Nature’s Sunshine Products, Inc. (NASDAQ:NATR) Q1 2024 Earnings Call Transcript

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Terrence Moorehead: Yes, we don’t Linda. But I also think the momentum behind our business had been previously — we’ve had consecutive quarters of positive growth, and I’m not sure if they were necessarily on the same basis where we’ve been. So I think the headwinds are — they hit us in Q1. Again, we believe in the business, our digital approach to the market. This is really quite powerful. Going forward, though, we’ll have to make sure that we’re truly engaging consumers because they’re under a lot of pressure right now. So we’ve got some things to address in China, but again, we’ve got a powerful model to help us do that with our digital live streaming.

Linda Bolton-Weiser : Okay. And then just on Korea, South Korea, that was actually really encouraging because I think you’ve been declining in South Korea for quite some time, if I’m not mistaken. So again, it sounds like you’re not promising, it’s going to continue, but it sounds encouraging. Could you give a little more color on what’s going on there?

Terrence Moorehead: Yes. They had a great quarter. They kind of really just went back to some good solid field fundamentals. They’re trying to reconstitute the business after being essentially shut down due to COVID for several years. So they still have a lot of work to do ahead of them. And for the full year, I think we’re looking at some positive momentum for them. But they’ll be fluctuating results from quarter-to-quarter, but I think they’re putting in place all the right building blocks to get them back on track for a positive year.

Linda Bolton-Weiser : Okay. And just finally, I was curious about getting an update on the personalization effort, which I think is just in North America. What’s going on with that? Like pill packs and things of that nature, are you proceeding with that? Where are we on that initiative?

Terrence Moorehead: Yes. That’s still a slow growth initiative for us right now. I think I had mentioned a couple of quarters ago. We believe personalization is very important in this space. as it allows for convenience, it allows for easy kind of reengagement of the consumers every single month. But we also believe that it’s going to take some time just to build adoption rates. So it’s up and running, and it’s just a slow build for us over time as expected. So right now, our marketing dollars are focused on driving engagement with areas like the power line, where we’ve seen tremendous success driving kind of digital activation where we’re seeing great success in new customer growth and making sure that we’re getting people into subscribe and thrive. So those are probably priorities that we’re putting at the front of the line right now, Linda. But personalization is still there, and we’re making sure that we’re providing that service to people.

Operator: And there seems to be no further questions at this time. I’d now like to turn the call back over to management for final closing comments.

Terrence Moorehead: Okay. Well, thank you very much. We’d like to thank everyone for listening to today’s call, and we look forward to speaking with you when we report our second quarter 2024 results in August. So once again, thank you, and take care.

Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you disconnect your lines. Have a lovely day.

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