Technology transformation takes center stage as industry navigates economic headwinds
By SSN Staff
Herbalife
Herbalife’s first-quarter net sales of $1.2 billion declined 3.4% compared to the same period last year, though the nutrition giant delivered constant currency growth of 1.4% year over year for its second consecutive quarter of growth, excluding foreign exchange impacts.
The Los Angeles, California-based company exceeded adjusted EBITDA guidance with strong results of $165 million, up 19% from the prior-year period. President and incoming CEO Stephan Gratziani said the company is building momentum with new distributor growth
up 16% year over year for the fourth consecutive quarter of increases.
“We are building on the strengths of our brand, our business model and our high-quality science-backed products,” Gratziani said during an earnings call.
“We will maximize the power of direct selling and expand our reach through technology, personalization and tools that empower our distributors to connect more effectively with customers.”
The company made significant strategic moves during the quarter with asset acquisitions of Pro2col Health, Pruvit Ventures and Link BioSciences for a total cash consideration of $25.5 million. The acquisitions center on developing a personalized health platform using artificial intelligence and biometric data to provide tailored nutrition recommendations.
Herbalife plans to launch a beta version of the Pro2col platform in July during its North America Extravaganza event, with commercial release planned for the fourth quarter. The platform will combine AI-driven health insights with the company’s global distributor network to deliver personalized wellness programs at unprecedented scale.
Foreign exchange rates created a 480-basis-point negative impact on year-over-year sales, though this was slightly better than expected due to recent U.S. dollar weakening.
The company reduced its total leverage ratio to three times as of March 31, achieving its year-end target nine months ahead of schedule through continued debt repayment of approximately $70 million during the quarter.
Regional performance varied significantly across markets. North America sales declined 4% year over year, primarily driven by an 8% reduction in volumes partially offset by higher pricing. Latin America sales were down 4% on a reported basis but up 11% on a local currency basis, driven by favorable pricing and approximately 4% increase in volumes. China sales fell 14% on a reported basis and 13% on constant currency, with a 14% decrease in volumes year
over year.
Q1 Numbers
Total Sales: $1.2 billion, down 3.4%
Adjusted EBITDA: $165 million, up 19%
North America Sales: Down 4%
Latin America Sales: Down 4% reported, up 11% constant currency
EMEA Sales: Down 2% reported, up 3% constant currency
Asia Pacific Sales: Down 2% reported, up 2% constant currency
China Sales: Down 14% reported, down 13% constant currency
Strategic Technology Push
Herbalife’s acquisitions show a major shift toward technology-enabled personalization that could reshape how the company engages with customers and distributors.
The Pro2col platform will analyze individual biometrics to provide customized health protocols, while Link BioSciences brings manufacturing capabilities for personalized one-to-one supplements.
“Very few companies have the integrated capabilities that Link BioSciences offers, making it a truly strategic asset for Herbalife’s future,” Gratziani said.
The company is partnering with soccer star Cristiano Ronaldo to develop the platform further, leveraging his personal commitment to nutrition and understanding of peak athletic performance. By the end of 2025, Herbalife expects tens of thousands of users on the platform, growing to hundreds of thousands by 2026.
The Pro2col technology will initially provide daily intake tracking, AI-powered nutrition tracking and personalized health dashboards. These capabilities are designed to capture a broad range of consumers, increase personalization and drive long-term engagement while providing nutrition club owners with powerful new offerings for their customers.
Additionally, the Pruvit acquisition gives Herbalife access to patented ketone supplement intellectual property, allowing expansion into new product categories. Pruvit distributors in the U.S. will have the opportunity to join Herbalife and participate in the Pro2col platform commercialization.
Nu Skin
Utah-based Nu Skin delivered revenue at the high end of guidance with $364.5 million for the first quarter, though this represented a decline from the previous year due to continued macroeconomic pressures. The beauty and wellness company exceeded adjusted earnings per share expectations at 23 cents, a significant improvement over the prior year’s 9 cents.
CEO Ryan Napierski said the company experienced significant growth in Latin America with 144% year-over-year increases due to its developing market strategy, though this was offset by pressures in the U.S. and Canada from macroeconomic challenges affecting consumer sentiment for premium beauty and wellness products.
“We experienced significant growth in Latin America as our developing market strategy continues to take hold in that region,” Napierski told analysts. “Those gains were offset by the U.S. and Canada related to the increasing macro pressures on the business.”
Nu Skin reported improving trends in South Korea and China as the company works to stabilize these key markets following previous challenges. Europe and Africa demonstrated growth related to enhanced sales performance plans designed to reward brand affiliates for building businesses in a social-first manner.
The company’s Rhyz segment performed well with 10% year-over-year growth in manufacturing operations, while growing interest in LifeDNA represents a key component of Nu Skin’s upcoming enterprise innovations as part of its intelligent wellness platform strategy.
Gross margin for the quarter was 67.8% compared to 70.5% in the prior year, primarily due to revenue mix between Rhyz entities and the Nu Skin core business following the sale of Mavely. Within the core Nu Skin business, gross margin was 76.7%, showing three-quarters of sequential improvement.
Q1 Numbers
Total Sales: $364.5 million, down from prior year
Adjusted EPS: 23 cents, up from 9 cents prior year
Gross Margin: 67.8%, down from 70.5% prior year
Operating Margin: 6.4%, up 250 basis points
Cash: $204 million
Total Debt: $239 million, down $155 million
Intelligent Wellness Platform Launch
Nu Skin is preparing to launch Prysm iO, an intelligent wellness platform built on more than 20 years of scientific research and development. The palm-sized device measures carotenoid levels in skin to provide antioxidant scores and personalized health recommendations powered by artificial intelligence.
“We have since amassed one of the world’s largest antioxidant databases with more than 20 million scans across more than 50 countries,” Napierski said.
The foundation for Prysm iO traces back to Nu Skin’s 2003 launch of the biophotonic scanner to non-invasively measure carotenoid levels. Combined with data from 28 million treatments from nearly 500,000 connected devices generating more than 100 million data points, Nu Skin has built comprehensive beauty and wellness insights.
The company will begin rolling out Prysm iO in limited quantities for qualified sales leaders during the third and fourth quarters, followed by broader launches in 2026.
The platform will be accompanied by restaged LifePak nutrition supplements with updated formulas to meet geographic dietary needs at various pricing tiers for different customer segments across developed, developing and emerging markets.
Nu Skin expects the intelligent wellness platform to drive incremental revenue and retention through increased nutritional supplement purchases and subscriptions, resulting in greater customer lifetime value and enhanced opportunities for the sales force to grow their businesses.
The company also announced plans to enter India with its 1.4 billion population and rapidly expanding beauty and wellness industries. A pre-launch for qualified representatives is planned for the fourth quarter, with formal market launch in mid-2026 featuring locally manufactured products and a localized compensation plan.
Nature’s Sunshine
Nature’s Sunshine reported strong first-quarter performance that exceeded analyst expectations, with revenue of $113.2 million representing 5% growth on a constant currency basis. Adjusted EBITDA increased 20% to $11 million, reflecting disciplined cost management and strategic execution.
CEO Terrence Moorehead said the results reflect strong execution in Asia Pacific and Europe, while North America shows building momentum with the third consecutive quarter of sequential order growth despite a challenging year-over-year comparison.
“First quarter results beat analyst expectations as revenue came in at $113 million or $115 million on a constant currency basis up 5% versus prior year,” Moorehead said during an earnings call.
Asia Pacific continued its strong performance with 10% growth on local currency basis, led by Japan and Taiwan with sales increases of 24% and 18%, respectively.
Japan’s momentum is particularly encouraging, with new customer growth exceeding 20% for three straight quarters. The company’s Subscribe & Thrive autoship program helped drive customer activation and repeat orders across the region.
Europe delivered 9% growth on a constant currency basis, primarily driven by Central Europe’s 16% increase and expansion into the Baltic states. The strong performance reflects disciplined field execution and continued adoption of the company’s Power Line products strategy.
North America sales declined 4% on both reported and local currency basis, reflecting a difficult comparison against the prior year’s 5% growth in the first quarter of 2024. However, the company saw encouraging signs with digital sales growing 19% as well as improvements in nutritional health practitioners, specialty retailers and affiliates following organizational changes.
Q1 Numbers
Total Sales: $113.2 million, up 2% reported, up 5% constant currency
Adjusted EBITDA: $11 million, up 20%
Asia Pacific Sales: $48.7 million, up 5% reported, up 10% constant currency
Europe Sales: Up 8% reported, up 9% constant currency
North America Sales: Down 4%
Gross Margin: 72.1%, up 90 basis points
Digital Growth Acceleration
The Nature’s Sunshine digital business showed strong momentum with 19% growth vs. the prior year, more than double the supplement industry’s digital growth rate.
Digital sales now represent approximately 26% of total sales and 45% of direct-to-consumer sales through the Subscribe & Thrive program, which continues to be the most attractive way for customers to purchase products.
The company has taken aggressive steps to minimize tariff exposure by increasing raw ingredient inventory, enforcing pricing contracts with key suppliers and moving finished goods into selected markets to avoid retaliatory tariffs.
For high-risk products, Nature’s Sunshine is holding nine to 12 months of inventory, providing time to realign supply chains and find alternative suppliers.
“Based on our plans, we believe we’re well positioned to address the threat posed by the tariffs in 2025,” Moorehead said.
The company maintains a clean balance sheet with $86.5 million in cash and zero debt. Inventory increased to $64.9 million to support service levels and prepare for potential tariff-related costs and delays. The board of directors increased share repurchase authority by $25 million to $33.3 million total, with management believing shares are substantially undervalued.
Primerica
Georgia-based financial services firm Primerica delivered strong first-quarter results despite external headwinds, with adjusted net operating income of $168 million, up 14% year over year. Diluted adjusted operating earnings per share increased 20% to $5.02, reflecting the strength of the company’s diversified business model.
CEO Glenn Williams said the results reflect continued strength in the investment and savings product business and steady contribution from term life insurance operations, despite sustained cost-of-living pressures and heightened economic uncertainty affecting middle-income families.
“The strength of our business model, our commitment to the sales force and the growing need for the financial education provided by our independent sales representatives, resulted in record success during 2024,” Williams told analysts.
The company recruited 100,867 individuals during the first quarter, representing a 9% decline year over year as economic uncertainty contributed to greater caution in decision making.
New life licenses declined 5% vs. the prior-year period. Both recruiting and licensing numbers remain historically strong and continue to fuel growth in the sales force, with total life-licensed representatives up 7% compared to March 2024.
Primerica issued 86,415 new term life policies during the quarter, representing $28 billion in new protection for clients and in line with prior-year levels. Productivity at 0.19 policies per representative was just below the historical range, with the challenging environment particularly difficult for representatives with less sales experience.
The company ended the quarter with $957 billion of protection in place for middle-income families, with persistency remaining stable. Term life operating revenues rose 4% to $458 million, driven by 5% growth in adjusted direct premiums.
Q1 Numbers
Adjusted Net Operating Income: $168 million, up 14%
Adjusted Operating EPS: $5.02, up 20%
New Term Life Policies: 86,415, flat year over year
Total Recruits: 100,867, down 9%
Investment Sales: $3.6 billion, up 28%
Client Asset Values: $110 billion, up 6% year over year
Investment Business Drives Growth
Primerica’s Investment and Savings Product segment delivered exceptional performance with total sales of $3.6 billion, up 28% year over year driven by strong demand across U.S. and Canadian mutual funds, variable annuities, and managed accounts. Net inflows reached $839 million vs. $274 million in the prior-year period.
Operating revenues of $291 million increased 19% from the prior year, while pretax income rose 24% to $81 million. Sales-based revenues increased 25%, slightly outpacing the 22% increase in revenue generating sales, primarily driven by strong demand for variable annuities.
Client asset values ended the quarter at $110 billion, up 6% year over year though down 2% during the first three months due to negative market performance. The securities-licensed sales force has successfully kept clients focused on long-term goals despite heightened market volatility.
The company’s mortgage business showed strong growth in both the U.S. and Canada. U.S. closed loans totaled $93.5 million, up 31%, with 3,269 licensed mortgage loan originators in 33 states. The Canadian referral program had $43.3 million of closed loans, up 78%.
During the quarter, Primerica returned $153 million to stockholders through $118 million in share repurchases and $35 million in regular dividends, demonstrating the predictability of its cash-flow generation from the large in-force block of term life policies and fee-based investment business.
