Nature’s Sunshine Products, Inc. released its fourth quarter and full year financial results for 2022. Included in the report were fourth quarter net sales of $102.7 million, compared to $117.9 million during the same time last year. Full year net sales were $421.9 million, down from $444.1 million in 2021.
Adjusted EBITDA was $8 million in the fourth quarter and $32 million, down from $49.4 million, for the full year 2022.
“During the fourth quarter, we continued to see the underlying fundamentals of our business hold, despite unprecedented pressure from external headwinds,” said Terrence Moorehead, Nature’s Sunshine CEO. “For the quarter, we delivered sales of $103 million on a reported basis, or $110 million when removing the impact of foreign exchange, which is resilient considering last year’s record-breaking sales growth. For the full year, we delivered the second highest sales in the company’s history, driven by strong returns on our targeted investments designed to optimize our business. In fact, we continued to see strong growth in Asia, up 5.3% versus prior year, as our investments in field activation supported healthy growth in orders and sales.”
Asia was the strongest operating segment for the company, accounting for almost half of net sales during the fourth quarter (43%) and full year (44%).
Gross margin in the fourth quarter held steady at 72.2%, compared to 74% during the same quarter of 2021. Selling, general and administrative expenses in the fourth quarter were $38.8 million, compared to $45.4 million during last year’s quarter. Operating income during the fourth quarter was $4.2 million, down from $7.5 million last year.
The company ended the year with cash and cash equivalents of $60 million and an outstanding debt of $1.2 million.
“As we look to 2023, we remain confident that our growth strategies will allow Nature’s Sunshine to gain market share and be better positioned for the future,” Moorehead said. “Consistent with these objectives, we will continue to prioritize investments in digital, field activation, manufacturing efficiency, and brand-building to enhance the customer experience. As such, we look forward to driving measurable growth in 2023.”