| OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION INFORMATION |
OPERATING BUSINESS SEGMENT AND INTERNATIONAL OPERATION 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. Each of 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 the relevant market.
Reportable business segment information for the years ended December 31, 2022 and 2021 is as follows (dollar amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended December 31, |
|
2022 |
|
2021 |
| Net sales: |
|
|
|
|
| Asia |
|
$ |
186,292
|
|
|
$ |
176,860 |
|
| Europe |
|
78,991
|
|
|
91,539 |
|
| North America |
|
133,214
|
|
|
149,746 |
|
| Latin America and Other |
|
23,413
|
|
|
25,939 |
|
| Total net sales |
|
421,910
|
|
|
444,084 |
|
| Contribution margin (1): |
|
|
|
|
| Asia |
|
85,876
|
|
|
89,939 |
|
| Europe |
|
25,911
|
|
|
30,959 |
|
| North America |
|
47,615
|
|
|
56,922 |
|
| Latin America and Other |
|
9,981
|
|
|
10,953 |
|
| Total contribution margin |
|
169,383
|
|
|
188,773 |
|
|
|
|
|
|
| Selling, general and administrative (2) |
|
153,125
|
|
|
154,103 |
|
| Operating income |
|
16,258
|
|
|
34,670 |
|
|
|
|
|
|
| Other loss, net |
|
(1,043) |
|
|
(2,848) |
|
| Income before provision for income taxes |
|
$ |
15,215
|
|
|
$ |
31,822 |
|
___________________________
(1) Contribution margin consists of net sales less cost of sales and volume incentives expense.
(2) Service fees in China totaled $14.9 million and $18.7 million for the years ended December 31, 2022 and 2021, respectively. These service fees are included in our selling, general and administrative expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended December 31, |
|
2022 |
|
2021 |
| Capital expenditures: |
|
|
|
|
| Asia |
|
$ |
1,830
|
|
|
$ |
1,081 |
|
| Europe |
|
57
|
|
|
142 |
|
| North America |
|
5,573
|
|
|
5,371 |
|
| Latin America and Other |
|
168
|
|
|
72 |
|
| Total capital expenditures |
|
$ |
7,628
|
|
|
$ |
6,666 |
|
|
|
|
|
|
| Depreciation and amortization: |
|
|
|
|
| Asia |
|
$ |
1,856
|
|
|
$ |
1,825 |
|
| Europe |
|
123
|
|
|
64 |
|
| North America |
|
8,863
|
|
|
9,206 |
|
| Latin America and Other |
|
183
|
|
|
67 |
|
| Total depreciation and amortization |
|
$ |
11,025
|
|
|
$ |
11,162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As of December 31, |
|
2022 |
|
2021 |
| Assets: |
|
|
|
|
| Asia |
|
$ |
95,362
|
|
|
$ |
104,659 |
|
| Europe |
|
15,773
|
|
|
15,486 |
|
| North America |
|
112,319
|
|
|
131,207 |
|
| Latin America and Other |
|
6,324
|
|
|
7,522 |
|
| Total assets |
|
$ |
229,778
|
|
|
$ |
258,874 |
|
From an individual country/region perspective, only the United States, South Korea and Taiwan comprise 10 percent or more of consolidated net sales for the years ended December 31, 2022 and 2021 as follows (dollar amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended December 31, |
|
2022 |
|
2021 |
| Net sales: |
|
|
|
|
| United States |
|
$ |
122,863
|
|
|
$ |
138,174 |
|
| South Korea |
|
54,935
|
|
|
61,107 |
|
| Taiwan |
|
48,474
|
|
|
23,198 |
|
| Other |
|
195,638
|
|
|
221,605 |
|
| Total net sales |
|
$ |
421,910
|
|
|
$ |
444,084 |
|
Revenue generated by each of our product lines is set forth below (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year Ended December 31, |
|
2022 |
|
2021 |
| Asia: |
|
|
|
|
| General health |
|
$ |
53,603
|
|
|
$ |
50,044 |
|
| Immunity |
|
3,283
|
|
|
1,599 |
|
| Cardiovascular |
|
55,312
|
|
|
48,019 |
|
| Digestive |
|
37,457
|
|
|
36,069 |
|
| Personal care |
|
9,205
|
|
|
17,765 |
|
| Weight management |
|
27,432
|
|
|
23,364 |
|
| |
|
186,292
|
|
|
176,860 |
|
| Europe: |
|
|
|
|
| General health |
|
$ |
34,438
|
|
|
$ |
40,045 |
|
| Immunity |
|
8,489
|
|
|
8,957 |
|
| Cardiovascular |
|
9,380
|
|
|
11,787 |
|
| Digestive |
|
20,024
|
|
|
23,142 |
|
| Personal care |
|
4,854
|
|
|
5,149 |
|
| Weight management |
|
1,806
|
|
|
2,459 |
|
| |
|
78,991
|
|
|
91,539 |
|
| North America: |
|
|
|
|
| General health |
|
$ |
64,488
|
|
|
$ |
65,379 |
|
| Immunity |
|
14,966
|
|
|
19,563 |
|
| Cardiovascular |
|
14,383
|
|
|
16,219 |
|
| Digestive |
|
28,490
|
|
|
37,130 |
|
| Personal care |
|
6,212
|
|
|
7,579 |
|
| Weight management |
|
4,675
|
|
|
3,876 |
|
| |
|
133,214
|
|
|
149,746 |
|
| Latin America and Other: |
|
|
|
|
| General health |
|
$ |
6,728
|
|
|
$ |
7,532 |
|
| Immunity |
|
2,901
|
|
|
2,667 |
|
| Cardiovascular |
|
1,662
|
|
|
2,001 |
|
| Digestive |
|
10,040
|
|
|
10,291 |
|
| Personal care |
|
1,399
|
|
|
2,573 |
|
| Weight management |
|
683
|
|
|
875 |
|
| |
|
23,413
|
|
|
25,939 |
|
| Total net sales |
|
$ |
421,910
|
|
|
$ |
444,084 |
|
From an individual country perspective, only the United States comprise 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| As of December 31 |
|
2022 |
|
2021 |
| Property, plant and equipment, net |
|
|
|
|
| United States |
|
$ |
42,389
|
|
|
$ |
46,595 |
|
| Other |
|
3,773
|
|
|
4,262 |
|
| Total property, plant and equipment |
|
$ |
46,162
|
|
|
$ |
50,857 |
|
|