Quarterly report [Sections 13 or 15(d)]

Segment Information

v3.25.2
Segment Information
 6 Months Ended
Jun. 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 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 and six months ended June 30, 2025 and 2024, is as follows (dollar amounts in thousands):
Three Months Ended June 30, 2025 Asia Europe North America Latin America and Other Total
Net sales $ 52,664  $ 21,741  $ 34,977  $ 5,368  $ 114,750 
Cost of sales 11,737  6,388  12,209  2,117 
Volume incentives 16,773  8,860  7,231  1,496 
Selling, general and administrative (1) 13,864  4,750  9,144  1,394 
Segment operating income $ 10,290  $ 1,743  $ 6,393  $ 361  $ 18,787 
Unallocated corporate selling, general and administrative expense (14,513)
Operating income 4,274 
Interest and other income, net 268 
Interest expense (24)
Foreign exchange gains, net 3,026 
Income from operations before provision for income taxes $ 7,544 

Three Months Ended June 30, 2024 Asia Europe North America Latin America and Other Total
Net sales $ 49,984  $ 21,602  $ 33,563  $ 5,402  $ 110,551 
Cost of sales 11,974  7,329  10,396  1,965 
Volume incentives 16,587  8,647  7,523  1,936 
Selling, general and administrative (1) 13,029  4,798  7,869  1,669 
Segment operating income (loss) $ 8,394  $ 828  $ 7,775  $ (168) $ 16,829 
Unallocated corporate selling, general and administrative expense (11,192)
Operating income 5,637 
Interest and other income, net 412 
Interest expense (103)
Foreign exchange losses, net (1,523)
Income from operations before provision for income taxes $ 4,423 
Six Months Ended June 30, 2025 Asia Europe North America Latin America and Other Total
Net sales $ 101,317  $ 45,855  $ 69,995  $ 10,831  $ 227,998 
Cost of sales 22,632  13,536  23,774  4,160 
Volume incentives 33,142  18,512  14,470  3,080 
Selling, general and administrative (1) 26,908  9,899  17,618  2,843 
Segment operating income $ 18,635  $ 3,908  $ 14,133  $ 748  $ 37,424 
Unallocated corporate selling, general and administrative expense (26,978)
Operating income 10,446 
Interest and other income, net 473 
Interest expense (45)
Foreign exchange gains, net 3,779 
Income from operations before provision for income taxes $ 14,653 

Six Months Ended June 30, 2024 Asia Europe North America Latin America and Other Total
Net sales $ 96,204  $ 43,898  $ 70,088  $ 11,354  $ 221,544 
Cost of sales 22,548  14,533  22,598  4,000 
Volume incentives 31,720  17,346  15,202  3,995 
Selling, general and administrative (1) 26,726  9,410  16,169  3,251 
Segment operating income $ 15,210  $ 2,609  $ 16,119  $ 108  $ 34,046 
Unallocated corporate selling, general and administrative expense (23,785)
Operating income 10,261 
Interest and other income, net 475 
Interest expense (115)
Foreign exchange losses, net (1,543)
Income from operations before provision for income taxes $ 9,078 
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(1)    Service fees in China totaled $3.4 million and $6.3 million for the three- and six-month periods ended June 30, 2025, respectively, compared to $3.8 million and $6.9 million for the three- and six-month periods ended June 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 six-month periods ended June 30, 2025 and 2024, as follows (dollar amounts in thousands):  
  Three Months Ended
June 30,		 Six Months Ended
June 30,
  2025 2024 2025 2024
Net sales:
United States $ 32,492  $ 30,948  $ 64,966  $ 64,636 
Taiwan 16,728  16,308  34,592  32,100 
Japan 13,182  9,693  24,207  18,857 
South Korea 12,536  13,449  23,317  25,070 
Other 39,812  40,153  80,916  80,881 
Total net sales $ 114,750  $ 110,551  $ 227,998  $ 221,544 
Net sales generated by each product line for the three and six months ended June 30, 2025 and 2024, are as follows (dollar amounts in thousands):

Three Months Ended June 30, 2025 Asia Europe North America Latin America and Other Total
General health $ 20,402 $ 9,607 $ 15,705 $ 1,662 $ 47,376
Immune 3,983 1,987 3,665 451 10,086
Cardiovascular 12,714 2,639 3,717 390 19,460
Digestive 10,526 5,630 9,251 2,503 27,910
Personal care 2,108 1,315 1,637 245 5,305
Weight management 2,931 563 1,002 117 4,613
Total net sales by segment $ 52,664 $ 21,741 $ 34,977 $ 5,368 $ 114,750

Three Months Ended June 30, 2024 Asia Europe North America Latin America and Other Total
General health $ 19,131 $ 9,534 $ 15,032 $ 1,564 $ 45,261
Immune 2,249 2,203 3,540 594 8,586
Cardiovascular 13,625 2,296 3,757 401 20,079
Digestive 7,707 5,947 8,555 2,488 24,697
Personal care 1,044 1,145 1,581 270 4,040
Weight management 6,228 477 1,098 85 7,888
Total net sales by segment $ 49,984 $ 21,602 $ 33,563 $ 5,402 $ 110,551

Six Months Ended June 30, 2025 Asia Europe North America Latin America and Other Total
General health $ 38,653 $ 20,103 $ 31,304 $ 3,240 $ 93,300
Immune 6,855 4,428 8,109 969 20,361
Cardiovascular 26,533 5,204 7,413 823 39,973
Digestive 20,168 12,002 18,185 5,085 55,440
Personal care 3,306 2,946 3,112 489 9,853
Weight management 5,802 1,172 1,872 225 9,071
Total net sales by segment $ 101,317 $ 45,855 $ 69,995 $ 10,831 $ 227,998

Six Months Ended June 30, 2024 Asia Europe North America Latin America and Other Total
General health $ 35,125 $ 19,336 $ 31,439 $ 3,134 $ 89,034
Immune 3,933 4,538 7,985 1,317 17,773
Cardiovascular 27,599 4,715 7,741 883 40,938
Digestive 16,296 11,860 17,723 5,237 51,116
Personal care 2,336 2,413 3,153 545 8,447
Weight management 10,915 1,036 2,047 238 14,236
Total net sales by segment $ 96,204 $ 43,898 $ 70,088 $ 11,354 $ 221,544
Depreciation and amortization by reportable business segment for the three and six months ended June 30, 2025 and 2024, are as follows (dollar amounts in thousands):
Three Months Ended
June 30,		 Six Months Ended
June 30,
2025 2024 2025 2024
Depreciation and amortization:
Asia $ 481  $ 545  $ 979  $ 1,013 
Europe 28  25  56  47 
North America 2,979  2,917  5,941  5,576 
Latin America and Other 12  12  23  23 
Total depreciation and amortization $ 3,500  $ 3,499  $ 6,999  $ 6,659 

From an individual country perspective, only the United States has material balances of consolidated property, plant and equipment as follows (dollar amounts in thousands):
June 30,
2025		 December 31,
2024
Property, plant and equipment
United States $ 31,750  $ 34,786 
Other 4,180  4,799 
Total property, plant and equipment $ 35,930  $ 39,585