NuSkin expects to push on after a solid start to the year

By Andrew McDougall

- Last updated on GMT

Related tags: Asia, Mainland china

Anti-aging product manufacturer NuSkin Enterprises is expecting a strong end to the year particularly in emerging markets, following steady growth for the first half of the year.

The US-based company announced its second quarter results with revenue of $424.4m, a 9 percent improvement over the prior-year period.

Quarterly revenue was positively impacted 8 percent by foreign currency fluctuations. Earnings per share for the quarter were $0.65, a 30 percent improvement over the prior year.

"We are pleased with our second-quarter results and are confident that our performance keeps us on track for another strong year,"​ said Truman Hunt, president and CEO.

"Our strong first-half performance has laid the foundation for what we believe will be a solid second half of 2011,"​ Hunt continued.

Largest product launch anticipated

The company anticipates the largest product launch in its history later this year when it introduces its newest product line in October.

And NuSkin believes that future success will also come from emerging markets such as South Asia; an area that saw revenue increase 29 percent to $59.2m.

"We continue to have high expectations for continued growth in emerging markets, particularly Mainland China and South Asia,”​ Hunt added.

“These markets are becoming more meaningful to our global business, providing geographic diversity and long-term opportunity.”

Revenue in Greater China actually declined 2 percent to $79.4m for the quarter and although Mainland China posted an improvement in local currency, this was offset by poor performances in Kong Kong and Taiwan.

Japan & US results decline

Second-quarter revenue in North Asia grew 12 percent to $183.1m and although Japan expectedly posted a 10 percent decline, in part due to the disaster, the company remains positive as it is an established market.

Another of NuSkin’s established markets, the US, also posted negative figures for the second quarter. The Americas as a whole was down with revenue of $59.8m compared to $62.4m the previous year, however Hunt remained positive on the outlook on all these markets.

“Our established markets are performing as expected, with a positive trend improvement in the United States, and with Japan in-line with our guidance following the natural disasters,”​ he said.

Quarterly revenue in Europe was $42.9m, a 22 percent improvement over the prior-year period.

Related topics: Business & Financial

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