NuSkin reports record results, fuelled by gains in China

By Simon Pitman

- Last updated on GMT

Related tags Revenue

The company reported healthy growth in both sales and profits for the fourth quarter, although growth has declined over the course of the financial year.

During the fourth quarter sales revenues increased by 6 percent to $401.2m, a figure that was positively impacted by currency translations to the tune of 3 percent.

Net income grew from $30.3m to reach $37.3m, an increase of 19 percent.

Full year results show sales ebbing

For the full financial year ending December 2010 revenues were up by 15 percent to $1.54bn, a figure that was positively impacted by currency translations to 5 percent, while net income shot up by 53 percent to reach $138.05m.

CEO Truman Hunt underlined the fact that the full year results had bought record revenues for the direct sales anti-aging skin care specialist, alongside record commission payouts and profits.

"While we are enjoying growth in most of our regions around the world, we are particularly pleased with robust growth rates in Mainland China, South Korea and South Asia/Pacific,”​ said Hunt.

Mainland China leads the way

The company reported that the fastest growth in the fourth quarter was seen in the Greater China market, where revenues were up 19 percent to $66.5m on the back a 37 percent gain in revenues from mainland China, alongside positive currency translation.

In North Asia, the company’s biggest market, revenues were up 8 percent to $180.6m, positively impacted by a 30 percent gain from revenues in South Korea, which helped to offset a decline in revenues of 8 percent in the Japan market.

In the Americas revenues were down from $78.9m to $61.4m, mainly on account of a 23 percent decline in US sales, while revenues were up 45 percent to $51.3m in the South Asia/Pacific region, driven by strong gains in all markets.

ageLOC is top brand

“Our growth is a reflection of the compelling innovation we have infused into our ageLOC product platform, as well as our sales leaders' phenomenal ability to bring this innovation to the marketplace,”​ added Hunt.

Indeed, Hunt went on to add that revenue gains during 2011 are expected to focus on the continued growth of ageLOC platform, although comparisons are expected to be difficult on account of the strong gains seen during 2010.

"We project first-quarter revenue of $380 to $390 million…,"​ said Ritch Wood, chief financial officer. "We expect currency to benefit revenue about 2 to 3 percent in the first quarter and reiterate our previous annual guidance of $1.60 to $1.63 billion.”

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