Medifast (Optavia) Q2 2021 Revenue Up 79,2% To $394 Million
Medifast, Inc. (NYSE: MED), the global company behind one of the fastest-growing health and wellness communities, OPTAVIA®, today reported results for the second quarter ended June 30, 2021.
Second Quarter 2021 Highlights Compared to the Prior-Year Period
- Revenue increased 79.2% to $394.2 million
- 62.2% growth in active earning OPTAVIA Coaches to a record level of 59,200
- Revenue per active earning OPTAVIA Coach increased 13.9% to $6,662
- Net income increased 114.1% to $47.0 million
- Earnings per diluted share (“EPS”) of $3.96, an increase of 112.9%
“This has been another outstanding quarter for Medifast, driven in large part by our success in driving growth in independent OPTAVIA Coaches to new highs, and empowering those Coaches to be more productive than ever before.”
said Dan Chard, Chairman & Chief Executive Officer of Medifast.
“We are leveraging technology in new and effective ways to deliver these results, building digital products, channels and platforms that enable our Coaches to create deeper and more effective connections with their Clients.
At the same time, we’ve accelerated our supply chain transformation to take full advantage of increased demand, creating a manufacturing and distribution engine that we expect will support $2 billion in revenue well ahead of schedule. Together, this work has given us a solid foundation to further enhance our competitive advantage, and drive sustainable growth for the long term.”
Second Quarter 2021 Results
Second quarter revenue increased 79.2% to $394.2 million from revenue of $220.0 million for the second quarter of 2020. OPTAVIA-branded products represented 94.1% of consumable units sold for the second quarter compared to 83.0% for the same period a year ago. Consistent with business and brand strategy, the Company has completed the sunset of the Medifast-branded product line.
The total number of active earning OPTAVIA Coaches increased 62.2% to 59,200 compared to 36,500 for the second quarter of 2020. The average revenue per active earning OPTAVIA Coach was $6,662 compared to $5,851 for the second quarter last year, an increase of 13.9%.
Gross profit increased 84.4% to $293.7 million from $159.3 million for the second quarter of 2020. The Company’s gross profit as a percentage of revenue was 74.5% compared to 72.4% in the second quarter of 2020. The increase in gross profit as a percentage of revenue was attributable to promotional activity rolled out during the second quarter of 2020 that did not occur in the second quarter of 2021.
Medifast (NYSE: MED) is the global company behind one of the fastest-growing health and wellness communities, OPTAVIA®, which offers scientifically developed products, clinically proven plans and the support of Coaches and a Community to help Clients achieve Lifelong Transformation, One Healthy Habit at a Time®.
Based on more than 40 years of experience, Medifast has redefined direct selling by combining the best aspects of the model. Its community of independent OPTAVIA Coaches has impacted 2 million lives and teaches Clients how to develop holistic healthy habits through the proprietary Habits of Health® Transformational System.
Medifast is traded on the New York Stock Exchange and ranked second on FORTUNE’s 100 Fastest-Growing Companies list in 2020. The Company was also named to Forbes’ 100 Most Trustworthy Companies in America list in 2017. For more information, visit www.MedifastInc.com or www.OPTAVIA.com and follow @Medifast on Twitter.
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