Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

We have four business segments (Asia, Europe, North America, and Latin America and Other) based primarily upon the geographic region where each segment operates, as well as the internal organization of our officers and their responsibilities. The geographic segments operate under the Nature’s Sunshine Products and Synergy WorldWide® brands. The Latin America and Other segment includes our wholesale business in which we sell products to various locally-managed entities independent of the Company that we have granted distribution rights for the relevant market.

Net sales for each segment have been reduced by intercompany sales as they are not included in the measure of segment profit or loss reviewed by the chief executive officer. We evaluate performance based on contribution margin by segment before consideration of certain inter-segment transfers and expenses.

Reportable business segment information is as follows (dollar amounts in thousands):

	Three Months Ended March 31,
	2023		2022
Net sales:
Asia	$	46,345	$	46,110
Europe	21,405		21,777
North America	34,648		35,981
Latin America and Other	6,236		6,626
Total net sales	108,634		110,494
Contribution margin (1):
Asia	21,951		21,939
Europe	6,536		4,373
North America	12,861		12,719
Latin America and Other	2,466		2,901
Total contribution margin	43,814		41,932
Selling, general and administrative expenses (2)	43,642		40,623
Operating income	172		1,309
Other loss, net	1,514		(314)
Income before provision for income taxes	$	1,686	$	995

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(1)    Contribution margin consists of net sales less cost of sales and volume incentives expense.

(2)    Service fees in China totaled $3.7 million and $4.9 million for the three-month periods ended March 31, 2023 and 2022, respectively. These service fees are included in selling, general and administrative expenses.

From an individual country/region perspective, the United States, South Korea and Taiwan comprise 10 percent or more of consolidated net sales for the three-month periods ended March 31, 2023 and 2022, as follows (dollar amounts in thousands):

 

	Three Months Ended March 31,
	2023		2022
Net sales:
United States	$	31,986	$	33,229
Taiwan	14,175		9,750
South Korea	11,240		13,653
Other	51,233		53,862
	$	108,634	$	110,494

Net sales generated by each of our product lines is set forth below (dollar amounts in thousands):

 

	Three Months Ended March 31,
	2023		2022
Asia
General health	$	13,764	$	12,986
Immune	462		1,344
Cardiovascular	14,895		13,630
Digestive	9,422		9,036
Personal care	1,341		2,543
Weight management	6,461		6,571
	46,345		46,110
Europe
General health	$	9,174	$	9,196
Immune	2,284		2,631
Cardiovascular	2,519		2,633
Digestive	5,738		5,591
Personal care	1,177		1,233
Weight management	513		493
	21,405		21,777
North America
General health	$	15,534	$	15,314
Immune	4,320		4,872
Cardiovascular	3,588		3,842
Digestive	8,731		8,594
Personal care	1,464		2,175
Weight management	1,011		1,184
	34,648		35,981
Latin America and Other
General health	$	1,637	$	1,818
Immune	744		761
Cardiovascular	466		357
Digestive	2,885		2,841
Personal care	351		641
Weight management	153		208
	6,236		6,626
	$	108,634	$	110,494

From an individual country perspective, only the United States comprised 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands):

	March 31, 2023		December 31, 2022
Property, plant and equipment:
United States	$	42,424	$	42,389
Other	3,656		3,773
Total property, plant and equipment, net	$	46,080	$	46,162

Total assets per segment is set forth below (dollar amounts in thousands):

	March 31, 2023		December 31, 2022
Assets:
Asia	$	100,592	$	95,362
Europe	18,610		15,773
North America	107,507		112,319
Latin America and Other	7,875		6,324
Total assets	$	234,584	$	229,778