Nu Skin expects improved first quarter results despite troubles in Japan
The company said that on top of underlying growth its global revenues are expected to benefit from positive global currency fluctuations to the tune of about 5 percent.
However, the company also said that its performance in the first quarter would be impacted by a non-cash charge of approximately $33m relating to an ongoing dispute it has had with Japan Customs authorities.
Still in Japan, the company estimates that its exposure to this important market will impact results by approximately $5m, due to last month's earthquake and Tsunami that devastated Northern parts of the country.
Despite Japan, the company is off to a strong start
“We are starting the year off strong with record first-quarter revenue, driven by impressive gains in our emerging markets,” said Truman Hunt, president and CEO of the Utah-based company.
Last year the company announced record sales after experiencing huge gains in the fast-growing China market, although sales grow did slow in the second half of the year, mainly on tough comparisons with the strong performance in 2009.
“Our performance this quarter is particularly impressive when taking into consideration last year’s first-quarter launch of ageLOC Transformation, which contributed to 23 percent growth,” said Hunt
Again, the company’s strongest performing market during the last quarter was mainland China and South Asia/Pacific, which the company said generated local revenue increases of 45 percent and 30 percent respectively.
The company says it will release it full first quarter financial results on May 3.
Last year revenue passed the $1.5bn mark
During the fourth quarter sales last year, revenues increased by 6 percent to $401.2m, a figure that was positively impacted by currency translations to the tune of 3 percent.
Net income grew from $30.3m to reach $37.3m, an increase of 19 percent.
For the full financial year ending December 2010 revenues were up by 15 percent to $1.54bn, a figure that was positively impacted by currency translations to 5 percent, while net income shot up by 53 percent to reach $138.05m.
At the time the fourth quarter results were announced Hunt underlined the fact that the full year results had bought record revenues for the direct sales anti-aging skin care specialist, alongside record commission payouts and profits.
