Youngevity International Inc (NASDAQ:YGYI) Has So Much Going For It
Formed just under 10 years ago, Youngevity International Inc (NASDAQ:YGYI), has made quite huge strides in the lifestyle industry. The firm offers a mix of the direct selling business model while at the same time providing a platform for e-commerce and social selling.
According to the recently released financial report, the firm is on the cusp of an expansion drive that is hoped to expand its balance sheet.
Steve Wallach, CEO and Co-Founder of Youngevity, noted the improved financial performance of the company in the second quarter of the year as compared to the similar quarter last year. Mr. Wallach was encouraged by the over 17% contribution of the global expansion drive that the firm recently undertook.
In the same breath, Youngevity President and CFO, Dave Briskie is convinced that focusing the company’s efforts “toward revenue growth, improved profitability for the remainder of this year” and that coupling initiative with the “$250 million, 5 year coffee contract announced just two weeks ago” should have the company better position to post major profits by the coming year.
The second quarter of this year has seen the company post profit margins unseen during the same period last year. Per the press release outlining the financial position of the company, the revenues increased by 6.6% to $44.26 million as compared to $41.53 million for the second quarter of the year 2017. The statement additionally revealed that about 83% of the increased revenues were obtained from direct selling sales and about 17% of the earnings coming from commercial coffee sales.
The direct selling segment revenues posted an increase of $1.31 million or 3.7% to $36.85 million as compared to $35.54 million for the similar quarter, 2017. On the other hand, the commercial coffee segment posted a revenue increase of $1.42 million or 23.7% to $7.41 million, due to increased revenues of $1.17 million from green coffee business, as compared to $5.99 million for the similar quarter, 2017.
Increased gross profit and increased “adjusted” EBITDA
Meanwhile, gross profit upped 5.3% to $25.38 million as compared to $24.1 million for the similar quarter, 2017. However, the overall gross profit as a percentage of revenues decreased to 57.4%, compared to 58.0% in the second quarter last year. At the same time the operating expenses decreased 0.2% to $24.73 million as compared to $24.78 million for the three months ended June 30, 2017. In the same period, the adjusted EBITDA increased to $2.2 million.