Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.23.3
Segment Information
 9 Months Ended
Sep. 30, 2023
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 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,
  2023 2022 2023 2022
Net sales:        
Asia $ 52,218  $ 47,878  $ 153,438  $ 141,370 
Europe 18,769  19,328  61,410  58,204 
North America 34,792  31,504  104,098  101,567 
Latin America and Other 5,423  5,796  17,438  18,020 
Total net sales 111,202  104,506  336,384  319,161 
Contribution margin (1):        
Asia 24,861  21,268  73,711  64,639 
Europe 5,993  7,189  18,659  18,157 
North America 14,222  10,839  40,985  35,858 
Latin America and Other 2,044  2,508  6,889  7,703 
Total contribution margin 47,120  41,804  140,244  126,357 
Selling, general and administrative expenses (2) 41,288  36,792  127,203  114,281 
Operating income 5,832  5,012  13,041  12,076 
Other income (loss), net (927) (2,281) (500) (3,037)
Income before provision for income taxes $ 4,905  $ 2,731  $ 12,541  $ 9,039 
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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 $4.0 million and $12.9 million for the three and nine-month periods ended September 30, 2023, respectively, compared to $2.5 million and $11.3 million for the three and nine-month periods ended September 30, 2022. These service fees are included in selling, general and administrative expenses.

From an individual country/region perspective, the United States, South Korea and Taiwan comprise 10 percent or more of consolidated net sales for the three and nine-month periods ended September 30, 2023 and 2022, as follows (dollar amounts in thousands):
 
  Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2023 2022 2023 2022
Net sales:        
United States $ 32,240  $ 29,077  $ 96,314  $ 93,789 
South Korea 13,921  14,967  38,993  43,085 
Taiwan 15,598  13,465  45,814  35,148 
Other 49,443  46,997  155,263  147,139 
  $ 111,202  $ 104,506  $ 336,384  $ 319,161 
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,
  2023 2022 2023 2022
Asia        
General health $ 16,937  $ 14,705  $ 48,859  $ 40,010 
Immune 1,964  654  3,738  2,779 
Cardiovascular 14,963  14,626  44,698  41,498 
Digestive 9,186  8,599  30,172  28,625 
Personal care 1,376  2,758  4,159  7,384 
Weight management 7,792  6,536  21,812  21,074 
  52,218  47,878  153,438  141,370 
Europe        
General health $ 8,034  $ 8,638  $ 25,823  $ 25,162 
Immune 1,563  1,899  5,988  5,973 
Cardiovascular 2,264  2,385  7,085  7,168 
Digestive 5,087  4,849  17,156  14,921 
Personal care 1,348  1,087  3,779  3,529 
Weight management 473  470  1,579  1,451 
  18,769  19,328  61,410  58,204 
North America        
General health $ 16,334  $ 14,241  $ 47,725  $ 44,509 
Immune 3,641  3,546  11,693  12,479 
Cardiovascular 3,634  3,427  10,983  11,162 
Digestive 8,577  8,096  26,069  25,734 
Personal care 1,720  1,397  4,818  4,961 
Weight management 886  797  2,810  2,722 
  34,792  31,504  104,098  101,567 
Latin America and Other        
General health $ 1,480  $ 1,597  $ 4,717  $ 5,012 
Immune 611  709  2,023  2,225 
Cardiovascular 392  438  1,291  1,250 
Digestive 2,560  2,569  8,030  7,961 
Personal care 284  329  976  1,050 
Weight management 96  154  401  522 
  5,423  5,796  17,438  18,020 
  $ 111,202  $ 104,506  $ 336,384  $ 319,161 

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,
2023		 December 31,
2022
Property, plant and equipment:    
United States $ 41,941  $ 42,389 
Other 4,350  3,773 
Total property, plant and equipment, net $ 46,291  $ 46,162 
Total assets per segment is set forth below (dollar amounts in thousands):
September 30,
2023		 December 31,
2022
Assets:    
Asia $ 100,458  $ 95,362 
Europe 21,829  15,773 
North America 110,480  112,319 
Latin America and Other 7,146  6,324 
Total assets $ 239,913  $ 229,778