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Youngevity Q2 Revenue up 21.2% - Direct Sales Down 12.8% To $32.1 Million

Youngevity Q2 Revenue up 21.2% – Direct Sales Down 12.8% To $32.1 Million

Youngevity International, Inc. (NASDAQ: YGYI), a leading multi-channel lifestyle company, today reported financial results for the second quarter and six months ended June 30, 2019.

Steve Wallach, Chairman and CEO of Youngevity International stated,

“We are pleased with our quarter over quarter revenue growth and we are encouraged by the increase in gross profits and in Adjusted EBITDA over Q2 2018.

 

We are making progress toward stabilizing revenues in our direct selling segment and this combined with strong revenue delivered by our commercial coffee segment has provided our second consecutive quarter of Q over Q growth.”

Dave Briskie, President and CFO of Youngevity International stated, “We have made great strides toward a return to profitability in Q2 posting a small net loss of just $47,000.  We remain focused on our stated goals of returning to growth and profitability in 2019.  The coffee segment delivering its second consecutive quarter of profitability and strong Adjusted EBITDA which was a strong contributor to the improvement in our consolidated financial statements. We eagerly anticipate our commercial hemp segment contributing to revenue growth and profits in Q3 and Q4 of this year.”

Second Quarter 2019 Results

Revenues for the second quarter ended June 30, 2019 increased 21.2% to $53.7 millionas compared to $44.3 million for the quarter ended June 30, 2018. We derived approximately 60% of our revenue from our direct selling segment and approximately 40% of our revenue from our commercial coffee segment.

Direct selling segment revenues decreased 12.8% to $32.1 million in the current quarter as compared to $36.8 million for the quarter ended June 30, 2018.

This decrease was attributable to a decrease in the number of ordering distributors and customers, partially offset by an increase in average order amount per distributor and customer. Commercial coffee segment revenues increased by 186.5% to $21.2 million in the current quarter as compared to $7.4 million for the quarter ended June 30, 2018. This increase was primarily attributed to increased revenues from our new green coffee contract that CLR recently signed for approximately $250 million over 5 years. The new commercial hemp segment recorded $274,000 in revenues related to the acquisition of Khrysos which closed on February 15, 2019.

Gross profit for the second quarter ended June 30, 2019 increased 2.0% to $25.9 million as compared to $25.4 million for the second quarter ended June 30, 2018. Gross profit in the direct selling segment decreased 11.6% to $22.2 million as compared to $25.1 for the second quarter ended June 30, 2018 as a result of the decrease in revenues discussed above.

Gross Profit in the commercial coffee segment increased to $3,731,000 in the current quarter, compared to $295,000 for the second quarter ended June 30, 2018, primarily due to the increase in revenues from our new green coffee contract discussed above. Gross margin in the commercial hemp segment was a loss of $49,000 related to the acquisition of Khrysos which closed on February 15, 2019. Overall gross profit as a percentage of revenues decreased to 48.3% in the current quarter compared to 57.4% in the same period last year, primarily due to the increased revenues in the commercial coffee segment, which generally produces lower margins than the direct selling segment.

Operating expenses increased 3.3% to $25,534,000 as compared to $24,729,000 for the three months ended June 30, 2018.

Distributor compensation paid to our independent distributors in the direct selling segment decreased 12.1% to $14,497,000 for the three months ended June 30, 2019, from $16,487,000 for the same period last year. This decrease was primarily attributable to the decrease in direct selling segment revenues.

Total sales and marketing expense decreased 9.4% to $2,786,000 for the three months ended June 30, 2019 from $3,076,000 for the same period last year.

About Youngevity International, Inc.

Youngevity International, Inc. ( NASDAQ : YGYI ), is a multi-channel lifestyle company operating in 3 distinct business segments including a commercial coffee enterprise, a commercial hemp enterprise, and a multi-vertical omni direct selling enterprise.

The Company features a multi country selling network and has assembled a virtual Main Street of products and services under one corporate entity, YGYI offers products from the six top selling retail categories: health/nutrition, home/family, food/beverage (including coffee), spa/beauty, apparel/jewelry, as well as innovative services. For investor information, please visit YGYI.com.

 

Get more information, facts and figures about Youngevity, click here for the Youngevity overview.

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