Youngevity International, Inc. reported revenue of $34 million for the three months ended September 30, 2019, down 13 percent from Q3 2018.
Direct selling revenue down nearly 12% for the quarter
“Although we have recently made great strides in producing revenue growth this year, the third quarter posed a number of challenges as we faced seasonally slower sales for the direct selling segment and our commercial coffee segment contributed to a seasonally slower quarter,” said Steve Wallach, chairman and CEO of Youngevity International. “Additionally, our commercial hemp segment was still operating on a pre-revenue basis for this quarter. We enter Q4 with the anticipation of sales growth contribution coming from our latest acquisition within the direct selling segment and with Khrysos Industries beginning to generate revenue which has us anticipating finishing 2019 year with double digit revenue growth.”
Revenue for the third quarter was $34,017,000 as compared to $39,082,000 for the three months ended September 30, 2018. The company derived approximately 89.0 percent of its revenue from its direct selling segment and approximately 10.5 percent of its revenue from its commercial coffee segment and approximately 0.5 percent from its commercial hemp segment.
Direct selling segment revenues decreased by $4,024,000 or 11.7 percent to $30,256,000 in the current quarter as compared to $34,280,000 for the quarter ended September 30, 2018. According to the company, the decrease was primarily attributable to a decrease in the number of ordering customers, partially offset by an increase in revenues from distributors due to an increase in the average order amount per distributor.
Revenues for the nine months ended September 30, 2019 increased 14.0 percent to $144,004,000 as compared to $126,331,000 for the same period last year. During the nine months, the company derived approximately 66.5 percent of its revenue from its direct selling sales and approximately 33.1 percent of its revenue from its commercial coffee sales and approximately 0.4 percent from its commercial hemp segment. Direct selling segment decreased by $10,637,000 or 10.0 percent to $95,800,000 as compared to $106,437,000 for the same period last year.
“We are not pleased with Q3’s performance; however, we are confident that we made the appropriate moves in Q3 pivoting our commercial hemp enterprise business model,” said Dave Briskie, president and CFO of Youngevity. “The decision to expand Khrysos Industries into an 82,000-square-foot, pharma grade, post processing facility has prolonged the period of time we will operate our commercial hemp enterprise on a pre-revenue basis, however, ultimately this decision is expected to accelerate our ability to compete, scale and grow profitable revenue as we close out 2019 and move into 2020.”