Medifast, the father or mother firm of direct promoting group OPTAVIA, reported 15% income progress in the course of the second quarter of 2022, totaling $453.3 million. Gross revenue elevated 9.5% to $321.7 million, which the corporate attributes to greater income that was partially offset by elevated price of gross sales.
Energetic incomes OPTAVIA Coaches grew in quantity by 14.9%, totaling 68,000 by the top of the quarter. Income for these energetic coaches averaged $6,667 every, which represented a slight improve over the earlier 12 months’s quarter.
Internet revenue and non-GAAP adjusted internet revenue have been each down, nonetheless, reducing by 16.7% ($39.1 million) and 5.7% ($44.3 million) respectively. Gross revenue as a proportion of income was 71%, down from 74.5% in the course of the second quarter of 2021, as a consequence of a buyer acquisition program and better uncooked ingredient prices. Promoting, common and administrative bills rose 17.4% to $272 million. This improve was a results of greater compensation bills for OPTAVIA Coaches, donations made to help the Ukrainian reduction effort, bigger bank card charges from greater gross sales, and continued funding in IT and distribution infrastructure.
Earnings per diluted share (EPS) was down by 13.6% to $3.42, as was non-GAAP adjusted EPS, which dipped 2.5% to $3.87.
“We delivered one other strong quarter at Medifast, with revenues up 15%, virtually 15% progress within the variety of energetic incomes Coaches, and strong Coach productiveness,” stated Dan Chard, Chairman and Chief Government Officer of Medifast. “The personalized help of OPTAVIA Coaches stays a key differentiator for our enterprise, and these outcomes are an illustration of the continued energy of our mannequin. We’re not proof against points within the wider macroeconomic setting, and like many consumer-focused companies, we’ve seen the influence of inflation on buyer retention and shopper sentiment, which is able to trigger slower-than-anticipated progress within the second half. Nonetheless, we consider we stay properly positioned for vital future progress as we proceed to execute our core methods and develop additional into the broader well being and wellness enviornment. Our continued confidence in our distinctive and highly effective enterprise mannequin is underscored by our lately introduced $100 million accelerated share repurchase program, demonstrating our constant perception in our potential to drive sustainable long-term progress.”
The corporate ended the quarter with $61.1 million in money, money equivalents and funding securities and $27 million in debt.
