Nature's Sunshine Products

Nature's Sunshine Products, Inc.
Company typePublic
Nasdaq: NATR
Russell 2000 Index component
Industrynutritional supplements
Founded1972; 52 years ago (1972)
FounderGene Hughes
Kristine Hughes
HeadquartersLehi, Utah U.S.
Area served
Worldwide
Key people
Terrence Moorehead (CEO)
Gregory L. Probert (chairman of the board)
ProductsDietary supplements
RevenueUS$ 324.705 million (2015) [1]
US$ 13.872 million (2015) [1]
US$ 13.656 million (2015) [1]
Total assetsUS$ 200.520 million (2015) [1]
Number of employees
901 (2015) [1]
SubsidiariesSynergy Worldwide[1]
Websitenaturessunshine.com

Nature's Sunshine Products, Inc. also known as "NSP", is a manufacturer of dietary supplements, including herbs, vitamins, minerals, and personal care products. It is based in Lehi, Utah, with a manufacturing facility in Spanish Fork, Utah.

History

Hydrated Bentonite, one of Nature's Sunshine's products

Nature's Sunshine was founded in 1972 by Gene and Kristine Hughes, who started encapsulating capsicum in their home kitchen. The company employs a multi-level marketing business model in which their products are primarily sold to the consumer by independent distributors who receive commissions based on their own sales, as well as sign-up bonuses and commissions based upon the sales of any distributors they may have recruited.

NSP also owns Synergy Worldwide, a multi-level marketing company that also sells nutritional supplements. Products for both companies are manufactured in a production and research facility located in Spanish Fork, Utah.

In June 2021, Nature’s Sunshine Products, Inc. and the David Eccles School of Business at the University of Utah partnered together to create a new scholarship. Nature’s Sunshine Products, Inc. partnered with the Opportunity Scholars program to provide full-ride scholarships to underrepresented students who are the first in their family to attend college.[2]

Like similar multilevel marketing companies, Nature's Sunshine's business has been adversely affected by the lingering effects of the COVID-19 pandemic, global inflation and the Russian invasion of Ukraine. In the 4th quarter of 2022, net sales fell 13% to $103 million, as compared to the 4th quarter of 2021. According to CEO Terrence Moorehead, the company is making "strategic changes" and "redesigning processes and revamping sourcing relationships."[3]

SEC bribery lawsuit

In 2006, KPMG, which had provided auditing services to the company, resigned from the account. They charged that then-CEO Douglas Faggioli had lied to auditors about "alleged fraud," and had approved bribery.[4] In July 2009, the company agreed to pay $600,000 in fines after being charged by the SEC with having bribed Brazilian officials with more than $1,000,000 in 2000 and 2001. This was done "so it could import unregistered nutritional products into the country, and then falsified its books to hide the payments."[5][6]

References

  1. ^ a b c d e f "Annual Report of the company for 2015" (PDF).
  2. ^ McFarland, Sheena (June 2, 2021). "Nature's Sunshine announces scholarship fund for diverse Eccles students". The David Eccles School of Business. Retrieved December 19, 2022.
  3. ^ Teal, Kelly (March 28, 2023). "MLMs cutting costs, going digital to get past 'pandemic malaise': Natura & Co., Nature's Sunshine and Herbalife are returning their focuses to growth as the negative effects of Covid-19 diminish. Even so, the MLMs have instituted restructuring to combat losses". Natural Products Insider. Retrieved April 29, 2023.
  4. ^ Harvey, Tom (July 31, 2009). "SEC fines Nature's Sunshine for bribing Brazilian officials". The Salt Lake Tribune. Archived from the original on August 4, 2009.
  5. ^ Leong, Grace (August 1, 2009). "Nature's Sunshine pays $600K to settle bribery charges". Daily Herald (Utah). Archived from the original on January 5, 2010. Retrieved April 30, 2023.
  6. ^ "Securities and Exchange Commission v Nature's Sunshine Products, Inc., et al. Civil No. 2:09cv0672" (PDF). United States District Court, District Of Utah, Central Division. July 31, 2009. Retrieved December 9, 2016.
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