Nu Skin financial results boosted by emerging markets, especially China

By Simon Pitman

- Last updated on GMT

Related tags: Revenue, Euro, United states dollar, Nu skin

Direct sales cosmetic and skin care player Nu Skin has announced a big rise in its quarterly revenues on the back of record revenues in Latin America and Asia.

Fourth quarter revenues increased 23 percent to a record $495.3m, a figure that was positively impacted by foreign currency fluctuations by 2 percent, while fully year revenue was up 13 percent to $1.74bn, again, another record.

Reflecting the fact that the dollar has gained in strength against most international currencies during the last quarter, the sales figure for the full year was positively impacted by foreign currency fluctuations to the tune of 6 percent.

China growth 'spectacular'

On a regional basis, the most spectacular revenue growth was seen in Greater China, where revenue during the fourth quarter grew 66 percent to $110.m6m, while in the biggest market, North Asia results for the quarter grew by 13 percent to $204.3m.

Elsewhere, sales in the Americas region were up 25 percent during the quarter to $76.9m, while sales in the South Asia/Pacific region were up 27 percent to $65.2m.

The only real disappointment was the European market. The slow economy and continuing impact of the Euro currency crisis meant that sales fell 8 percent during the fourth quarter, to $38.3m.

Earnings per share increased 31 percent to $0.76 for the fourth quarter, and were up 13 percent for the full year to $2.69. The fully year earnings figure showed an improvement of 27 percent when excluding a $32.8m charge associated with a customs ruling in Japan earlier on in the year.

'Record year'

Nu Skin CEO Truman Hunt referred to the results as being a ‘record year’. “We’re also optimistic that our momentum will continue into 2012 as we roll out our latest product innovations globally,” he added.

In particular the agLOC super-class line of anti-aging products was flagged up as being a major driver of growth, which was backed up by two very successful limited editions to the brand – a body spa product and a facial care product.

On the back of the strong quarterly and yearly results, the company said that it was increasing its annual revenue guidance for 2012 from $1.81bn to $1.84bn, with first quarter revenue in the range of $437m - $447m.

Related topics: Business & Financial

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