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    Top Companies Report

    19. Nu Skin Enterprises

    ...

    06.28.12
    Provo, UT
    801.345.1000
    www.nuskin.com
    Sales: $964 million for personal care products.
    Corporate sales: $1.7 billion. Net income: $153 million.

    Key Personnel: Truman Hunt, president and chief executive officer; Joseph Y. Chang, chief scientific officer and executive vice president, product development; Daniel R. Chard, president, global sales and operations; Scott E. Schwerdt, president, Nu Skin Americas; Ritch N. Wood, chief financial 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 R2 anti-aging nutritional supplement system, ageLOC Galvanic Body Spa, ageLOC Galvanic Spa Body Shaping Gel, ageLOC Dermatic Effects Body Contouring Lotion.

    Comments: Corporate sales rose 13% last year—nearly half of it was credited to positive currency fluctuation. Net income increased nearly 13% too. By region, North Asia accounted for 43% of sales, followed by Greater China (20%), Americas (14%), South Asia/Pacific (14%) and Europe (9%).
    Approximately 88% of 2011 revenue came from markets outside the US.Sales of Nu Skin products accounted for 55% of corporate sales.

    Nu Skin credited the sales gains to the success of its ageLOC anti-aging products, healthy distributor sponsoring and retention and continued growth in emerging markets, including China, South Asia and South Korea.For example, sales in Korea jumped 30% to nearly $280 million and sales in China soared 67% to more than $152 million. Still, Japan remains Nu Skin’s biggest market, accounting for 27% of sales last year.

    Global personal care sales rose more than 5%. Japan accounted for nearly 50% of sales, followed by South Korea, the US and China. New products continue to bolster sales. Nu Skin sold a $100 million worth of ageLOC R2 and Body Galvanic Spa when they were launched during the 2011 Global Convention.

    To remain up-to-date on anti-aging issues, Nu Skin acquired LifeGen Technologies for an undisclosed amount. LifeGen has genetic database that is based on more than 30 years of anti-aging genetic research.

    As of Dec. 31, 2011, Nu Skin had aglobal network of more than 850,000 active independent distributors.

    The company reported record results for the first quarter of 2012, as sales rose 17% to $462 million.
    “Following a record year, we continued to generate great momentum in the first quarter as a result of the positive response to our ageLOC product launches and healthy trends in each of our regions,” said Truman Hunt, president and chief executive officer. “New product roll outs helped boost revenue trends in the Americas, North Asia and Europe, as reflected by strong executive distributor growth of 11%.”

    Emerging markets also performed well in the first quarter. The Greater China region posted a 35% increase. And in May, Nu Skin announced that it has experienced a record-setting response to its ageLoc launches in the Greater China and South Asia regions. The regions are the latest geographies to initiate orders of the company’s ageLoc R2and ageLoc Galvanic Body Spa and its related skin care products.

    “On the heels of a record first quarter, we are pleased to report today that the Greater China and South Asia regions have received approximately $150 million of orders for our new ageLoc products,” said Hunt. “The products will be delivered in connection with upcoming regional events taking place in the second and third quarters. These latest, record-breaking introductions are not only a testament to the strength of our exclusive, super-class of ageLoc products, but further demonstration of the high-caliber and talented sales leaders we have in these regions, as well as throughout the world.”


     
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