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

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 EndedDecember 31, 2024 Three Months EndedDecember 31, 2023 PercentChange Impact ofCurrencyExchange PercentChangeExcludingImpact ofCurrencyAsia$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 EndedDecember 31, 2024 Year EndedDecember 31, 2023 PercentChange Impact ofCurrencyExchange PercentChangeExcludingImpact ofCurrencyAsia$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, 2025Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)Toll-free dial-in number: 1-800-717-1738International dial-in number: 1-646-307-1865Conference 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: 1-844-512-2921International replay number: 1-412-317-6671Replay 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; andthe 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 GroupCody Slach1-949-574-3860NATR@gateway-grp.com NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands, except per share information)(Unaudited) Three Months EndedDecember 31, Year EndedDecember 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 SUBSIDIARIESCONDENSED 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 SUBSIDIARIESCONDENSED 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 $9,264 Cash paid for interest 119 539 NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIESRECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (Amounts in thousands)(Unaudited) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Net income (loss)$(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 $4,963 * Other (income) loss, net is primarily comprised of foreign exchange (gains) losses, interest income, and interest expense. NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIESRECONCILIATION OF GAAP NET INCOME (LOSS) TONON-GAAP NET INCOME (LOSS) and NON-GAAP ADJUSTED EPS (Amounts in thousands)(Unaudited) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Net income (loss)$(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

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

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