Nature’s Sunshine Products ((NATR)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Nature’s Sunshine Products kicked off 2025 with a robust earnings call, showcasing growth in pivotal markets and improved profitability. The sentiment was optimistic, driven by strong financial performance, though tempered by challenges in North America and uncertainties surrounding tariffs and broader economic conditions.
Strong Start to 2025
The first quarter of 2025 saw Nature’s Sunshine Products exceed analyst expectations with revenues reaching $113 million, or $115 million on a constant currency basis, marking a 5% increase from the previous year. The company also reported a significant rise in adjusted EBITDA, which climbed 20% to $11 million compared to the prior year.
Asia Pacific and Europe Growth
The Asia Pacific region was a standout performer, with revenue increasing by 10% on a local currency basis. Notably, Japan and Taiwan contributed to this growth with sales surging by 24% and 18%, respectively. In Europe, sales rose by 9% on a constant currency basis, driven by a 16% increase in Central Europe.
Digital Sales Expansion
Digital sales in North America were a bright spot, growing by 19% compared to the previous year, outpacing the supplement industry’s digital growth rate. The company’s Subscribe & Thrive autoship program was a key driver, accounting for approximately 26% of total sales.
Sustainability Achievements
Nature’s Sunshine made significant strides in sustainability, achieving a 50% reduction in carbon emissions and a 35% reduction in waste. Additionally, the company now utilizes 100% solar power at its manufacturing facility.
Improved Profitability
The company’s operating income increased to $6.2 million from $4.6 million in the same quarter last year. GAAP net income also saw a substantial rise, reaching $4.7 million compared to $2.3 million previously.
Strong Balance Sheet
Nature’s Sunshine maintains a strong financial position with $86.5 million in cash and cash equivalents and no debt. The company has repurchased 38,000 shares and has $33.3 million remaining for further share repurchases.
North America Sales Decline
Despite overall growth, North America experienced a 4% decline in sales. This was attributed to a challenging comparison with the previous year and increased macroeconomic uncertainty affecting consumer confidence.
Tariff and Macroeconomic Uncertainty
The company is navigating a complex macroeconomic landscape, with evolving tariffs and potential impacts on consumer spending posing challenges.
Forward-Looking Guidance
Looking ahead, Nature’s Sunshine maintains its guidance for 2025, projecting net sales between $445 million and $470 million and adjusted EBITDA between $38 million and $44 million. The company anticipates continued growth in Asia Pacific and Europe, while addressing challenges in North America amidst a challenging economic environment.
In summary, Nature’s Sunshine Products delivered a strong earnings call, marked by impressive growth in Asia Pacific and Europe, robust digital sales expansion, and significant sustainability achievements. While challenges persist in North America and the macroeconomic environment remains uncertain, the company’s solid financial performance and strategic initiatives position it well for the future.