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Nu Skin first quarter results show huge gains worldwide

By Simon Pitman+

Last updated on 08-May-2013 at 17:47 GMT2013-05-08T17:47:31Z

Nu Skin first quarter results show huge gains worldwide

Direct sales skin care specialist Nu Skin has posted big first quarter revenue gains as the company’s anti-aging range, ageLOC, continues to take off worldwide and sales in Greater China boom.

The company said that revenues grew by 19 percent to $550.1m, a figure that was negatively impacted by foreign currency fluctuations by approximately 3 percent.

Net income grew by nearly 11 percent, up from $47.8m to $54.3m, while operating income grew from $71.7m to reach $82.6m – figures that reflected the impetus of the increased sales.

North Asia and Greater China hit the mark

Truman Hunt, president and chief executive officer, said he was particularly pleased with the results in the China region.

"We are pleased with the overall direction of the business, particularly with trends in the North Asia and Greater China regions,” he said.

“The first quarter marked the third consecutive quarter of year-over-year local-currency growth for Japan, while South Korea continues to be a solid contributor to our success. Greater China continues to be our fastest-growing region, with each market within the region posting solid quarterly growth."

China growth driven by increase in sales reps

On a regional basis, the biggest gains were seen in Greater China, where sales increased by 90 percent to $175.7m, on the back of a 73 percent rise in the number of sales representatives.

In the Americas sales increased by 15 percent to $76.5m, a figure that was negatively impacted by foreign currency exchange, meaning US revenue growth was 7 percent, on the back of a 4 percent increase in the number of active sales reps.

The revenue gains were held back by the South Asia/Pacific region, where sales fell by 13 percent to $67.2m, and in the EMEA region, where sales fell 3 percent to $42.4m.

"Given the positive momentum of the business, we are on track to achieve another record year of revenue and earnings," said Hunt.

The company is projecting that second-quarter 2013 revenue will be in the $570 million to $580 million range with a negative currency impact of 4 to 5 percent.

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