Nature’s Sunshine Products, Inc. (NASDAQ:NATR) Q4 2023 Earnings Call Transcript

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Terrence Moorehead: So if I start with Japan, the team has done a great job there, driving people into the business, getting them into Subscribe and Thrive. So roughly 70% of the people that join us go right into a Subscribe and Thrive Autoship, that kind of nets out to right now about 50% of sales. So I think we’ve got a great engine of driving customer growth. The new kind of training center that’s going to double their capacity, it’s just a new facility to train staff, to train people. It will just allow us to put kind of more people through the system. So I think that somewhat speaks for itself. We’re doing more, I call it, field activation upfront kind of building the team in Korea to get our Korean business back on its feet and back on track.

Taiwan continues to be a powerhouse. So we expect to see continued strength in Taiwan. And as I said, kind of China, we’re just keeping our eye on China. I think we’ve had a great run in 2023. There’s a fair amount of uncertainty around the economy in China going forward. So I think we should expect to see maybe some lumpy performance in China, but still very good outlook overall for the business there on an ongoing basis. Does that help you?

Linda Bolton-Weiser: And then finally, the last thing I wanted to ask about was the long term, you used to have some longer term multiyear sort of EBITDA margin target type of objectives. Is that something you are still thinking about? And like what kind of numbers are you talking about getting to eventually on your margin profile?

Terrence Moorehead: I don’t think our outlook on that has changed. Shane, do you want to provide some more color around that?

Shane Jones: As we’ve talked about, there are several things that will help us to continue to enhance our margins, our gross margins — our EBITDA margins. As we get our gross margins improved and a lot of the initiatives that we’re doing, we’ve committed to $10 million or more to be able to drive that out over the longer term, there’s probably even more than that. So that will enhance that as well as just as we leverage the SG&A that we have and even just from a mix perspective as we mix to channels that are more profitable. All of those things over time should help us go from the EBITDA margins that we have today to at least mid-single or mid double digits and probably closer to high double digit.

Terrence Moorehead: Yes, exactly.

Operator: At this time, this concludes our question-and-answer session. I would now like to turn the call over back to Mr. Moorehead for closing remarks.

Terrence Moorehead: Okay, thank you. And we’d like to thank everybody for listening to today’s call. We look forward to speaking with you when we report our first quarter 2024 results in May of 2024. So thanks again for joining us and take care. Have a great evening.

Operator: Ladies and gentlemen, this concludes today’s conference. You may now disconnect. Thank you for your participation.

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