Nature's Sunshine Products, Inc. (NASDAQ:NATR) Q4 2023 Results Conference Call March 12, 2024 5:00 PM ET

Company Participants

Nate Brower - General Counsel

Terrence Moorehead - CEO

Shane Jones - CFO

Conference Call Participants

Linda Bolton-Weiser - D.A. Davidson

Operator

Good afternoon, everyone. And thank you for participating in today's conference call to discuss Nature's Sunshine Financial Results for the Fourth Quarter and Full Year ended December 31, 2023. Joining us today are Nature's Sunshine's CEO, Terrence Moorehead; CFO, Shane Jones; and General Counsel, Nate Brower. Following their remarks, we'll open the call for analyst questions. Before we go further, I would like to turn the call over to Mr. Brower as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Nate, please go ahead.

Nate Brower

Thank you. Good afternoon. And thanks for joining our conference call to discuss our fourth quarter and full year 2023 financial results. I'd like to remind everyone that this call is available for replay via telephonic dial-in through March 26th and via a live webcast that will be posted in the Investor Relations portion of our Web site at ir.naturessunshine.com. The information on this call contains forward-looking statements. These statements are often characterized by terminologies, such as believe, hope, may, anticipate, expect, will and other similar expressions. Forward-looking statements are not guarantees of future performance and the actual results may be materially different from the results implied by forward-looking statements. Factors that could cause results to differ materially from those implied herein include, but are not limited to, those factors disclosed in the company's annual report on Form 10-K under the caption Risk Factors and other reports filed with the Securities and Exchange Commission. The information on this call speaks only as of today's date and the company disclaims any duty to update the information provided herein. Now I would 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 discuss our fourth quarter and full year results. Today, I'll provide some context for our performance, which has been fueled by the continued execution of our global strategies. I'll also share some insights on how we believe the business is progressing as we move into 2024. From there, Shane will take you through the specifics of our financials in more detail. Starting with our full year results. We reported net sales of $445 million, making 2023 one of the strongest sales years in our company's history. When you adjust for the impact of foreign exchange, our 2023 sales were $453 million, up 7% versus 2022. This is a tremendous accomplishment given the backdrop of geopolitical unrest in Europe, elevated inflation, high interest rates and lagging consumer confidence. These results demonstrate that our high-quality products, strong field activation and omnichannel approach can drive strong financial performance even during periods of economic uncertainty and social unrest. 2023 was also the first year to benefit from our gross margin improvement initiatives. You'll remember that we committed to delivering $10 million of gross savings by focusing on several areas; first, reducing the cost of our ingredients, packaging and formulations while maintaining quality and performance; second, improving efficiency and reducing waste from our manufacturing processes; and third, reducing costs related to logistics and transportation.