USANA Health Sciences(US:USNA)2025-04-23 16:51Financial Data and Key Metrics Changes - Consolidated net sales grew 12% year-over-year in constant currency, including the first full quarter of contribution from Hiya [7][8] - Active customers in the direct selling business grew modestly on a sequential basis for the second consecutive quarter [8] Business Line Data and Key Metrics Changes - The direct selling business saw sequential first quarter net sales and active customers in Mainland China grow 6% and 4%, respectively [8] - Hiya business continues to deliver robust results with strong growth in net sales and active monthly subscribers [12][13] Market Data and Key Metrics Changes - Consumer sentiment in key markets remains cautious, but there are pockets of strength observed [8] - Attendance at the China National Sales Meeting in Nanjing was strong, indicating positive engagement [10] Company Strategy and Development Direction - The company continues to execute an Associate first strategy, prioritizing associate engagement through leadership events [9] - Plans for new product launches are in place, with a focus on children's health and wellness [14][28] Management Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding potential trade policies and tariffs but has not reflected this in financial guidance [15] - The supply chain team has proactively built inventory to mitigate tariff exposure [15][39] Other Important Information - The company is exploring alternative sourcing relationships to address potential tariff impacts [15] - New product introductions are expected to accelerate in the second half of the year [49][50] Q&A Session Summary Question: Plans for additional incentives in China and South Korea - Management confirmed that promotional incentives are planned throughout the year to drive value for distributors and customers [22][23] Question: Update on Hiya's new product launches - New product launches are planned systematically throughout the year, with a significant launch expected in May [26][27] Question: Progress in India - India remains a promising market with high expectations, although growth is currently slow [35][36] Question: Impact of tariffs and inventory levels - The company has built up inventory for nutritional products, which is expected to mitigate tariff impacts [39][40] Question: New product reception in China - New products launched in China, including a chewable calcium product for children, received positive feedback [47][48] Question: Opportunities from the elimination of artificial ingredients - Management believes the company is well-positioned to capitalize on the trend towards more natural products [52][53]