Q3 2024 Nature's Sunshine Products Inc Earnings Call Transcript
Key Points
- Natures Sunshine Products Inc (NATR) reported the highest sales volume of the year in Q3 2024, with $114.6 million in sales, marking a 4% increase compared to the previous year on a local currency basis.
- Digital sales in North America grew by 17% in Q3, driven by improvements in the digital platform, including enhanced site load speeds and conversion rates.
- The Asia Pacific region saw significant sales increases, with Taiwan and Japan experiencing growth of 20% and 34% respectively, due to successful field activation initiatives.
- The company achieved $5 million in annualized cost savings, contributing to improved profitability, with adjusted EBIT increasing by 5% to $10.7 million compared to the prior year.
- Natures Sunshine Products Inc (NATR) raised its full-year 2024 net sales guidance to between $443 million and $448 million, reflecting confidence in continued growth.
- Sales in North America decreased by 3% in Q3, attributed to short-term challenges following the digital platform upgrade and consumer spending constraints.
- China's sales declined by 23% in local currency due to macroeconomic weakness affecting consumer spending, posing a significant challenge to growth in the region.
- Gross margin decreased by 172 basis points to 71.3% in Q3, primarily due to higher inflation and unfavorable foreign currency exchange rates.
- Operating income decreased to $5.3 million, or 4.6% of net sales, compared to $5.8 million, or 5.2% of net sales, in the year-ago quarter.
- Net cash provided by operating activities declined to $13.1 million from $31.6 million in the prior year period, driven by timing of payments for accrued liabilities and receivables.
Good afternoon, everyone. And thank you for participating in today's conference call to discuss Nature's Sunshine's financial results for the third quarter ended September 30, 2024. Joining us today are Nature's Sunshine CEO; Terrence Moorehead, CFO; Shane Jones and General Counsel; Nathan Brower.
(Operator Instructions)
I would like to turn the call over to Mr. Brower as he reads the company's safe Harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Nate, please go ahead.
'- -
Thank you.
Good afternoon and thanks for joining our conference call to discuss our third quarter, 2024 financial results.
I'd like to remind everyone that this call is available for replay via telephonic dial in through November 21st and via a live webcast that will be posted in the investor relations
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
