Reliv International Inc. (RELV—NASDAQ) on Friday said quarterly sales of its health supplements fell 12 percent to $13.0 million, compared to $14.8 million in the first quarter of 2015.
Sales in the U.S. market were down 11 percent from a year ago, while international sales dropped 17 percent, cut 7 percent by foreign currency fluctuation. Results were also impacted by the rollout of a new compensation structure in the U.S. and Canada.
In February, the Missouri-based company introduced a Preferred Customer program in North America and tweaked the requirements for an entry-level distributor to advance and begin earning retail and wholesale profits. The company also adjusted the group sales volume required for a distributor to reach its Master Affiliate level.
“The revised structure places a whole new emphasis on the business opportunity aspect of our company; however, the changes made had a near-term negative impact on sales in the United States and Canada as the distributor force adapts to the changes,” said Robert Montgomery, Chairman and CEO.
Overall, the company lost $44,000 in the quarter, versus earnings of $116,000 in the same period last year. Management said the decline in sales was partially offset by reduced selling, general and administrative expenses.
At the close of the quarter, the company’s distributors and preferred customers numbered 45,050, down 9 percent from a year earlier.