Nature's Sunshine Products (NATR) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales rose 8.5% year-over-year to $118.2 million, the largest quarterly revenue in company history, driven by strong growth in Asia-Pacific and Europe, with digital sales in North America also contributing.

• Full year 2024 net sales increased 2.0% to $454.4 million, with notable performance in Taiwan, Japan, Korea, and Europe.

• Adjusted EBITDA for Q4 was $10.3 million (up 5.5% year-over-year); full year adjusted EBITDA was $40.5 million, nearly flat year-over-year.

• Net loss attributable to shareholders in Q4 was $0.3 million, or $(0.02) per diluted share, compared to net income of $9.0 million in the prior year; full year net income fell 49% to $7.7 million.

Financial highlights

• Q4 2024 gross margin improved to 72.0% from 71.9% year-over-year; full year gross margin was 71.5%, down from 72.1%.

• SG&A expenses in Q4 were $43.7 million (37% of sales), up due to variable and one-time Asia costs; full year SG&A decreased 1.8% to $164.0 million.

• Q4 2024 operating income was $4.6 million (3.8% of sales), down from $5.7 million (5.2%) last year.

• Cash and cash equivalents at year-end were $84.7 million, with no debt.

• Free cash flow for 2024 totaled $14.3 million, down from $30.7 million in 2023.

Outlook and guidance

• 2025 net sales expected between $445 million and $470 million, including a $5 million FX headwind; adjusted EBITDA guidance is $38 million to $44 million, with gross margin expected to be modestly higher.

• Management highlights ongoing investments in process improvement, supply chain, and organic growth opportunities.

• Strategic M&A remains a focus, supported by strong cash flow and balance sheet.

• Outlook remains guarded due to macroeconomic, geopolitical, and tariff uncertainties.