Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.24.1.u1
Segment Information
 3 Months Ended
Mar. 31, 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 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
March 31,
  2024 2023
Net sales:    
Asia $ 46,220  $ 46,345 
Europe 22,296  21,405 
North America 36,525  34,648 
Latin America and Other 5,952  6,236 
Total net sales 110,993  108,634 
Contribution margin (1):    
Asia 21,656  21,951 
Europe 8,042  6,536 
North America 13,602  12,861 
Latin America and Other 2,108  2,466 
Total contribution margin 45,408  43,814 
Selling, general and administrative expenses (2) 40,784  43,642 
Operating income 4,624  172 
Other income, net 31  1,514 
Income before provision for income taxes $ 4,655  $ 1,686 
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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 $3.1 million and $3.7 million for the three-month periods ended March 31, 2024 and 2023, respectively, 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-month periods ended March 31, 2024 and 2023, as follows (dollar amounts in thousands):
 
  Three Months Ended
March 31,
  2024 2023
Net sales:    
United States $ 33,688  $ 31,986 
South Korea 11,621  14,175 
Taiwan 15,792  11,240 
Other 49,892  51,233 
  $ 110,993  $ 108,634 
Net sales generated by each of our product lines is set forth below (dollar amounts in thousands):
 
  Three Months Ended
March 31,
  2024 2023
Asia    
General health $ 15,994  $ 13,764 
Immune 1,684  462 
Cardiovascular 13,974  14,895 
Digestive 8,589  9,422 
Personal care 1,292  1,341 
Weight management 4,687  6,461 
  46,220  46,345 
Europe    
General health $ 9,802  $ 9,174 
Immune 2,335  2,284 
Cardiovascular 2,419  2,519 
Digestive 5,913  5,738 
Personal care 1,268  1,177 
Weight management 559  513 
  22,296  21,405 
North America    
General health $ 16,407  $ 15,534 
Immune 4,445  4,320 
Cardiovascular 3,984  3,588 
Digestive 9,168  8,731 
Personal care 1,572  1,464 
Weight management 949  1,011 
  36,525  34,648 
Latin America and Other    
General health $ 1,570  $ 1,637 
Immune 723  744 
Cardiovascular 482  466 
Digestive 2,749  2,885 
Personal care 275  351 
Weight management 153  153 
  5,952  6,236 
  $ 110,993  $ 108,634 

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):
  March 31,
2024		 December 31,
2023
Property, plant and equipment:    
United States $ 40,885  $ 41,239 
Other 4,386  3,761 
Total property, plant and equipment, net $ 45,271  $ 45,000 
Total assets per segment is set forth below (dollar amounts in thousands):
March 31,
2024		 December 31,
2023
Assets:    
Asia $ 114,061  $ 105,636 
Europe 22,894  20,920 
North America 103,379  116,052 
Latin America and Other 6,933  7,165 
Total assets $ 247,267  $ 249,773