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USANA Health Sciences Inc. (USNA) has submitted its Form 10-K filing for the fiscal year ended December 28, 2024.
The filing includes financial statements for the year, showing a decrease in net sales to $854.5 million from $921.0 million in the previous year. The decline is attributed to a decrease in average spend per customer and a reduction in active customers due to challenging economic conditions.
Gross profit margin increased slightly to 81.1% from 80.8% in the prior year, primarily due to favorable changes in market and product sales mix and lower material costs in China.
Associate incentives as a percentage of net sales decreased to 42.6% from 42.8%, attributed to benefits from modest price increases and decreased spending on promotions.
Selling, general, and administrative expenses increased by $6.3 million, mainly due to acquisition-related costs of $8.2 million, despite a decrease in employee-related costs.
The effective tax rate increased to 44.9% from 37.7%, primarily due to changes in the distribution of pre-tax earnings between markets.
Net earnings attributable to USANA decreased to $42.0 million, down from $63.8 million in the previous year, with diluted earnings per share declining to $2.19 from $3.30.
USANA completed the acquisition of a 78.85% controlling interest in Hiya Health Products, LLC, a direct-to-consumer provider of children's health products, for $206.2 million.
Cash and cash equivalents decreased to $181.8 million from $330.4 million, primarily due to the Hiya acquisition and investments in property and equipment.
The company reported $23 million in outstanding debt on its credit facility as of year-end, with a revolving credit limit of $75 million.
USANA's direct selling segment accounted for the majority of net sales, with significant contributions from the Greater China region, despite a decline in sales in China and Taiwan.
USANA continues to focus on expanding its customer base and enhancing its product offerings, with ongoing investments in research and development and strategic acquisitions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the USANA Health Sciences Inc. annual 10-K report dated March 12, 2025. To report an error, please email earnings@qz.com.