Direct selling group CVSL Inc. (CVSL—NYSE MKT) on Monday reported a loss of $4.9 million or 23 cents per share in the third quarter, up from a $6.7 million loss a year ago.
Revenue rose 54 percent to $37 million, boosted by the acquisition of Kleeneze in March 2015 and higher sales in the gourmet food segment. Year to date, revenue is up 22 percent.
The company acquired U.K.-based Betterware in the third quarter, but management said its focus was on strengthening CVSL’s existing portfolio of companies through cost-control and efficiency measures.
“Our core business is showing good improvement as our turnaround efforts are having a positive effect,” Vice Chairman John Rochon Jr. said in the company’s release. “We believe that we are now in the position of using CVSL’s earnings primarily to fund growth in the future, rather than to fund losses as was the case earlier in our development.”
Gross profit was up 69 percent at $22.1 million, with a margin of 60 percent compared to 54 percent in the prior year. The company closed out the quarter with $5.4 million in cash, versus $2.6 million a year ago.