Nature's Sunshine Products, the US herb and vitamin manufacturer, reported a 7 per cent drop in sales for the first quarter ended 31 March 2002. Sales revenue was $75.9 million (€85.3m) compared to $81.7 million for the same period last year.
Sales revenue for the company's international operations amounted to $31.7 million compared to $35.7 million for the same period in 2001, a drop of approximately 12 per cent. US operations suffered less during the same period, with an overall decrease in revenue of 3 per cent to $44.2 million, and a 10 per cent growth in the US Hispanic market.
The company said that the net loss for the quarter totalled $0.9 million, or $0.05 per share, which included an impairment charge of $3.0 million associated with its investment in Cetalon Corporation as well as non-recurring expenses of $1.3 million in its Brazilian and US operations.
The results compare to net income of $4.0 million, or $0.25 per share, for the same period last year.
For the first quarter, Nature's Sunshine achieved sales increases in South Korea and the Russian Federation, however, these gains were offset by a $3.1 million decrease in sales revenue in Brazil where the company continues to be adversely impacted by import regulations imposed by the Brazilian government, it said.
However it anticipates a return to profitability in the second quarter of this year, as a result of cost-cutting measures.
``The first quarter has been an unusually difficult period, but we are seeing signs of improvement,'' said Daniel P. Howells, president and CEO. ``We believe that the cost reduction measures we are implementing company-wide, as well as other steps to improve performance, will benefit the company going forward,'' he added.
In addition to the US, Nature's Sunshine Products has operations in South Korea, Brazil, Mexico, Venezuela, Japan, Canada, Colombia, the United Kingdom and Ireland, Peru, Chile, Central America, Ecuador and Israel. It also has exclusive distribution agreements with selected companies in Argentina, Australia, New Zealand, Malaysia, Norway and the Russian Federation.