Nature’s Sunshine Products, Inc. announced its financial results for the second quarter of 2024, reporting $110.6 million in net sales, a 5% decline versus the second quarter of 2023. Adjusted EBITDA was down 8% year over year to $10.4 million.
Selling, general and administrative expenses (SG&A) were down to $38.6 million from $42.3 million in the second quarter of 2023. The company attributes this decrease to streamlining its global overhead expenses and reducing its service fees in response to China’s lower net sales. SG&A were 34.9% of net sales, as compared to 36.3% in the same period last year.
“In the second quarter of 2024, we continued to make progress on our global growth strategies, addressing near-term challenges, while driving change and creating new opportunities for the future,” said Terrence Moorehead, Nature’s Sunshine Chief Executive Officer. “For the quarter, net sales were $110.6 million, down 3% versus prior year on a local currency basis, driven by macroeconomic headwinds in China, slowing consumer spending in the U.S., and a temporary disruption to our North American business. EBITDA came in at $10.4 million, down 8% versus prior year. In the face of increasing macroeconomic headwinds, we took several strategic actions in the second quarter. First, we upgraded our digital platform in North America to strengthen performance and improve capabilities. Second, we rebalanced our consumer proposition in several key markets in Asia/Pacific, adding consumer-friendly packs to drive customer growth and support repeat purchases. And finally, we took the initiative to streamline overhead and improve productivity, by reducing over $5 million of annualized expense from SG&A. We believe these changes will improve our competitiveness and provide an important foundation to drive long-term growth.”
Operating income in the quarter was $5.6 million, down from $7 million in Q2 2023. The company ended the quarter with cash and cash equivalents of $68.7 million and no debt. Net cash provided by operating activities was $3.5 million, down from $17.5 million in the same period of 2023.
