Hebalife and NuSkin crush it; Reliv and Mannatech, not so much

by louabbott on August 4, 2011

There are quite a number of MLM companies whose stocks are publicly traded (7 of the top 25 largest).

According to Investor’s Business Daily, here are the big winners for this quarter:

Herbalife Crushes Q2 Views, Nu Skin Profit Gleams

…  After the market close Monday, group leader and IBD 50 standout Herbalife (HLF) shot to a new high intraday after posting another quarter of solid top-line and bottom-line results. The stock staged a strong rebound off its 50-day moving average for the first time since it broke out of a base in February, although it trimmed its gain.

rising bar chartThe diet control and health supplements firm said earnings rose 33% to 88 cents a share. That marked a seventh straight quarter of meeting the 25% increase …

Herbalife has cashed in on people’s desire worldwide to enhance their income and improve their health. Herbalife noted in a news release that unit volume grew strongest in the Central/South America region at 34.2% year-over-year, followed by Asia-Pacific (27.2%) and Mexico (26.3%) …

Meanwhile, fellow direct seller Nu Skin (NUS) recouped all of last week’s 7% loss and also made a new high after posting a 30% jump in Q2 profit to 65 cents a share. That topped increases of 26% and 17% in the past two periods, and it beat Wall Street’s expectations. Sales rose 9%. After-tax margin of 9.8% was the highest in at least three years. …

However, not all companies are faring as well in Investor opinion:

Reliv International Inc. said Wednesday its second-quarter profit dropped 67 percent to $69,000, compared with $206,000 in the 2010 second quarter.

The Chesterfield-based nutritional supplement marketer (NASDAQ: RELV) said earnings declined due to the decrease in U.S. sales and several cost increases, including higher production and fuel expenses.

Sales fell 4 percent to $18 million in the second quarter compared with last year.

“The high unemployment rate, reduced discretionary income due to higher energy costs and declining consumer sentiment combined to hinder our efforts to increase sales in the United States,” Chairman, President and CEO Robert Montgomery said in an earnings release …

See the St. Louis Business Journal for the balance of the article.

Mannatech has been struggling for some time.  But, for the first time in years, there was a glimmer of improvement in one area:

Mannatech, Incorporated (NASDAQ: MTEX) today reported for the quarter ended June 30, 2011 net sales of $51.4 million, and a net loss of $5.2 million, or $0.20 per diluted share compared to the 2010 loss of $0.14 per share. Quarterly sales declined $6.2 million or 10.8%, compared to the second quarter of 2010. The net loss increased by $1.4 million for the quarter largely due to lower results from Australasia, the reserve taken for severances due to job eliminations, and costs associated with Mexico which launched operations in late January 2011.

Sales in the second quarter increased by $0.5 million compared to the first quarter of 2011. This increase marked the first period to show improvement in several years. The overall increase compared to the first quarter of 2011 reflected higher international results which increased 5.3%, while the domestic sales decline was limited to 3.0% compared to the first quarter. The international gain was due to sales and recruiting in the Republic of Korea along with favorable currency translations compared to the first quarter.

Sales were $102.3 million for the first six months of 2011, below 2010 by $16.0 million, or 13.5%. The net loss of $10.0 million exceeded last year by $3.4 million, and the net loss of $0.38 per diluted share was greater than the prior year by $0.13 per diluted share.

New independent Associates and Members totaled 20,048 in the second quarter of 2011, compared to 22,775 in the second quarter of 2010, a decrease of 12.0%. Total independent Associate and Member count based on a 12-month trailing period was approximately 385,000 as of June 30, 2011 as compared to 450,000 as of June 30, 2010.

See the The Street press release for the balance of the article.

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