Natures Sunshine Products, Inc. (NATR) has reported a 50.22 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $4.16 million, or $0.22 a share in the quarter, compared with $2.77 million, or $0.15 a share for the same period last year.
Revenue during the quarter grew 7.36 percent to $85.44 million from $79.59 million in the previous year period. Gross margin for the quarter expanded 41 basis points over the previous year period to 74.47 percent. Total expenses were 94.08 percent of quarterly revenues, down from 96.06 percent for the same period last year. This has led to an improvement of 198 basis points in operating margin to 5.92 percent.
Operating income for the quarter was $5.06 million, compared with $3.14 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $7.10 million compared with $5.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 139 basis points in the quarter to 8.31 percent from 6.91 percent in the last year period.
"During the third quarter, our global growth trends continued and we made good progress with our key product and new market initiatives," commented Gregory L. Probert, Chairman and Chief Executive Officer. "We achieved our 9th consecutive quarter of growth in both NSP United States and NSP Canada and continue to focus on the expansion of our patent-pending IN.FORM program. Synergy WorldWide once again delivered strong results, led by double-digit growth at Synergy Asia Pacific and further improvements in Synergy Europe. The recent launch of Elite Health in Europe, to be followed by further introductions in Asia in coming quarters, positions us well for further growth across our key Synergy WorldWide markets."
Operating cash flow drops significantly
Natures Sunshine Products, Inc. has generated cash of $5.06 million from operating activities during the nine month period, down 38.10 percent or $3.12 million, when compared with the last year period.
The company has spent $7.93 million cash to meet investing activities during the nine month period as against cash outgo of $15.35 million in the last year period.
Cash flow from financing activities was $0.64 million for the nine month period as against cash outgo of $6.74 million in the last year period.
Cash and cash equivalents stood at $40.44 million as on Sep. 30, 2016, down 7.84 percent or $3.44 million from $43.88 million on Sep. 30, 2015.
Working capital declines
Natures Sunshine Products, Inc. has witnessed a decline in the working capital over the last year. It stood at $47.56 million as at Sep. 30, 2016, down 10.31 percent or $5.47 million from $53.03 million on Sep. 30, 2015. Current ratio was at 1.76 as on Sep. 30, 2016, down from 2.03 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 83 days for the quarter from 161 days for the last year period. Days sales outstanding were almost stable at 8 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 103 days for the quarter compared with 178 days for the previous year period. At the same time, days payable outstanding went up to 27 days for the quarter from 26 for the same period last year.
Debt increases substantially
Natures Sunshine Products, Inc. has witnessed an increase in total debt over the last one year. It stood at $9.01 million as on Sep. 30, 2016, up 651.21 percent or $7.81 million from $1.20 million on Sep. 30, 2015. Natures Sunshine Products has witnessed an increase in short-term debt over the last one year. It stood at $9.01 million as on Sep. 30, 2016, up 651.21 percent or $7.81 million from $1.20 million on Sep. 30, 2015. Total debt was 4.19 percent of total assets as on Sep. 30, 2016, compared with 0.61 percent on Sep. 30, 2015. Debt to equity ratio was at 0.06 as on Sep. 30, 2016, up from 0.01 as on Sep. 30, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
