Asia Pacific and 17% increase in North America digital sales highlight successful regional execution and digital transformation efforts.

However, the bottom-line shows concerning deterioration. The company swung to a Q4 net loss of $0.3 million from a $9.0 million profit year-over-year, while full-year net income declined 49% to $7.7 million. This substantial earnings compression occurred despite revenue growth, indicating margin pressures and operational inefficiencies. The $3.1 million foreign exchange loss in Q4 and significantly higher tax provision ($10.5 million vs $3.8 million) were major factors in this decline.

The conservative 2025 guidance ($445-$470 million revenue) suggests management anticipates continued macroeconomic challenges. With the midpoint representing only 1.3% growth over 2024, the outlook indicates decelerating momentum. The company's strong balance sheet with $84.7 million cash and no debt provides financial flexibility, but investors should closely monitor whether management can translate operational improvements into bottom-line results in 2025.

Nature's Sunshine's strategic execution shows regional variance that reveals both strengths and weaknesses in their global approach. The 21% Asia Pacific growth demonstrates effective market penetration in a high-potential region where wellness products are seeing accelerating demand. Similarly, the 17% increase in North American digital sales indicates successful digital transformation initiatives that are essential in today's omnichannel retail environment.

However, the meaningful gap between revenue growth and profitability metrics reveals potential strategic misalignments. Despite implementing cost-saving initiatives that improved gross margin slightly to 72.0%, SG&A expenses increased to 37.0% of sales. This suggests the company is struggling to scale efficiently – growing revenue without proportional profit expansion. The stated cost-saving initiatives appear insufficient to offset the increased variable costs associated with growth.

The increased volume incentives (31.1% vs 30.1%) highlight potential distribution strategy challenges. Higher incentive costs without corresponding profitability improvements may indicate diminishing returns on distributor investments. Additionally, the $11 million in capital expenditures signals continued investment in infrastructure, but these investments aren't yet translating to improved profit margins. Management's focus on "operational efficiencies" and "cost-saving initiatives" suggests awareness of these challenges, but the 2025 guidance indicates a realistic assessment that transformative results remain elusive in the near term.

LEHI, Utah, March 11, 2025 (GLOBE NEWSWIRE) -- Nature’s Sunshine Products, Inc. (Nasdaq: NATR) (“Nature’s Sunshine” and/or the “Company”), a leading manufacturer of high-quality herbal and nutritional supplements, reported financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Summary vs. Same Year-Ago Quarter

  • Net sales were up 8.5% to $118.2 million compared to $108.9 million (up 10.0% in constant currency).
  • GAAP net loss attributable to common shareholders of $0.3 million, or $(0.02) per diluted share, compared to net income of $9.0 million, or $0.46 per diluted share.
  • Adjusted EBITDA up 6% to $10.3 million compared to $9.7 million.

Full Year 2024 Financial Summary vs. 2023

  • Net sales were up 2.0% to $454.4 million compared to $445.3 million (up 3.8% in constant currency).
  • GAAP net income attributable to common shareholders of $7.7 million, or $0.40 per diluted share, compared to $15.1 million, or $0.77 per diluted share.
  • Adjusted EBITDA up 0.3% to $40.5 million compared to $40.4 million.

Management Commentary

“The fourth quarter was one of our strongest quarters ever, with revenue of $118 million, reflecting growth of 8.5% year-over-year and 10% on a constant currency basis,” said Terrence Moorehead, CEO of Nature’s Sunshine. ”Our 21% growth in Asia Pacific and the continued execution of our strategies in Europe were key drivers of success. We are also encouraged by the 17% increase in North America digital sales which demonstrates the continued strength of our digital platform.

“As we move into 2025, we reiterate our commitment to delivering the highest quality, innovative products to our customers and to empowering our distributor base to drive continued growth and profitability. Combining that with our cost-savings initiatives and operational efficiencies, which are already making a positive impact, will enable us to continue making strong progress against our strategic initiatives while delivering long-term, sustainable shareholder value in the face of increased macroeconomic uncertainty.”

Fourth Quarter 2024 Financial Results

 Net Sales by Operating Segment (Amounts in Thousands)
 Three Months
Ended

December 31,
2024
 Three Months
Ended

December 31,
2023
 Percent
Change
 Impact of
Currency
Exchange
 Percent
Change
Excluding
Impact of
Currency
Asia$56,297 $47,813 17.7% $(1,469) 20.8%
Europe 21,324  19,691 8.3   107  7.7 
North America 35,130  35,706 (1.6)  (75) (1.4)
Latin America and Other 5,454  5,726 (4.8)  (210) (1.1)
 $118,205 $108,936 8.5% $(1,647) 10.0%


Net sales in the fourth quarter of 2024 increased 8.5% to $118.2 million compared to $108.9 million in the year-ago quarter. Excluding the impact from foreign exchange rates, net sales in the fourth quarter of 2024 increased 10.0% compared to the year-ago quarter.

Gross margin in the fourth quarter increased to 72.0% compared to 71.9% in the year-ago quarter due to cost saving initiatives.

Volume incentives as a percentage of net sales increased to 31.1% compared to 30.1% in the year-ago quarter, due to changes in market mix.

Selling, general and administrative expenses (“SG&A”) in the fourth quarter were $43.7 million compared to $39.9 million in the year-ago quarter. The increase was primarily driven by variable costs related to sales growth, partially offset by decreases in compensation. As a percentage of net sales, SG&A expenses increased to 37.0% in the fourth quarter of 2024 compared to 36.6% in the year-ago quarter.

Operating income in the fourth quarter was $4.6 million, or 3.8% of net sales, compared to $5.7 million, or 5.2% of net sales, in the year-ago quarter.

Other income (loss), net, in the fourth quarter of 2024 was $(3.1) million compared to $2.0 million in the year-ago quarter. Other income (loss), net, primarily consisted of foreign exchange losses as a result of net changes in foreign currencies in Asia, Europe and Latin America. The provision for income taxes was $2.2 million in the fourth quarter of 2024 compared to a benefit of $1.7 million in the year-ago quarter.

GAAP net income (loss) attributable to common shareholders was $(0.3) million, or $(0.02) per diluted common share, compared to net income of $9.0 million, or $0.46 per diluted common share, in the year-ago quarter. Net income (loss) attributable to NSP China was $(2.1) million, or $(0.11) per diluted common share, for the fourth quarter of 2024, compared to net income of $1.9 million, or $0.10 per diluted common share, in the prior year quarter.

Non-GAAP net income attributable to common shareholders was $0.0 million, or $0.00 per diluted common share, compared to $8.9 million, or $0.45 per diluted common share, in the year-ago quarter. Adjusted net income, which is a non-GAAP financial measure, is defined here as net income from continuing operations before less-frequent items including, among other things, restructuring expenses and certain tax refunds. A reconciliation of adjusted net income to GAAP net income is provided in the financial tables below.

Adjusted EBITDA in the fourth quarter increased to $10.3 million compared to $9.7 million in the prior year quarter. Adjusted EBITDA, which is a non-GAAP financial measure, is defined here as net income from continuing operations before taxes, depreciation, amortization, and other income (loss) adjusted to exclude share-based compensation expense and certain noted adjustments. A reconciliation of net income (loss) to Adjusted EBITDA is provided in the attached financial tables.

Full Year 2024 Financial Results

 Net Sales by Operating Segment (Amounts in Thousands)
 Year Ended
December 31,
2024
 Year Ended
December 31,
2023
 Percent
Change
 Impact of
Currency
Exchange
 Percent
Change
Excluding
Impact of
Currency
Asia$207,794 $201,251 3.3% $(8,548) 7.5%
Europe 84,837  81,101 4.6   1,085  3.3 
North America 138,849  139,804 (0.7)  (162) (0.6)
Latin America and Other 22,884  23,164 (1.2)  (70) (0.9)
 $454,364 $445,320 2.0% $(7,695) 3.8%


Net sales in 2024 increased 2.0% to $454.4 million compared to $445.3 million in 2023. Excluding unfavorable foreign exchange rates, net sales in 2024 increased 3.8% compared to the prior year.

Gross margin in 2024 decreased to 71.5% compared to 72.1% in 2023. Inflationary pressures and unfavorable foreign currency exchange contributed to the decline.

Volume incentives as a percentage of net sales in 2024 were 30.9% compared to 30.4% in 2023. The slight increase was due to changes in market mix.

SG&A in 2024 were $164.0 million compared to $167.1 million in 2023. The decrease was primarily related to the streamlining of global overhead expenses and reduced service fees due to China’s lower net sales. As a percentage of net sales, SG&A expenses were 36.1% in 2024 compared to 37.5% in 2023.

Operating income in 2024 was $20.1 million, or 4.5% of net sales, compared to $18.7 million, or 4.2% of net sales, in 2023.

Other income (loss), net, in 2024 was $(1.7) million compared to income of $1.5 million in 2023. Other income (loss), net, primarily consisted of foreign exchange losses as a result of net changes in foreign currencies, in Europe and Latin America, which were largely offset by gains in Asia. The provision for income taxes was $10.5 million in 2024 compared to $3.8 million in 2023.

GAAP net income attributable to common shareholders was $7.7 million, or $0.40 per diluted common share, compared to $15.1 million, or $0.77 per diluted common share, in 2023. Net income attributable to NSP China decreased to $1.0 million, or $0.05 per diluted common share, for 2024, compared to $6.7 million, or $0.34 per diluted common share, in the prior year.

Non-GAAP net income attributable to common shareholders in 2024 was $8.9 million, or $0.46 per diluted common share, compared to $18.6 million, or $0.95 per diluted common share, in 2023. Adjusted net income, which is a non-GAAP financial measure, is defined here as net income from continuing operations before less-frequent items including, among other things, restructuring expenses and certain tax refunds. A reconciliation of non-GAAP net income to GAAP net income is provided in the attached financial tables.

Adjusted EBITDA in 2024 increased to $40.5 million compared to $40.4 million in 2023. The increase was driven primarily by the aforementioned increase in operating income. Adjusted EBITDA, which is a non-GAAP financial measure, is defined here as net income from continuing operations before taxes, depreciation, amortization, and other income (loss) adjusted to exclude share-based compensation expense and certain noted adjustments. A reconciliation of net income to Adjusted EBITDA is provided in the attached financial tables.

Balance Sheet and Cash Flow

Net cash provided by operating activities was $25.3 million for the year ended December 31, 2024, compared to $41.2 million in the prior year. Capital expenditures during the twelve months ended December 31, 2024, totaled $11.0 million compared to $10.5 million in 2023. During the twelve months ended December 31, 2024, the Company repurchased 540,000 shares at a total cost of $8.9 million, or $16.42 per share. As of December 31, 2024, the Company had cash and cash equivalents of $84.7 million and no outstanding debt.

Outlook

The Company expects full year 2025 net sales to range between $445 - $470 million and expects adjusted EBITDA to range between $38 - $44 million.

Conference Call

The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its fourth quarter and full year 2024 results.

Date: Tuesday, March 11th, 2025
Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
Toll-free dial-in number: 1-800-717-1738
International dial-in number: 1-646-307-1865
Conference ID: 73865

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.

The conference call will be broadcast live and available for replay here and via the Events section of the Nature’s Sunshine website here.

A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through Tuesday, March 25, 2025.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 1173865

About Nature’s Sunshine Products

Nature’s Sunshine Products (Nasdaq: NATR), a leading natural health and wellness company, markets and distributes nutritional and personal care products in more than 40 countries. Nature’s Sunshine manufactures most of its products through its own state-of-the-art facilities to ensure its products continue to set the standard for the highest quality, safety, and efficacy on the market today. Additional information about the Company can be obtained at its website, www.naturessunshine.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements regarding the Company’s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to the Company’s objectives, plans, strategies and financial results, including outlook for 2025 net sales and adjusted EBITDA. All statements (other than statements of historical fact) that address activities, events or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions, and are based on assumptions and assessments made by management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, including the following:

  • failure to comply with laws and regulations relating to trade restrictions and export controls;
  • laws and regulations regarding direct selling that may prohibit or restrict our ability to sell our products in some markets or require us to make changes to our business model in some markets;
  • current and potential future extensive government regulations to which the Company’s products, business practices and manufacturing activities are subject;
  • registration of products for sale in foreign markets, or difficulty or increased cost of importing products into foreign markets;
  • legal challenges to the Company’s direct selling program or to the classification of its independent consultants;
  • failure of the Company’s independent consultants to comply with advertising laws;
  • product liability claims;
  • impact of anti-bribery laws, including the U.S. Foreign Corrupt Practices Act;
  • the Company’s ability to attract and retain independent consultants;
  • the loss of one or more key independent consultants who have a significant sales network;
  • potential for increased liability and compliance costs relating to the Company’s joint venture for operations in China with Fosun Industrial Co., Ltd.;
  • the effect of fluctuating foreign exchange rates;
  • liabilities and obligations arising from improper activity by the Company’s independent consultants;
  • changes to the Company’s independent consultant compensation plans;
  • geopolitical issues, conflicts or other global events;
  • negative consequences resulting from difficult economic conditions, including the availability of liquidity or the willingness of the Company’s customers to purchase products;
  • risks associated with the manufacturing of the Company’s products;
  • supply chain disruptions, manufacturing interruptions or delays or the failure to accurately forecast customer demand;
  • failure to timely and effectively obtain shipments of products from our suppliers and deliver products to our independent consultants and customers;
  • uncertainties relating to the application of transfer pricing, duties, value-added taxes and other tax regulations, and changes thereto;
  • failure to maintain an effective system of internal controls over financial reporting;
  • cybersecurity threats and exposure to data loss;
  • the storage, processing and use of data, some of which contain personal information, are subject to complex and evolving privacy and data protection laws and regulations;
  • reliance on information technology infrastructure; and
  • the sufficiency of trademarks and other intellectual property rights.

These and other risks and uncertainties that could cause actual results to differ from predicted results are more fully detailed under the caption “Risk Factors” in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports filed on Form 10-Q.

All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in or incorporated by reference into this press release. Except as is required by law, the Company expressly disclaims any obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this press release.

Non-GAAP Financial Measures

We have included information which has not been prepared in accordance with generally accepted accounting principles (GAAP), such as information concerning non-GAAP net income, adjusted EBITDA and net sales excluding the impact of foreign currency exchange fluctuations.

We utilize the non-GAAP measures of non-GAAP net income and adjusted EBITDA in the evaluation of our operations and believe that these measures are useful indicators of our ability to fund our business. These non-GAAP financial measures should not be considered as an alternative to, or more meaningful than, U.S. GAAP net income (loss) as an indicator of our operating performance.

Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of Nature’s Sunshine Products’ performance in relation to other companies. We have included a reconciliation of net income to adjusted EBITDA, the most comparable GAAP measure. We have also included a reconciliation of GAAP net income to non-GAAP net income and non-GAAP adjusted EPS, in the attached financial tables.

Net sales in local currency removes, from net sales in U.S. dollars, the impact of changes in exchange rates between the U.S. dollar and the functional currencies of our foreign subsidiaries. This is accomplished by translating the current period net sales into U.S. dollars using the same foreign currency exchange rates that were used to translate the net sales for the previous comparable period.

We believe presenting the impact of foreign currency fluctuations is useful to investors because it allows a more meaningful comparison of net sales of our foreign operations from period to period. Net sales excluding the impact of foreign currency fluctuations should not be considered in isolation or as an alternative to net sales in U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

With respect to our Adjusted EBITDA outlook for the full year 2024, a quantitative reconciliation to the corresponding GAAP information cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

Investor Relations:

Gateway Group
Cody Slach
1-949-574-3860
NATR@gateway-grp.com

NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share information)
(Unaudited)
 Three Months Ended
December 31,
 Year Ended
December 31,
  2024   2023   2024   2023 
Net sales$118,205  $108,936  $454,364  $445,320 
Cost of sales (33,141)  (30,613)  (129,676)  (124,193)
Gross profit 85,064   78,323   324,688   321,127 
        
Operating expenses:       
Volume incentives 36,805   32,760   140,589   135,320 
Selling, general and administrative 43,709   39,855   164,004   167,058 
Operating income 4,550   5,708   20,095   18,749 
Other income (loss), net (3,101)  1,953   (1,669)  1,453 
Income before provision (benefit) for income taxes 1,449   7,661   18,426   20,202 
Provision (benefit) for income taxes 2,181   (1,683)  10,534   3,786 
Net income (loss) (732)  9,344   7,892   16,416 
Net income (loss) attributable to noncontrolling interests (411)  382   196   1,340 
Net income (loss) attributable to common shareholders$(321) $8,962  $7,696  $15,076 
        
Basic and diluted net income (loss) per common share:       
        
Basic earnings (loss) per share attributable to common shareholders$(0.02) $0.47  $0.41  $0.79 
        
Diluted earnings (loss) per share attributable to common shareholders$(0.02) $0.46  $0.40  $0.77 
        
Weighted-average basic common shares outstanding 18,479   18,988   18,616   19,066 
Weighted-average diluted common shares outstanding 18,479   19,395   19,089   19,466 


NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
As of December 31, 2024   2023 
Assets   
Current assets:   
Cash and cash equivalents$84,700  $82,373 
Accounts receivable, net of allowance for doubtful accounts of $97 and $142, respectively 9,477   8,827 
Inventories 59,443   66,895 
Prepaid expenses and other 6,959   7,722 
Total current assets 160,579   165,817 
Property, plant and equipment, net 39,585   45,000 
Operating lease right-of-use assets 12,799   13,361 
Restricted investment securities - trading 915   747 
Deferred income tax assets 17,644   15,064 
Other assets 9,333   9,784 
 $240,855  $249,773 
    
Liabilities and Shareholders’ Equity   
Current liabilities:   
Accounts payable$8,912  $7,910 
Accrued volume incentives and service fees 20,563   22,922 
Accrued liabilities 25,399   33,162 
Deferred revenue 2,774   1,794 
Income taxes payable 4,117   6,418 
Current portion of operating lease liabilities 3,927   4,547 
Total current liabilities 65,692   76,753 
Liability related to unrecognized tax benefits 628   312 
Long-term portion of operating lease liabilities 10,277   10,376 
Deferred compensation payable 915   747 
Long-term deferred income tax liabilities 1,007   1,401 
Other liabilities 1,345   644 
Total liabilities 79,864   90,233 
    
Shareholders’ equity:   
Common stock, no par value; 50,000 shares authorized, 18,483 and 18,875 shares issued and outstanding as of December 31, 2024, and 2023, respectively 114,577   119,694 
Retained earnings 57,407   49,711 
Noncontrolling interests 5,678   5,482 
Accumulated other comprehensive loss (16,671)  (15,347)
Total shareholders’ equity 160,991   159,540 
 $240,855  $249,773 


NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Year Ended December 31, 2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES:   
Net income$7,892  $16,416 
Adjustments to reconcile net income to net cash provided by operating activities:   
Provision for doubtful accounts    45 
Depreciation and amortization 14,219   11,816 
Noncash lease expense 5,420   4,417 
Share-based compensation expense 4,788   4,893 
Loss on disposal or sale of property and equipment 1,570    
Deferred income taxes (1,662)  (8,525)
Purchase of trading investment securities (141)   
Proceeds from sale of trading investment securities 97   97 
Realized and unrealized gains on investments (124)  (140)
Foreign exchange (gains) losses 1,700   (970)
Changes in operating assets and liabilities:   
Accounts receivable (1,121)  4,921 
Inventories 5,562   995 
Prepaid expenses and other 528   (683)
Other assets (560)  679 
Accounts payable 1,085   1,422 
Accrued volume incentives and service fees (1,565)  1,242 
Accrued liabilities (5,512)  6,991 
Deferred revenue 1,041   (456)
Lease liabilities (5,568)  (4,707)
Income taxes payable (2,938)  2,627 
Liability related to unrecognized tax positions 419   103 
Deferred compensation payable 168   43 
Net cash provided by operating activities 25,298   41,226 
CASH FLOWS FROM INVESTING ACTIVITIES:   
Purchases of property, plant and equipment (10,971)  (10,478)
Net cash used in investing activities (10,971)  (10,478)
CASH FLOWS FROM FINANCING ACTIVITIES:   
Proceeds from revolving credit facility 40,991   16,294 
Principal payments of revolving credit facility (40,991)  (16,294)
Principal payments of long-term debt    (1,174)
Payments related to tax withholding for net-share settled equity awards (1,046)  (385)
Repurchase of common stock (8,859)  (6,397)
Net cash used in financing activities (9,905)  (7,956)
Effect of exchange rates on cash and cash equivalents (2,095)  (451)
Net increase in cash and cash equivalents 2,327   22,341 
Cash and cash equivalents at beginning of the year 82,373   60,032 
Cash and cash equivalents at end of the year$84,700  $82,373 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:   
Cash paid for income taxes, net of refunds$14,788  $9,264 
Cash paid for interest 119   539 


NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(Amounts in thousands)
(Unaudited)
 Three Months Ended
December 31,
 Year Ended
December 31,
  2024   2023   2024   2023 
Net income (loss)$(732) $9,344  $7,892  $16,416 
Adjustments:       
Depreciation and amortization 4,024   3,053   14,219   11,816 
Share-based compensation expense 1,208   1,103   4,788   4,893 
Other (income) loss, net* 3,101   (1,953)  1,669   (1,453)
Provision (benefit) for income taxes 2,181   (1,683)  10,534   3,786 
Other adjustments (1) 485   (135)  1,442   4,963 
Adjusted EBITDA$10,267  $9,729  $40,544  $40,421 
        
        
(1) Other adjustments       
Loss on disposal of property and equipment$  $  $1,330  $ 
Restructuring and other related expenses 485      1,104    
Charge (recovery) related to Japan loss    (135)     5,712 
VAT refund       (992)  (749)
Total adjustments$485  $(135) $1,442  $4,963 


* Other (income) loss, net is primarily comprised of foreign exchange (gains) losses, interest income, and interest expense.


NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME (LOSS) TO
NON-GAAP NET INCOME (LOSS) and NON-GAAP ADJUSTED EPS
(Amounts in thousands)
(Unaudited)
 Three Months Ended
December 31,
 Year Ended
December 31,
  2024   2023   2024   2023 
Net income (loss)$(732) $9,344  $7,892  $16,416 
Adjustments:       
Loss on disposal of property and equipment       1,330    
Restructuring and other related expenses 485      1,104    
Charge (recovery) related to Japan loss    (135)     5,712 
VAT refund       (992)  (749)
Tax impact of adjustments (121)  34   (276)  (1,428)
Total adjustments 364   (101)  1,166   3,535 
Non-GAAP net income (loss)$(368) $9,243  $9,058  $19,951 
        
Reported net income (loss) attributable to common shareholders$(321) $8,962  $7,696  $15,076 
Total adjustments 364   (101)  1,166   3,535 
Non-GAAP net income attributable to common shareholders$43  $8,861  $8,862  $18,611 
        
Basic income (loss) per share, as reported$(0.02) $0.47  $0.41  $0.79 
Total adjustments, net of tax 0.02   (0.01)  0.06   0.19 
Basic income per share, as adjusted$  $0.46  $0.47  $0.98 
        
Diluted income (loss) per share, as reported$(0.02) $0.46  $0.40  $0.77 
Total adjustments, net of tax 0.02   (0.01)  0.06   0.18 
Diluted income per share, as adjusted$  $0.45  $0.46  $0.95 

FAQ

What were Nature's Sunshine's (NATR) Q4 2024 revenue and growth rates?

NATR reported Q4 2024 revenue of $118.2 million, up 8.5% year-over-year, or 10% in constant currency.

How did Nature's Sunshine (NATR) perform in different regions during Q4 2024?

Asia Pacific region grew 21%, while North America showed strong digital sales growth of 17%.

What is Nature's Sunshine's (NATR) financial outlook for 2025?

NATR expects 2025 net sales of $445-470 million and adjusted EBITDA between $38-44 million.

How many shares did Nature's Sunshine (NATR) repurchase in 2024?

NATR repurchased 540,000 shares at a total cost of $8.9 million, averaging $16.42 per share.

What was Nature's Sunshine's (NATR) full-year 2024 earnings per share?

NATR reported full-year 2024 earnings of $0.40 per diluted share, down from $0.77 in 2023.
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