Nature's Sunshine promises savings in 4Q
the nine months to end of September, with poor revenue in the US
offsetting better performance in international markets.
Utah supplement maker Nature's Sunshine Products saw sales slip in the nine months to end of September, with poor revenue in the US offsetting better performance in international markets.
The company, which also incurred heavy costs in the third quarter for streamlining management and personnel, reported sales for the nine-month period of $218.4 million, a decline of 4 per cent on the prior year.
Net income fell to $2.2 million, dropping 60 per cent from last year's $5.6 million, partly as a result of its costcutting program. Worldwide management positions have been cut from 15,300 in December 2002 to 14,000. The company is hoping to see pre-tax savings of between $7-$9 million on an annualized basis, with some of these savings to be achieved in the fourth quarter of 2003.
International sales revenue for the quarter ended September 30, 2003 increased 7.9 per cent compared to the same period in 2002 primarily as a result of continued strong sales revenue growth in the Russian Federation, Central America and Mexico, as well as in Japan. Nature's Sunshine has also recently announced a new sales and marketing subsidiary in Thailand.
Third quarter sales in the United States declined 6.7 per cent from the comparable period in 2002 despite an increase in US distributors.
Daniel P. Howells, president and CEO of the company, said there would be further efforts to boost performance. "Our efforts are continuing to reduce expenses, while focusing on stimulating greater sales and distributor recruitment activity. Meanwhile, Nature's Sunshine remains in excellent financial condition, with strong cash flows, providing the company with the capital resources needed to produce positive results."
Working capital totaled $30.9 million at September 30, 2003 while shareholders' equity came to $73 million.
