USANA Health Sciences (USNA) Small-Cap Growth Virtual Investor Conference summary

Global presence and market expansion

• Operates in 25 markets with deliberate, strategic expansion and sees further growth potential, especially in untapped regions.

• Recently entered India, expecting gradual traction due to unique market entry approach and complexity.

• M&A is a key growth strategy, with recent small acquisitions and ongoing evaluations for further opportunities.

• Over 90% of sales are generated outside the U.S., creating both opportunities and currency-related challenges.

• Market share remains low in most regions, with notable positions in Southeast Asia; significant room for growth remains.

Business model and customer focus

• Direct selling model leverages word-of-mouth, social influencers, and community engagement.

• Active customer growth, especially among associates, is the primary performance indicator and strategic focus.

• Affiliate programs are being tested in North America, with plans for expansion to other markets.

• Associates are now the main focus for growth, with increased training, coaching, and localized events to boost engagement.

• Digital investments and agile product teams aim to support associates and accelerate innovation.

Manufacturing, quality, and product innovation

• Maintains manufacturing facilities in the U.S. and China, producing about two-thirds of products in-house for flexibility and quality control.

• Recent addition of a food manufacturing facility enables production of protein and nutrition bars, supporting health trends.

• Emphasizes premium product positioning, rigorous quality standards, and science-backed formulations.

• Product innovation cadence is increasing, with agile teams and a focus on addressing niche markets like low-carb and ketogenic lifestyles.

• Sponsorships with athletes help build brand credibility and trust among consumers.