Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.24.3
Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
 
We have four business segments (Asia, Europe, North America, and Latin America and Other) based primarily upon the geographic region where each segment operates, as well as the internal organization of our officers and their responsibilities. The geographic segments operate under the Nature’s Sunshine Products and Synergy WorldWide® brands. The Latin America and Other segment includes our wholesale business in which we sell products to various locally-managed entities independent of the Company that we have granted distribution rights for in the relevant market.

Net sales for each segment have been reduced by intercompany sales as they are not included in the measure of segment profit or loss reviewed by the chief executive officer. We evaluate performance based on contribution margin by segment before consideration of certain inter-segment transfers and expenses.
Reportable business segment information is as follows (dollar amounts in thousands):

  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024 2023 2024 2023
Net sales:        
Asia $ 55,293  $ 52,218  $ 151,497  $ 153,438 
Europe 19,615  18,769  63,513  61,410 
North America 33,631  34,792  103,719  104,098 
Latin America and Other 6,076  5,423  17,430  17,438 
Total net sales 114,615  111,202  336,159  336,384 
Contribution margin (1):        
Asia 25,103  24,861  70,316  73,711 
Europe 6,286  5,993  20,786  18,659 
North America 12,203  14,222  38,103  40,985 
Latin America and Other 2,646  2,044  6,635  6,889 
Total contribution margin 46,238  47,120  135,840  140,244 
Selling, general and administrative expenses (2) 40,954  41,288  120,295  127,203 
Operating income 5,284  5,832  15,545  13,041 
Other income (loss), net 2,615  (927) 1,432  (500)
Income before provision for income taxes $ 7,899  $ 4,905  $ 16,977  $ 12,541 
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(1)    Contribution margin consists of net sales less cost of sales and volume incentives expense.

(2)    Service fees in China totaled $3.5 million and $10.4 million for the three and nine-month periods ended September 30, 2024, respectively, compared to $4.0 million and $12.9 million for the three and nine-month periods ended September 30, 2023. These service fees are included in selling, general and administrative expenses.

From an individual country/region perspective, the United States, Taiwan and South Korea comprise 10 percent or more of consolidated net sales for the three and nine-month periods ended September 30, 2024 and 2023, as follows (dollar amounts in thousands):
 
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024 2023 2024 2023
Net sales:        
United States $ 30,973  $ 32,240  $ 95,609  $ 96,314 
Taiwan 18,389  15,598  50,489  45,814 
South Korea 13,894  13,921  38,964  38,993 
Other 51,359  49,443  151,097  155,263 
  $ 114,615  $ 111,202  $ 336,159  $ 336,384 
Net sales generated by each of our product lines is set forth below (dollar amounts in thousands):
 
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024 2023 2024 2023
Asia        
General health $ 22,572  $ 16,937  $ 57,697  $ 48,859 
Immune 2,504  1,964  6,437  3,738 
Cardiovascular 14,556  14,963  42,155  44,698 
Digestive 10,905  9,186  27,201  30,172 
Personal care 1,175  1,376  3,511  4,159 
Weight management 3,581  7,792  14,496  21,812 
  55,293  52,218  151,497  153,438 
Europe        
General health $ 9,194  $ 8,034  $ 28,530  $ 25,823 
Immune 1,685  1,563  6,223  5,988 
Cardiovascular 2,997  2,264  7,712  7,085 
Digestive 3,675  5,087  15,535  17,156 
Personal care 765  1,348  3,178  3,779 
Weight management 1,299  473  2,335  1,579 
  19,615  18,769  63,513  61,410 
North America        
General health $ 15,259  $ 16,334  $ 46,698  $ 47,725 
Immune 3,690  3,641  11,675  11,693 
Cardiovascular 3,630  3,634  11,371  10,983 
Digestive 8,583  8,577  26,306  26,069 
Personal care 1,512  1,720  4,665  4,818 
Weight management 957  886  3,004  2,810 
  33,631  34,792  103,719  104,098 
Latin America and Other        
General health $ 1,753  $ 1,480  $ 4,887  $ 4,717 
Immune 589  611  1,906  2,023 
Cardiovascular 448  392  1,331  1,291 
Digestive 2,846  2,560  8,083  8,030 
Personal care 309  284  854  976 
Weight management 131  96  369  401 
  6,076  5,423  17,430  17,438 
  $ 114,615  $ 111,202  $ 336,159  $ 336,384 

From an individual country perspective, only the United States comprised 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands):
  September 30,
2024		 December 31,
2023
Property, plant and equipment:    
United States $ 36,723  $ 41,239 
Other 5,271  3,761 
Total property, plant and equipment, net $ 41,994  $ 45,000 
Total assets per segment is set forth below (dollar amounts in thousands):
September 30,
2024		 December 31,
2023
Assets:    
Asia $ 110,881  $ 105,636 
Europe 19,790  20,920 
North America 108,298  116,052 
Latin America and Other 6,364  7,165 
Total assets $ 245,333  $ 249,773