HERBALIFE

Herbalife ended the year with growth records: 1) Highest annual revenue in company history, 2) Largest fourth quarter global sales ever, 3) Best yearly sales in Asia-Pacific, EMEA and North America regions.

Herbalife’s fourth quarter sales was $1.4 billion and this represented 16% revenue growth from previous year’s same quarter. North America posted 33%, EMEA region 31%, Asia-Pacific 14% and South-Central America 10% sales increases. 36 of the EMEA countries came up with double-digit sales growth in the quarter. Among these, some stood out with remarkable results: Italy (34% growth), Spain (54%), France (57%) and the UK (129%).

The two Herbalife regions that reported negative growth in Q4 were China and Mexico.

Chairman and CEO John Agwunobi was very happy with the results, saying, “Simply put, 2020 was an amazing year, the best year ever for Herbalife Nutrition, and a testament to the strength of the company and the resilience of our distribution channel. Although 2020 was a record-setting performance year, I believe the best is still to come.”

With this impressive finish, Herbalife’s 2020 annual sales hit $5.5 billion, up 14% from 2019. This 14% rate of yearly sales increase was Herbalife’s best YOY rate of growth in the last 10 years.

Herbalife management anticipates a further 6% to 14% global sales increase in 2021.

For more on Herbalife’s fourth quarter and 2020 performance, please click here.

NATURA &CO

Natura &Co’s consolidated net revenue in Q4 was R$12 billion (approx. US$ 2.2 billion), up 24.3%. The company reported sales growth in all four of the group’s brands.

Company’s 2020 full year performance was remarkable as well: Consolidated revenue increase was 12%, reaching  R$37 billion (approx. US$ 6.6 billion). Among the group brands, Natura &Co LATAM’s sales increased by  9%, Avon International’s by 3%, The Body Shop’s by 32% and the smallest business unit Aesop’s by 50%.

As was stated by the management, The Body Shop owed much of this success to its “at-home” business (206% sales increase in Q4) and e-commerce (72% increase).

Natura &Co LATAM generates the largest business for the company, accounting for 56% of the group revenue. It is followed by Avon International (25%) and The Body Shop (14%).

Roberto Marques, Executive Chairman and Group CEO of Natura &Co, said: “In a year of unprecedented challenges, Natura &Co associates and our network across all of our businesses showed care and adaptability in the face of a global pandemic, demonstrating both our purpose-driven approach to business and the strength of our omnichannel, multi-brand model. Our performance in the fourth quarter attests to that, with strong growth in sales and profits.”

For more on Natura’s fourth quarter and 2020 performance, please click here.

NU SKIN

Nu Skin reported $748 million revenue for the last quarter of 2020 and $2.6 billion for the whole year. Company’s quarterly growth rate was 28%.

At the regional level, all of the seven regions posted sales increases. Americas/Pacific came up with the highest sales growth in Q4 (83%), followed by EMEA (79%).

“Balanced Geographical Profile” has been emphasized by Nu Skin as a key pillar of company’s overall strategy. In fact, there has been a significant business shift from Nu Skin’s Eastern regions to Western ones in the last five years. You can see the comparison on the below chart:

“Our strong fourth-quarter results were driven by exceptional customer growth of 34% compared to the prior year,” said Ritch Wood, Chief Executive Officer. “The successful Boost and Nutricentials product introductions helped generate 28%revenue and 29% sales leader growth in the quarter.”

While describing the results of the steps taken in digital technology at the investors’ call, management said during Black Friday in EMEA, four months of inventory of “Galvanic Spa” products were sold in just 90 minutes.

Nu Skin’s expectation for 2021 is announced as 5% to 9% revenue increase. The yearly growth was 7% in 2020.

In September this year, Nu Skin will witness a CEO transition. CEO Ritch Wood will retire after a 30-year career with the company. He will be replaced by Ryan Napierski, Nu Skin’s current President. Ryan Napierski has also been with Nu Skin for 25 years.

For more on Nu Skin’s fourth quarter and 2020 performance, please click here.

ORIFLAME

Oriflame, once again, closes a year with declining sales figures. Company’s total revenue decreased to €1.157 billion (approx. US$ 1.4 billion) in 2020 from €1.258 billion in 2019. This represented a drop of 8%. 2020 marks the third consecutive year with declining sales.

Oriflame’s fourth quarter performance was from reversing the negative trend within the year: Global sales decreased by 14% to €307.5m (€357.2m) in Q4.

All five regions of Oriflame reported negative growth in the last quarter: Asia (-19%), Turkey&Africa (-18%), CIS (-16%), Latin America (-14%) and Europe (-2%).

“2020 was a challenging year in many ways… After the first wave of the pandemic in the first half of the year, we experienced a positive sales turnaround in the third quarter that unfortunately was reversed in the fourth quarter. We also faced strong currency head winds negatively impacting our overall sales and margins. In addition, the combination of changed demand and product mix, together with relatively long inventory replenishment lead times, led to product availability challenges and accordingly impacted sales negatively in certain product categories towards the end of the year,” commented CEO Magnus Brännström.

In fact, there was a strong shift in Oriflame’s product mix. Color cosmetics’ share declined from 19% to 15% in Q4, wellness category’s jumped to 17% from 13%.

For more on Oriflame’s fourth quarter and 2020 performance, please click here.

USANA

USANA is among those direct sellers that ended 2020 with quite positive results: 15% sales growth for the last quarter and 7% for the whole year.

In the fourth quarter, all of USANA’s regions contributed to this result: Southeast Asia Pacific +34%,  North Asia 17%, Americas and Europe 14%, and Greater China 5%.

Kevin Guest, CEO and Chairman of the Board said, “Our fourth quarter results were better than expected and cap off a year during which USANA delivered remarkable results despite continued challenges from the pandemic…. As we kick-off 2021, we are confident that we are positioned to deliver another year of solid growth for USANA.”

China is currently USANA’s largest region, generating 47% of company’s global revenue. When asked about plans for international expansion during the investors’ call, Kevin Guest said their strategy for several years had been focusing on existing markets and on growth in those markets. Although they see now international expansion is a potential growth opportunity, it is not the primary strategic growth strategy for the company, he added.

USANA expects  $1.21 – $1.27 billion sales in 2021.

For more on USANA’s fourth quarter and 2020 performance, please click here.

…..

Hakki Ozmorali is the Founder of WDS Consultancy, a management consulting and online publishing firm in Canada, specialized in providing services to direct selling firms. WDS Consultancy is a Supplier Member of the Canada DSA. It is the publisher of The World of Direct Selling, global industry’s leading weekly online publication since 2010. Hakki is an experienced professional with a strong background in direct sales. His work experiences in direct selling include Country and Regional Manager roles at various multinationals. You can contact Hakki here.

SHARE THIS ARTICLE:

The post 2020 in Five Major Companies’ Figures and Charts appeared first on The World of Direct Selling.

This week’s article is a collection of industry news that stood out in 2020. It was most certainly a challenging year for the industry, yet we know there were positives alongside with all the negatives.

Also included are articles from The World of Direct Selling that attracted much interest last year.

> The Future of a Natura-Avon Powerhouse?
> Stella & Dot Puts Focus on Ambassadors by Merging Its Three Brands
> Rodan + Fields Lays off 86 Employees, 15% of Its Staff
> Amway Sued by Independent Business Owner Claiming Employee Status
> Nearly 7,000 Convene for Mary Kay’s Annual Leadership Conference
> Isagenix Acquires Zija International
> Rick Goings to Retire from the Board of Tupperware

Most-Read Article in January on The World of Direct Selling:
Here is Direct Selling in Canada, Folks! (Hakki Ozmorali)

> USANA Reports $1.061B Sales in 2019, Down 11% vs. Previous Year
> Brazil DSA to Celebrate 40th Anniversary in 2020
> Nu Skin Reports $2.4 Billion Revenue in 2019, Down 10%
> Jeunesse Reaches Annual Sales of $1 Billion for Fifth Consecutive Year
> Oriflame Reports 2% Sales Decrease in 2019
> Herbalife Notches $4.9 Billion in Annual Sales Despite Hit in China
> Amway’s 2019 Sales Down 5%
> Medifast Reports $714M Revenue in 2019, Up 42%

Most-Read Article in February on The World of Direct Selling:
Trust and Communication: The Foundation of Success in Direct Sales (Brett Duncan)

> Industry Advocate Jeff Babener Passes Away
> Natura Reports Modest Q4 Profit, Weighed by Avon Acquisition Costs
> Mary Kay Pulls Out of Australia and New Zealand
> QNet Fires Over 400 Reps in 20 Countries
> Tupperware Appoints Miguel Fernandez as CEO, and Rich Goudis as Chairman
> US DSA Calls for Measures to Ensure Accurate Product Claims
> Industry Veteran John Agwunobi Assumes New Role as Herbalife CEO

Most-Read Article in March on The World of Direct Selling:
Five Key Insights from New DSA & Ipsos Consumer Attitudes & Entrepreneurship Study (Ben Gamse)

> Tupperware Announces New Organization Focused on Long-Term Growth
> US Cosmetics Market Experiences Sharpest Decline in 60 Years
> Stella & Dot CEO Jessica Herrin on Managing During the COVID-19 Crisis
> US Cosmetics Market Experiences Sharpest Decline in 60 Years
> COVID-19: Tupperware-Style Parties Drive Sales for DTC Sector
> FTC Sends Warning Letters to Direct Selling Companies
> Mary Kay Commits Nearly $10 Million to Global COVID-19 Support

Most-Read Article in April on The World of Direct Selling:
Lessons from the Lockdown (Alan Luce)

> WFDSA Chairman Magnus Brannstorm Addresses Global Direct Selling Community (video)
> CEO of Plexus Forgoes Salary to Award Bonuses to Employees
> More Canadians Becoming Entrepreneurs Amid ‘Direct Selling Movement’
> Lessons Learned During Chinese Regulatory Crackdown Help Nu Skin Weather Crisis
> 192 Million Customer Records Leaked by Natura &Co, 90% Brazilian Customers
> The Future of Retail Is Social

Most-Read Article in May on The World of Direct Selling:
Mixed Growth Performances in the First Quarter (Hakki Ozmorali)

> US DSA Releases Results from 2020 Growth & Outlook Survey
> FTC Sends Second Round of Warning Letters to MLM Companies
> How COVID-19 Has Sparked a ‘New Normal’ in the Health and Wellness Industry
> Avon Suffers ‘Cyber Incident’ Weeks After Major Data Breach at Natura
> Amway Establishes East Beauty Center of Excellence in South Korea
> 7 Predictions for How Coronavirus Will Change Retail in the Future
> Nearly 20,000 Attend Plexus Worldwide 20/20 Vision Virtual Convention

Most-Read Article in June on The World of Direct Selling:
Executive Q&A: Angela Cretu, CEO of Avon

> WFDSA Announces 2019 Global Direct Selling Industry Statistics
> Direct Selling Self-Regulatory Council Issues New Guidance on Earnings Claims in the US
> New Avon Announces Over $16 Million in Product Donations
> Pampered Chef Ex-CEO Tracy Britt Cool Takes a Stake in Thirty-One Gifts
> Direct Selling Continues to Grow in the EU in 2019
> Natura’s Asian Debut
> NewAge Agrees to Combine with ARIIX and Four Other Companies
> USANA Notches Sales Gain Despite Pandemic Disruptions

Most-Read Article in July on The World of Direct Selling:
Global Direct Selling Industry in 2019 (Hakki Ozmorali)

> Longaberger Baskets Selling Again, with Daughters Tami, Rachel Involved
> MONAT Ranks #653 on the 2020 List of Inc. 5000
> Mary Kay Ash Named Among USA TODAY’s ‘Women of the Century’
> Herbalife Agrees to Pay Over $122 Million to Resolve Corrupt Practices Case in China
> Isagenix Co-Founders, Shareholders Invest $35 Million to Foster Growth
> Nu Skin Invests $53 Million in New Production Facility in China
> How Lorraine Lea Reinvented Party Plan Selling for the Digital Age
> Tech for Health – Amway on Its Big Tech, Social Commerce, Big Data Ambitions

Most-Read Article in August on The World of Direct Selling:
A Glance at the Direct Sales Industry in Mid-2020 (Hakki Ozmorali)

> Laure Alexandre Appointed as Executive Director of Seldia
> Nature’s Sunshine Announces Company Transformation with New Business Model Launch
> Court Dismisses Neora’s Declaratory Judgement Suit Against FTC
> Avon’s Makeover: Five Things You Didn’t Know About the New Visual Identity
> Covid-19 Pandemic Gives Major Boost to E-Commerce
> WFDSA Releases 2019-2020 Annual Report
> Isagenix Names Sharon Walsh as New CEO
> Shaklee CEO Roger Barnett WFDSA’s New Chairman

Most-Read Article in September on The World of Direct Selling:
Mobile Messaging Best Practices for Direct Sellers (Vince Han)

> Message from WFDSA Outgoing Chairman Magnus Brannstrom (Video)
> Herbalife CEO Sees ‘Dramatic’ Demand Growth (Video)
> Ruby Ribbon Bolsters Management Ranks with Hiring of COO/CFO and CMO
> A Wrinkle in Time: Why Rodan+Fields’ Founders Lost Their Billionaire Status
> Natura Among Fortune’s World’s 25 Best Multinational Workplaces
> Melaleuca Turns 35
> Tupperware Profits and Shares Soar as More People Are Eating at Home
> Turkish Direct Seller Farmasi Plans to Build $25 Million Distribution Center in Miami
> Gig Economy and Micro-Entrepreneurship Are on the Rise, but Are We Ready to Manage That Successfully?

Most-Read Article in October on The World of Direct Selling:
The Joy and Pain of New Opportunities (Ben Woodward)

> Pampered Chef Continues International Expansion with Addition of France
> Kristi Hubbard Assumes CEO Role at Younique
> Natura &Co Significantly Outperforms Global Beauty Market with Strong Sales Growth
> NewAge and ARIIX Close Merger
> Youngevity Receives Notice of NASDAQ Delisting Due to Non-Compliance
> Direct Selling Could Be a Key Driver of Inclusive Economic Growth in South Africa
> In 2020, Beauty Is More Digital, More Hygiene-Focused and at Home
> From Turnover Point of View, We Are Already Back to Pre-Covid Levels: Oriflame VP Frederic Widell

Most-Read Article in November on The World of Direct Selling:
5 Essential Lessons on Success I Have Learned from Clients (Daryl Wurzbacher)

> Seldia Announces Winners of 2020 Astra Awards
> US Direct Selling Association Announces 2020 Award Winners and 25 Largest Companies
> Canada DSA Announces 2020 Award Winners
> ‘Tupperware-Style’ Retail Sees 45% Growth in 2020 in UK
> FTC and Law Enforcement Partners Crack Down on Deceptive Income Schemes
> TikTok Is Banning MLMs and Other Content That Aims to Deceive People
> SeneGence: How a Beauty Company Is Making Real Connections in a Virtual World
> Mary Kay: The Beauty of Sustainable Packaging
> WorldVentures Voluntarily Files for Bankruptcy

Most-Read Article in December on The World of Direct Selling:
The Crucial Role of P&P Documents in Direct Selling (Hakki Ozmorali)

SHARE THIS ARTICLE:

The post 2020: A Year in the Industry News appeared first on The World of Direct Selling.