Nutrition Market Results: Nestle Health 'Bullish', Abbott Adult Products Lead, USANA Ups Guidance

USANA raises guidance on strong Asian sales; nutritional sales boost Nestle’s overall results; and Abbott Nutrition US sales up 3.7%.

Nutritional Sales Boost Nestle’s Overall Results

Nestle Health Science sales increased at a double-digit rate in its latest quarter on strong growth for consumer care and medical nutrition products, said the division of Nestle SA on 21 October. Its Garden of Life and Pure Encapsulations brands showed “strong momentum with high demand for supplements that support both health and the immune system,” said Nestle chief financial officer Francois-Xavier Roger. Notably, Pure Encapsulations Pure Defense for respiratory health and Garden of Life organic elderberry syrups, gummies and probiotics sold well in the third quarter, he noted. The division’s results helped boost the Swiss firm’s total organic growth in the July-September 4.9%.

Nestle Health Science says it continues “to build its presence and leadership in the field of nutritional science,” noting its recent acquisition of a majority stake in Vital Proteins collagen brand and the close of its acquisition of IM HealthScience LLC, which specializes in medical foods and dietary supplements brands FiberChoice and REMfresh. (Also see "Nestle Acquires IM HealthScience, Expands Medical Food Lineup In Latest US Consumer Move" - HBW Insight, 18 Aug, 2020.)

The division also recently announced it completed the acquisition of Aimmune Therapeutics, Inc., a biopharmaceutical company marketing Palforzia (peanut allergy powder) for mitigating anaphylaxis in children ages 4 to 17. (Also see "Nestle Pairs Nutrition Science Business With Pharma Firm Making Peanut Allergy Treatment" - HBW Insight, 31 Aug, 2020.)

CEO Mark Schneider said Nestle is “super bullish” on Nestle Health Science and targets leading nutrition science and metabolism product sales. “Particularly problems, such as food allergies, digestion problems and ensuring that humans have all the micronutrients they need, I think this is what our core skill is and we’ll keep expanding there.”

Abbott Nutrition US Sales Sales Up 3.7%

Abbott Nutrition’s US sales grew 3.7% to $818m in the third quarter with pediatric product sales up 1.9% to $488m and adult nutritionals increasing 6.5% to $330m.
Abbott Laboratories Ltd on 21 October reported its nutrition business' international nutritional product sales inched up 1.9% to $1.11bn, while worldwide sales increased 2.6% to $1.92bn.

Growth for the adult segment was led by Ensure beverages as consumer demand grows for ingredients that help support healthy immune system, CEO and President Robert Ford said in a same-day briefing. Total global sales for the adult nutrition business jumped 10.6% to $918m, while pediatric sales worldwide slipped 3.7% to $1.01bn. Abbott’s total sales in the third quarter, which includes its diagnostics, pharmaceuticals and medical devices business, increased 9.6% to $8.9bn. Net earnings soared 28.5% to $1.23bn.

USANA Raises Guidance On Strong Asian Sales

Nutritional supplements direct seller USANA Health Sciences Inc. reported sales growth as high as 40.5% and at least 20% in all parts of Asia other China during its latest quarter as its results prompted an uptick in its guidance for the year. The Salt Lake City-based firm also recently announced it was named the top vitamins and dietary supplements brand in both Malaysia and the Philippines by Euromonitor International.

USANA on 20 October reported its third quarter net sales increased 14.5% to $298.5m million; its diluted earnings per share increased 32.1% from the year-ago period to a company record $1.44; and its number of active customers increased 16.5% to 650,000, also a company record. According to its earnings release, sales grew 40.5% in its Southeast Asia-Pacific region and 24.3% in the north Asia region, while its sales in China, where regulatory changes over the past 18 months have substantially impeded multilevel marketers’ business, were up 3.9%. In the Americas and Europe, USANA’s reported sales were up 10%.

USANA also stated that despite not having incentives available to its sales association during the current quarter comparable to the July-September period, its latest results still generate an increase in its full-year guidance. It raised its net sales forecast from between $1.05bn and $1.1bn t between $1.09bn and $1.12bn to between, and for its diluted EPS from $4.70-$5.25 to $5.15-$5.45. “While we do not have incentive offerings of a similar magnitude scheduled for the fourth quarter, we expect the business to produce solid results and carry momentum into 2021,” said chief financial officer Doug Hekking.