Medifast’s partnership includes a $20 million investment in LifeMD, with an expected $10 million in contributions allocated to support the venture, fund platform enhancements and build infrastructure. 

“This is a pivotal moment in our business as we begin an aggressive transformation, committing more resources than ever before to our OPTAVIA brand and driving growth in this evolving health and wellness landscape,” said Dan Chard, Medifast Chairman and CEO. “Millions of people are seeking a solution that I believe we are uniquely positioned to provide. Together, Medifast and LifeMD expect to deliver a comprehensive approach to health starting with weight management, built around a powerful model of support that includes an independent OPTAVIA Coach and a board-certified affiliated clinician. As a physician-founded company with a long-standing scientific and clinical heritage, we remain committed to helping even more people make living a healthy lifestyle second nature.” 

Prior to this partnership, Medifast commissioned a study that revealed most individuals seeking weight loss medications are also interested in post-prescription support and guidance about nutrition, exercise and lifestyle adjustment. This new patient-centric care model that will be tailored to be both coach- and clinician-driven, Medifast believes, opens the door for future collaborations as well. 

“A shared philosophy of prioritizing holistic care and focus on lifelong health makes this a natural collaboration between our two companies,” said Justin Schreiber, LifeMD Chairman and CEO. “Medifast’s investment in LifeMD is affirmation of our differentiated virtual care platform and clinical care model that provides tremendous value for our partners, addressing the unique health goals of our combined customer bases across multiple healthcare sectors and conditions. LifeMD is pleased to partner with Medifast to deliver a new model that has the ability to significantly transform the weight management industry.” 

The post Medifast Enters Medically Supported Weight Loss Market  first appeared on Direct Selling News.

Net income during the quarter was $23.1 million with a gross profit of $177.4 million, down from a gross profit of $282.8 million in Q3 2022. Gross profit as a percentage of revenue, however, increased to 75.2% from 72.5% in the same period last year. Efficiencies in inventory management, lower supply chain costs and distribution center optimization helped contribute to this positive impact. 

“We are adapting our business model to adjust to the rapidly evolving health and wellness market, leveraging the power of our balance sheet and our clinically proven Coach-led model,” said Dan Chard, Medifast Chairman & CEO. “Medically-supported weight loss solutions have brought a fresh focus to the landscape, and it’s important that we continue to develop an approach that recognizes the needs of the customers who choose to utilize medication as part of their health and wellness journey as we broaden our offerings, expand our addressable market, and extend our demographic reach. We remain steadfast in our mission to help our customers create lifelong transformation and make a healthy lifestyle second nature, while maximizing stockholder value. While the actions we are now undertaking are not expected to have a meaningful impact this year, we would expect to start to see the impact of these initiatives as we move into 2024 and beyond.” 

The company ended the quarter with cash, cash equivalents and investment securities of $157.8 million with no interest-bearing debt. Revenue outlook for the full-year 2023 is now expected within the range of $1,050 million-$1,070 million, with diluted EPS in the range of $8.65-$9.55. 

The post Medifast Q3 2023 Revenue Reaches $235.9 Million  first appeared on Direct Selling News.

Rankings for the list are determined by a panel of experts who considered six key factors: quality of pay and benefits, work-life balance and flexibility, job and company stability, physical and psychological comfort, belongingness and esteem, career opportunities and professional development. Those chosen for the list were in the top 20% of their peers. 

“At Medifast, we are on a mission to provide the world lifelong transformation, one healthy habit at a time, and we achieve this by harnessing the incredible power of human connection,” said Dan Chard, Chairman and CEO of Medifast. “Since the company’s founding, we have been committed to building strong relationships and fostering a culture of community. Our employees are the driving force behind our success, and it is their partnership with our dedicated independent Coaches that has allowed OPTAVIA to impact more than three million lives. Together, we are changing lives, instilling healthy habits and paving the way for a brighter, healthier future.” 

The post Medifast Named One of the “Best Companies to Work For” by US News & World Report  first appeared on Direct Selling News.

In spite of this finding, however, almost half (41%) of survey participants admitted to allowing their healthy self-care habits to dissipate in the last year. 

These numbers point to a growing need among consumers for products and services that meet their self-care needs and make healthy habit creation simpler and more effective. Long-term wellbeing depends on continuity of self-care instead of temporary fixes, making the community that direct selling can provide a powerful benefit for consumers looking for support and accountability. 

“We are living in a world where the quest for optimal health and wellbeing is often a difficult, solitary and overwhelming journey for most people,” said Dan Chard, Medifast Chairman and CEO. “Lack of time coupled with an abundance of information and products that promise quick fixes adds to the challenges of getting healthy. These findings reaffirm consumers’ desire to achieve optimal health and wellbeing and highlight their need for simple yet effective approaches that allow them to create daily habits–from incorporating more movement to getting quality sleep.” 

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Average revenue per active earning OPTAVIA Coach was $5,578, down from $6,667 in the same period last year, representing a 16.3% decline. Total number of active earning OPTAVIA Coaches decreased 21.9% to 53,100, down from 68,000 in the second quarter of 2022. 

Gross profit was down 34.5% to $210.7 million due to lower revenue, but gross profit as a percentage of revenue was 71.1%, compared to 71% in the same period last year. Net income during the quarter was $30.3 million, or $2.77 per diluted share, down from $39.1 million, or $3.42 per diluted share, in the same quarter of 2022. 

“Industry dynamics have changed numerous times over the years and Medifast has proven adept at making the necessary adjustments in its business model to thrive in new environments,” said Dan Chard, Medifast Chairman & Chief Executive Officer. “Even though the operating environment remains challenging, and we continue to expect that programming adjustments, compensation dynamics, and future growth initiatives will take time to deliver meaningful results, we are confident that the changes we are making to diversify our business into new areas will have similar success.” 

The company ended the quarter with $147.4 million in cash and cash equivalents and announced third quarter 2023 revenue guidance in the range of $220-$240 million. Third quarter diluted EPS is expected to be in the range of $0.71-$1.32. 

The post Medifast Reports Q2 2023 Revenue of $296.2 Million  first appeared on Direct Selling News.

This line currently includes OPTAVIA ACTIVE Essential Amino Acid (EAA) Blend and OPTAVIA ACTIVE Whey Protein, with additional products to be rolled out in 2024. All OPTAVIA ACTIVE products are designed with no artificial colors, flavors or sweeteners and are Informed Sport certified, meaning they contain no banned substances. 

Medifast is also unveiling a new partnership with Aaptiv, a fitness app, to provide guided workouts for its community. 

“With the introduction of OPTAVIA ACTIVE, we now offer another tool to help more people make lifestyle changes and embrace healthy habits in all areas of their lives,” said Dan Chard, Medifast Chairman and CEO. “This line builds on our existing healthy weight management and eating program and provides each customer with a simple, coach-guided way for them to practice the habit of healthy motion. We are making great progress against our mission as we continue to make OPTAVIA increasingly central to the health journeys of many more people.” 

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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. 

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Gross profit for the company decreased by 18.5% to $246.4 million, which the company attributed to lower revenue and inflation of costs for raw ingredients, shipping and labor. Net income for the quarter was $40 million with an earnings per diluted share (EPS) of $3.67. 

“We’re pleased to see revenue and operating income both ahead of expectations in the quarter, as we continue to adjust to the changing dynamics of the business environment,” said Dan Chard, Medifast Chairman and Chief Executive Officer. “Sustainable long-term growth is at the core of our focus, and we are undertaking a number of initiatives to return the business to a growth trajectory. In addition to working to increase customer acquisition, we are implementing strategies that will expand our addressable market, as we target new demographic segments, geographies, and adjacent categories.” 

Second quarter outlook for revenue now includes a range of $250 million to $270 million with a diluted EPS in the range of $1.32 to $1.44. 

The post Medifast Reports $349 Million in Q1 2023 Revenue  first appeared on Direct Selling News.

Medifast was ranked #258 for its revenue growth from $274.5 million in 2016 to $1.6 billion in 2022, beating out powerhouse brands like Netflix, Twitter and Tesla. 

“Medifast has been a leader in the health and wellness industry for more than 40 years, during which time our simple yet comprehensive approach has resonated with more than two million people,” said Dan Chard, Medifast Chairman and Chief Executive Officer. “Over the years, we have evolved how we support people on their health journeys–now through our integrated Coach model–while remaining rooted in our strong scientific and clinical heritage. I am excited by the opportunities ahead as we continue to look to evolve our offerings and expand into new frontiers to help even more people transform their lives.”

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Overall, the company posted revenue of $1.6 billion in 2022, a 4.8% increase over 2021. Net income for the year was $143.6 million with an EPS of $12.73. 

The company ended the year with $87.7 million in cash, cash equivalents and investment securities, with no interest-bearing debt. 

“We’ve placed a substantial focus on driving stability in customer retention rates, and with customer satisfaction metrics at all-time highs, we’ve seen retention return to and hold at normal levels,” said Dan Chard, Medifast Chairman & Chief Executive Officer. “Our attention is now on driving productivity and Coach growth which were both disrupted in the second half of last year. Additionally, we continue to take steps to mitigate cost pressures, drive efficiency and build financial resilience into our model. We’re already seeing some of the impact of that work begin to play out, and while it will take some time to work through our business cadence, we remain highly confident in both the long-term efficacy of our model and our prospects for stable and sustainable growth.” 

Guidance for the first quarter of 2023 revenue is expected to fall within $300-$320 million with diluted EPS between $1.75-$2.40. 

The post Medifast Reports $1.6 Billion in 2022 Revenue  first appeared on Direct Selling News.