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Modere Appoints Shane Ware New Chief Financial Officer

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Modere, a Springville, Utah-based direct seller of beauty and personal care, health and wellness, and household products, has appointed Shane Ware as the company’s new chief financial officer.

Shane Ware

Shane Ware

Ware has served with the company for 10 years in various roles of progressive responsibility, and brings an intimate knowledge of the Modere brand, as well as its growth internationally, to his new role as CFO. Most recently he served as vice president of finance for the Japan market, where he helped to execute the rebranding of the then-largest market and its conversion to the company’s new Social Retail business model.

Over his decade-long tenure, Ware has traveled to or worked in every Modere foreign office, overseeing financial operations in each market. A licensed CPA with an MBA from the University of Utah, his credentials and extensive direct selling background make him an incredible asset to the company.

“Shane’s vast repertoire of experience positions him as a leader in the finance and operations industry,” said Asma Ishaq, CEO of Modere. “As we cap record-breaking growth in all of our key markets over the first quarter of 2018, Shane’s leadership will be instrumental in guiding Modere through its continued upward trajectory through the rest of the year and beyond.”

Prior to Modere, Ware worked at PricewaterhouseCoopers. His experience in worldwide audits, international finance regulations and in establishing consolidated global treasury and cash management processes has driven Modere’s streamlined financial operations.

Youngevity First Quarter 2018 Direct Selling Revenue Up 6.2%

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Chula Vista, California-based Youngevity International, an omni-direct lifestyle company, recently announced financial results for the first quarter ended March 31, 2018. Revenues increased 11.0 percent over the prior year. Direct selling sales were up 6.2 percent and commercial coffee revenues up 39.9 percent over prior year.

“We are pleased to see revenue growth for both segments in the first quarter,” said Steve Wallach, chairman and CEO of Youngevity. “Our international markets are beginning to contribute more significantly to overall revenue lead by top-line growth coming from Asia.  We believe this overall growth is sustainable in the coming quarters.”

Dave Briskie, president and CFO of Youngevity added, “We have been focused on the fundamentals as we entered 2018. We feel we made significant progress by improving adjusted EBITDA and strengthening our balance sheet as well. The recent financing and debt conversion contributed significantly to the improvement in our Stockholders’ Equity and will help reduce borrowing costs in the coming quarters.”

Revenue increased 11.0 percent to $42,994,000 in the current period as compared to $38,733,000 for the same period last year. The company derived approximately 82 percent of its revenue from direct selling sales and approximately 18 percent from commercial coffee sales. Direct selling revenues increased by $2,069,000, or 6.2 percent, to $35,311,000 as compared to $33,242,000 for the same period last year. Commercial coffee revenues increased by $2,192,000, or 39.9 percent, to $7,683,000 as compared to $5,491,000 for the same period last year.

Gross profit increased 14.4 percent to $25,012,000 in the current period as compared to $21,866,000 for the same period last year. Overall gross profit as a percentage of revenues increased to 58.2 percent, compared to 56.5 percent in the same period last year.

The company reported a net loss of $2,308,000 in the current period as compared to net loss of $2,059,000 for the same period last year. This increase in net loss was as a result of the increases in other expense, income taxes and operating expense, partially offset by an increase in gross profit.

To read the full Youngevity Q1 2018 report, click here.

Avon Opens Avon Care Center in Blue Ash, Ohio

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Avon executives and Avon Representatives join the Mayor of Blue Ash to celebrate the opening of the Avon Care Center in Cincinnati, OH. Pictured (Left to Right): John McCahan, Director, Avon  Care Center; Scott White, CEO, New Avon LLC; Kari Hupp, Avon Representative; Tom Adamec, Mayor of Blue Ash; Shekinah Caldwell, Manager, Avon Care Center.

New York City-based New Avon LLC recently hosted a ribbon-cutting ceremony to celebrate the opening of the company’s new customer care center in Blue Ash, Ohio. More than 200 employees at the new Avon Care Center will provide critical support and quick resolutions for Representatives to operate their successful businesses.

“The opening of the Avon Care Center is the latest step on our journey to become the leading social selling company in North America,” said Scott White, CEO of New Avon.  “Avon has been taking care of women and their families since our founding 130 years ago. We are proud of the opportunities we give women to build businesses on their own time. We are committed to the success of our Avon Representatives—and providing outstanding service to our Representatives and their customers is central to this mission.”

The custom-designed, 47,000-square-foot state-of-the-art facility also will host Avon U, a world-class training center for Avon Representatives.

“Our Representatives are the heart of our company, and we are making investments in their development,” added Betty Palm, president of social selling at New Avon. “We are excited to introduce Avon U as a destination for Representatives to work with their peers to share best practices to take their businesses to the next level.”

The office location in Blue Ash is Avon’s second operational site in Ohio. The company’s North American distribution center is in Zanesville, Ohio.

“Avon chose Blue Ash for its cutting-edge, entrepreneurial community,” said Avon Care Center Director John McCahan. “We are proud to be among the 2,300 corporations, including a variety of Fortune 500 companies, who are located here.”

Michael Katz of Actio Corporate Asset Advisors, LLC, a corporate real estate consultancy, managed Avon’s search and oversaw execution of the company’s move to Blue Ash.

Mannatech Reports 2% Increase for First Quarter 2018 Net Sales

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Mannatech, Inc., a Flower Mound, Texas-based global health and wellness company, has announced financial results for its first quarter of 2018. Net sales were $41.4 million, an increase of $800,000, or 2 percent, as compared to $40.6 million in the first quarter of 2017.

For the three-month period ended March 31, 2018, net sales declined 2.5 percent on a constant dollar basis as compared to the same period in 2017, while favorable foreign exchange caused a $1 million increase in GAAP net sales as compared to the same period in 2017.

Mannatech’s operations outside of the Americas accounted for approximately 66.9 percent of consolidated net sales.

Asia/Pacific net sales increased by $2.3 million, or 10.5 percent, to $24.2 million, as compared to $21.9 million for the same period in 2017. The increase was primarily due to a 29.2 percent increase in revenue per active independent associate and preferred customer, which was partially offset by a 14.5 percent decline in the number of active independent associates and preferred customers.

First-quarter 2018 net sales for Europe, the Middle East and Africa (EMEA) increased by $300,000, or 9.4 percent, to $3.5 million, as compared to $3.2 million for the same period in 2017. The increase was primarily due to a 20.3 percent increase in the number of active independent associates and preferred customers partially offset by a 9.1 percent decrease in revenue per active independent associate and preferred customer. Foreign currency exchange had the effect of increasing revenue by $400,000 when the three-month period ending March 31, 2018 is compared to the same period in 2017. The currency impact is primarily due to the strengthening of the South Africa Rand, the British Pound, and the Euro.

Net sales in the Americas decreased by $1.8 million, or 11.6 percent, to $13.7 million, as compared to $15.5 million for the same period in 2017. The decrease was primarily due to an 11.7 percent decline in revenue per active independent associate and preferred customer partially offset by a 0.1 percent increase in the number of active independent associates and preferred customers.

To read the full Mannatech Q1 2018 report, click here.

Gary Young’s Legacy Honored

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D. Gary Young, who passed away on May 12, 2018, was the amalgam of a life spent overcoming tremendous adversity—poverty, disabling injury, ridicule and a harsh upbringing fostered in him an unstoppable desire to help others in need.

Through Young Living, the company that he and wife, Mary, founded in 1994, Gary Young built a direct selling legacy, earning him the prestigious inaugural Bravo Legacy Award at the Direct Selling News Global 100. In honor of Gary, we would like to pay tribute to his memory through his own words and those closest to him. In addition to how he personally touched so many lives, his extraordinary professional contributions to the direct selling community will be felt for generations to come.

Early Life and Abject Poverty

As a boy, Gary called a 20-foot-by- 30-foot mountain cabin in Challis, Idaho home. With no running water or electricity, the family—Gary, his parents and five siblings—eked out an existence determined by what they could grow and hunt. Life was harsh.

“As I looked at the poverty in which I lived, I knew in my heart that I never wanted to live like my parents and was determined to have something better,” Gary said. He dreamed about creating and forging a future out of the wilderness and the mountains that he loved.

“My father taught me the value of hard work and how to be creative in solving problems and achieving what had to be done. This gave me the physical and mental strength that equaled whatever challenge came my way,” Gary said.

And his challenges were great. In his early 20s, a logging accident left Gary near death with 19 broken bones, three skull fractures and multiple herniations of the spinal cord. He languished in a coma for three months. Upon waking, doctors said he would not walk again.

Distraught, Gary attempted suicide twice. “He didn’t want to live without his horses. He didn’t want to live without his mountains,” Mary Young said. An attempt to starve himself ironically prevented scar tissue from forming and nerves rerouted. Sensation returned to Gary’s toes and he defied the medical prognosis. Gary rose to walk again.

“We consider ourselves the Young Living family and when members from around the world work together on a specific service project, at winter harvest, or spring planting, there is a bond created that uplifts and warms the heart and brings a joy that fills the soul.”
—D. Gary Young, Founder, Young Living Essential Oils

“Whatever path I walked, God was my partner and foundation for the decisions I made. After my terrible accident at age 24, I promised God that if he gave me back my legs, I would spend the rest of my life serving his children,” Gary said.

Unfortunately, challenges followed Gary throughout his life, in the form of injury and illness. On January 25, he faced yet another when he suffered a stroke that rendered his left side useless.

“Gary was a man who loved God and believed the mountains were God’s living room, where Gary went to communicate and find peace,” Mary said. “He loved his home and his family, and his greatest joy was in being of service to his fellow man, helping people reach their highest potential, have a greater understanding and compassion for one another, and achieve mutual respect and honor, even with our many cultural and ethnic differences.”

Laying the Young Living Foundation

A self-described “gunfighter” who lived by instinct, fast decisions and emotion, Gary Young never hesitated in life or business. The three 33s guided him: 33 percent intuition, 33 percent calculation and experience, and 33 percent gut feeling.

In the 1980s, Gary was immersed in alternative medicine, and then became fascinated with essential oils. He studied essential oil distillation methods in the early 1990s and became enamored with the potential power of natural ingredients. When a distillation teacher in France advised him to grow the necessary plants himself, Gary jumped at the idea of getting his hands dirty and planted his new 60 acres in Idaho with lavender, peppermint and tansy.

By 1994, newly married Gary and Mary Young, who sang with the Utah Opera, wanted to share essential oils with the wider world and for the first time used network marketing to do it. They renovated a run-down Riverton, Utah building as their headquarters and called the fledgling company, Young Living.

“He loved his home and his family, and his greatest joy was in being of service to his fellow man, helping people reach their highest potential, have a greater understanding and compassion for one another, and achieve mutual respect and honor, even with our many cultural and ethnic differences.”
—Mary Young, Co-Founder and CEO, Young Living Essential Oils

Driving Energy

Gary’s all-encompassing, driving energy infused Young Living. He plowed fields with his tractor, designed and built farm and distillery equipment, formulated in the laboratory, and taught seminars. His dedication, energy, enthusiasm and capacity for hard work, Young Living President and COO Jared Turner said, “Put people half his age to shame.”

“The only way Gary knew how to lead was from the front and the rest of us did our best to keep up! When you have a vision as singular as his was, paired with the determination and drive to accomplish it, you see unbelievable things happen. You see Young Living happen,” Turner said.

For 25 years, Mary watched this man take on every day as if it were his last. “He was passionate, quick-witted, emotional and brought excitement and creativity with his empathetic, loving and kind nature that was very contagious,” she said.

Gary put his unique zest for life on full display for Young Living’s Members by riding a zip line into an annual convention, mushing a dog sled team across the Alaskan wilderness, and taking up medieval jousting for sport. “If you’re not living on the edge, you’re taking up too much space,” Gary says. “Think of your goal, feel the passion come up inside you and forget about all the stuff on the side trying to convince you that you can’t do it. Yes, you can do it.”

“The only way Gary knew how to lead was from the front and the rest of us did our best to keep up! When you have a vision as singular as his was, paired with the determination and drive to accomplish it, you see unbelievable things happen. You see Young Living happen.”
—Jared Turner, President and COO, Young Living Essential Oils

Growing the World Over

“You’re only as good as that which you can give to someone else,” Gary said. Young Living and the network marketing industry allowed Gary to fulfill his own dreams in grand, visionary ways and make good on his promise to God to help others.

Keeping that promise started at the source of essential oils themselves. Gary traveled the world to learn all he could about growing and distillation, journeys that became far-reaching opportunities for good.

When Young Living established farms in places like Chongon, Ecuador, where Gary lived for a time tending lavender, he cultivated crops and formed strong, equally beneficial bonds with local farmers and villagers. He looked deep into the holistic needs of the community and set about meeting them.

“I was able to provide jobs for people who had never had a job, provide education for children who would never have an opportunity, and see poverty turn into real success with longevity for countless people,” Gary said. “It was very exciting for me to see ways that I could teach people how to help themselves through honest, productive work that produced oils for my company. It was a win-win for everyone.”

Turner said, “I think one of the biggest differentiators is that he led with his heart. That’s not to say that Gary wasn’t brilliant, insightful, and incredibly well informed. I can testify that he was! What I mean is that he prioritized the human benefits of his products and the company above any financial considerations.”

“I believe that when God blesses you financially, it is your responsibility to help God’s children who are less fortunate, not only with money but with giving of your time to help in other physical ways when possible,” Gary said. He formalized this belief with The Young Living Foundation in 2008.

Chongon’s children were first on Gary’s list. He acquired land for a new school, The Young Living Academy, and built it in 2009. Partially funded through $75/month student sponsorships, the academy serves the educational needs of 300, K-12 students and has changed the trajectory of these students’ futures.

“He was passionate, quick-witted, emotional and brought excitement and creativity with his empathetic, loving and kind nature that was very contagious.”
—Mary Young

The Foundation supports the communities where Young Living sources essential oils. Projects have taken them to Uganda with Sole Hope to scrub and remove small parasites causing dangerous and even deadly foot infections. They’ve also made shoes for villagers as a proactive measure. They partnered with Healing Faith Uganda to purchase mosquito nets, organize service trips and help test for malaria. Elsewhere in Africa, they doubled the efforts of African Hearts, a transitional home for abandoned children offering shelter, food, social services and quality education, purchased land and built an additional school for 200 children, ages 3-5.

Perhaps most memorable was Gary’s 2016 trip Nepal, nine months after devastating earthquakes and aftershocks left 1.2 million homeless. Standing among ruins in Yarsa distributing blankets, Gary looked upon the flimsy tents, lean-tos and tin sheds and knew they were no match for the coming winter. People—little children—were dying of exposure. Why had help not arrived?

Working with permission of Nepal’s Vice President, Gary sliced bureaucratic red tape and set about saving lives. His problem-solving mind saw a simple, South African brick-making machine used on Young Living’s Ecuadorian farm as a solution. Dirt mixed with small amounts of cement made bricks. Bricks could save lives in Nepal.

The Young Living Foundation ordered a complete, automated block factory, hired an engineer, architect and project manager and sent them for training. They taught the Nepalese to rebuild devastated villages, and then to manufacture and sell construction blocks, which created long-term economic value.

Gary mobilized Young Living’s Members for muscle and funding and counted rebuilding Yarsa’s homes and school a favorite memory. “Hundreds of our Members gave freely of their time and money to travel such long distances, to sleep in tents, and to work along with these people who lost everything and desperately needed help,” he said.

“We consider ourselves the Young Living family and when members from around the world work together on a specific service project, at winter harvest, or spring planting, there is a bond created that uplifts and warms the heart and brings a joy that fills the soul,” Gary said.

Instinctive Success

Sales under $800 a day didn’t meet the bills, but vision and an “inner knowing” drove Gary in Young Living’s early days. He made grand predictions and Mary would chuckle. “But as the years went on, I came to understand that no matter what he said he was going to accomplish, he always accomplished it,” she said.

“If you’re not living on the edge, you’re taking up too much space.”
—D. Gary Young

Before the paint was even dry on their first headquarters, Gary drew up plans for their next. He was confident Young Living would someday live up to his dreams, confident it would outpace a laundry list of direct selling giants. Mary laughed again and asked how he could be so sure. “I just know,” Gary responded.

Perhaps only Gary could see the company’s future success because only he knew for certain how to harness his maverick style, his ability to out-work everyone from dawn until long after the sun went down, and his drive to help others. Gary saw it clearly. Gary made it happen.

In 2014, Young Living’s explosive growth outpaced its infrastructure. They invested heavily across the board and slowed opening new markets. By 2015, Young Living achieved $1 billion in annual sales and repeated the next three years, placing it among the world’s largest direct selling companies. Revenue growth of 800 percent the past five years culminated in 2017 sales of $1.5 billion.

Today, the company reports 3,000 global employees working in 13 offices, representing 22 markets. It ship products to 133 countries. Young Living operates one of the most technologically advanced essential oil distilleries in North America, as well as 16 corporate and partner farms in the U.S., Ecuador, Canada, France, Oman and others. Since inception, they’ve welcomed some 4 million Members.

“Gary’s entire MO was to help people improve lives in every possible way. Every decision he made was for the benefit of his employees and Members around the world. Gary’s philosophy was infused into the daily operations of our company at every level, which I believe is a key part of the ‘YL Magic’ that sets us apart in this industry,” Turner said. “Each of us, from the executive level on down, has taken Gary’s beliefs to heart, which ensures that his legacy is secure and Young Living will never deviate from its core principles.”

Nature’s Sunshine Reports 5.1% Increase in Net Sales for First-Quarter 2018

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Lehi, Utah-based Nature’s Sunshine Products, Inc., a natural health and wellness company engaged in the manufacture and direct selling of nutritional and personal care products, recently reported its financial results for the first quarter ended March 31, 2018. Net sales increased 5.1 percent to $87.3 million year-over-year.

“We continued to generate good consolidated year over year growth, driven by Synergy Asia Pacific, NSP Russia, Central and Eastern Europe and a moderated rate of growth in NSP China,” said Chairman and CEO Gregory L. Probert. “We have also seen sales stabilize in NSP Americas over the last few quarters following the disruption from last April’s ERP implementation. Despite growth in NSP China, we did encounter some weakness during the first quarter that may continue over the coming quarters. The challenge relates to maintaining engagement of distributor leadership during these early stages of the Company’s development in China. Given we are still in the first year operating with a direct selling license, our China business is dependent upon the level of activity of a limited number of distributor leaders. While we have recently had success attracting additional leaders, we need to continue broadening the leadership ranks to create more consistency in activity levels and volume from quarter to quarter. We remain confident in our long-term growth opportunity in China despite our expectation for limited or even elusive sequential volume growth in the near-term.”

Net sales of $87.3 million increased 5.1 percent compared to $83.1 million in the first quarter of 2017. On a local currency basis, net sales increased 1.4 percent compared to 2017. Growth was primarily related to continued growth in Synergy Asia Pacific, NSP Russia, Central and Eastern Europe and NSP China, offset by a $2.8 million decline in nets sales in NSP Americas. Net sales were also positively impacted by $3.0 million of favorable foreign currency exchange rate fluctuations.

Total Manager, Distributors and customers, which includes those who have made a purchase in the last twelve months, was approximately 491,000 as of March 31, 2018.

To read the full Nature’s Sunshine Q1 2018 report, click here.

D. Gary Young 1949–2018

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Donald Gary Young, who is widely known as the father of the modern day essential oils movement, has passed away at the age of 69.

Jared Turner, President and COO of Young Living released a statement yesterday announcing his passing:

Young Living family,

It is with a heavy heart that I must tell you that our mentor and friend, our beloved founder Gary Young, passed away peacefully today in Salt Lake City, Utah surrounded by his closest family and friends due to complications resulting from a series of strokes.

It was an honor for me to be with him when he took his last, peaceful breath at 3:55 pm, on this beautiful spring day. A sacred moment I’ll never forget.

Even though he wouldn’t want us to feel this way, everyone at Young Living is heartbroken by this loss. We take solace in remembering the special man who was such an iconic pioneer and messenger for essential oils and their benefits to people around the world.

Gary was the undisputed leader of the global essential oil movement. He spent 35 years studying the benefits and perfecting the extraction of essential oils, while building a billion-dollar plus global business designed to share what he deemed “the gift” of essential oils with millions of people.

His commitment to physical and emotional wellbeing, combined with his lifelong love of nature, drove him to learn everything about essential oils – from how they are produced to their wellness benefits. He was passionate about providing all of our members with only the highest quality oils, sourced from our own farms and Seed to Seal certified suppliers and partners across the globe, so that millions can enjoy the full benefits of these amazing natural gifts today.

Those who knew Gary understood that no man ever had a bigger heart or was more devoted to the betterment of humanity. His love for others, empathy, and forgiving nature were always on display across his roles as a husband, father, farmer, researcher, leader, explorer, innovator, mentor, philanthropist, and more. Gary’s “maverick” spirit, unfailing work ethic, and passion for life inspired everyone around him to be better, bolder, and kinder.

He not only pioneered and created the product category of high quality essential oils as a mainstream wellness solution, but he also raised the bar for quality standards and created a purpose-driven movement that continues to sweep the globe and change millions of lives for the better.

Mary, the executive team, and I have worked side-by-side with Gary and have had many discussions about his vision for the future of the company. We are completely committed to carrying on his legacy and mission of providing Young Living essential oils to every home in the world.

Mary will continue to serve as the CEO and I will continue in my role of president and chief operating officer. In recent years, we have recruited and developed a world-class executive team. This talented group has diverse expertise across industries, from operations and manufacturing to research and marketing. This team has grown the business 800 percent over the last five years.

Our corporate staff is committed to “take action” as Gary always guided, and we invite you to join us in honoring his memory by striving every day to live by his philosophy:

“To truly accomplish our vision of taking the priceless benefits of our essential oils and oil-infused products to every home in the world, every possible effort is required. We seek ways to take positive, powerful action every day in every way. Ours is a proactive culture—never a reactive one.”

From a personal standpoint, I will miss Gary very much. He played an instrumental role in my life, helping me grow as a leader but more importantly as a man. Gary was from humble beginnings, and even as Young Living grew and experienced success, he never lost sight of his passion for helping others. Having the opportunity to work by his side for the last six years has taught me lessons about determination and the importance of relationships.

I will honor our friendship by always asking myself, “What would Gary do?” to help me make important decisions. My family and I are indebted to Gary for bringing us into this amazing journey of sharing “the gift” of essential oils with millions of people.

Mary, Jacob and Josef thank you for your kind thoughts and prayers.

Mary will be sharing more detailed information later this week.

With Love,

Jared

Gary Young was the recipient of the 2018 Bravo Legacy Award at the Direct Selling News Global 100 event on May 2. In honor of him, we offer this first look at his upcoming feature, which will appear later in the June print edition of DSN.

 

TPG Capital Makes Minority Investment in Rodan + Fields

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San Francisco-based Rodan + Fields, LLC, the No. 1 skincare brand in the U.S., according to Euromonitor, has announced that TPG Capital, the global private equity platform of alternative asset firm TPG, has made a strategic minority investment in the company.

TPG will take a minority stake and help Rodan + Fields continue to accelerate its next phase of growth and contribute to the skincare industry with its dermatology-inspired skincare products, consumer connected commerce model and consultant community. Additional terms of the transaction were not disclosed.

The minority investment by TPG will provide Rodan + Fields with access to best-in-class business building expertise, capabilities and resources as the brand continues its path of disruptive growth domestically and in new markets across the globe. Founders Dr. Katie Rodan and Dr. Kathy Fields will remain at the heart of the brand and committed to their vision, while the company’s senior leadership team will keep leading the strategy for growth and day-to-day operations.

“TPG’s successful track record growing iconic brands and their belief in our disruptive model, innovative products and powerful Independent Consultant Community make them an excellent partner,” said Diane Dietz, CEO and president of Rodan + Fields. “We are energized by the opportunities that lie ahead of us as we expand domestically and globally and look forward to optimizing our strengths with TPG’s expertise.”

Across its funds, TPG has invested in a wide-variety of companies—from Airbnb to Spotify to Life Time Fitness—that have disrupted their sectors. As a founder-led firm, TPG has also partnered with leading entrepreneurs to help them scale their businesses.

“As a firm with a history of investing in businesses that are fundamentally changing their industries, we see Rodan + Fields as being at the intersection of emerging consumer trends and technology disruptions,” said Jim Coulter, co-CEO and co-founder of TPG. “This is exactly the kind of partnership we look for—an outstanding brand with proven success, an experienced and talented management team and significant runway for growth.”

Founded by Dr. Rodan and Dr. Fields with the mission to give people the best skin of their lives and provide an opportunity to empower entrepreneurs, Rodan + Fields is the fastest-growing brand in beauty and personal care in the U.S. The company has leveraged innovative products, a high-tech and high-touch business model and its powerful Independent Consultant network to foster ongoing dialogues, personalized experiences and a passionate community of brand advocates.

Perella Weinberg Partners LP acted as exclusive financial advisor and Wilson Sonsini Goodrich & Rosati served as legal advisor to Rodan + Fields on the transaction. Weil, Gotshal & Manges served as legal advisor to TPG.

Following the transaction, Coulter and Paul Hackwell, TPG Capital sector lead for consumer investments, will join Rodan + Fields’ Board of Directors.

Primerica Reports 14% Increase in Q1 2018 Revenue

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Duluth, Georgia-based Primerica, Inc. has announced financial results for the quarter ended March 31, 2018. In the first quarter, total revenue and adjusted operating revenues each increased 14 percent to $459.9 million and $462.9 million, respectively.

Income before income taxes increased 11 percent and adjusted operating income before income taxes increased 15 percent over the prior year period. Net income grew 26 percent to $65.7 million and adjusted net operating income grew 27 percent to $66.2 million compared with the first quarter of 2017, both of which reflect the benefit of the Tax Cuts and Jobs Act of 2017 (Tax Reform).

“In the first quarter we continued to build on our strong foundation, generating 8 percent growth in the size of our life insurance licensed sales force to over 127,000 representatives and 12 percent growth in Investment and Savings Products (ISP) sales year-over-year,” said CEO Glenn Williams. “Income before income taxes grew 11 percent over the prior year period driven by increases of 22 percent and 8 percent for the Term Life and the ISP segments, respectively. Solid earnings, ongoing share repurchases and the benefit of Tax Reform contributed to the 31 percent growth in EPS year-over-year and 18.5 percent ROE in the first quarter. We are well positioned to continue delivering meaningful value to our stakeholders.”

During the first quarter, Term Life continued to show strong growth with net premiums increasing 15.5 percent year-over-year and insurance expenses benefitting from the change in Primerica Life Insurance Company’s state of domicile. Claims during the period were elevated as is often seen in the first quarter and persistency was generally in line with the prior period. Strong ISP performance was driven by 12 percent growth in total product sales and a 15 percent increase in average client asset values year-over-year.

Insurance and other operating expenses increased $14 million from the prior year period, about half of which was due to higher account-based expenses from revisions to ISP record-keeping contracts. These higher account-based expenses were offset by an associated increase in account-based revenues. Insurance and other operating expenses also increased by approximately $1.5 million for growth-related expenses and about $5 million for annual employee merit increases, equity award grants, ongoing technology spending and other expenses to support the business. Incremental spending announced in February for digital development and key constituent initiatives driven by Tax Reform was nominal in the first quarter but is still expected to be incurred during 2018.

Earnings growth, which benefited from Tax Reform as well as ongoing share repurchases, drove EPS and adjusted operating EPS to $1.46, up 31 percent, and $1.47, up 32 percent, respectively, compared to the first quarter a year ago. ROE expanded to 18.5 percent and ROAE expanded to 19.0 percent in the first quarter versus 16.9 percent and 17.5 percent, respectively, in the prior year period.

To read the full Primerica Q1 2018 report, click here.

Oriflame Q1 2018 Local Sales Up 8%; Euro Sales Down 2%

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Switzerland-based Oriflame Cosmetics, the direct seller of cosmetics and beauty products, has announced financial results for the first quarter of 2018. Local currency sales increased by 8 percent while Euro sales decreased by 2 percent to €334.1 million (€340.1 million).

“2018 has started with a continued strong performance in Asia and Turkey, driven by high online activities, leadership development and the sales of Skin Care and Wellness routines,” said CEO Magnus Brännström. “I am also pleased to report a stable underlying operating profit for the quarter, despite facing significant currency headwinds. However, Russia showed a notable slowdown during the second part of the first quarter due to both a weaker consumer offering and tougher competitive environment. The start of the second quarter has been negatively impacted by timing of catalogues in the CIS as well as conferences in most regions. We are taking measures where we meet sales challenges and remain confident in our long-term strategy.”

  • Local currency sales increased by 8%, slightly positively impacted by timing of catalogues.
  • Number of registered actives increased by 1% to 3.0m.
  • EBITDA amounted to €42.1m euro (€40.4m) and to €46.3m in accordance with IFRS.
  • Operating margin was 9.2% (8.8%), negatively impacted by 320 bps from currencies, and operating profit was €30.6m (€29.8m). Operating margin was 10.5% and operating profit was €34.8m in accordance with IFRS.
  • Net profit was €18.7m (€19.5m) and diluted EPS €0.32 (€0.34). The tax rate was unfavorably impacted by approximately 350 bps from withholding tax on extraordinary large intra group dividends during the quarter. Net profit was €21.0m and diluted EPS €0.36 in accordance with IFRS.
  • Cash flow from operating activities was €24.9m (€-1.5m) and €24.9m in accordance with IFRS.
  • The development in the second quarter to date is approximately -2% in local currency, negatively impacted by timing of catalogues in the CIS as well as conferences in most regions.

After the end of the quarter, Oriflame successfully completed a €50m issue of Euro denominated US private placement notes bilaterally agreed with the international investor Pricoa. The proceeds refinance the private placement loan maturing during the third quarter 2018 and will be used for general corporate purposes.

Herbalife Net Sales Up 7% in First Quarter 2018

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Los Angeles, California-based Herbalife Nutrition Ltd. has reported financial results for the first quarter ended March 31, 2018. Net sales increased 7 percent over the prior year to $1.2 billion. The company exceeded first quarter net sales guidance as well as the high end of reported and adjusted diluted EPS guidance by 18 cents and 30 cents, respectively; therefore, it raised the full year 2018 guidance.

“We reported higher than expected results and returned to growth in the U.S., reflecting the efforts of our entrepreneurial distributors, who are meeting the needs of consumers around the world,” said CEO Rich Goudis. “We are confident about Herbalife Nutrition’s bright future and, accordingly, we have raised our guidance for the full year, as we continue to execute on our strategy to drive long-term growth and fulfill our mission of making the world healthier and happier through personalized nutrition.”

Reported net sales for North America for the first quarter were $231 million, a 0.06 percent increase over 2016. Mexico saw an 8.8 percent increase to $144 million, while South and Central America had a 2.7 percent increase to $125 million.

In EMEA (Europe, Middle East, Africa), sales increased 18.3 percent to $248 million.

In Asia Pacific, sales increased 11.8 percent to $245 million. China reported sales of $212 million, a 1.6 percent decrease.

To read the full Herbalife Q1 2018 report, click here.

Natural Health Trends Reports 13% Decrease in Q1 2018 Revenue

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Natural Health Trends Corp., a marketer of premium quality personal care, wellness and “quality of life” products under the NHT Global brand, has reported its financial results for the first quarter ended March 31, 2018.

Total revenue of $52.4 million decreased 13 percent compared to $59.9 million in the first quarter of 2017 and increased 14 percent compared to $46.1 million in the fourth quarter of 2017.

Revenue from the company’s Hong Kong operations, which represented 91 percent of total revenue, was $47.6 million, a decrease of 13 percent compared to $54.6 million in the first quarter of 2017, and an increase of 20 percent compared to $39.6 million in the fourth quarter of 2017. Revenue outside of Hong Kong of $4.7 million decreased 11 percent compared to $5.3 million in the first quarter of 2017 and decreased 28 percent compared to $6.5 million in the fourth quarter of 2017.

The number of Active Members decreased 1 percent to 95,040 at March 31, 2018, compared to 95,670 at December 31, 2017, and decreased 16 percent compared to 113,710 at March 31, 2017.

“Our momentum in the back half of 2017 carried into 2018 with our total revenue increasing 14 percent over the prior quarter, marking our second consecutive quarter of sales growth,” said Chris Sharng, president of Natural Health Trends Corp. “Our improved top-line performance is a direct result of the enhancements made to our commission plan to better incentivize up-and-coming members and ease rank advancement, along with our effective marketing programs. We also held our international Ambassador Academy in Hong Kong, which attracted over 5,500 people. The orders generated by promotions directly related to the event exceeded those of the last three years.”

Sharng further commented, “With our revenue for the quarter improved, 2018 is off to a good start. Our leaders remain energized and enthusiastic and we look forward to more productive incentive trips and targeted training programs this year to drive further progress and growth.”