Top Companies Report

20. Nu Skin Enterprises, Inc.

July 11, 2011

Provo, UT

800.487.1000

www.nuskin.com

Sales: $914 million


Sales:

$914 million for personal care products. Corporate sales: $1.5 billion.


Key Personnel:

Blake M. Roney, chairman; Steven J. Lund, vice chairman; Sandie N. Tillotson, senior vice president; M. Truman Hunt, president and chief executive officer; Ritch N. Wood, chief financial officer; Daniel R. Chard, president, global sales and operations; D. Matthew Dorny, vice president, general counsel and secretary; Joseph Y. Chang, Ph.D., chief scientific officer


Major Products:

AgeLOC Edition Galvanic Spa System II with ageLOC Facial Treatment Gels; ageLOC Transformation daily skin care system, which includes ageLOC Future Serum, ageLOC, Gentle Cleanse & Tone, ageLOC Radiant Day SPF 22 and ageLOC Transforming Night; Tru Face Essence Ultra; Tru Face Line Corrector; 180° Anti-Aging Skin Therapy System; Clear Action Acne Medication System, Nutricentials; Celltrex.


New Products:

ageLOC Vitality


Comments:

It was a banner year for Nu Skin, as corporate sales for 2010 rose 15% to more than $1.5 billion—with nearly 60% of sales attributed to personal care.


“2010 was an exceptional year for Nu Skin as we generated a record level of revenue, paid out a record level of commissions to our sales leaders, and enjoyed a record level of profitability,” said Truman Hunt, Nu Skin president and chief executive officer.“While we are enjoying growth in most of our regions around the world, we are particularly pleased with robust growth rates in Mainland China, South Korea and South Asia/Pacific. Our growth is a reflection of the compelling innovation we have infused into our ageLOC product platform, as well as our sales leaders’ phenomenal ability to bring this innovation to the marketplace.


“We concluded the year with our first-ever $400 million-dollar revenue quarter, which is an exciting benchmark in our effort to become the world’s leading direct selling company. And our global management team continues to execute successfully on our growth initiatives. From virtually every metric, 2010 was a highly successful year,” he added.


During the year, the company unveiled proposed architectural renderings of an $85 million innovation center that will be an expansion to Nu Skin headquarters in Provo, UT. It also conducted a broader direct selling authorization in mainland China and received a 2010 International Business Award for Best New Product of the Year for its ageLOC Transformation daily skin care system, according to the company’s public relations department.


In October 2010, Nu Skin rolled out its first nutritional product under the ageLOC Transformation skin care system, ageLOC Vitality.


“With the blockbuster success of the ageLOC Transformation skin care system, we are continuing to build the ageLOC platform by taking the battle against aging‘inside,’” said Hunt. “It is particularly encouraging to see our sales leaders responding so positively to ageLOC Vitality and the business opportunity it represents.”

 

The company debuted the product to its “top sales leaders” at conventions in North America, Japan, Europe and the Pacific. As part of the pre-launch of the product, distributors in the US, Canada and Japan had the opportunity to purchase ageLOC Vitality in September 2010.


“The key source of youthful vitality is found in mitochondria, which are most highly concentrated in the brain, heart and muscle,” said Dr. Joseph Chang, Ph.D., Nu Skin chief scientific officer and executive vice president of product development.“As we age, the efficiency and number of our mitochondria decline. Nu Skin’s ageLOC approach targets genes related to mitochondrial function and vitality to promote a more youthful expression pattern.”


This year, Nu Skin purchased its existing corporate headquarters buildings and distribution center in Provo, UT for approximately $33 million in January 2011.


“From a financial perspective, we expect that the purchase of these buildings will have a positive impact on our earnings,” said Ritch Wood, Nu Skin chief financial officer. “We borrowed some of the funds, taking advantage of current favorable borrowing rates. We anticipate this transaction will add approximately $0.02 per share annually to our bottom line from 2011 forward.”


Nu Skin is purchasing the buildings from two partnerships that are owned primarily by some of the company’s founding stockholders, including Blake M. Roney, Steven J. Lund and Sandra N. Tillotson, who are currently serving as directors and executive or senior officers of the company.


The company then unveiled proposed architectural renderings of its new $80 million innovation center following the Provo, UT City Council’s approval of the company’s plan to purchase one block of 100 West Street—a necessary step in Nu Skin’s plans to connect the expansion project to its corporate high rise, according to the company.


Nu Skin anticipates completion by the end of 2013.


Nu Skin executives expect innovative products to boost sales 5-7% to $1.60-1.63 billion this year.


“In 2011, we will continue to fuel the ageLOC momentum by introducing our scientifically advanced nutritional products to our already successful skin care lineup,” Hunt said. “The Nu Skin ageLOC anti-aging platform represents a clear competitive advantage and provides plenty of room for sustainable growth in both the mid-to long-term.”


In late April 2011, Nu Skin received official notification from the Chinese Ministry of Commerce that it can commence direct selling activities in four additional provinces and one municipality in mainland China. The provinces include Zhejiang, Guizhou, Sichuan, Shandong and the municipality of Tianjin. This is the fourth round of licenses granted to Nu Skin in China and adds to existing approvals in Beijing, Shanghai and Guangdong.


The company also planned to commence operations in Argentina in late June.

Related End-User Markets:

blog comments powered by Disqus
  • Expanding Erbaviva

    Expanding Erbaviva

    Christine Esposito, Associate Editor||September 13, 2016
    A farm-to-bottle organic brand celebrates its 20th anniversary with a new look, new products and plans to expand in the US.

  • Lauder’s Latest Patents

    Lauder’s Latest Patents

    September 1, 2016
    A composition with NIR light emitting material, a skin care device and more awarded to this beauty business giant.

  • Long Term Sustainability In the Nonwovens Market

    Long Term Sustainability In the Nonwovens Market

    August 23, 2016
    Learn more at Cleaning Products USA, Nov. 9-11, 2016

  • Back to School

    Back to School

    Tom Branna, Editorial Director||September 1, 2016
    It may be September, but class was in session this summer during the Private Label Manufacturers Association’s Executive Educ

  • What

    What's In Your Formula?

    Christine Esposito, Associate Editor||September 1, 2016
    A look at the ingredients beauty brands are using to fuel their formulations and capture consumers’ attention.

  • How Green Is Your Surfactant?

    How Green Is Your Surfactant?

    Tom Branna, Editorial Director ||September 1, 2016
    Suppliers offer a range of solutions to help household and personal care product formulators develop formulas

  • Sustainability is Omnipresent

    Sustainability is Omnipresent

    Christine Esposito , Associate Editor||July 1, 2016
    Industry stakeholders convene in New York City for Organic Monitor’s annual event

  • Perceived Perfection

    Perceived Perfection

    Christine Esposito, Associate Editor||July 1, 2016
    From primers to pressed powders, facial cosmetics help create the illusion of a flawless complexion.

  • Preserve & Serve

    Preserve & Serve

    Melissa Meisel , Associate Editor||July 1, 2016
    Suppliers with innovative preservatives provide staying power for formulations.

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.

  • Get Smart About Your Big Data

    Get Smart About Your Big Data

    Christine Esposito, Associate Editor||June 1, 2016
    Experts at the IRI Growth Summit explain how to make personal connections with customers.

  • For the Love of Lipids

    For the Love of Lipids

    Tom Branna, Editorial Director||June 1, 2016
    AOCS and SCC to deliver a program geared to cosmetic chemists of the important role that fats and oils play in a healthy skin

  • April in Paris

    April in Paris

    Tom Branna, Editorial Director||June 1, 2016
    In-Cosmetics sets attendance record in its return to the City of Light.

  • Bite Now

    Bite Now

    Christine Esposito, Associate Editor||May 2, 2016
    Is the time finally right for beauty-from-within to move into the mainstream?

  • That’s Awesome!

    That’s Awesome!

    May 2, 2016
    Extracts & Ingredients highlights the newest ideas in efficacious oils for the personal care market.

  • Wacker Builds on Its Success

    Wacker Builds on Its Success

    Tom Branna, Editorial Director ||May 2, 2016
    The silicone maker had a good 2015 and expects the gains to continue in 2016, driven, in part, by success in the Americas and

  • I Want It All

    I Want It All

    Melissa Meisel , Associate Editor||May 2, 2016
    Skin care moves beyond the basics with pampering formulations with unique components and novel functions.

  • The New Spot For Acne Care

    The New Spot For Acne Care

    Tom Branna, Editorial Director||April 1, 2016
    Acne Treatment Research Center opens in Morristown, NJ.

  • The Scalp Microbiome

    The Scalp Microbiome

    Nava Dayan PhD, Dr. Nava Dayan LLC||April 1, 2016
    A review of recent findings and innovative approaches for treating scalp disorders.

  • Multi-Cultural Beauty Update

    Multi-Cultural Beauty Update

    Christine Esposito, Associate Editor||April 1, 2016
    Established brands and start-ups address the needs of multi-cultural beauty consumers.

  • Who Makes That?

    Who Makes That?

    Tom Branna, Editorial Director||April 1, 2016
    From concept and formulation to testing and filling, today’s contract manufacturers perform a range of services for marketers

  • Inspiring the Next Generation Of Personal Care Products

    Inspiring the Next Generation Of Personal Care Products

    March 1, 2016
    In-Cosmetics 2016 returns to Paris next month, April 12-14, 2016.

  • Shielding Skin from Airborne Antagonists

    Shielding Skin from Airborne Antagonists

    Shyam Gupta, Ph.D., John Stanek and Melinda Wochner, Bioderm Research and CoValence Laboratories, Inc.||March 1, 2016
    The enemy, it seems, is all around us. Researchers explain how to alleviate damage caused by a variety of villains.

  • Innovation On Display

    Melissa Meisel, Associate Editor||February 3, 2016
    P&G Beauty Digital Studio showcases new products for 2016

  • Testing for Sustainable Preservatives

    Adam P. Byrne, William Michael Hart-Cooper, Kaj Johnson, Larry H. Stanker, Dominic W. S. Wong, William J. Orts||January 4, 2016
    A rapid, inexpensive and qualitative protocol for determining microbial growth inhibition.

  • Burgeoning Beauty

    Burgeoning Beauty

    Melissa Meisel, Associate Editor||January 4, 2016
    A look at trailblazers for 2016 and beyond.