Nu Skin results continue to rise on the back of booming China sales

By Simon Pitman contact

- Last updated on GMT

Related tags: Personal care products, Asia, East asia

Nu Skin results continue to rise on the back of booming China sales
Skin care and nutritional products provider Nu Skin Enterprises has revealed record third quarter results, causing the company to up its full year revenue and profit forecasts.

Revenues were up 76% to $927.6m on the back of a 240% increase in revenues from its mainstay Greater China market. The company also revealed that the result was negatively impacted by foreign currency translations by 3%.

The revenue increase was significantly above both the company’s and analysts’ expectations, as the company said it was raising its full year revenue guidance from $3.18bn to $3.21bn.

It's all about China and South Korea...

"The momentum we have established in the first half of the year has accelerated as we posted gains throughout the world, with particularly impressive results in the Greater China and South Asia/Pacific regions, as well as South Korea,”​ said Truman Hunt, Nu Skin president and CEO.

Truman went on to comment that limited time offers on its TR90 weight management system had generated additional revenues of about $205m in the Greater China and South Asia Pacific regions.

In Greater China revenues were up from $464.6m from $136.6m in the corresponding period last year, while this result was also positively impacted by approximately 9% from currency translations.

Elsewhere, North Asia revenues were up 11% to $204.7m, South Asia/Pacific revenues were up 40% to $127.5m, in the US sales increased by 22% to $85.7m and in the EMEA region sales were up 4% to $45.1m.

Shifting focus from skin care to weight management

"Our optimism is a product of robust sales force growth and our innovative product portfolio,"​ said Hunt.

"We have high expectations for our business in the fourth quarter and in 2014 as we continue to execute the rollout of TR90.”

The company wants to upgrade its operations in the country by building new stories and manufacturing facilities, in an investment project that is currently being ramped up for next year.

Nu Skin has been extremely successful at tapping into the fast growth for cosmetic and personal care products amongst the country’s growing middle class group of consumers.

Investing big in China

Earlier this month the company announced that it is looking to further grow its already extensive footprint in the China market by making a $200m investment in its manufacturing and logistical operations there.

The company wants to upgrade its operations in the country by building new stories and manufacturing facilities, in an investment project that is currently being ramped up for next year.

Nu Skin has been extremely successful at tapping into the fast growth for cosmetic and personal care products amongst the country’s growing middle class group of consumers.

Related topics: Business & Financial

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