Nature's Sunshine Products, the US manufacturer and marketer of encapsulated herbs and vitamins, has reported a slight rise in sales for the final quarter and full year 2001.
Sales for the quarter were up 1 per cent at $77.3 million (€88.2m), while net profits were ahead 12 per cent at $3.7 million. For the full year, sales were also up 1 per cent at $318.7 million, while net profits were down 3 per cent at $16.7 million.
Sales in the US were up 5 per cent in the quarter at $43.3 million, while full year sales edged ahead of 2000 at $177.8 million. Outside the US, final quarter sales were down 4 per cent to $34.0 million but rose 2 per cent to $140.9 million for the year. The most notable gains were achieved in South Korea, the Russian Federation, Ecuador, Venezuela and Mexico, although they were offset by a decrease in Brazil where sales were impacted by import restrictions.
During the year, the company successfully completed the move of its manufacturing operation into an expanded production facility in Spanish Fork, Utah. The $14.0 million expansion was fully funded from working capital. Capacity of the expanded facility will allow consolidation of manufacturing, product storage and shipping into one location. It provides increased production capability via the installation of additional processing equipment to accommodate double the company's current level of revenue. The facility is expected to heighten efficiency and further improve product quality.
"The past year has been a challenging one for Nature's Sunshine," said Daniel P. Howells, president and chief executive officer. "Nonetheless, we have made progress with the sale of our subsidiary in Argentina, and we continue to maintain our focus and determination to maximise our profitability in Brazil, which remains a critical market. Noting the sales improvement in our domestic market, we intend to continue with programmes aimed at stimulating this sector."
Nature's Sunshine Products manufactures and markets herbal products, natural vitamins and other complementary products. In addition to the US, the company has operations in South Korea, Brazil, Mexico, Venezuela, Japan, Canada, Colombia, the United Kingdom and Ireland, Peru, Chile, Central America, Ecuador and Israel. The company also has exclusive distribution agreements with selected companies in Argentina, Australia, New Zealand, Malaysia, Norway and the Russian Federation.