Photo: Youngevity distributors kick off the year with an incentive cruise.
Youngevity International (OTCQX: YGYI) continued its double-digit growth streak in 2014 by more than doubling revenue, the company reported this week. The San Diego-area firm is setting its sights on international markets as it continues to expand its portfolio of nutrition and lifestyle products.
Youngevity reported 2014 revenue of $134.0 million, a 56.5 percent increase versus 2013. Revenue derived from acquisitions was $14.5 million. Net income increased to $5.4 million, up from $2.7 million in the prior year, largely due to a $4.7 million tax benefit from adjustments to deferred taxes.
“If I had to put a label on 2014, I would call it the year of refinement because we successfully refined nearly every key component of the company,” President Bill Andreoli told investors during the company’s earnings call. Throughout the year, Youngevity made improvements to its product warehousing and logistics system, website and online shopping experience, field training and recognition systems, and both its acquisition and organic growth strategies.
The company’s ongoing acquisition strategy has positioned it across the Health and Wellness, Beauty and Care, Food and Beverage, and Home and Family categories. This year Youngevity added energy services, including renewable energy options, through a partnership with Energy Professionals. In addition to its direct sales segment, Youngevity operates CLR Roasters, a vertically integrated gourmet coffee business.
Youngevity’s direct selling revenue grew 51 percent for the year, totaling $161.3 million, while the commercial coffee business grew 101 percent to $17.7 million. At year-end, total assets were $55.7 million, compared to $34.9 million at the close of 2013.
The company’s leadership says that in 2015 and beyond it will focus on establishing the brand across international markets, which accounted for just 8 percent of 2014 sales. Youngevity reports significant growth in Canada, its largest international market, as well as Australia and New Zealand, where it recently obtained a facility three times the size of the existing one to support demand in the region.
Recent expansions include Russia, where Youngevity has opened a Moscow office, and Singapore, where it hopes to build distribution within the Asian marketplace. Youngevity is also building a presence in Mexico with an eye toward additional Latin American countries.