Nature’s Sunshine Products, Inc. (NASDAQ:NATR) Q4 2022 Earnings Call Transcript

Linda Bolton Weiser: Okay. And then can you talk a little bit more about Eastern Europe? Just what’s going on there in terms of like, is the sales being booked from Russia and Ukraine actually zero at this point, or is there still a little bit, and then what are those new markets you referred to, sort of?

Terrence Moorehead: Yeah, so, what we’re seeing is we’re able to get inventory reliably into the markets. We’re able to get into the hands of the people that kind of where we want it to go. And then we’re able to get kind of repatriate the dollars kind of once the inventory’s on the ground there and it’s sold in. So when I talk about, us getting some stability, we really are seeing that kind of type of stability where the business is moving forward, people are selling. And that would include both in Russia and in Ukraine albeit obviously Ukraine is at a depressed level. The performance that we’re seeing in Turkey and the Baltic states, at this point in time is providing, again, it’s some partial — it’s partially filling the gap that we would’ve seen from Ukraine.

So I think we feel really good about that. I think the team on the ground has done an outstanding job rewiring, everything from kind of how we get the product on the ground to how we deliver it to people, to how we get payments. So it’s been a lot of work. So I think we’ve — again, we’ve reached this stability, this level of stability of all things kind of staying equal and all things holding steady. We feel pretty good about that. And then we’ve got the dollars coming in from Turkey and the Baltic states. Still new markets for us, but it’s enough that it’s actually I’d say meaningful to relative to what we were losing in the Ukraine. Hope that’s helpful.

Linda Bolton Weiser: Yes. Thank you. And then I guess just finally, I’d like to ask about North America because I guess, you’re still having some declines there, and I just kind of wonder about maybe the consumer pressures still facing some inflationary pressures and things like that, and yet you’re kind of talking about taking price. Maybe you could just give us a little more color about how you’re managing that business there in North America?

Terrence Moorehead: Yeah, that’s, that’s an important one, especially when it comes to taking some price there and what we’re going — what we’re specifically looking at is, on some of our — some of our specialty products, especially the botanicals where, we really kind of own some of these therapeutic areas, there is an opportunity for us to take price on some of those products. So we’re going to do that. We’ll be kind of looking at all of our products and all of the pricing again, just to sharpen our pencil and make certain that we’re hitting relevant price points, kind of just some of the prices are — they just — we just landed on them and I think there’s a better price point that people would be willing to pay. They wouldn’t even notice the change, but it would make a — it would make a difference to us.

We are still experiencing and dealing with an inflationary market where consumers are making different choices than they were versus the marketplace in 2021. So, that does have some implications in terms of what we can do, our marketing and promotion strategies. But we do believe there’s opportunity for us to take price. We’re still able to drive customer growth. We are seeing good customer growth there. Again, but what’s happening is as we’re bringing in new customers, we’re just seeing that the average orders are different than they were just 12 months ago. So we’re going to keep hammering away at this. We do have other initiatives kind of in the mix to, as I had mentioned, across our digital platform. And then as well looking towards our nutritional health practitioners to try and expand the number of people that we’re bringing in there.