In This Article:
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Net Sales Growth: 7% sequential increase in the fourth quarter.
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Adjusted Diluted EPS: Increased by 14% in the fourth quarter.
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US Market Sales Growth: 16% sequential increase in net sales.
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Australia and New Zealand Sales Growth: Combined net sales grew 9% year over year.
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Hiya Health Acquisition: Acquired 78.8% ownership for $205 million.
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Hiya Health Revenue: Generated $112 million in fiscal 2024.
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Hiya Health Adjusted EBITDA Margin: Over 20% in fiscal 2024.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Usana Health Sciences Inc (NYSE:USNA) reported a solid fourth quarter with net sales growing 7% sequentially and adjusted diluted EPS increasing by 14%.
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The acquisition of a 78.8% ownership stake in Hiya Health positions Usana as a leader in the expanding children's health and wellness market.
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Usana's reorganization of its R&D and commercial teams has led to faster and more efficient product development and market differentiation.
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The company plans to launch over 20 new products and product reformulations globally in 2025, enhancing its product offerings.
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Usana's strategic enhancements to its associate incentive offerings are expected to modernize sales incentives and improve pay for performance.
Negative Points
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The contribution of Hiya Health to Usana's consolidated 2024 results was minimal due to the late acquisition in the fourth quarter.
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Usana faces challenges in certain regions, such as China, where the operating environment remains tough.
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SG&A expenses as a percentage of sales came in higher than expected, partly due to the commercial team reorganization.
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The integration of Hiya Health may incur short-term costs and potential disruptions in profitability due to customer acquisition expenses.
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Usana's balance sheet has been impacted by the Hiya acquisition, resulting in no stock buybacks and a slight increase in debt.
Q & A Highlights
Q: What's driving the year-over-year sales gains in the US, Australia, and New Zealand? Is it primarily due to increased promotional activity? A: G Hekking, CFO: Leaders in these markets have been thinking outside the box and trying new approaches, which have shown traction. This creative approach has provided insights for future strategies. Brent Neidig, Chief Officer and Managing Director of China: The commercial team restructure and enhanced associate engagement have empowered regions to create tailored offerings, resulting in significant new associate acquisition and retention.