Sep 30, 2020

Nature's Sunshine Q3 2020 Earnings Report

Nature's Sunshine reported record net sales and significant increase in net income due to strong consumer demand, new product launches, and easing COVID-19 restrictions.

Key Takeaways

Nature's Sunshine reported a 13% increase in net sales, reaching a company record of $100.3 million. GAAP net income significantly increased to $7.2 million, or $0.34 per diluted share, compared to $1.4 million, or $0.07 per diluted share in the same quarter last year.

Net sales increased 13% to $100.3 million compared to $88.5 million in the same year-ago quarter.

GAAP net income increased significantly to $7.2 million, or $0.34 per diluted share, compared to $1.4 million, or $0.07 per diluted share.

Adjusted net income per diluted share was $0.34, compared to an adjusted net income per share of $0.08.

Adjusted EBITDA increased 13% to $9.4 million compared to $8.3 million.

Total Revenue
$100M
Previous year: $88.5M
+13.2%
EPS
$0.34
Previous year: $0.08
+325.0%
Gross Margin
72.9%
Previous year: 74.3%
-1.9%
Adjusted EBITDA
$9.4M
Previous year: $8.3M
+13.3%
Gross Profit
$73.1M
Previous year: $65.7M
+11.2%
Cash and Equivalents
$82.3M
Previous year: $50.5M
+62.8%
Free Cash Flow
$11.2M
Previous year: $4.96M
+125.0%
Total Assets
$237M
Previous year: $215M
+10.6%

Nature's Sunshine

Nature's Sunshine

Nature's Sunshine Revenue by Segment

Nature's Sunshine Revenue by Geographic Location

Forward Guidance

The progress made with transformation initiatives has established a strong operational and financial foundation for the remainder of 2020 and into 2021.

Positive Outlook

  • Strong consumer demand
  • New product launches accelerated momentum in the U.S. and China
  • COVID-19-related restrictions eased in Korea and Latin American markets
  • New business model launched
  • Progress deploying five global growth strategies

Challenges Ahead

  • Volatile operating environment
  • Changes in market mix
  • Material cost increase
  • Changes in inventory reserves
  • Global COVID-19 pandemic

Revenue & Expenses

Visualization of income flow from segment revenue to net income