Chula Vista, CA-based Youngevity International, Inc., a leading omni-direct lifestyle company, recently announced financial results for the first quarter ended March 31, 2017. Revenue increased 1.4 percent to $38.7 million as compared to $38.2 million in the same period last year. During the three months ended March 31, 2017, the company derived approximately 86 percent of its revenue from direct sales and approximately 14 percent of its revenue from its commercial coffee sales.
“We have invested significantly in marketing efforts, compliance efforts, global infrastructure and a comprehensive rebranding strategy that began in the fourth quarter of last year and carried over into the first quarter of this year,” said Steve Wallach, CEO of Youngevity International. “The compliance effort and enforcement measures created revenue drag on our direct selling segment into the first quarter. We believe these were necessary measures and as a result, the company is better positioned for continued growth. The month of March showed a significant increase in revenues, which we believe is sustainable as we move through 2017.”
Direct selling segment revenues decreased by $1.6 million or 4.5 percent to $33.2 million as compared to the three months ended March 31, 2016. This decrease was primarily attributed to a decrease in existing business as a result of general weakness in this segment during the first two months of the quarter.
“The first quarter of 2017 illustrates our commitment to continue to implement our growth strategies and to simultaneously focus on managing that process,” said Dave Briskie, President and CFO. “This affected our direct selling segment, which experienced significant and necessary additional expenses for the first quarter. Although this had a negative impact on our bottom line we are confident our omni-direct platform is gaining acceptance throughout the enterprise. We were pleased with the performance of the coffee segment and we are bullish that growth will continue for this segment.”
The company’s commercial coffee segment revenues increased by $2.1 million or 61.3 percent to $5.5 million compared to the same period last year. Revenues increased in both the coffee roasting business and green coffee business.
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Youngevity was No. 76 on last’s month’s DSN Global 100 ranking of the top direct selling companies in the world. The company reported earnings of $163 million for 2016.
