Natures Sunshine 2025 Q1 Earnings Strong Performance as Net Income Surges 96%

Nature's Sunshine (NATR) reported its fiscal 2025 Q1 earnings on May 06th, 2025. Nature’s Sunshine exceeded expectations with a 104% increase in GAAP net income, highlighting robust financial performance. The company’s guidance for 2025 remains in-line with previous projections, anticipating net sales between $445-$470 million and adjusted EBITDA of $38-$44 million, reflecting stability amid market uncertainties.

Revenue

Nature's Sunshine's total revenue in 2025 Q1 increased by 2.0% to $113.25 million compared to $110.99 million in 2024 Q1. The general health segment contributed $45.92 million, while the immunity sector added $10.28 million. Cardiovascular and digestive segments generated $20.51 million and $27.53 million respectively. Personal care achieved $4.55 million, and weight management reached $4.46 million, culminating in the total revenue of $113.25 million.

Earnings/Net Income

Nature's Sunshine's EPS increased 116.7% to $0.26 in 2025 Q1 from $0.12 in 2024 Q1, indicating significant earnings growth. The company's net income rose to $4.88 million in 2025 Q1, showing 96.1% growth from $2.49 million in 2024 Q1. The EPS demonstrates a positive financial trajectory.

Post-Earnings Price Action Review

Nature's Sunshine Products (NATR) has showcased a strong return on investment over the past five years, achieving a total shareholder return (TSR) of 132%, which surpasses its share price return, underscoring the importance of dividends in enhancing shareholder value. Over five years, NATR's stock has appreciated by 121%, with a notable 57% gain in the last three months, reflecting recent strong performance. The TSR over five years includes the value of cash dividends, significantly boosting the total return. Dividends have contributed to a higher TSR compared to the share price return. Financial improvements over five years have seen NATR transition from a loss to profitability, justifying the strong share price growth, as indicated by the EPS trend. In the past year, NATR shareholders received a TSR of 77%, demonstrating continued strong returns. Favorable economic conditions in Germany and the eurozone may have positively influenced NATR's performance. The strategy of investing in NATR shares after revenue increases and holding for 30 days has been effective, driven by capital appreciation and dividends.

CEO Commentary

"2025 got off to a strong start, as first quarter revenue came in at $113 million, up 5% on a constant currency basis, and adjusted EBITDA came in at $11 million, up 20% versus prior year," said Terrence Moorehead, CEO of Nature's Sunshine. The company is experiencing exceptional growth in Asia and Europe, particularly in Taiwan, Japan, and Central Europe, which continue to deliver strong double-digit growth. Although there is uncertainty in the market, the CEO expresses confidence in the underlying health of the business, emphasizing the effectiveness of their global growth strategies and disciplined investments to maximize shareholder returns.

Guidance

Nature's Sunshine remains optimistic about future performance, indicating confidence in the health of their business despite market uncertainties. The company has authorized the repurchase of up to $25 million in common stock to further enhance shareholder value. Management highlights early signs of stabilization in North America and anticipates continued improvements in gross margin, underpinned by their strategic focus on growth opportunities in key international markets.

Additional News

Nature’s Sunshine has announced key developments recently, including the appointment of Heidi Wissmiller as Chairman of the Board, reflecting strategic leadership changes aimed at further strengthening the company’s governance. Additionally, the company celebrated winning two Stevie® Awards in the 2025 American Business Awards®, recognizing its excellence in business performance. Moreover, Nature’s Sunshine released its 2024 Impact Report, highlighting significant strides in environmental and sustainability achievements, such as TRUE Zero Waste Gold Certification and converting facilities to 100% renewable energy, underscoring its commitment to responsible business practices.