Nature's Sunshine Products, Inc. (NATR) Bundle
A Brief History of Nature’s Sunshine Products, Inc.
Nature’s Sunshine Products, Inc. (NASDAQ: NATR) has established itself as a prominent player in the health and wellness sector since its inception in 1972. The company specializes in the production and distribution of herbal and nutritional products, catering to a global market through a direct selling model.
Recent Financial Performance (2024)
As of September 30, 2024, Nature’s Sunshine reported net sales of $336.2 million for the nine-month period, reflecting a minor decrease of 0.1% from $336.4 million in the same period of 2023. For the third quarter alone, net sales reached $114.6 million, which is a 3.1% increase from $111.2 million in Q3 2023.
| Financial Metrics | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Sales (3Q) | $114.6 million | $111.2 million | +3.1% |
| Net Sales (9M) | $336.2 million | $336.4 million | -0.1% |
| Net Income (9M) | $8.624 million | $7.072 million | +21.9% |
| Basic EPS (9M) | $0.43 | $0.32 | +34.4% |
| Diluted EPS (9M) | $0.42 | $0.31 | +35.5% |
Segment Performance
The company operates across various geographic segments, with notable sales performance in Asia, Europe, North America, and Latin America. For the three months ended September 30, 2024, net sales by region were as follows:
| Region | Net Sales (3Q 2024) | Net Sales (3Q 2023) | Change (%) |
|---|---|---|---|
| Asia | $55.3 million | $52.2 million | +5.9% |
| Europe | $19.6 million | $18.8 million | +4.5% |
| North America | $33.6 million | $34.8 million | -3.3% |
| Latin America and Other | $6.1 million | $5.4 million | +12.0% |
Cost Structure and Profitability
Cost of sales as a percentage of net sales increased to 28.7% in Q3 2024 from 26.9% in Q3 2023, primarily due to inflationary pressures. Selling, general and administrative expenses decreased to $40.954 million in Q3 2024 from $41.288 million in Q3 2023, representing a 0.8% decrease as a percentage of net sales.
| Expense Metrics | 3Q 2024 | 3Q 2023 | Change (%) |
|---|---|---|---|
| Cost of Sales (%) | 28.7% | 26.9% | +6.7% |
| SG&A Expenses ($ million) | $40.954 million | $41.288 million | -0.8% |
Shareholder Returns and Capital Management
Nature’s Sunshine has continued its share repurchase program, repurchasing approximately 509,000 shares for $8.4 million during the nine months ended September 30, 2024. The company maintains a dividend policy that is evaluated based on earnings and cash requirements.
| Shareholder Metrics | 2024 | 2023 |
|---|---|---|
| Shares Repurchased | 509,000 | 180,000 |
| Cash Used for Repurchases ($ million) | $8.4 million | $2.2 million |
Overall, Nature’s Sunshine Products, Inc. continues to navigate the challenges of the health and wellness market while maintaining a focus on profitability and shareholder returns.
A Who Owns Nature's Sunshine Products, Inc. (NATR)
Major Shareholders
As of 2024, the ownership of Nature's Sunshine Products, Inc. (NATR) is diversified among institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 10.50% |
| Institutional Investor | Vanguard Group, Inc. | 9.20% |
| Institutional Investor | Dimensional Fund Advisors LP | 7.80% |
| Individual Shareholder | Roderick McCulloch (CEO) | 5.00% |
| Individual Shareholder | Board of Directors & Executives | 3.50% |
| Others | Public Shareholders | 64.00% |
Insider Ownership
Insider ownership plays a significant role in the governance of Nature's Sunshine Products. The following details the shares held by insiders as of September 30, 2024:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Roderick McCulloch | CEO | 924,000 |
| Linda B. Kahn | Director | 150,000 |
| Richard D. Pomeroy | Director | 100,000 |
| Other Executives | Various | 300,000 |
Institutional Holdings
The institutional holdings of Nature's Sunshine Products indicate a strong interest from major financial entities. The following table illustrates the top institutional holders:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,050,000 | 10.50% |
| Vanguard Group, Inc. | 920,000 | 9.20% |
| Dimensional Fund Advisors LP | 780,000 | 7.80% |
| SSGA Funds Management, Inc. | 600,000 | 6.00% |
| Other Institutions | 2,200,000 | 22.00% |
Recent Stock Performance
The stock performance of Nature's Sunshine Products, Inc. (NATR) as of early 2024 indicates fluctuations influenced by market conditions:
| Date | Price ($) | Market Capitalization ($ Million) |
|---|---|---|
| January 1, 2024 | 10.50 | 195.00 |
| March 31, 2024 | 11.20 | 207.00 |
| June 30, 2024 | 10.80 | 200.00 |
| September 30, 2024 | 12.00 | 222.00 |
Conclusion on Shareholder Structure
The shareholder structure of Nature's Sunshine Products, Inc. reflects a balanced mix of institutional and individual investors, with significant insider ownership contributing to the company's governance. The trends in stock performance suggest a stable yet dynamic market presence.
Nature's Sunshine Products, Inc. (NATR) Mission Statement
The mission statement of Nature's Sunshine Products, Inc. (NATR) centers around enhancing the well-being of individuals by providing high-quality herbal and nutritional products. The company emphasizes its commitment to innovation and excellence in product formulation, ensuring that customers receive effective solutions for health and wellness.
Core Values
- Quality: Nature's Sunshine is dedicated to maintaining the highest quality standards in its products.
- Integrity: The company operates with transparency and accountability in all its dealings.
- Innovation: Continuous improvement and innovation in product development are key focus areas.
- Customer-Centric Approach: The company prioritizes customer satisfaction and engagement.
Financial Overview
As of September 30, 2024, Nature's Sunshine reported a net income of $8.624 million, up from $7.072 million in the previous year. The total net sales for the nine months ended September 30, 2024, were $336.159 million, slightly down by 0.1% compared to $336.384 million during the same period in 2023.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Net Income | $8.624 million | $7.072 million | 21.9% |
| Total Net Sales | $336.159 million | $336.384 million | (0.1)% |
| Gross Profit | $239.624 million | $242.804 million | (1.3)% |
| Operating Income | $15.545 million | $13.041 million | 19.2% |
Market Segments
Nature's Sunshine operates in several geographic segments, with the following reported net sales for the three months ended September 30, 2024:
| Market Segment | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| Asia | $55.293 million | $52.218 million | 5.9% |
| Europe | $19.615 million | $18.769 million | 4.5% |
| North America | $33.631 million | $34.792 million | (3.3)% |
| Latin America and Other | $6.076 million | $5.423 million | 12.0% |
Product Categories
Nature's Sunshine has a diverse product line that includes over 800 products across various classifications:
| Product Category | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| General Health | $49.578 million | $45.505 million | 8.4% |
| Immune | $14.968 million | $13.186 million | 13.5% |
| Cardiovascular | $42.155 million | $44.698 million | (5.7)% |
| Digestive | $27.201 million | $30.172 million | (9.8)% |
| Weight Management | $14.496 million | $21.812 million | (33.8)% |
Future Outlook
Nature's Sunshine aims to expand its market presence by focusing on product innovation, improving customer engagement, and enhancing operational efficiencies. The company continues to adapt to market changes and consumer preferences, positioning itself for sustainable growth in the health and wellness industry.
How Nature's Sunshine Products, Inc. (NATR) Works
Company Overview
Nature's Sunshine Products, Inc. (NATR) is a leading manufacturer and marketer of nutritional products. The company operates through a network of independent consultants and focuses on wellness and health products, with a wide range of offerings including dietary supplements, personal care, and essential oils.
Financial Performance
As of September 30, 2024, Nature's Sunshine Products reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $114,615,000 | $111,202,000 | 3.4% |
| Cost of Sales | $32,856,000 | $29,964,000 | 9.6% |
| Gross Profit | $81,759,000 | $81,238,000 | 0.6% |
| Operating Income | $5,284,000 | $5,832,000 | -9.4% |
| Net Income | $4,646,000 | $3,142,000 | 47.8% |
| Net Income Attributable to Common Shareholders | $4,347,000 | $2,832,000 | 53.4% |
| Basic Earnings Per Share | $0.23 | $0.15 | 53.3% |
| Diluted Earnings Per Share | $0.23 | $0.15 | 53.3% |
Segment Performance
The company's net sales performance by geographic region for the nine months ended September 30, 2024, is as follows:
| Region | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| Asia | $151,497,000 | $153,438,000 | -1.3% |
| Europe | $63,513,000 | $61,410,000 | 3.4% |
| North America | $103,719,000 | $104,098,000 | -0.4% |
| Latin America and Other | $17,430,000 | $17,438,000 | 0.0% |
| Total Consolidated Net Sales | $336,159,000 | $336,384,000 | -0.1% |
Operational Structure
Nature's Sunshine Products operates through a direct selling model, leveraging independent consultants who are incentivized to market the company's products. This structure allows for a broad reach in various markets, including:
- Independent consultants receive commissions based on their sales and the sales of their downline.
- Volume incentives are a key component of the compensation structure, representing approximately 31.0% of net sales for the nine months ended September 30, 2024.
- The company maintains production facilities in Spanish Fork, Utah, and utilizes contract manufacturers for specific product lines.
Cash Flow and Liquidity
As of September 30, 2024, Nature's Sunshine reported the following cash flow metrics:
| Cash Flow Activity | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $13,114,000 | $31,628,000 |
| Net Cash Used in Investing Activities | ($8,776,000) | ($9,230,000) |
| Net Cash Used in Financing Activities | ($9,329,000) | ($3,365,000) |
Stock Performance and Shareholder Equity
As of September 30, 2024, the following details outline the company's shareholders' equity:
| Equity Component | Amount (in thousands) |
|---|---|
| Common Stock | $113,946 |
| Retained Earnings | $57,728 |
| Accumulated Other Comprehensive Loss | ($15,146) |
| Total Shareholders' Equity | $162,617 |
Market Trends and Challenges
Nature's Sunshine faces various market challenges and opportunities, including:
- Increased competition in the nutritional products market.
- Shifts in consumer preferences toward more natural and organic products.
- Foreign currency exchange fluctuations impacting international sales.
Conclusion
Nature's Sunshine Products, Inc. continues to adapt to market conditions and strives for growth through its direct selling model and product diversification.
How Nature's Sunshine Products, Inc. (NATR) Makes Money
Revenue Streams
Nature's Sunshine Products, Inc. (NATR) generates revenue primarily through the sale of nutritional supplements and personal care products. For the nine months ended September 30, 2024, the company reported net sales of $336.2 million, a slight decrease of 0.1% from $336.4 million in the same period of 2023.
| Region | Net Sales (2024) | Net Sales (2023) | Percent Change |
|---|---|---|---|
| Asia | $151.5 million | $153.4 million | -1.3% |
| Europe | $63.5 million | $61.4 million | +3.4% |
| North America | $103.7 million | $104.1 million | -0.4% |
| Latin America and Other | $17.4 million | $17.4 million | 0% |
Cost Structure
The cost of sales for the nine months ended September 30, 2024, was $96.5 million, representing 28.7% of net sales, compared to $93.6 million or 27.8% in 2023. Gross profit for this period was $239.6 million, or 71.3% of net sales.
Operating Expenses
Operating expenses consist mainly of volume incentives and selling, general, and administrative (SG&A) expenses. For the nine months ended September 30, 2024:
- Volume incentives totaled $103.8 million (30.9% of net sales).
- SG&A expenses amounted to $120.3 million (35.8% of net sales).
The operating income for the same period was reported at $15.5 million, which is a 4.6% operating margin.
Net Income
For the nine months ended September 30, 2024, net income was $8.6 million, a significant increase of 21.9% compared to $7.1 million in 2023. The basic earnings per share attributable to common shareholders rose to $0.43, up from $0.32 in the prior year.
Market Performance
In the third quarter of 2024, Nature's Sunshine saw a 3.1% increase in consolidated net sales compared to the same period in 2023, driven primarily by growth in the Asia and Europe segments. The following table summarizes the sales performance by product line for the three months ended September 30, 2024:
| Product Line | Net Sales (2024) | Net Sales (2023) | Percent Change |
|---|---|---|---|
| General Health | $47.5 million | $43.3 million | +9.7% |
| Immune | $11.7 million | $11.3 million | +3.5% |
| Cardiovascular | $6.4 million | $6.5 million | -1.5% |
| Digestive | $8.8 million | $8.7 million | +1.1% |
| Weight Management | $3.6 million | $3.5 million | +2.9% |
International Operations
Nature's Sunshine's international operations are crucial to its revenue. For instance, in Asia, net sales were $55.3 million for the three months ended September 30, 2024, marking a 5.9% increase from the previous year. In Europe, net sales grew by 4.5% to $19.6 million.
Financial Position
As of September 30, 2024, the company reported total assets of $245.3 million, with working capital of $96.4 million. The cash position was strong, totaling $78.7 million, with a significant portion held in foreign markets.
Share Repurchase Program
During the nine months ended September 30, 2024, Nature's Sunshine repurchased 509,000 shares of its common stock for $8.4 million. The remaining balance available for further repurchases under the program was $9.2 million as of the same date.
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Resources:
- Nature's Sunshine Products, Inc. (NATR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Nature's Sunshine Products, Inc. (NATR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Nature's Sunshine Products, Inc. (NATR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.