USANA
October 22, 2020
USANA Health Sciences posted a record third quarter as sales rose 14.5 percent and volume grew sharply in Asia Pacific. The Salt Lake City company sells dietary supplements, functional foods, and personal care products through network marketing.
The strongest gains were in Asia, while growth in China stayed modest. A 100-day review of multilevel marketing there is still weighing on results, and COVID-19 rules have sharply limited in-person meetings that the sales force has used to generate energy. Reported sales in mainland China, described as the largest single market, rose 3.9 percent year over year to 136 million dollars.
Other Asian markets more than offset that slower pace. Sales in North Asia, covering South Korea and Japan, rose 24.3 percent. Southeast Asia Pacific sales rose by more than 40 percent. More than 80 percent of overall sales now come from Asia.
Quarterly revenue was 298.5 million dollars and diluted earnings per share were 1.44 dollars. Both were records. The quarter ended September 26, 2020.
Chief executive Kevin Guest said immune health supplements were the biggest sellers. Collagen supplements were also among the leaders, which he treated as a mild surprise. To work around lockdowns, the company held its annual meeting in China and its worldwide annual meetings online and said more people could take part than at a typical in-person event. Guest told stock analysts he expects most events in the first half of next year to stay virtual, then the company will reassess whether face-to-face meetings can return.
He also said USANA plans a major product launch early next year under the Active Nutrition name. He did not detail the line, but said some products are being field tested by athletes. The target customer is women ages 25 to 35.