Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
 
We have four reportable 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. Each of the geographic segments operate under the Nature’s Sunshine Products and Synergy WorldWide brands and sell similar products grouped into six principal categories: general health, immune, cardiovascular, digestive, personal care and weight management. 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 the relevant market.

The Company's chief operating decision maker ("CODM") is our president and chief executive officer. The CODM assesses the performance of each segment using operating income. The CODM reviews the performance of each segment using monthly internal reports which provide variance analysis of actual results by segment compared to budget, forecast and prior year. The CODM uses this information when making decisions about the allocation of operating resources to each segment. The CODM does not evaluate reportable segments using asset or liability information.
Reportable business segment information for the three months ended March 31, 2025 and 2024, is as follows (dollar amounts in thousands):
Three Months Ended March 31, 2025 Asia Europe North America Latin America and Other Total
Net sales $ 48,653  $ 24,114  $ 35,018  $ 5,463  $ 113,248 
Cost of sales 10,895  7,148  11,565  2,043 
Volume incentives 16,369  9,652  7,239  1,584 
Selling, general and administrative (1) 13,044  5,149  8,474  1,449 
Segment operating income $ 8,345  $ 2,165  $ 7,740  $ 387  $ 18,637 
Unallocated corporate selling, general and administrative expense (12,465)
Operating income 6,172 
Interest and other income, net 205 
Interest expense (21)
Foreign exchange gains, net 753 
Income from operations before provision for income taxes $ 7,109 

Three Months Ended March 31, 2024 Asia Europe North America Latin America and Other Total
Net sales $ 46,220  $ 22,296  $ 36,525  $ 5,952  $ 110,993 
Cost of sales 10,574  7,204  12,202  2,035 
Volume incentives 15,133  8,699  7,679  2,059 
Selling, general and administrative (1) 13,697  4,612  8,300  1,582 
Segment operating income $ 6,816  $ 1,781  $ 8,344  $ 276  $ 17,217 
Unallocated corporate selling, general and administrative expense (12,593)
Operating income 4,624 
Interest and other income, net 63 
Interest expense (12)
Foreign exchange losses, net (20)
Income from operations before provision for income taxes $ 4,655 
_________________________________________

(1)    Service fees in China totaled $2.9 million and $3.1 million for the three-month periods ended March 31, 2025 and 2024, respectively. These service fees are included in selling, general and administrative expenses.

The table below reflects sales based upon the sales location where they occurred. From an individual country/region perspective, only the United States, Taiwan and Korea comprise 10 percent or more of consolidated net sales for the three-month periods ended March 31, 2025 and 2024, as follows (dollar amounts in thousands):
 
Three Months Ended March 31, 2025 2024
Net sales:
United States $ 32,474  $ 33,688 
Taiwan 17,864  15,792 
South Korea 10,781  11,621 
Other 52,129  49,892 
Total net sales $ 113,248  $ 110,993 
Net sales generated by each product line for the three months ended March 31, 2025 and 2024, are as follows (dollar amounts in thousands):
Three Months Ended March 31, 2025 Asia Europe North America Latin America and Other Total
General health $ 18,251 $ 10,496 $ 15,599 $ 1,578 $ 45,924
Immunity 2,872 2,441 4,444 518 10,275
Cardiovascular 13,819 2,565 3,696 433 20,513
Digestive 9,642 6,372 8,934 2,582 27,530
Personal care 1,198 1,631 1,475 244 4,548
Weight management 2,871 609 870 108 4,458
Total net sales by segment $ 48,653 $ 24,114 $ 35,018 $ 5,463 $ 113,248

Three Months Ended March 31, 2024 Asia Europe North America Latin America and Other Total
General health $ 15,994  $ 9,802  $ 16,407  $ 1,570  $ 43,773 
Immunity 1,684 2,335 4,445 723 9,187
Cardiovascular 13,974 2,419 3,984 482 20,859
Digestive 8,589 5,913 9,168 2,749 26,419
Personal care 1,292 1,268 1,572 275 4,407
Weight management 4,687 559 949 153 6,348
Total net sales by segment $ 46,220  $ 22,296  $ 36,525  $ 5,952  $ 110,993 

Three Months Ended March 31, 2025 2024
Depreciation and amortization:
Asia $ 498  $ 468 
Europe 28  22 
North America 2,962  2,659 
Latin America and Other 11  11 
Total depreciation and amortization $ 3,499  $ 3,160 

From an individual country perspective, only the United States has material balances of consolidated property, plant and equipment as follows (dollar amounts in thousands):
March 31,
2025		 December 31, 2024
Property, plant and equipment
United States $ 33,373  $ 34,786 
Other 4,328  4,799 
Total property, plant and equipment $ 37,701  $ 39,585