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Feb 5 (Reuters) - Nu Skin Enterprises Inc, a direct seller of anti-ageing and nutritional products, reported a near 63 percent drop in quarterly profit, hurt by a strong dollar and as revenue more than halved in Greater China, its largest market.
The company’s shares fell as much as 4.6 percent in premarket trading.
Nu Skin was fined in March by a Chinese regulator for illegal sales and misleading customers about the benefits of its products. The company was also forced to suspend distributor recruitment drives in the country until May.
Greater China, comprising Mainland China, Hong Kong, Macau and Taiwan, accounted for 37 percent of Nu Skin’s revenue in the year ended Dec. 31, down from 43 percent last year.
Nu Skin said on Thursday that steps to address the regulatory review in Mainland China hurt revenue “significantly”.
The company’s sales in Greater China fell about 56 percent to $212.98 million, in the fourth quarter.
Nu Skin gets about 87 percent of its revenue from outside the United States and the company said a strong dollar continued to weigh on results.
After hitting a six-and-a-half-month low in May, the dollar has surged about 20 percent against a basket of major currencies.
The rise in the October-December period pulled Nu Skin’s revenue down $24 million from the third to the fourth quarter, Nu Skin said.
Fourth-quarter revenue was $609.6 million, down about $446 million, or 42.3 percent, from a year earlier.
Nu Skin’s net income fell to $46.5 million, or 77 cents per share, from $125.3 million, or $2.02 per share.
Excluding foreign currency translations and fees associated with refinancing of the its debt, Nu Skin earned 91 cents per share.
Analysts on average had expected a profit of 82 cents per share on revenue of $599.9 million, according to Thomson Reuters I/B/E/S.
Nu Skin’s shares were down 1.4 percent at $43.94 in premarket trading. (Reporting by Shailaja Sharma in Bengaluru; Editing by Savio D‘Souza)