2021 was one other yr crammed with world uncertainty due to COVID-associated challenges, financial uncertainty, and world provide chain constraints. However, we at Nu Skin Enterprises delivered income and adjusted earnings development, expanded our main product portfolio and initiated our strategic transformation plan, Nu Vision 2025. Our dedicated and gifted administration group and world gross sales pressure as soon as once more enabled us to overcome these challenges in the evolving world atmosphere by executing on our core priorities and leveraging the strengths of our enterprise mannequin. I’m honored to lead this unbelievable group and pleased with the exhausting work and dedication of all our workers and associates round the world.
Nu Vision 2025 is rooted in our deep understanding of built-in magnificence and wellness and our world’s main magnificence gadget programs model positioning. In right this moment’s world, nearly each main client model is wanting to leverage the energy of influencers and direct-to-consumer enterprise fashions to promote their manufacturers and join straight with shoppers. At Nu Skin, we’ve all the time been at the forefront of this direct-to-consumer motion and genuine affiliate model promotion with our distinctive enterprise mannequin. We consider we’re completely positioned to reap the benefits of present and future market alternatives, accelerating our development and producing larger worth for our stakeholders.
I’m inspired with our 2021 outcomes contemplating the ongoing challenges associated to COVID-19 and its impression on authorities coverage, the economic system, and world provide chains. Total income elevated modestly up 4 % on high of a 7 % improve the prior yr, and we achieved double-digit development in adjusted earnings per share. Our continued emphasis on geographic diversification helped stability the impression of regional variation. Strong development in the U.S. and EMEA mirrored the ongoing adoption of our rising social commerce enterprise mannequin, in addition to the introduction of recent merchandise in each our private care and wellness product classes.
Total income elevated 4 %.
Adjusted earnings per share elevated 14 % (reported earnings per share decreased 21%).
Nu Skin U.S. enterprise elevated 32 %, reflecting acceleration in our social commerce enterprise mannequin.
Successful Beauty Focus™ Collagen+ and ageLOC® Meta product introductions
NU VISION 2025
Nu Vision 2025, which we launched throughout our Investor Day occasion in February, is our transformational roadmap to turning into the world’s main built-in magnificence and wellness firm powered by our dynamic affiliate alternative platform. The framework builds on our wealthy heritage as an built-in magnificence and wellness firm that serves the wants of tens of millions of shoppers round the world by way of our go-to-market affiliate gross sales channel. Our associates at the moment are leveraging the energy of social media to construct model consciousness and engagement. Social commerce, which has to date taken root predominantly in our western markets, is one in every of the key drivers of our future enterprise success, however nonetheless represents a comparatively small portion of our world enterprise right this moment. By 2025, our objective is for affiliate-powered social commerce to signify greater than 50 % of our world enterprise, which we consider will speed up general high-line development to charges in the excessive single digits or low double digits. This also needs to enhance backside-line efficiency as we digitally scale our world operations, underscoring our dedication towards reaching our said mid-time period working margin goal of 13 %.
To obtain our Nu Vision 2025, we’ve established three strategic imperatives that allow us to leverage the highly effective macro-environmental forces of digital connectivity, social media, and the gig economic system.
1. EmpowerMe™ is our customized magnificence and wellness technique to ship sensible and related IoT units for higher client outcomes. We are prioritizing buyer wants and engagement and constructing stronger loyalty and subscription applications whereas eliminating friction, all of which leads to increased buyer lifetime worth. We will leverage the energy of applied sciences like synthetic intelligence (AI) to achieve higher insights throughout our world buyer base to present customized help that elevates their magnificence and wellness experiences. EmpowerMe is extremely complementary and additive to our conventional focus round scientifically superior merchandise and innovation, leveraging the energy of our world model.
2. We will proceed to leverage our person-to-person advertising and marketing mannequin as we supercharge it with the energy, scale and attain of social media to develop model consciousness and engagement by way of our genuine world affiliate channel. With the broader market adoption of influencer and internet affiliate marketing, Nu Skin has continued to be a frontrunner in evolving the energy of phrase-of-mouth with the scale and attain of social media by way of our personal micro- and nano-influencers, who share our merchandise with shoppers looking for genuine product suggestions from individuals they belief. We will proceed to improve our enterprise mannequin to allow larger flexibility and achievement for our model associates round the world.
3. Investing in highly effective applied sciences and capabilities will stay a key space of focus to assist us effectively scale our enterprise, together with our built-in product and social commerce methods. Our investments in manufacturing enabled us to have larger affect over our full worth chain, additional strengthening our world competitiveness. We’ve invested in new applied sciences, like Mavely, to assist empower our associates to construct their social companies extra successfully. Additionally, we’re launching two new apps-Vera® and Stela-that help our EmpowerMe™ technique. Our Vera app will present clients with larger insights into their private magnificence and wellness journey and can join to our Bluetooth-enabled units, whereas our Stela app will higher allow our associates to join with and nurture their groups.
At the coronary heart of our enterprise is our mission to be a worldwide pressure for good by empowering individuals to enhance lives by way of our merchandise and alternative, which creates objective. Our pressure for good efforts are targeted on constructing a greater place for kids round the world by way of applications that present life-saving coronary heart surgical procedures, imaginative and prescient screenings, entry to training and rather more. Our Nourish the Children initiative, a for-revenue social entrepreneurship enterprise that encourages our associates, clients and workers to buy and donate meals for malnourished youngsters, feeds roughly 120,000 youngsters each single day-and has served greater than 750 million meals globally.
We are equally dedicated to being a frontrunner in advancing practices round sustainability. Last yr, packaging updates to our high 20 merchandise, together with different ongoing environmental initiatives, helped save roughly 131 tons of plastic and greater than 34 tons of paper. This consists of being the first magnificence firm to launch merchandise with Eco-Pac packaging, an revolutionary bio-plastic that makes use of sugar cane. By 2030, we plan to have all of our product packaging be recycled, recyclable, reusable, lowered or renewable.
In my almost 27 years at Nu Skin, I’ve by no means been extra assured in our future. Guided by our Nu Vision 2025, we’re charting a course to lead the magnificence and wellness trade ahead right into a related and customized future. While there could also be bumps in the highway as we proceed to rework our enterprise, the consequence shall be a extra genuine, accessible, and attainable future. We have what the world wants, and along with our military of name ambassadors in shut to 50 markets round the globe, we’re uniquely positioned to assist individuals round the world look, really feel and stay their greatest.
I’m grateful on your help. Thank you for partnering with us on this thrilling journey forward in 2022 and past!
/s/ Ryan Napierski
President and Chief Executive Officer
NU SKIN ENTERPRISES, INC.
Reconciliation of Earnings per Share Excluding Impact of Restructuring and
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Yr Ended 2021
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FORWARD-LOOKING STATEMENTS: This annual report comprises ahead-wanting statements inside the which means of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that signify the firm’s present expectations and beliefs. All statements aside from statements of historic reality are “ahead-wanting statements” for functions of federal and state securities legal guidelines and embody, however should not restricted to, statements of administration’s expectations concerning the firm’s transformation, methods and initiatives, and outcomes (together with high-line, backside-line and working margin development); administration’s expectations concerning the firm’s efficiency, worth, future success and market place, gross sales pressure and buyer base, digital instruments, social commerce enterprise, operational enhancements, future merchandise and product introductions; statements of perception; and statements of assumptions underlying any of the foregoing. In some circumstances, you may determine these statements by ahead-wanting phrases comparable to “consider,” “count on,” “anticipate,” “grow to be,” “future,” “focus,” “commit,” “leads to,” “proceed,” “alternative,” “allow,” “will,” “ought to,” “would,” “might,” “might,” “may,” the detrimental of those phrases and different related phrases. We undertake no obligation to publicly replace or revise any ahead-wanting assertion, whether or not because of new info, future occasions or in any other case, besides as required by legislation. We warning and advise readers that these statements are primarily based on assumptions that is probably not realized and contain dangers and uncertainties that would trigger precise outcomes to differ materially from the expectations and beliefs contained herein. For a abstract of sure dangers associated to our enterprise, see the firm’s Annual Report on Form 10-Okay, filed on February 16, 2022, and different paperwork filed by the firm with the Securities and Exchange Commission.