Medifast, the parent company of direct selling organization OPTAVIA, released its fourth quarter and full year financial results for 2022. In Q4, revenue for the company reached $337.2 million, a 10.7% decline from the previous year’s quarter, with a net income of $26.5 million and earnings per diluted share of $2.41. Each OPTAVIA Coach earned an average revenue of $5,538, a 12.4% decrease from Q4 2021. Gross profit also declined by 16.1% to $233.6 million, which the company attributed to inflation and restructuring expenses associated with external manufacturing agreements pertaining to supply chain optimization.
Overall, the company posted revenue of $1.6 billion in 2022, a 4.8% increase over 2021. Net income for the year was $143.6 million with an EPS of $12.73.
The company ended the year with $87.7 million in cash, cash equivalents and investment securities, with no interest-bearing debt.
“We’ve placed a substantial focus on driving stability in customer retention rates, and with customer satisfaction metrics at all-time highs, we’ve seen retention return to and hold at normal levels,” said Dan Chard, Medifast Chairman & Chief Executive Officer. “Our attention is now on driving productivity and Coach growth which were both disrupted in the second half of last year. Additionally, we continue to take steps to mitigate cost pressures, drive efficiency and build financial resilience into our model. We’re already seeing some of the impact of that work begin to play out, and while it will take some time to work through our business cadence, we remain highly confident in both the long-term efficacy of our model and our prospects for stable and sustainable growth.”
Guidance for the first quarter of 2023 revenue is expected to fall within $300-$320 million with diluted EPS between $1.75-$2.40.
