ForeverGreen Updates Investors on Cost-Cutting Measures in 2016

ForeverGreen Worldwide Corp. (FVRG—OTCBB) on Tuesday said it has strategically cut down on overhead as management seeks to return to profitability in 2016.

The seller of nutrition, weight-management, and pain-relief products experienced a rocky 2015, despite boosting revenue 15 percent to $67.1 million. ForeverGreen reported a loss of $2.6 million, after turning a profit of $1.0 million in 2014. The bottom line was hurt by higher supply chain costs associated with the brand’s Ketopia product launch. Unexpected demand for the products, introduced in July 2015, brought on expedited shipping and manufacturing costs.

In its full-year earnings report, management said major challenges in 2016 would be responding to real-time economic conditions and tailoring systems and logistics to meet global demand. Thus far in the year, the company has eliminated more than $500,000 in monthly costs, primarily by trimming operations and restructuring staff in various markets.

“With these efforts, including staff and region reorganization, and anticipating the launch of several new products in the next few weeks, we anticipate second-quarter revenues to be stable and then accelerating and moving forward into the third quarter and thereafter,” said Chief Financial Officer Jack Eldridge.

Revenue in the first quarter was approximately $12 million, Eldridge said, putting the Utah-based company on track to meet its previously stated guidance. For the full year, management expects revenue in the range of $55 million to $60 million, with 2 percent to 4 percent net profit margins.

Leave a Comment

You must be logged in to post a comment.