Nature's Sunshine Products, Inc. (NASDAQ:NATR) Q3 2019 Earnings Conference Call November 7, 2019 5:00 PM ET
Nate Brower – General Counsel
Terrence Moorehead – Chief Executive Officer
Joe Baty – Chief Financial Officer
Conference Call Participants
Steven Martin – Slater
Jurriaan Hofman – Robeco
Greetings, and welcome to the Nature's Sunshine Products Third Quarter 2019 Conference Call. [Operator Instructions] This conference is being recorded.
I'd now like to turn the conference over to your host, Mr. Nate Brower, General Counsel of Nature's Sunshine Products. Thank you, Mr. Brower. You now have the floor.
Good afternoon. Thanks to all of you for joining our conference call to discuss our third quarter 2019 financial results. This call is available for replay in a live webcast that will be posted on our website at naturessunshine.com in the Investors section. The information on this call may contain forward-looking statements. These statements are often characterized by terminology such as believe, hope, may, anticipate, expect, will and other similar expressions. Forward-looking statements are not guarantees of future performance, and the actual results may be materially different from the results implied by the forward-looking statements.
Factors that could cause results to differ materially from those implied herein include, but are not limited to, both factors disclosed in the company's annual report on Form 10-K under the caption Risk Factors and other reports filed with the Securities and Exchange Commission. The information on this call speaks only as of today's date, and the company disclaims any duty to update the information provided herein.
I will now turn the call over to Terrence Moorehead, Chief Executive Officer of Nature's Sunshine Products.
Thank you, Nate, and good afternoon, everyone, and thank you for joining us for today's call. I'm pleased to be with you today to discuss our third quarter results and some of the progress that we've made transforming our business. With me today is our Chief Financial Officer, Joe Baty, who will walk you through our financials in greater detail, but I'm going to kick things off today with a brief overview of the business.
Now as you know, earlier this year, we launched a new global strategy designed to strengthen our business by improving our consumer appeal and dramatically improving profitability. We're only about seven months into the process, but so far, I'm very pleased with our progress through the third quarter. Already, we're seeing significant improvement to our margins, which were up 300 basis points versus Q3 prior year, excluding nonrecurring items, while net income was up 60% versus Q3 prior year.
Our efforts to restructure the business, including the new leadership structure we launched in July and a leaner, more efficient organization, has helped drive profitability while strengthening our ability to focus and more effectively execute our strategies. Our new operating business units, or as we call them, OBUS, are more focused on addressing local consumer needs, improving market effectiveness and building the capabilities needed to drive results. During the third quarter, we made significant progress against each of our five global strategies, and I'd like to briefly discuss our progress on each one of those.
Our first strategy that we call brand power is about creating a more aspirational brand that excites, inspires and transforms the way people think and feel about our company. During the third quarter, we completed Phase 1 of our global rebranding initiative, which includes the introduction of new logos, fonts, packaging, messaging and brand imagery. We're finalizing our Phase 2 launch plans, but as we move forward, we anticipate updating all of our consumer and sales-facing assets with our exciting new branding that repositions our company to celebrate our leadership and heritage in the herbal supplements industry.