Nature’s Sunshine Products, Inc. reported a 6% increase in Q3 2023 net sales compared to the same period in 2022, reaching $111.2 million. Operating income during the quarter increased to $5.8 million, or 5.2% of net sales, up from $5 million in the same period last year.
Adjusted EBITDA in the third quarter was up by 50% to $10.3 million, which the company attributes to its increase in operating income.
“Nature’s Sunshine delivered another strong quarter, with double-digit growth in Asia/Pacific and North America,” said Nature’s Sunshine CEO Terrence Moorehead. “APAC saw strong order growth with a 12% increase in local currency sales, while the North America business continued to respond well to our digital investments and improved field activation, delivering 11% growth for the quarter, the strongest growth in many years. We’re also beginning to see the results of our gross margin initiatives which drove a 150-basis point improvement in gross margin in the third quarter. Since the first quarter of this year, gross margin has improved from 70.8% to 73.1% in the third quarter of 2023. These results demonstrate the strong underlying fundamentals of our business. Our continued above-market growth and aggressive cost initiatives combined to deliver a 50%+ increase in EBITDA in Q3 to $10.3 million. We are excited about our continued progress and the opportunities for further growth and profitability as we move forward.”
The company now expects full year 2023 net sales to range between $443-$451 million with an adjusted EBITDA between $37-$40 million.