Several top publicly held direct selling companies have now published year-end results. The reports summarized below are a mixed bag, reflecting some common threads as well as unique achievements and challenges within the industry. As companies continue to report, we will compile the information to rank this year’s DSN Global 100, a list of direct selling’s top revenue-generating companies worldwide.
Nu Skin has closed out a record fourth quarter with revenue of $1.07 billion, up 82 percent over 2012. The company’s annual sales increased 49 percent year-over-year to $3.18 billion. Nu Skin also increased its EPS to $5.94, up 69 percent over the prior year. In the Greater China region, where the company has temporarily suspended normal business activities to address a Chinese regulatory review, fourth quarter revenue increased 248 percent to $481.6 million.
Avon reported fourth quarter earnings down 10 percent to $2.7 billion. The company’s annual revenue decreased 6 percent year-over-year to $10.0 billion. For 2013, regional sales dipped 17 percent in North America and 16 percent in Asia-Pacific, while Latin America and EMEA (Europe, Middle East & Africa) decreased 3 percent and 1 percent, respectively.
Global nutrition company Herbalife generated record net sales of $4.8 billion for 2013, up 18 percent year-over-year. The company reported an EPS of $4.91, and an adjusted EPS of $5.37, up 36 percent over 2012. Last year, Herbalife saw the greatest sales increase in its China region, where sales were up 69 percent. Asia-Pacific generated the least sales growth, up just 3 percent over the prior year.
Tupperware reported record fourth quarter sales up 1 percent and annual net sales of $2.67 billion, up 3 percent from $2.58 billion in 2012. For the year, the company’s GAAP net income of $274.2 million rose 42 percent from $193.0 the previous year, and diluted earnings per share increased 51 percent from $3.42 to $5.17. Tupperware generated the greatest sales growth in Indonesia (33 percent); South Africa (28 percent); Turkey (24 percent) and China (20 percent), countered by negative growth in the Commonwealth of Independent States (-31 percent), Germany (-14 percent) and the U.S. and Canada (-3 percent).
Brazilian beauty company Natura closed out the year with sales up 10.5 percent over 2012. Latin American sales outside the company’s core Brazilian market have grown rapidly over the last few years and now account for 14 percent of Natura’s business. In early 2013, the company advanced its strategy to expand its presence outside Latin America with the acquisition of Australian beauty company Aesop.
With a 10 percent sales decrease in the fourth quarter, Germany-based Oriflame reported annual sales down 6 percent from 2012. The company’s sales have stalled in the CIS and Baltics region, which represents about half of Oriflame’s global business but generated -16 percent growth in the fourth quarter. The company saw positive regional growth in Latin America and Asia.