Natures Sunshine Reports Decreased Sales, Increased Distributors

Natures Sunshine Reports Decreased Sales, Increased Distributors

PROVO, UtahNaturesSunshine Products Inc. (NASDQ:NATR) reported Feb. 25 that for its fiscal year(FY03), ended Dec. 31, its number of distributors was up even as the companyadmitted there are some issues it needs to face.

Sales dipped to $164.3 million from $166.6 million logged inFY02, with gross margin increasing slightly to 68.4 percent of sales from 68percent. Operating expenses were reined in to $112.4 million from $113.2million. Net income dropped to $5.1 million, or $.36 earned per share, from $7.1million, or $.45 earned per share.

Recent cost-saving measures also had a favorable impact andare expected to benefit our results in 2004, said Douglas Faggioli, presidentand chief executive officer. In general, employees and field people alike atNatures Sunshine seem to be responding positively to the recent changes andnew initiatives that company has implemented. He added the company still hasa few remaining issues and challenges to address.

Faggioli also reported that even though the company wasdisappointed in the ephedra ban (which goes into effect April 12), it wouldcomply with the Food and Drug Administrations (FDA) decision.

The company also reported worldwide distributors rose: Therewere 562,000 as of Dec. 31, 2003, compared to 509,000 in December 2002. Thenumber of worldwide managers also increased, going from 14,000 to 15,150.

On March 1, the company announced a quarterly cash dividend of$.05, payable March 22 to shareholders of record on March 11.