The Lehi, UT-based multi level marketing company reported $104.2 million in quarterly revenue. That was down from the same period a year previously, but was about $12 million better than what analysts had forecast.
Net sales actually rose in Asia, where the company reported $47.4 million revenue compared to the $43.5 million recorded in the same period a year previously. But sales fell steeply in Europe, where the ongoing war in Ukraine has upended markets across the continent.
“The devastating war in Ukraine, rampant inflation, supply chain pressures, and the lingering impact of COVID-19 hampered our vision to share the healing power of nature with everyone,” said Terrence Moorehead, CEO of Nature’s Sunshine.
“Despite the headwinds, our revenue was flat on a constant currency basis, driven by continued rapid growth in Asia and mitigated losses in Europe. We believe these outcomes illuminate the resilience of our brand,” he added.
War in Ukraine hurting results
Sales in Europe fell more than 20% year over year, coming in at $17 million for the quarter, down from $21.5 million in the same quarter in 2021. Russia had been a strong market for the company in the past. Sales also fell in North and South America.
The latest results show a remarkable turnaround for the company. In the mid 2010s Nature’s Sunshine was struggling with a botched entry into the mainland China market. But sales in Russia were a bright spot for the company, rising by more than 17% year over year in early 2017.