Nature’s Sunshine released its financial results for the second quarter of 2022, revealing net sales of $104.2 million, a slight drop from $109 million in the same quarter in 2021. When accounting for the impact of foreign exchange rates, net sales actually increased 0.5% over the second quarter of last year.
Gross profit margin also dipped slightly from 73.9% to 71.7% year over year, which the company attributes to changes in inventory valuation reserves, market mix and increased production, transportation, material and distribution costs.
Operating income was $5.8 million (5.5% of net sales), compared to $9.5 million (8.7% of net sales) in the second quarter of 2021.
“The challenges facing our world certainly remained in the second quarter,” said Terrence Moorehead, CEO of Nature’s Sunshine. “The devastating war in Ukraine, rampant inflation, supply chain pressures, and the lingering impact of COVID-19 hampered our vision to share the healing power of nature with everyone. Despite the headwinds, our revenue was flat on a constant currency basis, driven by continued rapid growth in Asia and mitigated losses in Europe. We believe these outcomes illuminate the resilience of our brand, the power of our vision, and the advantages of our global presence.”
Adjusted EBITDA was $9 million, down from $13.4 million last year. Lower gross profit margins and increased selling, general and administrative expenses were the leading factors behind this decrease.
“As we look to the remainder of the year, we recognize the volatility and uncertainty of the operating environment,” Moorehead said. “However, we will continue to invest in our five global growth strategies and support our partners around the world, which is made possible by our strong balance sheet and our confidence in our long-term vision.”
Nature’s Sunshine ended the quarter with total cash and cash equivalents of $56.3 million with $1.8 million of debt.
