Usana Health Sciences Inc (USNA) Reports Mixed Fiscal Year 2023 Results
Net Sales: Q4 net sales decreased to $221 million from $228 million in Q4 2022.
Diluted EPS: Q4 diluted EPS increased to $0.87, up from $0.66 in Q4 2022.
Fiscal Year Net Sales: 2023 net sales totaled $921 million, down from $999 million in 2022.
Fiscal Year Diluted EPS: 2023 diluted EPS was $3.30, compared to $3.59 in 2022.
2024 Guidance: Initial guidance for 2024 net sales is set between $850 million to $920 million, with diluted EPS ranging from $2.40 to $3.00.
Operating Cash Flow: Generated $26 million in Q4, ending the year with $330 million in cash and cash equivalents.
Share Repurchase: No shares repurchased in Q4; $71 million remains under current authorization.
On February 6, 2024, Usana Health Sciences Inc (NYSE:USNA) released its 8-K filing, announcing its financial results for the fourth quarter and fiscal year ended December 30, 2023. The company, known for its nutritional and personal-care products sold through direct selling, operates globally with a significant presence in the Asia-Pacific, Americas, and Europe.
Fiscal Summary and Company Overview
Usana Health Sciences Inc (NYSE:USNA) reported a decrease in net sales for both the fourth quarter and the fiscal year 2023. Q4 net sales were $221 million, a 3% decrease from Q4 2022, but a 4% increase sequentially from Q3 2023. The fiscal year 2023 net sales saw an 8% decrease to $921 million from $999 million in the previous year. Despite the drop in net sales, the company experienced a significant increase in diluted EPS for Q4, rising 32% to $0.87 compared to $0.66 in Q4 2022. However, the fiscal year diluted EPS decreased by 8% to $3.30 from $3.59 in 2022.
Usana Health Sciences Inc (NYSE:USNA) operates in the Consumer Packaged Goods industry, focusing on developing, manufacturing, and selling science-based nutritional and personal-care products. The company's product lines include Essentials, Optimizers, Foods, and Sense Beautiful Science, catering to a diverse range of health and nutritional needs.
Performance Highlights and Challenges
President and CEO Jim Brown highlighted the company's solid fourth-quarter operating results, which exceeded expectations. A global incentive offering, particularly effective in the Greater China region, led to double-digit sequential growth in Active Customer counts. This growth helped offset the typical seasonal slowdown experienced in the final month of the quarter.
Despite the positive aspects of the quarterly performance, the fiscal year 2023 posed challenges, with an overall decrease in net sales and diluted EPS. The company's strategic initiatives, such as commencing operations in India, are expected to support future growth. However, the company anticipates that 2024 will continue to be challenging due to economic conditions and other external factors.
Financial Achievements and Outlook
The company's balance sheet remains strong, with $330 million in cash and cash equivalents at the end of the year. The operating cash flow generated during the fourth quarter was $26 million. No shares were repurchased during the quarter, leaving approximately $71 million available under the current share repurchase authorization.
For fiscal year 2024, Usana Health Sciences Inc (NYSE:USNA) is setting a cautious tone, with net sales and earnings per share outlook reflecting a potential year-over-year decrease. The company's focus on growth in Active Customers across all regions remains a top priority, with several key initiatives planned to support this goal. These include increased engagement with Associate leaders, market-specific incentive offerings, expansion in India, product innovation, and the pursuit of additional acquisition opportunities.
Chief Financial Officer Doug Hekking acknowledged the challenging economic conditions faced in 2023 and the expectation for these conditions to persist into 2024. The initial outlook for fiscal 2024 reflects a cautious approach, with net sales performance expected to be flat or down by up to 7% on a constant currency basis.
For further details on Usana Health Sciences Inc (NYSE:USNA)'s financial performance and management's commentary, investors and interested parties are directed to the company's website under the Investor Relations section. A conference call and webcast will also be held to discuss the announcement.
Usana Health Sciences Inc (NYSE:USNA) continues to navigate a complex global economic landscape while maintaining a focus on strategic growth and operational efficiency. The company's performance and future outlook will be closely watched by investors and industry analysts alike.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Usana Health Sciences Inc for further details.
This article first appeared on GuruFocus.
