In This Article:
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Natures Sunshine Products Inc (NASDAQ:NATR) reported a strong start to 2025 with first-quarter revenue of $113 million, exceeding analyst expectations.
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The company achieved a 5% revenue increase on a constant currency basis, driven by strong performance in Asia Pacific and Europe.
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Adjusted EBITDA increased by 20% to $11 million, reflecting effective execution of strategies.
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Digital sales grew by 19%, more than double the supplement industry's digital growth rate, indicating successful digital transformation efforts.
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The company achieved most of its sustainability goals, including reducing carbon emissions and cutting waste, showcasing its commitment to responsible business practices.
Negative Points
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Sales in North America declined by 4% due to a difficult comparison with the previous year and macroeconomic uncertainties impacting consumer sentiment.
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The company faces challenges from international trade tariffs and volatile consumer sentiment, which could impact future performance.
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Despite strong performance in Asia Pacific and Europe, the company anticipates challenges in maintaining growth rates due to tough comparisons in the latter half of the year.
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There is ongoing uncertainty regarding the impact of tariffs on raw materials and supply chain disruptions, which could affect future financial results.
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The company remains cautious in its 2025 outlook, reflecting potential macroeconomic instability and the impact of tariffs on consumer behavior.
Q & A Highlights
Q: How did the first quarter results compare to internal expectations, and what does this mean for the guidance for the rest of the year? A: Shane Jones, CFO, stated that the first quarter results were slightly ahead of internal expectations. The guidance for the rest of the year remains conservative due to the uncertain macroeconomic environment. The midpoint of the guidance assumes continued macroeconomic instability and tariff issues, while the lower end assumes a recession-type environment. The upper end would reflect continued positive results similar to Q1.
Q: Are there any changes in the outlook regarding tariffs since the initial guidance was issued? A: Shane Jones, CFO, mentioned that the environment is rapidly changing, and while there have been no significant changes since the initial guidance, the company has been conservative in its estimates to encompass all potential scenarios. CEO Terrence Moorhead added that the company has taken steps to offset potential tariff impacts and is prepared to adapt to changes.