MLM business is growing again! Medifast announces 63% increase in revenue in 2021 - Network Magazine

MLM business is growing again! Medifast announces 63% increase in revenue in 2021

by Maciej Maciejewski

Medifast Inc. – the parent company for DS/MLM health and wellness subsidiary OPTAVIA, reported annual revenue of $1.526 billion in 2021, a 63.2% increase over the previous year. Net income also saw enormous gains of 59.5% to equal $164 million. EPS for the year was $13.89, a 60% increase over 2020 levels.

The fourth quarter of 2021 reported similar growth, with a 42.6% increase in revenue over the previous year’s quarter to $377.8 million, and a net income increase of 21.5% to $34 million. Earnings per diluted share increased by 23.3% to $2.91.

Gross profit in the fourth quarter grew 39.7% over the previous year’s quarter to $278.3 million, which the company primarily attributes to higher revenue levels. As a percentage of revenue, gross profit during this time period was 73.7%, a slight decrease from 75.2% in the previous year’s quarter, which the company believes is a result of inflation and shipping costs.

Income from operations in the fourth quarter also increased 23.4% to $46.8 million. Active earning OPTAVIA coaches during the fourth quarter were a catalyst for this growth, increasing by 35.3% in number to 59,800, compared to 44,200 coaches in Q4 of 2020. Revenue for these coaches also increased 6.6% to an average of $6,321.

– 2021 was another outstanding year for Medifast, with record revenue and earnings fueled by continued growth across our independent OPTAVIA coaches and clients. We’ve now established ourselves as the market leader by dollar share in the U.S. weight management market, and are now building the foundations of our approach to the broader health and wellness sector. We have a highly differentiated coach-centric model that is consistently helping consumers achieve their health goals, and this gives us permission for deeper and even more meaningful engagement across multiple platforms – said Dan Chard, chairman and chief executive officer of Medifast.

– Our investment in innovation is enabling us to make our offer more attractive to increasing numbers of independent OPTAVIA coaches and clients, and will unlock opportunities for new service and subscription offers. The transformation of our approach to both technology and our supply chain delivers results in the short-term, but also builds the solid foundations from which we will drive rapid growth and long-term value for all stakeholders – comments Dan Chard.

The company’s balance sheet at the end of 2021 included cash, cash equivalents and investment securities of $109.5 million with no interest-bearing debt. For 2022, the company forecasts annual revenue in the range of $1.72-$1.79 billion and EPS between $14.50-$16.

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