Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.3
Segment Information
 9 Months Ended
Sep. 30, 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 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 and nine months ended September 30, 2025 and 2024, is as follows (dollar amounts in thousands):
Three Months Ended September 30, 2025 Asia Europe North America Latin America and Other Total
Net sales $ 64,725  $ 22,107  $ 36,224  $ 5,283  $ 128,339 
Cost of sales 13,906  6,464  12,043  1,877 
Volume incentives 21,524  8,726  7,383  1,715 
Selling, general and administrative (1) 16,177  4,599  9,009  1,416 
Segment operating income $ 13,118  $ 2,318  $ 7,789  $ 275  $ 23,500 
Unallocated corporate selling, general and administrative expense (14,525)
Operating income 8,975 
Interest and other income, net 51 
Interest expense (26)
Foreign exchange gains, net 672 
Income from operations before provision for income taxes $ 9,672 

Three Months Ended September 30, 2024 Asia Europe North America Latin America and Other Total
Net sales $ 55,293  $ 19,615  $ 33,631  $ 6,076  $ 114,615 
Cost of sales 13,357  6,698  10,818  1,983 
Volume incentives 18,895  7,676  7,152  1,798 
Selling, general and administrative (1) 12,689  4,535  8,218  1,604 
Segment operating income $ 10,352  $ 706  $ 7,443  $ 691  $ 19,192 
Unallocated corporate selling, general and administrative expense (13,908)
Operating income 5,284 
Interest and other loss, net (13)
Interest expense (26)
Foreign exchange gains, net 2,654 
Income from operations before provision for income taxes $ 7,899 
Nine Months Ended September 30, 2025 Asia Europe North America Latin America and Other Total
Net sales $ 166,042  $ 67,962  $ 106,219  $ 16,114  $ 356,337 
Cost of sales 36,538  20,000  35,817  6,037 
Volume incentives 54,666  27,238  21,853  4,795 
Selling, general and administrative (1) 43,085  14,498  26,627  4,259 
Segment operating income $ 31,753  $ 6,226  $ 21,922  $ 1,023  $ 60,924 
Unallocated corporate selling, general and administrative expense (41,503)
Operating income 19,421 
Interest and other income, net 524 
Interest expense (71)
Foreign exchange gains, net 4,451 
Income from operations before provision for income taxes $ 24,325 

Nine Months Ended September 30, 2024 Asia Europe North America Latin America and Other Total
Net sales $ 151,497  $ 63,513  $ 103,719  $ 17,430  $ 336,159 
Cost of sales 35,905  21,231  33,416  5,983 
Volume incentives 50,615  25,022  22,354  5,793 
Selling, general and administrative (1) 39,415  13,945  24,387  4,855 
Segment operating income $ 25,562  $ 3,315  $ 23,562  $ 799  $ 53,238 
Unallocated corporate selling, general and administrative expense (37,693)
Operating income 15,545 
Interest and other income, net 462 
Interest expense (141)
Foreign exchange gains, net 1,111 
Income from operations before provision for income taxes $ 16,977 
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(1)    Service fees in China totaled $4.6 million and $10.9 million for the three- and nine-month periods ended September 30, 2025, respectively, compared to $3.5 million and $10.4 million for the three- and nine-month periods ended September 30, 2024. 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, the United States, Taiwan, Japan and South Korea comprise 10 percent or more of consolidated net sales for the three- and nine-month periods ended September 30, 2025 and 2024, as follows (dollar amounts in thousands):  
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2025 2024 2025 2024
Net sales:
United States $ 33,721  $ 30,973  $ 98,687  $ 95,609 
Taiwan 18,854  18,389  53,446  50,489 
Japan 17,704  13,287  41,911  32,144 
South Korea 15,199  13,894  38,516  38,964 
Other 42,861  38,072  123,777  118,953 
Total net sales $ 128,339  $ 114,615  $ 356,337  $ 336,159 
Net sales generated by each product line for the three and nine months ended September 30, 2025 and 2024, are as follows (dollar amounts in thousands):

Three Months Ended September 30, 2025 Asia Europe North America Latin America and Other Total
General health $ 24,817 $ 9,267 $ 16,231 $ 1,571 $ 51,886
Immune 4,456 2,046 3,778 455 10,735
Cardiovascular 15,935 2,600 4,036 394 22,965
Digestive 13,657 5,788 9,411 2,514 31,370
Personal care 2,365 1,481 1,795 206 5,847
Weight management 3,495 925 973 143 5,536
Total net sales by segment $ 64,725 $ 22,107 $ 36,224 $ 5,283 $ 128,339

Three Months Ended September 30, 2024 Asia Europe North America Latin America and Other Total
General health $ 22,572 $ 9,194 $ 15,259 $ 1,753 $ 48,778
Immune 2,504 1,685 3,690 589 8,468
Cardiovascular 14,556 2,997 3,630 448 21,631
Digestive 10,905 3,675 8,583 2,846 26,009
Personal care 1,175 765 1,512 309 3,761
Weight management 3,581 1,299 957 131 5,968
Total net sales by segment $ 55,293 $ 19,615 $ 33,631 $ 6,076 $ 114,615

Nine Months Ended September 30, 2025 Asia Europe North America Latin America and Other Total
General health $ 63,470 $ 29,370 $ 47,535 $ 4,811 $ 145,186
Immune 11,311 6,474 11,887 1,424 31,096
Cardiovascular 42,468 7,804 11,449 1,217 62,938
Digestive 33,825 17,790 27,596 7,599 86,810
Personal care 5,671 4,427 4,907 695 15,700
Weight management 9,297 2,097 2,845 368 14,607
Total net sales by segment $ 166,042 $ 67,962 $ 106,219 $ 16,114 $ 356,337

Nine Months Ended September 30, 2024 Asia Europe North America Latin America and Other Total
General health $ 57,697 $ 28,530 $ 46,698 $ 4,887 $ 137,812
Immune 6,437 6,223 11,675 1,906 26,241
Cardiovascular 42,155 7,712 11,371 1,331 62,569
Digestive 27,201 15,535 26,306 8,083 77,125
Personal care 3,511 3,178 4,665 854 12,208
Weight management 14,496 2,335 3,004 369 20,204
Total net sales by segment $ 151,497 $ 63,513 $ 103,719 $ 17,430 $ 336,159
Depreciation and amortization by reportable business segment for the three and nine months ended September 30, 2025 and 2024, are as follows (dollar amounts in thousands):
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2025 2024 2025 2024
Depreciation and amortization:
Asia $ 466  $ 496  $ 1,445  $ 1,509 
Europe 25  23  81  70 
North America 3,036  3,005  8,977  8,581 
Latin America and Other 12  12  35  35 
Total depreciation and amortization $ 3,539  $ 3,536  $ 10,538  $ 10,195 

From an individual country perspective, only the United States has material balances of consolidated property, plant and equipment as follows (dollar amounts in thousands):
September 30,
2025		 December 31,
2024
Property, plant and equipment
United States $ 29,815  $ 34,786 
Other 4,157  4,799 
Total property, plant and equipment $ 33,972  $ 39,585