USANA
October 20, 2020
USANA Health Sciences reported fiscal third-quarter results for the period ended September 26, 2020, and raised its full-year sales and earnings outlook. Net sales rose 14.5 percent from a year earlier to 298.5 million dollars, or 13.6 percent in constant currency. A 2.5 million dollar currency gain added about 0.9 percent. Diluted earnings per share rose 32.1 percent to a record 1.44 dollars on 21.2 million diluted shares, down 4.7 percent. Active customers rose 16.5 percent to a record 650,000. The company ended the quarter with 278.4 million dollars in cash and cash equivalents and no debt.
Chairman and chief executive Kevin Guest said strategies produced strong demand for nutritional products and that incentives and promotions added to sales and customer growth. He said a virtual Americas and Europe convention and a virtual China national sales meeting reached larger audiences than many past in-person events.
Asia Pacific net sales were 241.3 million dollars, up 15.7 percent, or 13.9 percent in constant currency, and made up 80.8 percent of consolidated sales. Active customers there rose 15.4 percent to 502,000. Greater China sales were 136.0 million dollars, up 3.9 percent, with 284,000 active customers, up 4.0 percent from a year earlier and 2.2 percent sequentially. North Asia sales were 29.0 million dollars, up 24.3 percent, with 60,000 active customers, up 20.0 percent. Southeast Asia Pacific sales were 76.3 million dollars, up 40.5 percent, or 36.7 percent in constant currency, with 158,000 active customers, up 41.1 percent and 22.5 percent sequentially.
Americas and Europe sales were 57.2 million dollars, up 10.0 percent, or 12.2 percent in constant currency after a 1.2 million dollar currency drag, and accounted for 19.2 percent of sales. Active customers there rose 20.3 percent to 148,000, up 8.8 percent sequentially.
USANA did not repurchase shares in the quarter. About 73 million dollars remained on its repurchase authorization. Full-year 2020 guidance moved to consolidated net sales of 1.090 billion to 1.115 billion dollars, from a prior range of 1.050 billion to 1.100 billion, and diluted earnings per share of 5.15 to 5.45 dollars, from 4.70 to 5.25 dollars.
Chief financial officer Doug Hekking said fourth-quarter incentive programs will not match the size of those just ended, but he expects solid results and momentum into 2021. Net earnings for the quarter were 30.5 million dollars, compared with 24.2 million dollars a year earlier. Gross profit was 242.2 million dollars. An investor call was set for October 21, 2020, at 11:00 a.m. Eastern Time.
The Salt Lake City company said it develops nutritional supplements, functional foods, and personal care products sold directly to associates and preferred customers in markets that include the United States, China, and countries across Asia, Europe, and the Americas.