Financial Report

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USANA Reports Record Fourth Quarter and Year Results
Nu Skin Enterprises Reports Year-End and Fourth Quarter Results
Oriflame 2005 Sales Up 14%
February Stock Watch

Oriflame 2005 Sales Up 14%

Oriflame Cosmetics recently released its year-end report. For the three months ended December 31, 2005, sales in local currencies increased by 17 percent and by 24 percent in Euros to €244.7 million, compared to €197.3 million in the same period last year. Unit sales were up by 20 percent due to a change in the product mix and increased merchandising.

Sales growth in local currencies was driven by an 8 percent increase in the average size of the sales force and an 8 percent productivity improvement. Closing sales force increased by 9 percent, or 140,000, to 1,728,600 consultants.

Local currency sales in Latin America, CIS & Baltics, Central Europe & Mediterranean, Western Europe, and Asia increased by 33 percent, 20 percent, 14 percent, 11 percent and 8 percent respectively. The sales growth was a result of a highly motivated sales force and the launch of additional catalogs.

Gross margins increased to 67.8 percent mainly as a result of sourcing gains and positive currency movements, partly offset by increased stock provisions.

Operating profit increased by 20 percent to €39.1 million, reflecting increased sales and improved gross margins partly offset by higher administrative costs. Operating margins decreased to 16.0 percent. Adjusted profit before tax increased by 32 percent to €35.6 million. Results were negatively affected by €0.5 million in losses on currency exchange. Adjusted profit after tax increased by 30 percent to €32.0 million and adjusted fully diluted earnings per share increased by 30 percent to €0.54.

For the 12 months ended December 31, 2005, sales increased by 12 percent in local currency and by 14 percent in Euros, to €765.7 million. Unit sales were up by 14 percent. Sales growth in local currency was driven by an 8 percent increase in the size of the sales force and a 4 percent productivity improvement.

Gross margins decreased to 68.3 percent. Operating margins decreased by 2.4 percentage points to 13.9 percent, in line with the outlook for the year. Adjusted profit after tax increased by 3 percent to €90.5 million resulting in a 1 percent increase in adjusted fully diluted earnings per share to €1.52.