Nature's Sunshine Products, Inc. (NASDAQ:NATR) Q2 2022 Results Conference Call August 9, 2022 5:00 PM ET

Company Participants

Nathan Brower - Executive Vice President and General Counsel

Terrence Moorehead - Chief Executive Officer

Joseph Baty - Chief Financial Officer

Conference Call Participants

Linda Bolton-Weiser - D.A. Davidson

Steven Martin - Slater

Operator

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Nature's Sunshine's Financial Results for the Second Quarter Ended June 30, 2022.

Joining us today are Nature's Sunshine, CEO, Terrence Moorehead; CFO, Joseph Baty; and General Counsel, Nathan Brower. Following their remarks, we'll open the call for your questions.

Before we go further, I would like to turn the call over to Mr. Brower as he covers some important items. Nathan, please go ahead.

Nathan Brower

Good afternoon, and thanks for joining today's call. Before we start, I'd like to remind everyone that this call will be available for replay through August 23, on the Investor Relations portion of our website, which is ir.naturessunshine.com. Of course, the information on this call speaks only as of today's date, which is August 9, 2022. The company disclaims any duty to subsequently update the information provided on this call.

The information on this call includes forward-looking statements. These statements are not guarantees of future performance, and the actual results are subject to various risks that could cause them to be materially different from the results discussed or anticipated. For a discussion of these risks, please refer to today's earnings release and the company's SEC filings. Consistent with prior calls, non-GAAP financial figures may be provided during today's call. We believe these non-GAAP financial figures assist in comparing period-to-period results in a consistent and accurate manner. Please refer to today's earnings release for any required reconciliation of non-GAAP numbers.

Now I'd like to turn the call over to the CEO of Nature's Sunshine, Terrence Moorehead. Terrence?

Terrence Moorehead

Thank you, Nate, and good afternoon, everyone. I want to thank you for joining today's call to review our second quarter results as we continue to move forward in the face of unprecedented headwinds. The War in Ukraine, inflation, global supply chain pressures and the lingering impact of COVID-19 have all been a challenge, but our vision to share the healing power of nature with people around the world remains undeterred.

Despite the extraordinary challenges in the market, we were able to deliver second quarter sales of $104 million on a reported basis or $109 million removing the impact of foreign exchange, which is slightly up versus prior year. Year-to-date sales are up 5.2% versus prior year in local currency, which is significantly ahead of the industry. We believe these outcomes illustrate the resilience and power of our brands and the advantages of our diverse portfolio. As expected, second quarter margins contracted due to inflationary pressures on cost of goods, inventory reserves associated with the conflict in Ukraine and continued investment in our growth strategies.