Youngevity International, Inc. (NASDAQ: YGYI) reported revenue of $56.3 million for the first quarter ended March 31, 2019, an increase of 30.9 percent over 2018.
The company derived approximately 59 percent of its revenue from its direct selling segment and approximately 41 percent of its revenue from its commercial coffee segment. Direct selling segment revenues decreased 5.4 percent to $33.4 million in the current quarter as compared to $35.3 million for the quarter ended March 31, 2018. The decrease was primarily attributed to revenues from new acquisitions of $421,000, offset by a decrease of $2,333,000 in revenues from existing business.
Commercial coffee segment revenues increased by 196.9 percent to $22,813,000 in the current quarter as compared to $7,683,000 for the quarter ended March 31, 2018. The increase was primarily attributed to increased revenues from our new green coffee contract that CLR recently signed for approximately $250 million over five years.
The new commercial hemp segment recorded $67,000 in revenues related to the acquisition of Khrysos, which closed on February 15, 2019.
“We exceeded our quarterly revenue expectations and we are encouraged by the increase in gross profits and in adjusted EBITDA over Q1 2018,” said Steve Wallach, chairman and CEO of Youngevity International. “We continue to see revenue stabilization in the direct selling segment and this, combined with strong revenue delivered by our commercial coffee segment, has returned us to Q over Q growth. We reiterate our annual revenue guidance for 2019 in the range of $220 million and $240 million, which represents a projected annual growth rate between 35 percent and 48 percent over 2018. We continue to anticipate estimated annual revenue contribution from our new reporting commercial hemp segment between $45 million and $50 million for 2019 with the great majority of this revenue being delivered in the second half of the year.”
