Youngevity to Pursue Stock Uplisting in Strategic Growth Push
May 27, 2016 Leave a comment
Photo: Youngevity distributors on board a company incentive cruise.
Youngevity International (YGYI—OTCQX) is pursuing a strategic growth plan that includes a capital raise and possible uplisting of the company’s stock.
In Youngevity’s first-quarter earnings call, management announced its intent to secure a listing on either the New York Stock Exchange or NASDAQ, a move aimed at increasing visibility and driving liquidity for the California-based company. Youngevity is a direct seller of nutrition and lifestyle products, and a vertically-integrated producer of gourmet coffees sold through commercial, retail and direct sales channels.
During the call, President and CFO Dave Briskie told analysts, “Based on the current sales trajectory of our direct selling division, our acquisition pipeline, the evident sales growth occurring in our global markets—especially in Mexico and Canada—and the coffee contracts currently in hand for the back half of this year, we anticipate revenue guidance of $175 million to $190 million for 2016.”
In the first quarter of 2016, Youngevity logged revenue of $38.2 million, up 3.8 percent from $36.8 million a year earlier. The company cleared a profit of $151,000, in the black following its year-ago loss of $369,000. Management also reported increases in gross profit, up 15 percent to $23.4 million, and operating income, up 211 percent to $1.2 million.
In the CLR Roasters coffee segment, Youngevity reported deals with three new major distribution partners for its Cafe La Rica and Josie’s Java House brands. Monthly green coffee orders climbed as high as 18.5 million pounds in February, and in May Youngevity announced that its Siles Family Plantation Group in Nicaragua was recertified as Fair Trade Organic for 2016, as well as Rainforest and Bird Friendly.
Management believes the coffee model, with its potential for retail expansion, a growing family of direct selling brands, and extensive infrastructure improvements underway at the company, make Youngevity an attractive proposition for investors. “Our [strategic growth] plan is ambitious; however, with strong product sales, over 1000 products available, organic growth and the stepped up activities of our distributors, we believe we are well positioned for the future,” said Briskie.