USANA Health Sciences Inc., a Salt Lake City, Utah-based cellular nutrition company, has reported financial results for its fiscal fourth quarter and full-year ended December 30, 2017.
For the fourth quarter of 2017, net sales were $273.1 million compared with $252.9 million in the prior-year period, or an 8.0 percent increase year-over-year. The weakening of the U.S. dollar positively impacted net sales by $7.4 million for the quarter. The company’s total number of active customers increased modestly year-over-year to 565,000.
“Our fourth quarter topline results exceeded our expectations and provided a strong finish to the year for USANA,” said CEO Kevin Guest. “During the quarter, we offered a few targeted product promotions around the world that contributed to our sales results and overall momentum.”
Net sales in the Asia Pacific region increased by 12.1 percent to $216.7 million for the fourth quarter of 2017. Within Asia Pacific, net sales:
- Increased 14.0% in Greater China;
- Increased 24.6% in North Asia; and
- Increased 4.1% in the Southeast Asia Pacific region.
Sales growth in Greater China was primarily driven by 3.1 percent active customer growth and a successful product promotion in Mainland China, while sales growth in North Asia resulted from 19.2 percent active customer growth in South Korea. Sales growth in Southeast Asia Pacific was driven by 27.3 percent active customer growth in Malaysia. The total number of active customers in the Asia Pacific region increased by 3.4 percent year-over-year.
Net sales in the Americas and Europe region for the fourth quarter of 2017 decreased by 5.2 percent to $56.4 million, largely due to an 8.6 percent decrease in active customers.
“The Asia Pacific region continues to drive our growth,” said Guest. “Our performance in the Americas and Europe region is not where we would like to see it, but we continue to work on several initiatives for this important region that we believe will be a catalyst to improved performance.”
Net sales for fiscal 2017 increased by 4.1 percent, or $41.2 million, to $1.047 billion, compared with $1.006 billion in 2016. Net sales for the full year were negatively impacted by $6.3 million due to a strengthening of the U.S. dollar. On a constant currency basis, net sales increased by 4.7 percent during fiscal 2017.
“Fiscal 2017 was USANA’s 15th consecutive year of record sales, as well as a year of meaningful announcements and progress for the business,” said Guest. “At our annual International Convention, which marked our 25th anniversary, we introduced a completely new skincare line, Celavive, and announced the opening of four new European markets. During the year, we also made significant progress in improving our global IT infrastructure and continued to emphasize personalization through the expansion of our Incelligence technology. In 2018, the launch of Celavive and the rollout of our European expansion will be significant areas of focus for us throughout the year.”
Guest added that strategies for 2018 included growing the company’s Preferred Customer business around the world; introducing a robust social sharing platform; pursuing additional product and technology innovation; and continuing its investment in IT infrastructure to create a better overall customer experience for Associates and Preferred Customers.
To read the full USANA report, click here.