Nature’s Sunshine released its financial report for the first quarter of 2022, revealing an 8% increase in net sales over the previous year, totaling $110.5 million. Adjusted EBITDA was $8.2 million, down from $11.6 million during the same period in 2021. Asia accounted for the company’s largest sales, which offset some declines in the North American market.
“In the first quarter we delivered strong top-line growth despite headwinds from COVID-19, intensifying global supply chain issues, rampant inflation and the devastating war in Ukraine,” said Terrence Moorehead, Nature’s Sunshine Chief Executive Officer. “The business displayed incredible resilience, with new customer growth and positive order increases in several strategic markets of the business. As expected, productivity was negatively impacted in the quarter by the confluence of externally-driven headwinds, resulting in $4.2 million of inventory-related impairment charges. Sourcing challenges also inhibited our ability to meet product demand and drive growth in our North American segment. Despite these headwinds, we look forward to overcoming these near-term challenges and continue to invest ahead of growth, bolstered by a healthy balance sheet, strong global growth strategies and our firm belief in the long-term potential of our business.”
Gross margin was 68.8%, down from 73.7% in the first quarter of 2021, while selling, general and administrative expenses in the quarter significantly increased to $40.6 million, compared to $33.6 million in the same period last year.
The company’s balance sheet includes cash and cash equivalents of $66.5 million with $2.1 million of debt.
