Usana Health Sciences, Inc. · NYSE:USNA
Usana Health Sciences — Q1 2025 Earnings Presentation
35 slides from Usana Health Sciences's earnings presentation, Apr 23, 2025
Slide 1: Investor Overview
INVESTOR INVESTOR OVERVIEW OVERVIEW NYSE: USNA April 2025
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statements. This presentation 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 p
Slide 3: USANA At-A-Glance
USANA At-A-Glance USANA develops and manufactures high-quality, science-based nutritional and personal care products with a primary focus on promoting long-term health and wellness. Products are sold through two distribution channels: direct sales and direct-to-consumer. Headquarters: Product Mix¹ G
Slide 4: Key Investment Highlights
Key Investment Highlights • Leading provider of high-quality nutritional supplements with global scale and 30+ years of history • Differentiated nutritional products backed by scientific research and in-house production capabilities • Low capital intensity business model and solid cash flow generati
Slide 5: Business Model: Direct Sales Overview
BUSINESS DIRECT SALES MODEL OVERVIEW OVERVIEW
Slide 6: 5-Pronged Approach to Profitable Growth
5-Pronged Approach to Profitable Growth Active Customer Growth New Market Expansion and Direct Selling M&A Long-Term Model Profitable Growth Product Quality & In-House Innovation Manufacturing
Slide 7: Active Customers
Active Customers Key leading indicator for sales momentum Associates Preferred Customers* Active Customers Independent distributors Customers who Associates and Preferred of USANA products who purchase USANA Customers who have purchased also purchase for personal products strictly for from USANA any
Slide 8: Direct Selling Model: A Key Driver of Operating Leverage
Direct Selling Model: A Key Driver of Operating Leverage USANA distributes its products internationally through a direct sales network of individual business owners (Associates). Relatively low Associate incentives and incremental cost commissions for product to add a new sale active customer aligne
Slide 9: In-House Manufacturing: A Key Differentiator
In-House Manufacturing: A Key Differentiator 69% of products are manufactured in-house • Increased operational and financial flexibility • Flexibility in supply chain management GMP manufacturing facility is designed to pharmaceutical standards • Compliant with applicable manufacturing regulations a
Slide 10: High-Quality, Science-Based Products…
High-Quality, Science-Based Products… Product formulations based on the latest scientific research • On-site R&D labs and facilities • 60+ scientists on staff Highest quality raw ingredients for optimal bioavailability
Slide 11: …Trusted by Professional and Olympic Athletes
…Trusted by Professional and Olympic Athletes
Slide 12: Expanding International Presence
Expanding International Presence Sales Portfolio Mix 5% 4% 10% 9% 28% 19% 23% 47% 20% 24% 17% 19% 51% 48% 47% 29% 2010 2015 2020 2025 Q1 TTM Greater China Southeast Asia Pacific Americas & Europe North Asia Numbers may not sum to 100% due to rounding
Slide 13: Global Growth Strategy
Global Growth Strategy Sales & Profitability Strategic Collaborations and Acquisitions
Slide 14: Active Customers
Active Customers PRODUCTS OPPORTUNITY BRAND/STORY - Enhance our existing - Deliver a rewarding - Ongoing enhancements to science-focused product compensation plan with an improve the customer shopping portfolio Associate-first approach experience - Faster and more agile in - Increased opportunities
Slide 15: International Expansion
International Expansion Entry Into New Markets Increases our Addressable Market Currently operating in 25 markets Global Vitamins & Supplements Market ($B) Approximately 86% of $174 USANA’s net sales are $165 $157 generated outside $149 $141 the United States $128 $127 $134 Expanded into India in la
Slide 16: Strategic Collaborations and Acquisitions Focus Areas
Strategic Collaborations and Acquisitions FOCUS AREAS Holistic approach Vertical Product Geographic Channel to health & integration and core expansion diversification wellness competency expansion
Slide 17: Direct to Consumer
DIRECT TO CONSUMER
Slide 18: Acquisition of Hiya Health Products is a Compelling Strategic Fit
Acquisition of Hiya Health Products is a Compelling Strategic Fit 1 Fast-Growing, Emerging Leader in the Children’s Health and Wellness Market 2 Channel Expansion into Direct-to-Consumer Wellness Market with a Leading and Proven Brand 3 Strengthens USANA's Financial Profile 4 Presents Opportunity to
Slide 19: Hiya Accelerates USANA's Vision
Hiya Accelerates USANA’s Vision Aligned Creating the Healthiest Company Visions Family on Earth High-Quality, Commitment to Innovative, Premium Premium Nutrition and Wellness Products Products Health-Focused Increases Active Customer Base Customer Base Children’s Immediate Impact In The Wellness Cat
Slide 20: Hiya is Reimagining Children's Health and Wellness
Hiya is Reimagining Children’s Health and Wellness Great Taste HIYA’S next-generation products FOUNDED in 2020 with the vision deliver clean, honest ingredients that of bringing “better-for-you” to discerning parents demand, combined children’s health and wellness with great taste and high engagemen
Slide 21: Diversified Marketing
Diversified Marketing Influencers Tik Tok Collaborations Meta Podcasts Advertorial Instagram Branded Ads Google Direct Mail Facebook Display Ads
Slide 22: The Hiya Subscription Model
The Hiya Subscription Model P R E D I C TA B L E STRONG CUSTOMER COST O P E R AT I O N A L REVENUE RELATIONSHIPS EFFICIENCIES BENEFITS Subscriptions provide a steady, The ongoing nature of Hiya's subscription business Hiya's subscription model predictable income stream, subscriptions fosters stronge
Slide 23: Future Hiya Growth Initiatives
Future Hiya Growth Initiatives EXPAND EXPAND EXPAND PRODUCT DISTRIBUTION GEOGRAPHY PORTFOLIO Provide the ultimate “Kidsperience” through Increase availability through other online Leverage USANA’s expertise to expand new products and new brand collaborations. marketplaces and select retail partners.
Slide 24: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 25: Stable Balance Sheet
Stable Balance Sheet Strong Net Cash Position 2020 2021 2022 2023 2024 2025 Q1 CASH $312 $240 $288 $330 $182 $180 TOTAL DEBT $0 $0 $0 $1 $23 $23 $ millions
Slide 26: Healthy Free Cash Flow Generation
Healthy Free Cash Flow Generation Low Capex Requirements (1-2% of net sales) Free Cash Flow $180 14% 13% 12% $150 $145 10% $120 9% 9% FCF margin 8% FCF ($M) $108 $90 $94 6% 6% 6% 6% $60 4% $56 $51 $49 $30 2% $0 0% 2020 2021 2022 2023 2024 2025 Q1 TTM Free Cash Flow FCF Margin
Slide 27: Capital Allocation Priorities
Capital Allocation Priorities 1. Internal investment/Organic growth 2. Acquisitions/Partnerships 3. Share repurchases 2020 2021 2022 2023 2024 2025 YTD SHARE REPURCHASES $57 $178 $25 $12 $9 $12 ACQUISITIONS $0 $0 $7 $0 $203 $0 DIVIDENDS $0 $0 $0 $0 $0 $0 $ millions
Slide 28: Appendix
Appendix
Slide 29: Fiscal Year 2025 Guidance
Fiscal Year 2025 Guidance Range NET SALES $920 million to $1.0 billion NET EARNINGS $29 million to $41 million DILULTED EPS $1.50 to $2.20 ADJUSTED DILULTED EPS $2.35 to $3.00 ADJUSTED EBITDA $107 million to $123 million
Slide 30: Income Statement
Income Statement USANA Health Sciences, Inc. Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Quarter Ended 29-Mar-25 30-Mar-24 Net sales $ 249,539 $ 227,800 Cost of sales 52,445 43,069 Gross profit 197,094 184,731 Operating expenses: Associate incentives 89,98
Slide 31: Balance Sheet
Balance Sheet USANA Health Sciences, Inc. Consolidated Balance Sheets (in thousands) (unaudited) As of As of 29-Mar-25 28-Dec-24 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
Slide 32: Key Financial Metrics
Key Financial Metrics USANA Health Sciences, Inc. Sales by Region (in thousands) (unaudited) Direct Selling Active Associates by Region (1) Direct Selling Active Preferred Customers by Region (2) (unaudited) (unaudited) As of As of March 29, 2025 March 30, 2024 March 29, 2025 March 30, 2024 Asia Pac
Slide 33: Operating Results as a Percentage of Net Sales
Operating Results as a Percentage of Net Sales (unaudited)
Slide 34: Reconciliation of Diluted EPS (GAAP) to Adjusted Diluted EPS (non-GAAP)
Reconciliation of Diluted Earnings Per Share (GAAP) to Adjusted Diluted Earnings Per Share (non-GAAP) (in thousands, except per share data) (unaudited)
Slide 35: Reconciliation of Net Earnings (GAAP) to Adjusted EBITDA (non-GAAP)
Reconciliation of Net Earnings (GAAP) to Adjusted EBITDA (non- GAAP) (in thousands) (unaudited)
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