Financial Results - Nature's Sunshine Products, Inc. reported financial results for Q4 and full year ended December 31, 2024[5]. - A press release detailing the financial results was issued on March 11, 2025[5]. - The financial results include a reconciliation of GAAP to non-GAAP figures[7]. Compliance and Regulations - The report does not indicate any significant changes in accounting standards compliance[4]. - The report was submitted in compliance with the Securities Exchange Act of 1934[10]. - The report is not deemed "filed" under the Exchange Act, indicating it is for informational purposes only[6]. Company Information - The company is listed on the Nasdaq Capital Market under the trading symbol NATR[3]. - The company is based in Lehi, Utah, with a principal executive office located at West Bluegrass Blvd., Suite 100[2]. - The executive vice president and general counsel, Nathan G. Brower, signed the report[12]. Non-GAAP Financial Information - The company emphasized the importance of non-GAAP financial information for evaluating period-to-period results[7].

Sales 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].

Core Viewpoint - Nature's Sunshine Products, Inc. reported strong financial results for Q4 and full year 2024, highlighting significant growth in various regions and a commitment to quality and innovation despite macroeconomic challenges [2][3]. Financial Summary Fourth Quarter 2024 - Revenue reached $118.2 million, an increase of 8.5% year-over-year, and 10% on a constant currency basis [4][6]. - Asia Pacific saw a remarkable growth of 21%, while North America digital sales increased by 17% [2]. - Gross margin improved to 72.0% from 71.9% in the previous year due to cost-saving initiatives [5]. - GAAP net loss attributable to common shareholders was $(0.3) million, or $(0.02) per diluted share, compared to net income of $9.0 million, or $0.46 per diluted share in the prior year [10][11]. Full Year 2024 - Total net sales increased by 2.0% to $454.4 million compared to $445.3 million in 2023, with a 3.8% increase when excluding foreign exchange impacts [13]. - GAAP net income attributable to common shareholders was $7.7 million, or $0.40 per diluted share, down from $15.1 million, or $0.77 per diluted share in 2023 [17]. - Adjusted EBITDA was $40.5 million, slightly up from $40.4 million in 2023 [19]. Operational Insights - Selling, general and administrative expenses (SG&A) for Q4 were $43.7 million, up from $39.9 million in the previous year, reflecting variable costs related to sales growth [7]. - Operating income for Q4 was $4.6 million, or 3.8% of net sales, compared to $5.7 million, or 5.2% of net sales in the prior year [8]. Balance Sheet and Cash Flow - As of December 31, 2024, the company had cash and cash equivalents of $84.7 million and no outstanding debt [20]. - Net cash provided by operating activities was $25.3 million for the year, down from $41.2 million in the prior year [20]. Outlook - The company expects full year 2025 net sales to range between $445 million and $470 million, with adjusted EBITDA projected between $38 million and $44 million [21].

Group 1 - Nature's Sunshine has launched a new brand platform called "Be More Earth," emphasizing its commitment to natural health and wellness [1][2] - The brand platform highlights the company's history of utilizing nature's healing powers and sourcing high-quality ingredients for over 50 years [1][2] - The visual design of the brand is inspired by the Earth, showcasing its uniqueness and restorative power [1][2] Group 2 - The new platform aims to differentiate Nature's Sunshine from competitors using synthetic ingredients, focusing on the purity and honesty of natural elements [2] - The marketing strategy includes a tone of honesty and humility, allowing the ingredients to speak for themselves [2] - The launch of the new work will be visible across various channels, including the company's website, social media platforms, and paid media [3] Group 3 - Nature's Sunshine Products operates in over 40 countries, manufacturing most of its products in state-of-the-art facilities to ensure high quality and safety [4] - The company is publicly traded on NASDAQ under the ticker symbol NATR [4] - Crispin, the creative agency behind the new brand platform, has a long history of redefining creativity in advertising since 1965 [5]

Group 1 - Nature's Sunshine has launched a new brand platform called "Be More Earth," emphasizing its commitment to natural ingredients and the healing power of the Earth [1][2] - The brand's new tone focuses on honesty, humility, and appreciation for nature, showcasing the purity of its ingredients and the symbiotic relationship between humans and the Earth [2] - The integrated marketing campaign will be launched across various platforms, including the company's website, email, storefronts, and paid media channels such as Meta, Pinterest, and YouTube [3] Group 2 - Nature's Sunshine Products (Nasdaq: NATR) operates in over 40 countries, manufacturing nutritional and personal care products in its own facilities to ensure high quality and safety standards [4] - Crispin, the creative agency behind the new brand platform, has a long history of redefining creativity in advertising since 1965 and is recognized as one of the most awarded agencies [5]

Core Viewpoint - Nature's Sunshine Products, Inc. will hold a conference call on March 11, 2025, to discuss its financial results for Q4 and the full year ended December 31, 2024 [1][2]. Company Information - Nature's Sunshine is a leading manufacturer of high-quality herbal and nutritional supplements, marketing and distributing products in over 40 countries [3]. - The company manufactures most of its products in its own state-of-the-art facilities to ensure high quality, safety, and efficacy [3]. Conference Call Details - The conference call will be hosted by CEO Terrence Moorehead and CFO Shane Jones, followed by a Q&A session [2]. - The call is scheduled for 5:00 p.m. Eastern time (3:00 p.m. Mountain time) [2]. - Participants can join via toll-free number 1-800-717-1738 or international number 1-646-307-1865, with a Conference ID of 73865 [2]. - A live broadcast of the call will be available, and a replay will be accessible after 8:00 p.m. Eastern time on the same day until March 25, 2025 [3].

Core Insights - Nature's Sunshine Products, Inc. appointed Ms. Katie A. May to its board of directors, effective January 30, 2025, increasing the board to ten members, with nine being independent directors [1][2] Group 1: Appointment Details - Ms. Katie A. May brings extensive experience in scaling high-growth B2C, ecommerce, and logistics companies, which is expected to enhance Nature's Sunshine's digital capabilities and drive shareholder value [2] - Ms. May previously founded and served as CEO of Kidspot, an online publisher in Australia, and later led ShippingEasy, an ecommerce software solution, which she successfully sold to Stamps.com [2] Group 2: Ms. May's Background - Ms. May has held leadership roles in various companies, including serving on the boards of Vivi International Pty Ltd., ROKT Pte Ltd., and Onramp Funds, Inc. [2] - She has a strong educational background with an M.B.A. and a B.B.A. in Accounting from The University of Texas at Austin [2] Group 3: Company Overview - Nature's Sunshine Products is a leading manufacturer of herbal and nutritional supplements, distributing products in over 40 countries [4] - The company manufactures most of its products in state-of-the-art facilities to ensure high quality, safety, and efficacy [4]

Core Viewpoint - Nature's Sunshine Products, Inc. has appointed Mr. Steven Fasching to its board of directors, effective November 6, 2024, expanding the board to nine members, with eight being independent directors [1][2]. Group 1: Appointment Details - Mr. Steven Fasching brings significant financial expertise and public company experience, having served as Chief Financial Officer of Deckers Brands since June 2018 [2]. - Fasching has over 30 years of experience in financial and strategic planning for multi-billion-dollar organizations, enhancing the leadership of Nature's Sunshine as it undergoes business transformation [2]. Group 2: Company Overview - Nature's Sunshine Products is a leading manufacturer of herbal and nutritional supplements, marketing and distributing products in over 40 countries [3]. - The company manufactures most of its products in state-of-the-art facilities to ensure high quality, safety, and efficacy [3].

Financial Data and Key Metrics Changes - Net sales for Q3 2024 were $114.6 million, a 3% increase compared to $111.2 million in the same quarter last year, or a 4% increase when excluding foreign exchange impacts [19] - Adjusted EBITDA increased by 5% to $10.7 million compared to $10.3 million in the prior year [29] - GAAP net income attributable to common shareholders for Q3 was $4.3 million, or $0.23 per diluted share, compared to $2.8 million, or $0.14 per diluted share in the prior year [28] Business Line Data and Key Metrics Changes - North America sales decreased by 3%, while digital sales in North America grew by 17% [12][26] - Asia Pacific sales increased by 6% to $55.3 million, or up 9% when excluding foreign exchange impacts, driven by strong growth in Japan and Taiwan [20] - Sales in South Korea grew by 3% in constant currency, while China saw a decline of 23% in local currency [13][23] Market Data and Key Metrics Changes - Sales in Taiwan increased by 20% and in Japan by 34% on a constant currency basis [20] - Central Europe sales grew by 23%, or 17% in local currency, driven by new product launches and market expansion [24] - The overall sales in Asia Pacific increased by 9% in local currency, indicating positive consumer response to growth strategies [16] Company Strategy and Development Direction - The company is focused on executing global growth strategies, enhancing digital capabilities, and improving consumer propositions [6][7] - Investments in consumer-friendly product packs in Asia Pacific markets have led to significant sales increases [13] - The company aims to expand its digital live streaming platform to attract and retain more customers in China [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term potential of the omnichannel business despite current challenges in certain markets [18] - The company raised its full-year 2024 net sales guidance to a range of $443 million to $448 million, reflecting optimism about future performance [31] - Management acknowledged headwinds in the North American core business due to consumer spending constraints and the transition to a new digital platform [42] Other Important Information - The company achieved $5 million in annualized cost savings, contributing to improved profitability [17] - Cash and cash equivalents stood at $78.7 million with no debt, indicating a strong balance sheet [29] - The company repurchased approximately $8.4 million worth of stock year-to-date, with $9.2 million remaining on its share repurchase program [30] Q&A Session Summary Question: Insights on the updated guidance and regional performance expectations - Management indicated that Q4 is expected to be flattish, with growth in APAC regions not continuing at the same rate as Q3 [34] - China is expected to see a slight improvement but will still experience significant declines [35] Question: Details on new consumer product packs and Power Line performance - The new product packs focus on vitality-driven offerings to attract a broader customer base and encourage repeat purchases [37] - The Power Line products are performing well in Europe and North America, with plans for cautious expansion [39] Question: Clarification on headwinds in North America and cost-saving initiatives - Headwinds are attributed to consumer spending constraints and the transition to a new digital platform, which is expected to improve in Q4 [42] - The company is on track with cost-saving initiatives, expecting to exceed targets in 2025 [47]

| --- | --- | --- | --- | |------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | CONNECT WITH | | | | | | | | | | NATURE | | | | | Q3 2024 Earnings Presentation November 7, 2024 | | | | | | | | | | | | | | S A F E H A R B O R S T A T E M E N T S Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking statements regarding the Company's future business expectations, which are subject to the safe harbor provis ...