Nu Skin China s performance in 2023 continued to decline to 2.5 billion yuan

Mondo Finance Updated on 2024-02-20

On February 15, Nu Skin announced its financial results for the fourth quarter and full year of 2023. Fourth-quarter net sales of 4$88.6 billion, down 6% from the same period last year. Full-year revenue for 2023 is 19US$6.9 billion, down 12% year-on-year; Net profit 85950,000 US dollars, a year-on-year decrease of 918%。

Nu Skin's net sales in Chinese mainland market in 2023 are 2US$9.8 billion, down 17% year-on-year, ranking second among all regional markets. If tax deductions other than net sales are added, Nu Skin's performance in China is about RMB 2.5 billion.

Nu Skin's president and chief executive officer, Grace Ning, said the reasons for the decline included macroeconomic impacts and disruptions and adjustments to business transformation. Fourth-quarter results declined in the Americas, South Korea, Europe and Africa. The loss was partially offset by seasonality** in China, stability in Japan, and further enhancement of the RHYZ business.

RHYZ is the strategic investment arm of Nu Skin, providing acquisitions and M&A services based on Nu Skin's own needs and developments. "We are committed to creating long-term value for our business by further transforming our core business and accelerating our investment in the fast-growing RHYZ ecosystem, repositioning our company to stay ahead of the curve in the fast-growing beauty and wellness industry," said Ning. ”

To strengthen its business transformation, Nu Skin will re-evaluate its approach to capital allocation to invest in long-term growth and business development. While in turbulent times, Nu Skin has fine-tuned its strategy to meet the challenges of business transformation and is confident in its shareholders' ability to create long-term growth and value, Ning said. Nu Skin will focus its investments on three key areas: accelerating growth opportunities in the RHYZ business; Driving new market expansion, starting in India in 2025; Further building of the digital platform.

In response to the expectation of full-year 2024 results, Nu Skin released 17300 million to 18The $700 million guidance is 12% to 5% lower than in 2023, which is relatively conservative and not optimistic.

Nu Skin's Chinese mainland market has always accounted for a large proportion of Nu Skin's global business, and it was Nu Skin's largest global market for many years. However, due to the internal and external environmental impact in recent years, the Chinese mainland market has now retreated to the second place.

2023 is Nu Skin's 20th year of entering the Chinese mainland market. This year, Nu Skin has been focusing on the three core factors mentioned in the "Empower Me" strategy: products, technology and community, holding relatively rich activities, launching the official **, launching the TRME section, increasing the promotion of NU stores, etc., and officially launched the second phase of Nu Skin's Greater China Innovation Headquarters Park at the end of the year. All of this reflects Nu Skin's continued investment and deep cultivation in the Chinese market.

*:Knowledge economy.

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