source: Pixabay
– For the fourth consecutive quarter, we achieved the largest sales in the company’s history. These tremendous results were driven by growth across our operating business units as we remain committed to our business transformation and our five global growth strategies – said Terrence Moorehead, CEO of Nature’s Sunshine.
The company’s presence in Asia led sales growth, with $43.5 million in net sales, followed by North America with $37.3 million in net sales. – Across Asia, Europe, and Latin America we had double-digit growth driven by product launches and strong execution of our strategies. – In the U.S., we also saw initiatives like our ‘Subscribe and Thrive’ auto-ship program and affiliate program continue to gain traction. Our direct-to-consumer business performed better than expected and we are working to further accelerate this channel by building out our digital capabilities. With the momentum we’re seeing, we are excited to be working towards launching our Personalization Program later in the year. It is another program we designed to improve the customer experience and it will represent the next phase of our digital-first transformation – Moorehead said.
Selling, general and administrative expenses in the quarter increased to $35.6 million, compared to $28.5 million in the prior year quarter. The company attributes this increase to higher costs associated with business transformation initiatives and growth in markets with higher variable costs.
Adjusted EBITDA increased by 38% to a record $13.4 million, a rise the company says was driven by strong growth in net sales. As of June, the company had cash on hand and cash equivalents totaling $74.9 million and $3 million of debt load.
– Looking forward to the second half of 2021, we expect our distributors and customers to continue responding positively to our transformed business model and new branding. Our customers are enjoying the revitalized packaging and labels as well as our new unboxing experience, which we will now start rolling out within our Synergy brand as well. We’re on a multi-year journey right now and while there’s supply chain headwinds and continued challenges from COVID-19, we remain operationally and financially sound, and we are optimistic in our ability to continue to create value for our shareholders – Moorehead said.