MLM News: How Do Six Global Publically Traded MLM Giants Compare Side By Side?

Hakki Ozmorali of TheDirectSellingWorld.com wrote a great article comparing six of the global giants in the direct selling space.  He covers Avon, Herbalife, Nutra, Nu Skin, Oriflame, and Tupperware.

AVON

Avon and Oriflame were the two companies that disappointed their investors the most. Avon’s net sales increased by 7% during the first three quarters in 2011. The growth slowed down in the last quarter to 6% but the situation in unit sales was even worse as there was a 5% decline there.

“Given the current operating environment, the company no longer expects to achieve the stated targets of mid-single digit revenue growth and 50 to 70 basis points of operating margin improvement in 2011. In light of the changing landscape, we are assessing our long-range business plan and are targeting an operational and financial update at an investor meeting in the first quarter of 2012,” said Avon CEO Andrea Jung. Read On…

HERBALIFE

Herbalife’s investors should have been the happiest of all. The company’s quarterly sales was up 30%, and the increase in the ninth-month period was similar: 28.8%. As it was in the previous quarters, the company’s growth came from all over the world, inclusive of mature markets like US. Herbalife achieved 12% growth in North America.

So happy with the results, “Our business has never been stronger,” said Michael O. Johnson, the company’s chairman and CEO. “In the third quarter Herbalife saw the highest volume point growth rate of the past five years as we eclipsed the one-billion volume point mark for the first time in the company’s history.” Read On…

NATURA

Natura’s net sales increase was 9.5% in the first three quarters of the year. The growth in the last quarter was a little lower, at 7.8%. Brazil’s giant reports to have reached 1,131,000 consultants in its home country. The company has an incredible 24.6% share in the Brazilian cosmetics market. Natura has 230,000 consultants in its international operations, still not a small figure! Read On…

NU SKIN

Nu Skin improved its revenue by 9.9% within the first 9 months. Growth accelerated in the last quarter reaching 11.7% as compared to the same period of last year.

Commenting on their results, Truman Hunt, President and CEO said, “Our strong quarterly results fuel our optimism for the future, particularly as we head into our next ageLOC product launch cycle that begins this month. We are also pleased with 14% growth in the number of executive distributors this quarter, as well as with ongoing strength in emerging markets and continued operating margin improvements.” Read On…

ORIFLAME

Like Avon, Oriflame came up with unsatisfactory results. Oriflame’s revenue increase in the 9-month period was only 1% as compared to last year. And the performance in the last quarter was -4% with a decrease in the closing sales force.

CEO Magnus Bransstrom said, “Poor recruitment campaigns (in CIS) in the end of the quarter were clearly disappointing and give us reason to expect a slowing down in sales in the fourth quarter, leading to a short term effect on margins. Consequently, we adjust our full year outlook.” Read On…

TUPPERWARE

Tupperware reported a revenue increase of 16% in the first nine months, missing analysts’ expectations by a small margin. Tupperware’s growth in the last quarter was 15%, too.

Rick Goings, Chairman and CEO, commented, “We are very pleased to have reported strong local currency sales growth for the quarter. Our emerging markets continued to achieve excellent growth rates overall. They comprised 63% of sales in the quarter and delivered a 19% sales increase in local currency, while the established markets were down 3% in local currency.” Read On…