Reliv International (RELV—NASDAQ) turned a profit in the fourth quarter despite weakening sales of its nutrition products.
The Missouri-based company reported $10.6 million in quarterly revenue, a 14 percent decline from the same period of 2015. Revenue fell 12 percent in the U.S. and 18 percent across international markets, with 11 percent of that decline stemming from currency exchange.
Net income was $272,000, or 15 cents a share, compared with a loss of $206,000, or 11 cents a share, a year earlier. Earnings reflect a one-for-seven reverse stock split that took effect in October 2016, consolidating every seven shares of common stock into one new share. The company also implemented cost cuts in the back half of the year to offset lower sales.
“The cost reduction program instituted earlier in 2016 returned us to profitability in the third and fourth quarters while the preparation was underway for the rollout of our Fit3 program,” said Reliv President Ryan A. Montgomery. Fit3 is the company’s new wellness program, which incorporates nutrition coaching, exercise coaching and specially formulated supplements into a 90-day regimen, aimed at helping individuals make long-term lifestyle changes. Reliv introduced the new offering in February 2017.
For 2016, management reported annual revenue of $45.5 million, versus $51.8 million in 2015. The company narrowed its loss to $625,000, or 34 cents a share, from $1.2 million, or 67 cents a share.