USANA HEALTH SCIENCES INC

In 2025, we will continue executing on our global Associate-first growth strategy with a strong focus on increasing the number of active Customers in each of our markets. Our key priorities include: (i) enhancing the earning opportunity of our Associates by refining our compensation plan to prioritize sales, customer growth, and team building; (ii) accelerating the launch of new and upgraded products while driving innovative product development; (iii) strengthening our brand messaging to create a more compelling and consistent market presence; (iv) deepening engagement with our Associates through both in-person and digital initiatives around the world; (v) focusing on China while also implementing more tailored, decentralized solutions to meet the unique needs of each region; and (vi) supporting and expanding our acquired businesses, including the growth of our Hiya direct-to-consumer business. Further details on these strategies are outlined below.

Enhancing the Earning Opportunity

To enhance the earning opportunity for our Associates, we are refining our compensation plan to better reward sales, customer growth, and team building. Our approach includes optimizing incentives to drive sustainable income, introducing targeted elements that reward sales, customer, and team growth early in the journey of a new Associate, and providing a more robust system of training, tools, and data to help Associates build and scale their businesses. By aligning our compensation structure with business growth objectives, we aim to create a more rewarding and financially empowering opportunity for our global Associate base.

Product Development

In 2025, we will strengthen our leadership in cellular nutrition by enhancing our core foundational and flagship products, developing more potent, unique, and differentiated formulations, and accelerating our speed to market for innovative new products. Our three dedicated product teams will continue to focus on delivering world-class nutrition solutions that meet evolving consumer needs and set new standards in the industry. Through continued investment in research, development, and cutting-edge science, we will ensure that USANA remains at the forefront of clinical nutrition, providing products that support optimal health and wellness worldwide.

Strengthening our Brand

We are enhancing and refining our brand messaging to create a more compelling, consistent, and globally recognized identity. Our focus is on clearly communicating our unique and differentiated commitment to world-class cellular nutrition, the strength of our science-backed products, and the life-changing opportunities we offer through our business model. We will continue to elevate our brand presence across digital and traditional channels, ensuring that our messaging resonates with both new and existing customers. By sharpening our positioning and storytelling, we aim to deepen trust, increase brand loyalty, and further differentiate USANA in the health and wellness industry.

Associate Engagement

We are deepening our engagement with Associates worldwide by enhancing both in-person and digital interactions. Our goal is to create a more connected and empowered health community by providing better communication, more personalized support, and expanded training opportunities. We will continue investing in digital tools, events, and mentorship programs that help Associates build successful businesses and foster stronger relationships within their teams. By prioritizing engagement at every level, we aim to strengthen the Associate experience, increase retention, and drive long-term growth across all markets.

China and Regional Support

We will continue executing strategic initiatives to drive growth in China, including: targeting and expanding a new customer demographic through simple, easy-to-use, digitally-based customer acquisition, fulfillment, and service initiatives; enhancing our digital capabilities with continued investments aimed at improving the overall customer experience; expanding our market-leading training, development, and certification programs to empower Associates in health, business, and personal growth, ensuring they have the tools needed to succeed; and enhancing our product portfolio with products specifically designed for the Chinese consumer.

Beyond China, we are strengthening our regional approach by empowering local leaders to develop winning strategies tailored to their unique cultures and market conditions. By providing them with greater authority and influence over product development and incentive creation, we are fostering a more agile, market-responsive organization.

In India, following our market entry at the end of 2023, we continue to execute our long-term growth strategy by expanding our product portfolio, strengthening local marketing efforts, and supporting our Associates with enhanced tools and training. Additionally, we remain committed to evaluating new international markets for potential expansion, ensuring sustainable global growth for USANA.

Acquired Businesses

In 2025, we plan to continue to support and grow our acquired businesses, including Hiya. Hiya expands our growth potential into the direct-to-consumer channel through Hiya's customer subscription model. Future Hiya growth initiatives include: (i) product portfolio expansion, (ii) distribution channel expansion, via other online marketplaces and select retail partners, and (iii) geographic expansion through leveraging USANA's expertise to expand into new markets. Over the next several years, USANA and Hiya will work together to capitalize on identified synergies, assets and expertise across both companies to promote overall sales and customer growth.

We also intend to continue to utilize USANA's assets and resources to grow Rise and Oola and leverage their knowledge, experience, and technology to grow USANA’s core business.

We also expect to continue to pursue acquisition opportunities in the health and wellness space that strengthen, diversify, and grow our world-wide business by focusing on: (i) overall nutrition, (ii) vertical integration, (iii) product and category expansion, distribution channel expansion, and (iv) geographic expansion.

For further details of these acquisitions, see Note B to the Consolidated Financial Statements included in Part II, Item 8 of this Annual Report, which is incorporated by reference.