It’s been a tough year marked by bad headlines for some direct sellers, but Nu Skin Enterprises Inc. stayed above the fray and achieved record revenues.
The Provo, Utah, company, best known for its antiaging range AgeLoc, surpassed $2 billion in annual revenue for the first time. For the year, net revenue gained 24.4 percent to $2.17 billion, compared with $1.74 billion from the prior year.
Net income rose 44.6 percent to $221.6 million, or $3.52 a diluted share, compared with $153.3 million, or $2.38, a share from a year ago.
Asked by a Wall Street analyst during the company’s earnings call on Wednesday if the noise — meaning activist investor William Ackman’s current crusade against direct seller Herbalife — has caused collateral damage for the company, Nu Skin president and chief executive officer Truman Hunt said, “We have been very encouraged by the lack of impact on our business results.” He added, “We have continued confidence in the model.”
For the fourth quarter, the direct seller’s net income gained 19.6 percent to $59.2 million, or 97 cents a diluted share, compared with $49.5 million, or 76 cents a share, in the year-ago period. The company’s total revenue for the three months ended Dec. 31 gained 18.8 percent to $588.2 million, compared with $495.3 million in the same quarter last year.
By region, quarterly revenue in the Americas gained 4 percent to $80.1 million, while Europe’s revenues rose 38 percent to $52.8 million, Greater China’s increased 28 percent to $141.7 million, and North Asia’s gained 22.5 percent to $250.2 million. Revenues in the South Asia-Pacific region ran countertrend and declined 3 percent to $63.5 million.
“Our growth in the fourth quarter was driven by particularly strong trends in several key markets, including Japan, South Korea and Mainland China, where we continue to see tremendous results from our latest AgeLoc products,” Hunt stated prior to the company’s call. “We expect the upcoming launch of our AgeLoc weight-management system to drive significant growth in the back half of the year.”
The AgeLoc franchise, which is currently comprised of skin-care products and supplements, surpassed the $1 billion mark in 2011.