Nature’s Sunshine Products Reports 2% Net Sales Increase in Q1 2025

Nature’s Sunshine Products, Inc. reported a consolidated net sales increase of 2.0% for the first quarter of 2025, reaching $113.2 million compared to $111.0 million in the same period of 2024. The growth was primarily driven by strong sales in Asia and Europe, which saw increases of 5.3% and 8.2%, respectively. However, North America and Latin America experienced declines of 4.1% and 8.2%, respectively. The company noted that the strengthening of the U.S. dollar against local currencies negatively impacted net sales by approximately $2.7 million during the quarter.

Cost of sales decreased by $0.4 million, resulting in a cost of sales percentage of 27.9% for the first quarter of 2025, down from 28.8% in the prior year. This reduction was attributed to price increases and cost-saving initiatives. Selling, general, and administrative expenses also saw a slight decrease of $0.2 million, accounting for 35.8% of net sales, down from 36.7% in the previous year. The decrease in expenses was linked to streamlined global overhead and reduced service fees in China due to lower net sales.

The company’s operational metrics showed a mixed performance across its geographic segments. In Asia, Taiwan's sales increased by 13.1%, while South Korea's sales decreased by 7.2%. In Europe, net sales growth was attributed to improved customer acquisition, while North America faced challenges with lower customer acquisition and fewer total orders. The Latin America segment also reported a decline, influenced by unfavorable currency fluctuations.

Nature’s Sunshine continues to focus on its independent consultant sales force, which is crucial for revenue generation. The company has implemented various incentives and support programs to enhance consultant productivity. Looking ahead, the company anticipates that foreign markets will continue to represent a significant portion of its sales, although it remains cautious about the potential impacts of inflation and geopolitical tensions, particularly in Eastern Europe. The company is also monitoring the ongoing internal investigation regarding compliance with U.S. trade controls, which could have implications for its operations and financial condition.