For Banner Ad call: +91-9312-610-998

 

Reliv Reports Q2 Sales Down 12.9% To $11.1 Million

0
Rate this post
top-5-australian-business-directories-free-listing

Reliv Reports Q2 Sales Down 12.9% To $11.1 Million

 

Reliv International, Inc., a maker of nutritional supplements that promote optimal health, today reported its financial results for the second quarter of 2016.

Reliv reported net sales of $11.1 million for the second quarter of 2016 compared with net sales of $12.4 million in the second quarter of 2015. U.S. net sales decreased to $8.4 million from $9.6 million, a decline of 12.9 percent.

Net sales in Reliv’s foreign markets for the second quarter of 2016 decreased 5.5 percent compared with net sales in the prior-year second quarter. Excluding the impact of foreign currency fluctuation as the result of a stronger U.S. dollar, foreign sales increased by 0.7 percent in the second quarter of 2016 compared to the prior-year quarter.

Reliv reported a net loss for the second quarter of 2016 of $988,000 (loss per diluted share of $0.08) compared to a net loss of $846,000 (loss per diluted share of $0.07) in the second quarter of 2015. The loss from operations for the second quarter of 2016 was $940,000 compared to a loss from operations of $1.1 million in the same period in 2015.

The impact to operations of the reduction in net sales was partially offset by a reduction in selling, general and administrative expenses. Selling, general and administrative expenses were $5.5 million in the second quarter of 2016, inclusive of $275,000 of costs associated with headcount reductions, compared to $6.5 million in the second quarter of 2015.

Net sales for the first six months of 2016 were $24.1 million, which represents an 11.7 percent decrease from the same period in 2015. Net sales in the United States and in Reliv’s foreign markets each decreased by 11.7 percent in the first half of 2016 compared with the first half of last year. Foreign currency fluctuation contributed 6.3 percent of the decline in net sales in Reliv’s foreign markets during the first six months of 2016.

Reliv reported a net loss of $1.0 million, or $0.08 per diluted share in the first six months of 2016, compared to a net loss of $730,000 or $0.06 per diluted share in the same period of 2015.

In May 2016, Reliv implemented a cost reduction program which included an employee headcount reduction of approximately 9 percent of the company’s worldwide employees. The total cost of this program, representing severance and benefits, is approximately $275,000, and is included in the company’s operating results for the quarter ended June 30, 2016. Reliv expects annualized savings from this program of $1.1 million.

“As we reported in the prior quarter, our field compensation plan has been restructured,” said Robert L. Montgomery, Chairman and Chief Executive Officer. “The training and support for this new plan is advancing daily.

Our numbers don’t show overall growth yet. But we do see growth in the number of people vying for top volume contests and promotions. These are the ‘early adopters’ who are always needed for providing new, aggressive direction for others. In the meantime, we have taken steps to reduce our staffing costs and other expenses. These decisions are difficult but necessary to position us for profitability while focusing our distributors on driving growth.”

“Building a business, any business, requires a focus on fundamentals. Reliv has recommitted to the effort of installing effective business fundamentals in our distributor network,” Montgomery said. “Those first adopters are proving that fundamentals drive growth, and this message is gaining traction. Our efforts will remain committed to this strategy in the months and years ahead.”

Reliv had cash and cash equivalents of $3.5 million as of June 30, 2016, compared to $3.3 million as of December 31, 2015 and $4.5 million as of June 30, 2015. Net cash generated from operating activities was $451,000 in the six-month period ended June 30, 2016 compared to $108,000 of cash used in operations in the prior-year period.

As of June 30, 2016, Reliv had 42,500 distributors and preferred customers — a decrease of 11.3 percent from June 30, 2015 — of which 5,310 are Master Affiliate level and above. The number of Master Affiliates decreased by 6.8 percent compared to the year-ago total. Master Affiliate is the level at which distributors are eligible to earn generation royalties. With the formal introduction of the Preferred Customer program in the United States and Canada in February 2016, Reliv now includes preferred customers as part of Active Distributor statistics.

About Reliv International, Inc.

Reliv International, based in Chesterfield, MO, produces nutritional supplements that promote optimal nutrition. Reliv supplements address essential nutrition, weight loss, athletic performance, digestive health, women’s health, anti-aging and healthy energy. Reliv is the exclusive provider of LunaRich® products, which optimize levels of lunasin, a soy peptide that works at the epigenetic level to promote optimal health. The company sells its products through an international network marketing system of independent distributors in 15 countries.

08/15/2016 |

Leave a Reply

Send this to friend

Skip to toolbar