Adjusted EBITDA in the third quarter was up by 50% to $10.3 million, which the company attributes to its increase in operating income. 

“Nature’s Sunshine delivered another strong quarter, with double-digit growth in Asia/Pacific and North America,” said Nature’s Sunshine CEO Terrence Moorehead. “APAC saw strong order growth with a 12% increase in local currency sales, while the North America business continued to respond well to our digital investments and improved field activation, delivering 11% growth for the quarter, the strongest growth in many years. We’re also beginning to see the results of our gross margin initiatives which drove a 150-basis point improvement in gross margin in the third quarter. Since the first quarter of this year, gross margin has improved from 70.8% to 73.1% in the third quarter of 2023. These results demonstrate the strong underlying fundamentals of our business. Our continued above-market growth and aggressive cost initiatives combined to deliver a 50%+ increase in EBITDA in Q3 to $10.3 million. We are excited about our continued progress and the opportunities for further growth and profitability as we move forward.” 

The company now expects full year 2023 net sales to range between $443-$451 million with an adjusted EBITDA between $37-$40 million. 

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Asia was the company’s leading operating segment, with $54.8 million in net sales during the quarter, a 15.8% increase over the prior year’s quarter. Total operating income in the second quarter was $7 million, or 6% of net sales, an increase from last year’s $5.8 million and 5.5% of net sales. 

“The momentum established in the beginning of the year strengthened in the second quarter as we delivered our second-best sales quarter in our history with net sales of $117 million, or $119 million on a constant currency basis—up 14% versus the prior year,” said Terrence Moorehead, Nature’s Sunshine CEO. “We continued to experience sequential sales growth in nearly all our markets as our strategic initiatives gained momentum. Strong sales growth and improved gross margin helped drive a 26% increase in adjusted EBITDA to $11 million for the quarter. Leading this growth was strength in Asia/Pacific, followed by further stabilization in Central and Eastern Europe, and a return to growth in North America supported by our digital investments and improved field activation. Our second quarter results are indicative of the strong underlying fundamentals of our business that allowed us to drive results in the face of challenging external headwinds. As we move forward, we will continue to focus on driving customer growth and creating a more resilient business supported by our strong balance sheet and our global team of experts on the ground.” 

The company expects full year 2023 net sales to now range between $440-$455 million with an adjusted EBITDA between $34-$38 million. 

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Gross profit margin was up to 70.8% from 68.8% in the first quarter of 2022, while operating income was $0.2 million, compared to $1.3 million during the same quarter last year. 

Net cash provided by operating activities was $9.3 million, an increase from $7.9 million during Q1 2022. The company ended the quarter with cash and cash equivalents of $65.7 million and $1 million of debt. 

“We started the year on a strong note, with reported first quarter net sales of $109 million, or $113 million when excluding the impact of foreign exchange, up 2.4% versus prior year and adjusted EBITDA was $9.1 million, up 12%,” said Terrence Moorehead, Nature’s Sunshine Chief Executive Officer. “We’re pleased with the momentum we’re seeing as markets like Japan and Taiwan continued to deliver strong double-digit growth, while most of our other markets delivered solid sequential improvement to the top-line with meaningful progress and signs of stabilization in Central and Eastern Europe and digital initiatives starting to take hold in North America. We continued to operate in an extremely challenging external environment, but the underlying fundamentals and strength of our business remained firmly intact, and the steps we’ve taken to create a more consumer-focused business continued to help us build momentum in the quarter.” 

The post Nature’s Sunshine Reports Q1 2023 Net Sales of $108.6 Million  first appeared on Direct Selling News.

These honors were presented through four Stevie Awards, including two Silver Stevies for Achievement in Product Innovation and Achievement in Environment, Social and Governance and two Bronze Stevies for Energy Industry Innovation of the Year and Achievement in Corporate Social Responsibility. 

“We are honored to receive four Stevie Awards in this year’s American Business Awards,” said Terrence Moorehead, Nature’s Sunshine President and Chief Executive Officer. “These awards stand as a testament to the dedication and commitment of our employees while also validating the strategies we’ve put in place to help us become the nutritional supplement company of the future.” 

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Adjusted EBITDA was $8 million in the fourth quarter and $32 million, down from $49.4 million, for the full year 2022. 

“During the fourth quarter, we continued to see the underlying fundamentals of our business hold, despite unprecedented pressure from external headwinds,” said Terrence Moorehead, Nature’s Sunshine CEO. “For the quarter, we delivered sales of $103 million on a reported basis, or $110 million when removing the impact of foreign exchange, which is resilient considering last year’s record-breaking sales growth. For the full year, we delivered the second highest sales in the company’s history, driven by strong returns on our targeted investments designed to optimize our business. In fact, we continued to see strong growth in Asia, up 5.3% versus prior year, as our investments in field activation supported healthy growth in orders and sales.” 

Asia was the strongest operating segment for the company, accounting for almost half of net sales during the fourth quarter (43%) and full year (44%).  

Gross margin in the fourth quarter held steady at 72.2%, compared to 74% during the same quarter of 2021. Selling, general and administrative expenses in the fourth quarter were $38.8 million, compared to $45.4 million during last year’s quarter. Operating income during the fourth quarter was $4.2 million, down from $7.5 million last year. 

The company ended the year with cash and cash equivalents of $60 million and an outstanding debt of $1.2 million. 

“As we look to 2023, we remain confident that our growth strategies will allow Nature’s Sunshine to gain market share and be better positioned for the future,” Moorehead said. “Consistent with these objectives, we will continue to prioritize investments in digital, field activation, manufacturing efficiency, and brand-building to enhance the customer experience. As such, we look forward to driving measurable growth in 2023.” 

The post Nature’s Sunshine Net Sales Reach $421.9 Million in 2022  first appeared on Direct Selling News.

Moorehead joined Nature’s Sunshine in 2018 and has focused on the digital space and customer experience. 

CEO Today selected this year’s c-suite award winners based on a metric that considered who “exceptionally navigated” the incredible challenges experienced in recent years by implementing innovation, strategy and creative business approaches. 

“I’m grateful to receive this award,” said Terrence Moorehead, Nature’s Sunshine CEO. “It’s a privilege to lead a company that aims to deliver tangible, powerful results. It’s a testament to the efficacy of our strategies and the hundreds of employees who work to create powerful stories around our products. We’re making a difference and working to become the nutritional supplement company of the future.” 

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These awards include: 

• Gold Award for Marketing Campaign of the Year – Health, Fitness & Wellness 
• Silver Award for Company of the Year – Health Products and Services 
• Silver Award for Brand Renovation of the Year 

“We are both honored and excited to be recognized by the American Business Awards as we continue to transform our business,” said Terrence Moorehead, Nature’s Sunshine President and Chief Executive Officer. “These Stevie Awards stand as a testament to our strategies and the remarkable efforts and accomplishments of our team as we work to reimagine our business and share the healing power of nature with the world.” 

The post Nature’s Sunshine Wins Three American Business Awards  first appeared on Direct Selling News.

Adjusted EBITDA in the fourth quarter increased 54.7% to $11.6 million, while the full year adjusted EBITDA increased 36.6% year-over-year to $49.4 million. 

“2021 was another record-breaking year for Nature’s Sunshine, as net sales and adjusted EBITDA reached historic highs,” said Terrence Moorehead, CEO of Nature’s Sunshine. “This was our sixth consecutive quarter of historic record-breaking growth, driven by effective implementation of our five global growth strategies. Importantly, 2021 was our first full-year implementing the new strategies, and while they have clearly revitalized the business, it’s still early and we believe we’re on the front-end of the growth curve. Overall, we’re ahead of schedule and delivering strong results across all our operating geographies and channels.” 

The fourth quarter experienced higher costs in service fees in China and direct selling costs associated with increased sales. Those impacts, along with sales growth initiatives in some markets, led to an increase in selling, general and administrative (SG&A) expenses in the fourth quarter of 2021, totaling $45.4 million. These SG&A expenses, as a percentage of net sales, were 38.2% in the fourth quarter, compared to 37.1% in the same quarter of 2020. SG&A expenses in 2021 were $154.1 million, up from $131.3 million in 2020. As a percentage of net sales, these SG&A costs were 34.7%. 

The company attributes its record net sales in 2021 to its continued business transformation initiatives, the launch of new products and the easing of COVID-19 restrictions in key markets. Gross margin for the company in 2021 increased 30 basis points to 74%, a slight increase over 2020. 

Net cash provided by operating activities was slightly down from 2020, ending the year at $34.6 million. The company also repurchased 439,000 shares at a total cost of $7.4 million. Cash and cash equivalents in 2021 were $86.2 million with an outstanding debt of $2.4 million. 

“Looking forward to 2022, we continue to invest in our digital, personalization, and manufacturing capabilities to improve the customer experience and will strengthen our branding to drive customer growth,” Moorehead said. “We believe an intensified focus on our five global growth strategies will continue to move our business in the right direction and help us gain traction, over time. Our global strategies are an important aspect of our capital allocation plan and we will continue to invest ahead of growth to accelerate market penetration.” 

The post Nature’s Sunshine Net Sales in 2021 Reach Record $444.1 Million first appeared on Direct Selling News.

“Nature’s Sunshine has brought the healing power of nature to millions of Americans for nearly 50 years,” said Terrence Moorehead, Nature’s Sunshine CEO. “This next iteration of our journey is leveraging the ‘Healing Power of Nature’ through our AIVIA nutritional supplement line to support powerful, focused nutrition for every active lifestyle.” 

Along with this launch, the company announced it will roll out a personalized supplement routine later this year. 

The post Nature’s Sunshine Launches AIVIA Nutritional Supplement Line first appeared on Direct Selling News.

Hughes dedicated nearly five decades to revolutionizing the herbal and natural wellness industry and grew a multimillion-dollar global enterprise from a small, family-owned business that began with encapsulated herbs sold to health food stores. 

Hughes, along with his wife Kristine and family, found a market for their products among complementary and alternative healthcare practitioners across the country and spread their mission to more than 40 countries worldwide. 

“Loved by both his immediate family and all of his Nature’s Sunshine family, Gene will be dearly missed, and his legacy will continue to leave an impact across our business,” said Nature’s Sunshine Chief Executive Officer Terrence Moorehead. “Gene loved this company, and his personal interactions with consultants and employees forged relationships around the globe.” 

Hughes served as the company’s first president and remained active within the Nature’s Sunshine family throughout his life.  

“Gene dedicated his life to helping others discover greater wellbeing and opportunity through Nature’s Sunshine,” said Moorehead. “We will continue to honor his life and memory through our efforts to share nature’s healing power with the world.” 

The post In Memoriam: Nature’s Sunshine Co-Founder Gene Hughes first appeared on Direct Selling News.