SALT LAKE CITY, April 22, 2025--(BUSINESS WIRE)--USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal first quarter ended March 29, 2025.

Key Financial Results

First Quarter 2025 vs. First Quarter 2024

Net sales of $250 million versus $228 million, representing year-over-year growth of 10% and 12% in constant currency. Net earnings of $9.4 million versus $16.5 million. Diluted EPS of $0.49 as compared with $0.86. Adjusted diluted EPS(1) of $0.73 as compared with $0.86. Adjusted EBITDA(2) of $30 million versus $33 million. Direct selling Active Customers of 459,000 versus 494,000. Hiya Active Monthly Subscribers of 224,000. Company reiterates fiscal year 2025 outlook.

Q1 2025 Financial Performance

Consolidated Results Year-over-Year Sequentially Net Sales $250 million +10% (-$6 million or -2% FX impact) +17% Net Earnings $9.4 million -43% +111% Diluted EPS $0.49 -43% +113% Adjusted Diluted EPS(1) $0.73 -15% +15% Adjusted EBITDA(2) $30 million -10% +17% Net earnings, EPS and EBITDA figures represent amounts attributable to USANA and excludes the noncontrolling interest of 21.15% in Hiya

"USANA is off to a solid start to the year as we continue to execute our growth strategy through our core direct sales business and our recently acquired direct-to-consumer business, Hiya. We are seeing encouraging signs in our direct sales business with net sales and Active Customers growing modestly on a sequential basis for the second consecutive quarter," said Jim Brown, President and Chief Executive Officer.

"Hiya delivered strong growth in net sales and Active Monthly Subscribers. Hiya’s momentum remains strong and should continue building as their team executes their plans to launch several new products this year, unveil another strategic partnership, and expand to additional channels. We continue to be confident in the growth trajectory of this business that is reaching a new customer demographic for us. On a consolidated basis, constant currency net sales grew 12% year-over-year and we are reiterating our full-year outlook.

"While the global macroeconomic environment has become less certain since the beginning of the year due to volatility in international trade, tariffs, and consumer sentiment, the underlying demand for our products has remained strong. Operationally, our manufacturing facilities in the United States and mainland China uniquely position us to deliver the best possible shopping experience and value to our customers in every market around the world. Our supply chain team has actively managed our inventory levels and sourcing, and will continue to work with our stakeholders in each of our markets to navigate the increasingly dynamic operating environment."

Story Continues

Q1 2025 Direct Selling Regional Results:

Asia Pacific Region Year-
Over-Year Year-over-Year
(Constant Currency) Sequentially Net Sales $174 million -6% -4% +4% Active Customers 374,000 -5% n.a. +4%

Asia Pacific Sub-Regions Year-Over-
Year Year-over-Year
(Constant Currency) Sequentially Greater China Net Sales $119 million -7% -5% +5% Active 254,000 -7% n.a. +3% Customers North Asia Net Sales $19 million -12% -4% +15% Active 45,000 Flat n.a. +18% Customers Southeast Asia Pacific Net Sales $36 million -1% No material FX impact -6% Active 75,000 -1% n.a. -3% Customers

Americas and Europe Region Year-Over-
Year Year-over-Year
(Constant Currency) Sequentially Net Sales* $39 million -9% -4% -11% Active Customers 85,000 -14% n.a. -9% *Includes $2 million of ‘Other’ as reported in the tables to this release

Q1 2025 Hiya Direct to Consumer Results:

Hiya Net Sales $37 million Active Monthly Subscribers 224,000

Balance Sheet and Share Repurchase Activity

During the first quarter, the Company generated $15 million in operating cash flow and ended the quarter with $180 million in cash and cash equivalents and $23 million of debt. The Company repurchased 399,000 shares during the first quarter for an investment of $12 million with approximately $49 million remaining under the current share repurchase authorization as of the end of the first quarter.

Fiscal Year 2025 Outlook

The Company is reiterating its outlook for fiscal year 2025, as follows:

Fiscal Year 2025 Outlook Range Consolidated net sales $920 million to $1.0 billion Net earnings $29 million to $41 million Diluted EPS $1.50 to $2.20 Adjusted Diluted EPS(1) $2.35 to $3.00 Adjusted EBITDA(2) $107 million to $123 million Net earnings, EPS and EBITDA figures represent amounts attributable to USANA and excludes the noncontrolling interest of 21.15% in Hiya

"First quarter operating results were in line with internal expectations and reflected solid contributions from our direct selling business and strong top line growth from Hiya," said Doug Hekking, Chief Financial Officer. "We are reiterating our 2025 outlook and continue to anticipate consolidated top line growth of 8% to 17%. The impact of potential trade policies and tariffs remains highly uncertain at this time. As such, we have not reflected any potential impact in our financial guidance. Our primary focus, for now, is on the potential tariff impact associated with importing certain raw materials from China into the U.S. and importing certain raw materials from the U.S. into China. Our supply chain team continues to actively manage our exposure through efforts to selectively build inventory on exposed positions and seeking alternative sourcing relationships. Our team will continue to evaluate and pursue these strategies in an effort to mitigate the impact from tariffs or trade policies which become certain, and we will provide additional information as we gain greater visibility."

The Company’s outlook reflects:

Net sales from the direct selling business of $775 to $840 million, which includes an expected unfavorable currency exchange rate impact of approximately $30 million, or -4% on net sales; Net sales from Hiya of $145 to $160 million, reflecting a year-over-year range of +29% to +42%; Effective tax rate of 41.5% to 45.0%; and Fiscal 2025 is a 53-week year and includes one additional week of sales compared to fiscal 2024. Prior to 2025, the last 53-week year was in fiscal 2020.

_________________________

(1) Adjusted Diluted Earnings Per Share is a non-GAAP financial measure. The Company excludes acquisition-related costs, such as business transaction costs, integration expense and amortization expense from acquisition related intangible assets in calculating Adjusted Diluted Earnings Per Share. Please refer to "Non-GAAP Financial Measures" and "Reconciliation of Diluted Earnings Per Share (GAAP) to Adjusted Diluted Earnings Per Share (Non-GAAP)" in this press release for an explanation and reconciliation of this non-GAAP financial measure.

(2) Adjusted EBITDA is a non-GAAP financial measure. Please refer to "Non-GAAP Financial Measures" and "Reconciliation of Net Earnings (GAAP) to Adjusted EBITDA (Non-GAAP)" in this press release for an explanation and reconciliation of this non-GAAP financial measure.

Non-GAAP Financial Measures

This press release contains the non-GAAP financial measures Adjusted EBITDA and Adjusted diluted EPS. Adjusted EBITDA is a Non-GAAP financial measure of earnings before interest, taxes, depreciation, and amortization that also excludes certain adjustments as indicated below in the reconciliation from net earnings. Adjusted diluted EPS is a Non-GAAP financial measure of diluted earnings per share that excludes certain adjustments as indicated below in the reconciliation from diluted EPS.

Adjusted EBITDA (non-GAAP) is net earnings (loss) (its most directly comparable GAAP financial measure) adjusted for interest expense, net, (benefit from) provision for income taxes, depreciation and amortization, non-cash share-based compensation, and transaction-related expenses and integration costs for the Hiya acquisition. Adjusted EBITDA attributable to USANA (non-GAAP) is Adjusted EBITDA (non-GAAP) further adjusted to exclude the Adjusted EBITDA attributable to non-controlling interest related to Hiya.

Adjusted diluted earnings per share (non-GAAP) is diluted earnings (loss) per share (its most directly comparable GAAP financial measure) adjusted for amortization of intangible assets, transaction-related expenses, and integration costs related to the Hiya acquisition.

Management believes that Adjusted EBITDA (non-GAAP), Adjusted EBITDA attributable to USANA (non-GAAP), and Adjusted diluted earnings per share (non-GAAP), along with GAAP measures used by management, most appropriately reflect how the Company measures the business internally.

The Company prepares its financial statements using U.S. generally accepted accounting principles ("GAAP") and investors should not directly compare with or infer relationship from any of the Company’s operating results presented in accordance with GAAP to Adjusted EBITDA and Adjusted diluted earnings per share. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of non-GAAP financial information as a tool for comparison. As a result, the non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation from, or as a substitute for financial information presented in accordance with GAAP.

Reconciliation of Net Earnings (GAAP) to Adjusted EBITDA (non-GAAP)  Quarter Ended 29-Mar-25  30-Mar-24  Net earnings attributable to USANA (GAAP)  $ 9,402   $ 16,537  Net earnings attributable to noncontrolling interest   (112 )   -  Net earnings  $ 9,290   $ 16,537   Adjustments:  Income taxes   7,449    10,574  Interest (income) expense   (312 )   (2,624 ) Depreciation and amortization   5,790    5,084  Amortization of intangible assets - Hiya   4,455    -  Earnings before interest, taxes, depreciation, and amortization (EBITDA)   26,672    29,571   Add EBITDA adjustments:  Non-cash share-based compensation   2,880    3,669  Transaction costs - Hiya   577    -  Inventory step-up - Hiya   582    -  Consolidated adjusted EBITDA   30,711    33,240  Less: Adjusted EBITDA attributable to noncontrolling interest   (954 )   -  Adjusted EBITDA attributable to USANA  $ 29,757   $ 33,240

Reconciliation of Diluted Earnings Per Share (GAAP) to Adjusted Diluted Earnings Per Share (non-GAAP)  Quarter Ended 29-Mar-25  30-Mar-24  Net earnings attributable to USANA (GAAP)  $ 9,402   $ 16,537  Earnings per common share - Diluted (GAAP)  $ 0.49   $ 0.86 Weighted Average common shares outstanding - Diluted   19,085    19,302  Adjustment to net earnings:  Transaction costs - Hiya  $ 577   $ - Inventory step-up - Hiya   582    - Amortization of intangible assets - Hiya   4,455    - Adjustments to net earnings attributable to noncontrolling interest   (1,066 )   - Income tax effect of adjustments to net earnings   (4 )   -  Adjusted net earnings attributable to USANA  $ 13,946   $ 16,537  Adjusted earnings per common share - Diluted  $ 0.73   $ 0.86 Weighted average common shares outstanding - Diluted   19,085    19,302

Management Commentary Document and Conference Call

For further information on the USANA’s operating results, please see the Management Commentary document, which has been posted on the Company’s website (http://ir.usana.com) under the Investor Relations section. USANA’s management team will hold a conference call and webcast to discuss today’s announcement with investors on Wednesday, April 23, 2025 at 11:00 AM Eastern Time. Investors may listen to the call by accessing USANA’s website at http://ir.usana.com. The call will consist of brief opening remarks by the Company’s management team, followed by a questions and answers session.

Safe Harbor

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These forward-looking statements are based on current plans, expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as "expect," "enhance," "drive," "anticipate," "intend," "improve," "promote," "should," "believe," "continue," "plan," "goal," "opportunity," "estimate," "predict," "may," "will," "could," and "would," and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding Hiya’s strong growth in 2025 and continued growth in the future; statements about the Company’s long-term growth; and the statements under the sub-heading "Fiscal Year 2025 Outlook." Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control, including: risks relating to global economic conditions generally, including continued inflationary pressure around the world and negative impact on our operating costs, consumer demand and consumer behavior in general; reliance upon our network of independent Associates; risk that our Associate compensation plan, or changes that we make to the compensation plan, will not produce desired results, benefit our business or, in some cases, could harm our business; risk associated with our launch of new products or reformulated existing products; risks related to governmental regulation of our products, manufacturing and direct selling business model in the United States, China and other key markets; potential negative effects of deteriorating foreign and/or trade relations between or among the United States, China and other key markets, including potential adverse impact from tariffs, trade policies or other international disputes by and among the United States, China, or other markets that are important to the Company; potential negative effects from geopolitical relations and conflicts around the world, including the Russia-Ukraine conflict and the conflict in Israel; compliance with data privacy and security laws and regulations in our markets around the world; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; adverse publicity risks globally; risks associated with early stage operations in India and future international expansion and operations; uncertainty relating to the fluctuation in U.S. and other international currencies; the potential for a resurgence of COVID-19, or another pandemic, in any of our markets in the future and any related impact on consumer health, domestic and world economies, including any negative impact on discretionary spending, consumer demand, and consumer behavior in general; risk that the Hiya acquisition disrupts each company’s current plans and operations; the diversion of the attention of the management teams of USANA and Hiya from ongoing business operations; the ability of to retain key personnel of Hiya; the ability to realize the benefits of the acquisition, including efficiencies and cost synergies; the ability to successfully integrate Hiya’s business with USANA’s business, at all or in a timely manner; and the amount of the costs, fees, expenses and charges related to the acquisition. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission. The forward-looking statements in this press release set forth our beliefs as of the date hereof. We do not undertake any obligation to update any forward-looking statement after the date hereof or to conform such statements to actual results or changes in the Company’s expectations, except as required by law.

About USANA

USANA develops and manufactures high-quality nutritional supplements, functional foods and personal care products that are sold directly to Associates and Preferred Customers throughout the United States, Canada, Australia, New Zealand, Hong Kong, China, Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Philippines, the Netherlands, the United Kingdom, Thailand, France, Belgium, Colombia, Indonesia, Germany, Spain, Romania, Italy, and India. More information on USANA can be found at www.usana.com. USANA also owns a 78.8% controlling ownership stake in Hiya Health Products, a children's health and wellness company with a variety of clean-label products. More information on Hiya can be found at www.hiyahealth.com.

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)  Quarter Ended March 29, 
2025  March 30, 
2024 Net sales  $ 249,539   $ 227,800  Cost of sales   52,445    43,069  Gross profit   197,094    184,731  Operating expenses:  Associate incentives   89,985    95,758  Selling, general and administrative   91,438    64,300  Total operating expenses   181,423    160,058  Earnings from operations   15,671    24,673  Other income (expense):  Interest income   723    2,676  Interest expense   (411 )   (52 ) Other, net   756    (186 ) Other income (expense), net   1,068    2,438  Earnings before income taxes   16,739    27,111  Income taxes   7,449    10,574  Net earnings   9,290    16,537  Less: Net earnings (loss) attributable to redeemable noncontrolling interest   (112 )   —  Net earnings attributable to USANA  $ 9,402   $ 16,537   Earnings per common share attributable to USANA  Basic  $ 0.49   $ 0.86  Diluted  $ 0.49   $ 0.86   Weighted average common shares outstanding  Basic   19,049    19,174  Diluted   19,085    19,302

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)  As of 
March 29, 
2025  As of 
December 28, 
2024 ASSETS  Current assets  Cash and cash equivalents $ 179,613  $ 181,768 Inventories  73,557   69,735 Prepaid expenses and other current assets  28,224   27,684 Total current assets  281,394   279,187 Property and equipment, net  94,245   94,565 Goodwill  144,218   144,168 Intangible assets, net  147,157   151,823 Deferred tax assets  18,843   19,644 Other assets*  60,739   58,806 Total assets $ 746,596  $ 748,193  LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY  Current liabilities  Accounts payable $ 13,974  $ 11,984 Line of credit  23,000   23,000 Other current liabilities  100,409   104,641 Total current liabilities  137,383   139,625 Deferred tax liabilities  4,801   4,073 Other long-term liabilities  20,539   18,163  Redeemable noncontrolling interest  54,111   54,223  Stockholders' equity attributable to USANA  529,762   532,109 Total liabilities, redeemable noncontrolling interest, and stockholders' equity $ 746,596  $ 748,193

*Includes noncurrent inventories of $2,864 and $2,688 as of 29-Mar-25 and 28-Dec-24, respectively. Total inventories were $76,421 and $72,423 as of 29-Mar-25 and 28-Dec-24, respectively.

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

SALES BY REGION

(in thousands)

(unaudited)  Quarter Ended  Change from
prior year  Percent
change  Currency
impact on sales  % change excluding
currency impact March 29, 2025  March 30, 2024  Direct Selling:  Asia Pacific  Greater China $ 118,746  47.6 %  $ 127,615  56.0 %  $ (8,869 )  (6.9 %)  $ (2,015 )  (5.4 %) Southeast Asia Pacific  35,720  14.3 %  $ 36,065  15.9 %   (345 )  (1.0 %)   (118 )  (0.6 %) North Asia  18,941  7.6 %  $ 21,421  9.4 %   (2,480 )  (11.6 %)   (1,709 )  (3.6 %) Asia Pacific Total  173,407  69.5 %   185,101  81.3 %   (11,694 )  (6.3 %)   (3,842 )  (4.2 %) Americas and Europe  37,044  14.8 %   41,047  18.0 %   (4,003 )  (9.8 %)   (1,749 )  (5.5 %) Direct Selling total  210,451  84.3 %   226,148  99.3 %   (15,697 )  (6.9 %)   (5,591 )  (4.5 %) Hiya  37,089  14.9 %   —  — %   37,089   N/A    —   N/A  Other  1,999  0.8 %   1,652  0.7 %   347   21.0 %   —   21.0 % Consolidated total $ 249,539  100.0 %  $ 227,800  100.0 %  $ 21,739   9.5 %  $ (5,591 )  12.0 %

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

DIRECT SELLING ACTIVE ASSOCIATES AND ACTIVE PREFERRED CUSTOMERS BY REGION

(unaudited)   Direct Selling Active Associates by Region(1)  (unaudited)  As of 
March 29, 2025  As of 
March 30, 2024 Asia Pacific:  Greater China 65,000  35.3 %  71,000  36.1 % Southeast Asia Pacific 48,000  26.1 %  51,000  25.9 % North Asia 33,000  17.9 %  30,000  15.2 % Asia Pacific Total 146,000  79.3 %  152,000  77.2 %  Americas and Europe 38,000  20.7 %  45,000  22.8 % 184,000  100.0 %  197,000  100.0 %

Direct Selling Active Preferred Customers by Region(2)  (unaudited)  As of 
March 29, 2025  As of 
March 30, 2024 Asia Pacific:  Greater China 189,000  68.7 %  203,000  68.3 % Southeast Asia Pacific 27,000  9.8 %  25,000  8.4 % North Asia 12,000  4.4 %  15,000  5.1 % Asia Pacific Total 228,000  82.9 %  243,000  81.8 %  Americas and Europe 47,000  17.1 %  54,000  18.2 % 275,000  100.0 %  297,000  100.0 %

(1) Associates are independent distributors of our products who also purchase our products for their personal use. We only count as active those Associates who have purchased from us any time during the most recent three-month period, either for personal use or resale.

(2) Preferred Customers purchase our products strictly for their personal use and are not permitted to resell or to distribute the products. We only count as active those Preferred Customers who have purchased from us any time during the most recent three-month period. China utilizes a Preferred Customer program that has been implemented specifically for that market.

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

OPERATING RESULTS AS A PERCENTAGE OF NET SALES  Quarter Ended 29-Mar-25  30-Mar-24 Direct Selling &
Other Hiya Consolidated  Direct Selling &
Other Hiya Consolidated Net Sales 100.0% 100.0% 100.0%  100.0% N/A 100.0% Cost of Sales 18.1% 38.0% 21.0%  18.9% N/A 18.9% Gross Profit 81.9% 62.0% 79.0%  81.1% N/A 81.1% Operating Expenses  Associate Incentives 42.4% 0.0% 36.1%  42.0% N/A 42.0% SG&A 32.0% 63.4% 36.6%  28.3% N/A 28.3% Total operating expenses 74.3% 63.4% 72.7%  70.3% N/A 70.3% Earnings from operations 7.6% -1.4% 6.3%  10.8% N/A 10.8%  Amortization of acquired intangible assets 0.1% 12.0% 1.9%  0.1% N/A 0.1%

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Contacts

Investor contact: Andrew Masuda
Investor Relations
(801) 954-7201
[email protected]

Media contact: Sarah Searle
(801) 954-7626
[email protected]

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