A New Zealand resort town is celebrating winning a bid to host a series of meetings for Michigan-based Amway Corp.’s China affiliate.
It’s considered a major tourism victory for the island country in the southwestern Pacific Ocean.
Queenstown will host 10,000 elite Amway China distributors for what is being described as a series of five-day incentive trips in the last half of 2018.
The tourism contract is such a big windfall that New Zealand Prime Minister John Key, who does double duty as Minister of Tourism, announced the contract last week during a visit to China.
“This is by far the biggest incentive business New Zealand has ever won, and it sends a strong message that New Zealand is a serious contender in the global incentive market,” he is quoted as saying in a statement released to the media.
“China is now our second-largest and fasting growing tourism market, contributing nearly NZ$1.7 billion to the economy in 2015. And Chinese tourists have the highest daily spend of any of our visitors.”
Hosting Amway China’s 2018 Leadership Seminar will generate $50 million in New Zealand currency, which roughly translates to $34 million in U.S. dollars.
Another $10 million is expected in personal spending by the Chinese visitors.
The deal not only is a boon for Queenstown but for the nation’s government-owned Air New Zealand, which is handling air transportation for the Amway visitors.
New Zealand is roughly a 14-hour flight from Amway China’s headquarters in Guangzhou in southern China.
The contract is through the Grand Rapids area-headquartered multi-level marketing giant’s affiliate, Amway China.
China is Amway’s biggest market, generating about one-third of the company’s annual revenues, which were $9.5 billion in 2015.
Amway is a $9.5 billion direct selling business based in Ada, Michigan, USA. Top-selling brands for Amway are Nutrilite™ vitamin, mineral and dietary supplements, Artistry™ skincare and color cosmetics and eSpring™ water treatment systems – all sold exclusively by Amway Business Owners. Global sales in 2014 made Amway the No. 1 direct selling business in the world, according to the Direct Selling News 2015 Global 100. The company’s annual sales figure includes revenue from direct selling operations and other business holdings.
Prominent Asian Direct Selling Company, QNET’s annual convention V-Malaysia 2016 opened here today with spectacular drums and music display from around the world amid crowds of lively people in colorful attire.
The sold out convention with a record-breaking 15,000 distributors of QNET from around the globe converged at the Subterranean Penang International Conference & Exhibition Centre (SPICE) Arena in Bayan Lepas.
V-Malaysia 2016 officially opened with pomp and pageantry that included a parade of men and women adorned in colourful national costumes depicting an array of cultures and traditions from around the globe.
“QNET has not only brought successful entrepreneurs to Malaysia, but also has raised the profile of Penang by bringing in so much tourism into the island as well as running a mini United Nations-like gathering. QNET has made it three years in a row of hosting this international convention in Penang.
“If last year this convention drew a record crowd of entrepreneurs, even more QNET people have converged in Penang for this international conference this year. About 15,000 global citizens filled to capacity at SPICE arena. It depicted a collection of diverse nationalities in one place on the island, noted Mr. Haldun Arin, Chief Executive Officer of QNET.
Themed ‘Evolve, Empower, Enrich,’ the five day exclusive mega event from May 3 to 7 is set to unveil brand new wellness and lifestyle products of QNET as well as new opportunities for the participants.
More importantly, it is aimed at bringing a change in the way QNET moves forward in the direct selling industry and bring them to new heights as a networker and boost their drive to success. With more than 30 brands of QNET products on display at the ‘QNET City’ exhibition, SPICE Arena has been transformed into one gargantuan showcase of QNET’s global business.
“Our global QNET Family has seen through 17 remarkable years – growing bigger, stronger, and better. And for this year’s homecoming, our battle cry reminds us of what we have been doing throughout our business, not only to succeed in this industry, but also to elevate ourselves and our community, hence its aptly themed ‘Evolve, Empower, Enrich.’
“We have held nine V-Conventions in Malaysia in the last decade, namely in Kota Kinabalu, Petaling Jaya, twice in Shah Alam, Bukit Jalil in Kuala Lumpur and thrice in Penang. It’s our flagship event that takes months of meticulous planning. We also see this as our additional contribution to the local economy as thousands of participants come to Malaysia for a week of travel and sightseeing,” commented Haldun Arin.
QNET, the flagship subsidiary of the QI Group of Companies, has a strong focus on promoting ethical business practices and inculcates that in its distributors through continuous trainings and workshops.
QNET retails a variety of products for wellness, personal care, home care and e-learning courses among others that enhances the everyday lives of its customers around the world. QNET is also a member of the Direct Selling Associations of Malaysia, Singapore, the Philippines and Indonesia.
As a prominent Asian direct selling company, QNET provides a range of products that are offered through the e-commerce platform by Independent Representatives (IRs) in over 100 countries. The company also has offices and agencies in 25 countries worldwide, and more than 50 stockists, apart from localized operations or franchisees in a number of countries.
QNET is a member of the Direct Selling Association of Malaysia, the Direct Selling Association of Singapore, Direct Selling Association of Philippines, The Direct Selling Association of Indonesia, the Hong Kong Health Food Association and the Health Supplements Industry Association of Singapore among others.
QNET is also active in sports sponsorships around the world, including football (Direct Selling Partner of Manchester City Football Club), Formula One, badminton and more, due to the company’s strong belief that the drive, passion and teamwork of sports mirrors that of QNET. For more information, please visit QNET’s website at www.qnet.net
SALT LAKE CITY–(BUSINESS WIRE )–USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal first quarter ended April 2, 2016.
“USANA delivered solid performance in the first quarter, notwithstanding the continued impact of a stronger U.S. dollar and a tough prior year comparable”
For the first quarter of 2016, net sales increased to a record $240.4 million, up 9.6%, compared with $219.4 million in the prior-year period. A stronger U.S. dollar negatively impacted net sales by $14.2 million in the first quarter of 2016. On a constant currency basis, net sales increased by 16.1%. The Company delivered this growth notwithstanding a challenging prior year comparable due to (i) incremental sales during the first quarter of 2015 from a significant incentive that was offered during that period but was not offered again in the first quarter of 2016, and (ii) incremental sales during the first quarter of 2015 ahead of price increases in China, which did not occur again in the first quarter of 2016. Net sales growth for the first quarter of 2016 was driven by 16.2% growth in the number of active Associates and 9.3% growth in the number of Preferred Customers.
Net earnings for the first quarter increased by 13.3% to $22.3 million, compared with $19.7 million during the prior-year period. The increase in net earnings was driven by higher net sales, lower relative Associate Incentives expense, and a lower effective tax rate, which were partially offset by higher selling, general and administrative expense as well as modestly lower gross margins. The 150 basis point decrease in Associate Incentives expense is the result of a short-term incentive that the Company offered during the first quarter of 2015 but did not offer again during the current-year quarter. The 190 basis point decrease in the effective tax rate is due to the Company’s early adoption of Accounting Standards Update 2016-09 (Topic 718) – Improvements to Employee Share-Based Payment Accounting. As a result of adopting this standard, the Company recognized (i) modestly higher equity compensation expense, (ii) a higher diluted share count, and (iii) a lower effective tax rate for the current-year quarter. While the adoption of this pronouncement increased net earnings by approximately $300,000 for the first quarter of 2016, the resulting higher diluted share count offset this increase and earnings per share remained unaffected.
Earnings per diluted share for the first quarter increased by 18.0% to $1.77, compared with $1.50 in the prior year period. This increase in earnings per share is the result of higher net earnings and a lower number of diluted shares outstanding due to the Company’s share repurchases over the last six months. Weighted average diluted shares outstanding were 12.6 million as of the end of the first quarter of 2016, compared with 13.1 million in the prior-year period. During the first quarter of 2016, the Company repurchased 553,082 shares of common stock for a total investment of $64.6 million.
The Company ended the quarter with $150.5 million in cash and cash equivalents. As of April 2, 2016, there was $35.4 million remaining under the current share repurchase authorization and a balance of $66 million on the company’s line of credit.
“USANA delivered solid performance in the first quarter, notwithstanding the continued impact of a stronger U.S. dollar and a tough prior year comparable,” said Dave Wentz, USANA’s co-CEO. “Our consistent sales and customer growth reflect the demand from our customers around the world for USANA’s high quality products and business opportunity.”
Net sales in the Asia Pacific region increased by 13.2% to $176.4 million, despite a negative $10.3 million impact from a stronger U.S. dollar. Within Asia Pacific, net sales:
Sales growth in Greater China was driven by 23.6% Associate growth in Mainland China, while sales growth in North Asia resulted from 30.0% Associate growth in South Korea. Sales growth in Southeast Asia Pacific was due to strong Associate growth in several markets in the region. Indonesia also provided a solid contribution of new Associates to the region for its first full quarter of operations. The total number of active Associates in the Asia Pacific region increased by 20.0% year-over-year and 3.8% sequentially.
Net sales in the Americas/Europe region were essentially flat at $64.0 million, compared to the prior year period. On a constant currency basis, net sales in this region increased by 7.1% year-over-year. Canada and Mexico, two standout markets, generated local currency sales growth of 22.1% and 16.9%, respectively. Both of these markets also reported strong year-over-year Associate growth.
“We continue to see local currency sales and customer growth in most of our markets around the world and expect this momentum to continue during 2016,” said Kevin Guest, USANA’s co-CEO. “We are also continuing to execute our 2016 initiatives, which include announcing and launching several new, personalized products later this year. We are excited about these products and believe they will keep USANA at the forefront of nutritional supplementation.”
The Company reiterated its consolidated net sales and earnings per share outlook for 2016, which projects:
Paul Jones, Chief Financial Officer, commented, “We are reiterating our outlook for 2016, which reflects the ongoing strength of our underlying business and the necessary investments that we communicated at the beginning of the year. We continue to believe that we are well positioned to deliver the growth we have projected for the year while making these investments in our business.”
The Company has posted the “Management Commentary, Results and Outlook” document on the Company’s website (www.usanahealthsciences.com ) under the “Investor Relations” section of the site. USANA will hold a conference call and webcast to discuss today’s announcement with investors on Wednesday, May 4, 2016 at 11:00 AM Eastern Time. Investors may listen to the call by accessing USANA’s website at http://www.usanahealthsciences.com . The call will consist of brief opening remarks by the Company’s management team, before moving directly into questions and answers.
Natural beauty brand Beautycounter will be in the spotlight later this month during FC/LA, Fast Company’s second annual Creativity Counter-Conference in Los Angeles.
Shares of USANA Health Sciences Inc. (USNA—NYSE) are enjoying a boost following the release of the company’s first-quarter results on Tuesday.