USANA Health Sciences (USNA) 1 May 242024 Q1 Earnings call transcript

Hello, and welcome to USANA Health Sciences First Quarter Earnings Call. My name is George. I'll be your coordinator for today's event. Please note, this conference is being recorded. [Operator Instructions] I'd now like to hand the call over to your host today, Andrew Masuda. sir. ahead, go Please

can and replay review everyone. results. our being website. following webcast call George, website from joining ir.usana.com. be at Today's appreciate available us is Shortly and via live to first call, broadcast accessed good you, directly We our a morning, the you conference be will Thank quarter our XXXX on

as financial will performance the course our from related make and economic environment Officer, during our our other that announced a the materially of of results Brent Commercial our and Hekking; or as well our this management the call, closed, to these uncertainties Neidig around considered events statements reminder, results. We financial data posted our such and operations statements with and the future factors include most CEO, and operating statements our forward-looking by President the Jim as recent specific our results Chief actual the perhaps website. contained our well forward-looking Those strategies on statements. Financial executives. and year Examples be Chief caution company's market Doug after quarter Yesterday, management of regarding uncertainty with projected Officer, in Brown; financial we in company. fiscal our first filings that these document disclosures, differ including and involve joined outlook future As commentary conference results the risk regarding those risks to for cause world, could statements as XXXX SEC. I'm should in you conjunction

opening brief for hear questions. call remarks the We'll from Jim before now

morning, Andrew, and you, everyone. Thank good

constant net Mainland strength but quarter were currency. currency, X% sales in up results year-over-year market. Consolidated Solid by in sequentially X% constant $XXX million, down in totaled first our driven China

generated $X.XX diluted delivered also of operating EPS flow. of $XX and million We cash

local reward to active a XX% benefited in to designed sales their customers. business. This incentive XX% currency, in sales Our helped successful strong growth promotion associates and was Mainland growth for and net China generate in from growth performance year-over-year in

China environment, combat Our regional sales operating inflationary and market-specific help we was performance first highlighted pressures. difficult quarter our continue of remainder than we motivate as battle incentives by leaders to outside plan a to associate to of To softer year anticipated the sales stimulate this, in throughout the growth. ultimately, and offer to the customer Mainland

to have to on and more of actively This attend we We a We in deliver training the events their they is focus business. to robust product supportive and to will local markets. be our continue products, ensure supporting that training, necessary opportunity more growing associates successful a with aligned plan our to with provide the tools resources as and strategy. engaging digital

have We our few these progress already XXXX. I'll initiatives for our measured initiatives. briefly key of on expand on upon a of several made progress

associate As our celebrate events engage Pacific robust. and part and leaders of additional was China early Kuala in around world leaders, meeting to Convention efforts platform from our engage success, to the both China associates, in a both as provide at our served Lampur, hosted the we actively Xiamen, in with continued sales our our our national Malaysia Asia to events training Both attendance with quarter. second associate to

region. approximately For Malaysia event compared XX% increase at that encouraging first-time we our attendees, is there last the is an in the a attendees to instance, in approximately XX% at had indication event, excitement China were people our XX,XXX which of and year,

many resonating on customers this attendees brand with was included Additionally, an you across demographic ages. Z Gen of increased of positive diverse sign that and mix and a is the millennials, saw

events several We to launch also products. utilize both new

introduce the came away which to National and convenient and country We're we our at our each to contains PM supplements solution ultimate Separately, energized Mainland motivated. made market. packets health product, AM into for brand excited customer this we throughout generate core optimal the from product HealthPak team build our daily extremely our attendees and premium on technology executive This into and we continue is to event contains both help introduced China China USANA the introducing India our market. Overall, support operations, convenience to progress and the health. and intelligence Meeting, and Sales acquisition. instance, our For patented

to leaders optimistic sales instance, For accelerate they have that are help in strong attracted we momentum several the us we can join market. and distributor USANA existing

levels fantastic great job in satisfaction planning saying management in We time the are this spend deliverables. on to associate delivering to excited team team. I'll customer market. Thus a our the USANA. has in confident and early to new with future our India Personally, leaders July. these by visit experience and that promising high far, I'm I'm also committed a done close of I'm

of remainder the value please that team and sustainable earnings stakeholders. With that, these will Our on the believe operator our our our and focused of growth for now for execution successful in the initiatives lines expand business, open strategic drive I'll is create the and growth throughout strategies sales year, to the net executing questions. ask

first Instructions] Our coming [Operator of Lebiedzinski from Sidoti be will & Anthony question Company.

especially the see better-than-expected China. So nice results, in to

China. worked So well obviously, incentive the sales in

XX% active customer a You had year-over-year increase.

think from with forward, these keep going look do programs? think less drive you can with do China programs? as you need incentive Or better So to you you incentive you results

quarter China that The ran in Brent. Anthony, the it's very in promotion successful. first was we

bit to want to in that Now I a give background question. order little answer

can we time you market. promotion there's The ones we the first these first incentive several that on similar our the the multiple and leaders, really development a a ways As a for we consider are and particular at which on product-based ways focused business-based professional incentive. in way accreditation business business-based very incentive. development And were was the look also that successful. It that we can This was based. professional to incentive. focused that a that. try do We ran do did we leaders personal that education can quarter We can in do incent there

these the things the very company starts frequently the for year, then as impact time. cost rest to So more But are we them, the are forward run. over lessen you for to run look of that the low

in regions on we around also a globe. promotions will can pull. we choose but pretty can right rely not similar run more going always successful throughout so the and leveraging the where we at order those. type to the feel of in those pick And where that one we'll that, that's way we lever leverage other We're to opportunities There's those year, certainly and runway look it's

That's understanding performance. the in very it. definitely helpful Yes. Got

improve expect markets as what So I talked timing you you in are of where main you're far to that market-specific outside things said I China, some about admittedly incentives. do you some when guess you happen. as to you looking the Maybe color those can us know demand? underperformed, to give that

market socioeconomic Every effects you and were the particularly Pacific, lasted unique. those to look environment, the in have hit COVID region issues the and when North of region and is Asia longer. each I current And And environment at how think responded Asia harder. they

sure consider that we issues, have really those strong proposition. we how a we the as address So make do we to value future, have

made we've our lead. there last and those marketing our I especially we're proposition. We've is XXXX throughout a than fourth really But XXXX rethinking start we development process more meet stronger those new rest up to internal a our we several Part localize regards the regions. the going other those to address we to to consumers issue, time. new that uplift accelerate our an expect by as the combine China, sales currently each ramp see we development better China strongly a it realign to quarter resources really to some product into that time offering they an regions. as commercial value internal our in value effort One team, is needs with markets, And transition our expect well. was are. We proposition create product of product offerings of bring new see to to of the as year, of the in we to way in the start where as uplift. and incentive in think regions, those now first those to to like said, regions resonate bring I to really bring which offerings for serve those going I that sellers, of take will each to to to these start to try to and other with of those over should changes of business-based and That's and introduced

the -- markets, convention. X,XXX things commitments about specific We we've a exactly and people This is little bit the USANA into attendees from in And one it's some there. but top Jim. of Asia I of we growth mean, to the our in hard leaders bringing on talked over the our impact, had Pacific family. know I that got opening remarks Yes.

another just positive help we is going think XXXX. point that drive it's to So

Got you.

can -- Okay. your just perhaps any that any details expectations? to share internal terms India, own I'm perform did of how you -- in And actually, then performed more curious, that relative

believe about play for market future. be Right in strong what very could us we're seeing. very for a become we we're long-term it will optimistic compelling India a now, is very -- the USANA,

been very brought that stable in door we're we've operationally, customers we've far think have the in I the have very pleased service level. with and become the so very that offering provided sound, there. we Those

people of our engage our product. expectations. and attraction our I has trying internal We're new think has still expectations, of individuals to met In those with new strong terms been

in to new we So have plans that purchasing in more opportunities frequently. get people works engagement But that. several for the we order have increase several to level

expect to pleased with continue it progress stands now, the it as So and to grow. we're

Got you.

Okay. pass it to question I before last others. on And then

us So your on can program? give an you affiliate update

they ago. it's earn in of of that the when it of program. in sales program looking again, is was We around a in to what was the now, be didn't a built retail probably feel the addition ability USANA immediately into our future the world next one economy. have part the pace program have meant that's Australia compensation get world. At the our It's market but to compensation need things the need program looking And and was markets individuals be and a process, years where gig program it gig to in at the is Zealand the to it affiliate the do. model to And couple off Again, into in get never Yes. of the really We at our bringing America. the affiliate is will start of New in, USANA, We're market right of we plan associates to it to bring around North affiliate we we was other were introduced program affiliate the having that what do a mainly kind and sooner hands the to successful. commissions do.

do not the [Operator Thank remarks. Instructions] for this appear to you. the As call Andrew further have turn closing we to back over we'll questions any additional Masuda time, at

your Thank questions today's you conference call. your for participation and for on

any feel XXX-XXX-XXXX. to you please If Relations remaining free Investor at have questions, contact

that presentation. Ladies and today's conclude will attendance. thank We your gentlemen, you for

Have day, now a disconnect. may You goodbye. and good