Medifast, Inc.’s financial results for the first quarter of 2021 report a 61% growth in active earning OPTAVIA coaches, a new record amount of 52,500, and a 90.9% increase in revenue, reaching $340.7 million. The company’s net income also increased 122% to $41.1 million.
“This has been an exceptional quarter of growth and productivity, reflecting the outstanding abilities of both our independent OPTAVIA Coaches and our employees,” said Dan Chard, Chairman and Chief Executive Officer of Medifast. “We now have a record 52,500 OPTAVIA Coaches who are achieving new productivity highs by leveraging technology to support clients and support new OPTAVIA Coaches. These technologies include our own app-based platforms as well as social media channels and field-led training platforms. Consumer interest in health and wellness remains high, and the strength of the OPTAVIA coach-based model and its role in transforming lives has continued to attract robust numbers of new clients. By harnessing demand and leveraging our organizational capabilities, we have amplified revenue and earnings growth to record levels. We’re continuing to build infrastructure to capitalize further on future growth opportunities, while also maintaining a strong balance sheet and prioritizing capital allocation to drive long-term stockholder value.”
OPTAVIA-branded products represented 88.9% of consumable units sold for Q1 2021, an almost 10% increase over the same period a year ago. Average revenue per active OPTAVIA Coach increased 21%, up to $6,454.
Additional Q1 2021 highlights from the report include:
- ·A gross profit increase of 83.8%, totaling $248.5 million, with gross profit as a percentage of revenue equaling 73%
- Selling, general and administrative expenses increased 75.2% to $195.7 million due to higher OPTAVIA commission expenses, increased salaries and benefits for employees and increased credit card fees from higher sales
- Income from operations reached $52.8 million
- Cash, cash equivalents and investment securities total $212.9 million and the company remains free of interest-bearing debt
- A quarterly cash dividend of $13.4 million, or $1.13 per share, was paid on February 5, 2021
- The company declared a 26% increase in the quarterly dividend (to $1.42 per share) which will be payable on May 6, 2021
Full-year revenue results for 2021 are expected to be in the range of $1.4 billion to $1.475 billion.