Mar 31, 2022

Nature's Sunshine Q1 2022 Earnings Report

Nature's Sunshine reported an increase in net sales and a GAAP net loss due to external headwinds.

Key Takeaways

Nature's Sunshine reported an 8% increase in net sales, reaching a record $110.5 million, but experienced a GAAP net loss of $2.7 million, or $(0.15) per diluted share. The company faced headwinds from COVID-19, global supply chain issues, inflation, and the war in Ukraine, which negatively impacted productivity and resulted in inventory-related impairment charges.

Net sales increased by 8% to $110.5 million, a new quarterly record.

GAAP net loss was $(2.7) million, or $(0.15) per diluted share, compared to a net income of $4.2 million, or $0.20 per diluted share in the same quarter last year.

Adjusted EBITDA decreased to $8.2 million from $11.6 million in the prior year.

The company faced $4.2 million in inventory-related impairment charges due to external factors.

Total Revenue
$110M
Previous year: $102M
+7.9%
EPS
-$0.03
Previous year: $0.21
-114.3%
Gross Profit
$76M
Previous year: $75.4M
+0.8%
Cash and Equivalents
$66.5M
Previous year: $91.3M
-27.1%
Free Cash Flow
-$9.44M
Previous year: $1.75M
-638.9%
Total Assets
$239M
Previous year: $246M
-2.9%

Nature's Sunshine

Nature's Sunshine

Nature's Sunshine Revenue by Segment

Nature's Sunshine Revenue by Geographic Location

Forward Guidance

Nature's Sunshine anticipates overcoming near-term challenges through continued investment, a strong balance sheet, global growth strategies, and belief in the long-term potential of the business.

Positive Outlook

  • Continued investment ahead of growth.
  • Healthy balance sheet.
  • Strong global growth strategies.
  • Belief in the long-term potential of the business.

Challenges Ahead

  • Headwinds from COVID-19.
  • Intensifying global supply chain issues.
  • Rampant inflation.
  • Devastating war in Ukraine.
  • Sourcing challenges inhibiting growth in North America.

Revenue & Expenses

Visualization of income flow from segment revenue to net income