9/26/2023 0 Comments Awaken 2021 optavia![]() Shares of this manufacturer and distributor of weight loss, weight management, healthy living products, and other consumable health and nutritional products have rallied 27.8% in the past year, outpacing the industry’s rise of 13.3%. In full-year 2020, revenues and earnings per share came in at $934.8 million and $9.14, respectively. The full-year earnings per share were envisioned to be $12.69-$14.14. The company earlier anticipated revenues to come in the range of $1.4-$1.475 billion. The full-year earnings per share are envisioned to be $12.70-$14.17. Management now anticipates revenues of $1.425-$1.525 billion for 2021. Medifast remains committed to making further investments to improve its infrastructure in order to aid growth. ![]() We note that consumers’ increased inclination toward health, together with a solid OPTAVIA coach-based model, has been helping Medifast draw new clients. Net revenues of $394.2 million soared 79.2% year over year and beat the Zacks Consensus Estimate of $366 million. The company posted earnings of $3.96 per share in the second quarter, which crushed the Zacks Consensus Estimate of $3.30 and surged a whopping 112.9% on a year-over-year basis. Image Source: Zacks Investment Research A Look at Q2 & Ahead The company’s constant investments in digital tools as well as in its new, fully integrated mobile apps are likely to enhance the connection between clients and coaches. Apart from this, Medifast’s Connect App has been working well for Coaches on the go. Incidentally, the company announced the launch of the OPTAVIA app, which is likely to enhance Clients’ experience with Lean & Green recipes along with an access to past order record auto-ship details and account information among other things. We note that OPTAVIA Coaches have been focused on utilizing technology, including the company’s own app-based platforms along with social media channels and field-led training platforms. Medifast is focused on making technological investments, as part of which it opened a new technology center in Utah in the beginning of 2020. The company is also expanding its distribution network via expansions in existing facilities along with building on the current 3PL relationships and alliances to set up a distribution system, which is in line with its manufacturing capacity. This helped the company achieve its manufacturing capacity target of $2 billion ahead of plan in the second quarter of 2021. To this end, Medifast is focused on optimizing and increasing capacity by strengthening its network of co-manufacturers. Moving on, the company has been speeding up its long-term supply-chain efforts to ensure that it is able to manage its anticipated growth in the next few years. Notably, Medifast’s second-quarter 2021 performance can be attributed to exceptional growth at its independent OPTAVIA Coaches, which reached new highs as well as efforts to improve the productivity of these Coaches. ![]() The OPTAVIA product line is sold through its community of independent coaches, who offer support and guidance to their clients. OPTAVIA combines scientifically-proven programs, effective products as well as guidance from its coaches to help consumers lead a healthier lifestyle. OPTAVIA follows a holistic approach by focusing on the six key areas of a human being, namely weight, eating and hydration, motion, sleep, mind and surroundings. Medifast’s constant focus on developing tools and programs to increase the efficiency of coaches has been yielding results. Certainly, the relevance of the company’s offerings amid an environment where consumers are choosing health and wellness options has been an upside. The average revenue per active earning OPTAVIA coach increased 13.9% to $6,662, up from the year-ago quarter’s $5,851. The total active earning OPTAVIA Coaches jumped 62.2% to 59,200. In the second quarter, OPTAVIA-branded products contributed 94.1% of the consumable units sold, up from the preceding quarter’s 88.9% and the year-ago quarter’s 83%. Given the evolving consumer interests in health and wellness, Medifast’s OPTAVIA lifestyle solution and coaching support system bodes well.
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