Medifast, the global parent company for direct selling brand OPTAVIA, announced increases across the board for the first quarter of 2022, when compared to the same period last year. Revenue for the company increased 22.6%, reaching $417.6 million, while net income grew 1.7%, to $41.8 million. The number of active OPTAVIA Coaches saw 21.7% growth, totaling 63,900, and the average revenue per active OPTAVIA Coach increased by 1.3% to $6,536. Gross profit as a percentage of revenue saw only a slight dip, down to 72.4% compared to 73% in the first quarter of 2021, which the company attributes to higher product and shipping expenses due to inflation and rising freight and labor costs.
“Record quarterly revenues, sharp acceleration in coach metrics and an increase in our annual financial guidance are powerful indications of the underlying strength of our business,” said Dan Chard, Medifast Chairman and Chief Executive Officer. “We have record numbers of independent active earning OPTAVIA Coaches, helping us drive robust product demand and rapidly increasing digital engagement, and bolstering OPTAVIA to the #1 revenue share position among publicly traded companies in the weight management industry in the United States. We continue to take advantage of significant opportunities to further leverage our technological innovation and infrastructure. Through deeper integration of key technologies and data analytics, we are enhancing the OPTAVIA customer experience and enabling significant productivity gains for OPTAVIA Coaches. All of this creates strong potential for further expansion into the broader health and wellness sector. We have a clear growth vision, and a solid platform to drive additional long-term value for our stockholders.”
Selling, general and administrative expenses (SG&A) increased 26.3% to $247.2 million, up from $195.7 million during last year’s quarter. Income from operations increased 4.3% to $55.1 million from $52.8 million in the first quarter of 2021.
The company’s balance sheet remains strong, with cash, cash equivalents and investment securities of $122.1 million, and no interest-bearing debt.
Full-year guidance is now expected to be in the range of $1.78 billion-$1.84 billion, an increase from previously announced expectations. Full-year 2022 EPS has been increased as well, with an expected range of $14.60-$16.05.