Medifast, the parent company of direct selling organization OPTAVIA, announced enhancements to its Fuel for the Future program, a strategic initiative that will optimize the company’s spending and investments to prepare for and catalyze sustainable future growth.
As part of these efforts, the company is freeing up capital to invest in growth initiatives, raise margins and dedicate resources toward technology and digital capabilities that will complement its existing program, as well as new product offerings that will be rolled out in the future. This capital, in part, will be derived from the closure of the company’s operations in Hong Kong and Singapore, where changes in the Asia-Pacific market in the wake of the pandemic have created unique challenges.
“We continue to adjust to the changing demands of the market, and this shift will allow us to more aggressively invest and fulfill our commitment to making this new environment one in which we can deliver long-term growth,” said Dan Chard, Medifast Chairman and CEO. “We are now focused on expanding into new demographics and diversifying our revenue streams, starting with bringing OPTAVIA to adjacent product categories that we expect will triple our addressable market. As an industry leader that has already impacted three million lives, we continue to build on our legacy and aspire to offer even more people lifelong transformation, one healthy habit at a time.”
Overall, the company is targeting 200 to 300 basis points of sustainable gross cost savings by 2025, of which it plans to invest the majority back into the business to drive topline growth and improved profitability.
