Multi-level marketer USANA Health Sciences Inc. has slightly raised its annual sales forecast after its second-quarter results modestly beat its internal predictions.
In its July 25 earnings announcement, USANA updated its FY23 net sales guidance to $900 to $950 million, up from a previous forecast of $875 million to $950 million.
The Salt Lake City-based manufacturer of nutritional supplements, functional foods and personal care products raised its forecast for diluted EPS (earnings per share) to $2.65 to $3.30. USANA previously projected diluted EPS of $2.40 to $3.30.
Nonetheless, second-quarter sales ($238 million) came in below the year-ago period ($264 million), during which there was a “large global promotion,” according to Chief Financial Officer Doug Hekking. USANA reported diluted EPS of $0.89, compared with $1.00 during the second quarter of 2022.
“Operating results in the second quarter of 2023, however, were modestly ahead of internal expectations due, in part, to a strong response to a local sales promotion offered in mainland China,” Hekking revealed in the earnings announcement.
USANA plans to open its 25th global market, India, in late 2023.
“Although we anticipate that it will take time to build our business in this new market, we are confident that India will contribute to the long-term growth of USANA over the coming years,” President and CEO Jim Brown said.
In the second quarter that ended on July 1, USANA generated $10 million in free cash flow and ended the period with $300 million in cash and cash equivalents.
The company says it remains debt-free.
USANA’s annual revenue has been fairly stagnant in recent years. It first broke through the $1 billion annual revenue ceiling in its fiscal 2016. Revenue rose to $1.35 billion in 2020 before sliding below the $1 billion mark in fiscal 2022.
