September 01, 2017
News in Brief, September 2017
Primerica Q2 2017 Total Revenue Increases 9%
Primerica, the Duluth, Georgia-based direct seller of financial services, announced total revenues for the second quarter increased 9 percent and adjusted operating revenues increased 10 percent to $413.7 million and $413.6 million, respectively. Net income grew 6 percent to $63.1 million, and adjusted net operating income grew 10 percent to $63.0 million compared with the second quarter of 2016.
During the quarter, earnings growth and ongoing share repurchases drove EPS and adjusted operating EPS both to $1.36, increasing 10 percent and 14 percent, respectively, compared to the second quarter a year ago. ROE expanded to 20.1 percent and adjusted operating ROAE expanded to 20.9 percent in the second quarter.
“We achieved a 10 percent increase in EPS year-over-year and ROE grew to 20.1 percent in the second quarter, reflecting solid earnings and ongoing share repurchases,” said CEO Glenn Williams.
Q2 Revenue for Avon Down 3%
Avon Products Inc., the London-based leader in direct selling of beauty and related products, announced second quarter revenue decreased 3 percent to $1.4 billion and decreased 4 percent in constant dollars. Active Representatives and Ending Representatives, both from Reportable Segments, declined 3 percent and 2 percent, respectively.
“Second-quarter performance fell below our expectations as we cycled a strong quarter last year,” said CEO Sheri McCoy. “As previously guided, we expect the second half to yield a stronger performance based on our exciting product innovation plans and other initiatives to increase Representative activity.”
Avon is in year two of its three-year transformation plan focused on reducing costs, improving financial resilience and investing in growth. In 2016, Avon generated approximately $120 million of cost savings. In 2017, the company’s cost savings target is $230 million, which includes both run-rate savings from 2016, along with in-year savings from current year initiatives. Based on savings realized through the first half of 2017, the company believes it is on track to achieve this target.
Herbalife Net Sales Drop 5% for Q2 2017
Los Angeles-based Herbalife Ltd. announced for the second quarter ended June 30, 2017 net sales were $1.1 billion, which represents a decline of 5 percent and 3 percent on an as-reported and constant currency basis, respectively, compared to the second quarter 2016.
“With the successful implementation of tracking consumer retail transactions in the U.S., we are now entering into a new chapter for the company,” said Rich Goudis, CEO of Herbalife. “Through technology innovations, and changes in our marketing plan here in the U.S., we are now collecting millions of customer receipts each month, and we know this will help our distributors create more compelling connections with their customers everywhere and anytime.”
On a reported basis, second quarter 2017 net income was $137.6 million, or $1.61 per diluted share, compared to a second quarter 2016 net loss of $22.9 million, or (28 cents) per diluted share. For the full year 2017, the company is raising its 2017 reported and adjusted diluted EPS guidance to a range of $3.80 to $4.20 and $4.30 to $4.70, respectively.
Ambit Energy Forms Nonprofit to Fight Hunger
Dallas, Texas-based Ambit Energy, the world’s largest direct seller of energy and a leading national retail energy provider, has established its corporate social responsibility initiative, Ambit Cares, and was granted 501(c)(3) status.
“We are proud to officially launch Ambit Cares as a national nonprofit dedicated to fighting an issue that affects far too many of the communities we serve, including our home here in Dallas,” said Jere Thompson Jr., Co-Founder and CEO of Ambit Energy.
Ambit Cares was formed to provide an opportunity for employees and consultants to help fight hunger in their communities. The company organizes corporate volunteer opportunities every quarter and encourages consultants to participate in local efforts that work toward ending hunger, which affects one in eight Americans. In 2016, the first full year of the program, 557 Ambit Cares participants volunteered 3,292 hours at hunger relief organizations in the U.S., and donated 218,474 pounds of food and $65,495 in monetary contributions.
Ambit Cares has also launched an online donation page for consultants, customers, employees and friends of Ambit at AmbitCares.org. Feeding America, a nationwide network of food banks and the nation’s leading domestic hunger relief charity, is Ambit Cares’ primary beneficiary.
“The immediate enthusiasm and commitment to Ambit Cares by our consultants, employees and customers has been incredibly inspiring,” said Anna Batman, Director of Programming for Ambit Cares. “We look forward to building on this momentum
as we grow our programs and extend the reach of Ambit Cares.”
Scentsy Releases New Portable Fragrance System
Meridian, Idaho-based Scentsy, an international leader in home fragrance and décor products, has introduced a new fragrance delivery system that easily transports instant fragrance. The new Scentsy Go is the latest advancement in fragrance technology.
Scentsy Go is portable and rechargeable, features customizable LED lighting, and comes in a choice of color bands (silver or rose gold). A quiet fan blows air through Scentsy Pods to freshen the environment. Users can add an extra scent pod for a stronger or customizable fragrance experience. Scentsy offers 15 fragrances, from Coconut Lemongrass to Vanilla Bean Buttercream.
“We’re so excited about Scentsy Go!,” said Heidi Thompson, Co-Owner and President of Scentsy. “It is perfect for families on the go. Now, you can take your favorite fragrance anywhere. It is so easy to bring it with me to another room, the office, a hotel or a campground. This is really fragrance for families in motion.”
Scentsy Go was unveiled and distributed to more than 6,000 Consultants at Scentsy’s Family Reunion in Kansas City. The rechargeable battery lasts up to 40 hours and comes with a USB cable for easy charging. The product also comes with a lifetime warranty. It will be available for purchase on Sept. 1.
USANA Joins Forces with Philippines Sports Commission
Salt Lake City, Utah-based USANA, the cellular nutrition company, announced through its Philippines subsidiary that it is now the Official Supplement Supplier of the Philippine Sports Commission–Philippine Sports Institute (PSC–PSI), where it will provide nutritional supplements to 300 elite national athletes across 36 different sports.
“The timing of this partnership with USANA could not have been more perfect,” said PSC Chair William Ramirez. “We are in full swing with our preparations for the upcoming international competitions and adding USANA’s high-quality nutritional supplements to our athletes’ health program will help in their training while reaching optimal health as well.”
Through the partnership, USANA will help the PSC–PSI promote sports and athletics among Philippine youth, as well as assist in the overall improvement of the national athletics program.
“It is a privilege to work with the PSC–PSI in their goal to get our athletes ready to represent our country in the international sports arena,” said Aurora Gaston, Vice President of Philippines and Indonesia for USANA. “This partnership is our commitment to the Philippine market who has helped our company become the leader in nutrition here and abroad.”
ORGANO Launches OGX FENIX Beverage and Product Line in Europe
ORGANO, the Vancouver, Canada-based direct seller of coffees, teas, nutraceuticals and personal care items, will now offer its popular Body Management product line, complete with its premier product, OGX FENIX, throughout Europe. The OGX Body Management product line debuted last year in North America and has been the company’s fastest selling product family.
“ORGANO has always been guided by a desire to provide convenient, premium products that benefit an active lifestyle,” said Bernardo Chua, Founder and CEO of ORGANO. “Our Body Management product line is the embodiment of that vision and mission.”
OGX FENIX, available in both vanilla and chocolate, is gluten-free, contains whey protein free of artificial growth hormones and synthetic sweeteners, and features the anti-oxidant rich Ganoderma mushroom, electrolytes, and a pre-biotic fiber for optimal digestive health.
“The OGX Body Management product line supports customers in North America through our dedicated interactive Facebook community, X4Ever,” said Holton Buggs,
ORGANO Chief Visionary Officer.
X4Ever engages OGX Body Management product line users in North America with a daily interactive support network that allows them to share their stories, celebrate milestones, enjoy new recipes and health tips, and have a community of support.