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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Net sales of $88.8 million decreased 0.5 percent compared to $89.3 million in the third quarter of 2017. On a local currency basis, net sales decreased 0.4 percent compared to 2017. The decline was primarily related to $2.8 million decline in net sales in NSP Americas and a $1.2 million decline in Synergy Europe, partially offset by growth in Synergy Asia Pacific, NSP Russia, Central and Eastern Europe and NSP China.

“We continued to enjoy positive sales trends in China, Synergy Asia and Russia, Central and Eastern Europe,” said Terrence Moorehead, chief executive officer. “However, this growth was offset by declines in NSP America and Synergy Europe and Americas during the third quarter, which contributed to the modest decline in consolidated net sales. We remain pleased with the market development in China and sales momentum in Korea continues to drive Synergy Asia. In NSP Americas, where our model is more mature and grounded in retailing, sales moderation largely reflects ongoing distributor attrition and the less vibrant nutritional supplement retailing environment in the United States. Looking forward, my initial priorities are to evaluate our opportunities to further build the business while driving profitable growth and shareholder value.”

For the nine months ended September 30, 2018, net sales increased 5.4 percent to $267.4 million compared to $253.7 million in the nine months ended September 30, 2017.

To view the complete Nature’s Sunshine Q3 2018 financial report, click here.

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Gregory L. Probert

Probert will continue in his roles as CEO and chairman of the board, and as chairman will be deeply involved in the selection and on-boarding of his successor. The board of directors has engaged a leading national executive search firm to identify Probert’s successor as CEO. Upon transitioning his responsibilities to his successor, Probert will continue to serve as chairman of the company’s board.

“Greg has been an invaluable part of Nature’s Sunshine during his tenure,” said Mary Beth Springer, board member and lead independent director. “He initially joined the company as vice chairman of the board and later stepped into the CEO role. He has enhanced the organization at every level, adding key leadership talent, investing in infrastructure and navigating new growth opportunities. On behalf of the Board of Directors, we want to thank him for his unwavering commitment to this company and look forward to continuing to work with him on the board to drive value for our shareholders.”

“We are fortunate to have had Greg lead our incredible company over the last five years,” said Kristine Hughes, founder and member of the Board of Directors. “From day one, he has not only embraced Nature’s Sunshine’s purpose of life transformation and commitment to unmatched product quality, but he has enhanced our efforts, our products, our science and our quality leadership. The strength of our business, evident in our 46-year history, is the great distributors and associates across our global organization who strive to fulfill our mission and purpose. Greg’s contributions have added to a foundation with a long history and we are confident that we will continue to build upon our legacy of nutrition leadership.”

Probert was appointed CEO in October 2013. He has served as executive chairman since January 2013. Prior to this, he served as executive vice chairman since June 2011, and served as an independent consultant to the company from October 2010 to June 2011.

“It has been a privilege serving Nature’s Sunshine over the last seven years, both on the board and as CEO,” said Probert. “We have considerable opportunity in front of us, and I will remain committed to supporting our executive and governance teams to ensure we are well positioned to capitalize on all our opportunities. I look forward to continuing to serve this great company as we continue to drive value into the future.”

Nature’s Sunshine also announced it expects net sales for the first quarter of 2018 to range between $86.5 million and $87.5 million, representing 4.1 percent to 5.3 percent growth compared to net sales of $83.1 million in the first quarter of 2017. The year-over-year growth was primarily the result of growth in the company’s Synergy business unit, growth in NSP Russia, Central and Eastern Europe and a moderated rate of growth in NSP China, partially offset by a decline in NSP Americas.

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For the fourth quarter, net sales increased 5.2 percent to $88.3 million; for the full year, sales increased 0.3 percent to $342.0 million.

“Our fourth quarter results reflect continued year-over-year net sales growth, driven by gains across our Synergy Worldwide markets and strong growth in our NSP business in Russia, Central and Eastern Europe,” said Chairman and CEO Gregory L. Probert.

“We believe the disruptions to our North America business as a result of a new ERP system deployed in April 2017 are now behind us, but we have additional work to do to re-energize the market,” Probert continued. “We posted growth in China and continue to emphasize expanding our direct selling efforts in this market with the goal of building a long-term profitable new market. Consistent with our initiative to evaluate our cost structure through a review of our direct and indirect costs, during the fourth quarter we took some actions to reduce SG&A, which led to some nonrecurring restructuring and severance costs during the period. Our focus will continue to be to support and grow our business while matching our organizational structure to our business outlook in order to enhance profitability and shareholder value.”

For the fourth quarter, net sales of $88.3 million increased 5.2 percent, compared to $84.0 million in the fourth quarter of 2016. On a local currency basis, net sales increased 3.8 percent as compared to the fourth quarter of 2016. NSP China net sales increased 200.3 percent, compared to the same period in 2016. Synergy WorldWide net sales increased 3.6 percent compared to the same period in 2016 (or 0.4 percent in local currencies). NSP Russia, Central and Eastern Europe net sales increased 7.9 percent compared to the same period in 2016. NSP Americas net sales decreased 4.9 percent compared to the same period in 2016 (or 5.1 percent in local currencies). Net sales were impacted by $1.2 million of favorable foreign currency exchange rate fluctuations.

For the full-year 2017, net sales of $342.0 million increased 0.3 percent, compared to $341.2 million in 2016. On a local currency basis, net sales decreased 0.2 percent as compared to 2016. NSP China net sales increased approximately 91.4 percent compared to the same period in 2016. NSP Russia, Central and Eastern Europe net sales increased approximately 7.3 percent compared to the same period in 2016. NSP Americas net sales decreased approximately 5.6 percent compared to the same period in 2016 (or 5.7 percent in local currencies). Synergy WorldWide net sales decreased approximately 0.8 percent compared to the same period in 2016 (or 1.7 percent in local currencies). The weakening of the U.S. dollar versus local currencies resulted in an approximate 0.5 percent or $1.6 million increase in net sales during the year.

To read the full Nature’s Sunshine Q4 report, click here.

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“We are pleased to report improved third quarter sales performance, returning to both year-over-year and sequential growth led by a recovery at Synergy Worldwide and strong growth in China,” said Gregory L. Probert, Chairman and CEO. “The disruptions that impacted sales earlier in the year have moderated with enhanced distributor engagement in Korea and improvements in the performance in North America. We will continue to focus on regaining sales growth in these two markets while driving continued growth in China as we expand our direct selling efforts. The growth at Synergy Worldwide was led by strength in Japan and our NSP business in Russia, Central and Eastern Europe contributed another quarter of growth.”

Synergy WorldWide net sales increased approximately 10.0 percent compared to the same period in 2016 (or 10.7 percent in local currencies). NSP Russia, Central and Eastern Europe net sales increased approximately 11.0 percent compared to the same period in 2016. NSP Americas net sales decreased approximately 4.5 percent compared to the same period in 2016 (or 5.2 percent in local currencies). Net sales were impacted by $0.2 million of favorable foreign currency exchange rate fluctuations.

Year to Date Results

For the first nine months of 2017, net sales of $253.7 million decreased 1.3 percent, compared to $257.2 million in 2016. On a local currency basis, net sales decreased 1.5 percent as compared to 2016.

China and New Markets net sales increased approximately 37.2 percent compared to the same period in 2016. NSP Russia, Central and Eastern Europe net sales increased approximately 12.4 percent compared to the same period in 2016. NSP Americas net sales decreased approximately 5.9 percent compared to the same period in 2016 (or 6.0 percent in local currencies).

Synergy WorldWide net sales decreased approximately 2.2 percent compared to the same period in 2016 (or 2.4 percent in local currencies). A modest overall weakening of the U.S. dollar versus local currencies resulted in an approximate 0.2 percent or $0.4 million increase of its net sales during the period.

To read the full Nature’s Sunshine Q3 2017 financial report, click here.

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