Nu Skin Enterprises, the US company which markets personal care products, nutritional supplements and technology and telecommunications products, has reported a strong double-digit growth in sales for the second quarter of its fiscal year ending 30 June.
Revenues increased to $244.9 million (€243.3m), up 12 per cent from $218.6 million in the second quarter of 2001. Net income increased 55 per cent to $18.0 million compared to $11.6 million a year earlier.
For the six months ended 30 June 2002, revenue increased to $461.0 million from $428.9 million in 2001. Net income grew to $30.9 million from $24.2 million.
"Our revenue growth reflects successful product launches in several markets, the appeal of our Internet initiatives in Asia, the opening of Malaysia in November and global distributor enthusiasm for current and upcoming business initiatives, including our planned expansion of operations in China," said Steven J. Lund, president and chief executive officer of Nu Skin.
"We are also pleased with our efforts to operate more efficiently, which has allowed us to improve our operating margin and accelerate our earnings growth."
Sales from the Nu Skin brand personal care products increased by 11 per cent to $119.2 million during the second quarter, helped by new product launches in Japan and revenue from Malaysia, which opened in November 2001. Pharmanex, the company's nutritional supplement unit, posted an 18 per cent increase in sales to $112.3 million during the quarter, reflecting increased sales of core products, new products launched in key Asian markets and growth in the number of distributors.
"Our 11 per cent revenue gain in the first half of the year puts us on target to achieve the low double-digit revenue growth goal we established for the year," Lund said.
"With distributor excitement for our expansion in China in early 2003 and with the strong new product initiatives in the second half of 2002, we expect to report revenue growth in the low teens compared to the second half of 2001. If the Japanese yen remains at current levels or further strengthens against the US dollar, our reported results will be positively impacted."