We’ve been following Youngevity International for quite some time now, and for good reason. Since the company was brought to our attention, we’ve seen consistent news, and that news has been overwhelmingly positive. With so much coming out over the past few months, we figured that now would be a good time to go back and provide a bit of a recap with regard to what we’ve seen from YGYI over recent months.
June 21st YGYI Hits The NASDAQ!
We started covering Youngevity shortly before they made it to the NASDAQ. On June 21st, the company was uplisted. The day before the uplist, the company announced the biggest acquisition it had been part of to date. On June 20th, YGYI announced that it had entered into a definitive agreement to acquire Sorvana International, bringing on the FreeLife and L’dara brands.
“Youngevity’s listing on the NASDAQ Capital Market is a major corporate milestone and a source of great pride for the Youngevity family of employees, distributors, executives and supporters that have contributed to this moment. What enhances the sense of pride and accomplishment is that Youngevity attains this listing by executing and delivering on our business plan and our priority to grow shareholder value with minimal dilution. We are happy to say that meeting NASDAQ’s requirements is a culmination of the dedication and hard work of so many throughout the Youngevity family.”
With regard to the acquisition of Sorvana International, Mr. Wallach stated:
“FreeLife has a proud 22 year history of success in the Direct Selling Profession and L’dara’s patented skin care products are very special. We believe acquiring Sorvana International represents a true expansion of our mission of betterment, and delivering exceptional, science based wellness products for optimal health to our customers… We are very proud of this acquisition as it represents our largest transaction in terms of top line revenue and in numbers of quality field leadership.”
June 29th Pürmeric™ Debut Is Announced
On June 29th, YGYI announced the debut of Pürmeric™, the newest product in the ProLine collection. Pürmeric™ consists of 95% curcuminoids from certified turmeric root and is believed to to deliver a greater antioxidant capacity than most turmeric products on the market today. In a statement, Dave Briskie, President and CFO at Youngevity International, had the following to offer with regard to the debut:
“Pürmeric delivers yet another example of our commitment to offering quality and science when we create a nutritional product or supplement… We are not in the business of offering ‘me-too’ products. We are in the business of offering robust product entries that can compete strongly across the supplement spectrum.”
July 10th YGYI Announces Completion Of Sorvana International Acquisition
Following up on the news that was released in late June, Youngevity announced on July 10th that it had completed the acquisition of all assets of Sorvana International. This was incredible news, as this acquisition completion brought on key assets from a company that has a 22-year successful run in the wellness industry, while bringing in key skincare products from a company that has seen incredible success since 2013. In a statement with regard to this news, Steve Wallach offered the following:
“We are very proud of having closed on the acquisition of Sorvana International. Sorvana embodies so many of the attributes we look for in an acquisition, ranging from the level of quality products, the amount of distributors and customers, and the geographic footprint the company currently has in the marketplace. We have been seeking to acquire an established company with international distribution and we are very fortunate to have find that opportunity in Sorvana.”
July 12th YGYI Announces The Launch Of Snap2Finish
In July, the news kept rolling as Youngevity International announced the launch of Snap2Finish, it’s break into the $16.8 billion industry that is known as the photo printing and merchandise industry. Snap2Finish gives users the ability to turn their favorite pictures into a variety of gifts and products. With everything from beach towels to coffee mugs and photobooks being offered, Snap2Finish has the ability to be a key driver of revenue ahead. In a statement, Dave Briskie, President and CFO at YGYI, had the following to offer with regard to this news:
“We are proud to launch Snap2Finish today and happy to offer another product category to our distributors that they can now bring to their customers… We are enthusiastic about our partnership with Fuji and quite pleased with the quality they are bringing to our Snap2Finish technology. We anticipate expanding these capabilities to our Australia and New Zealand markets later this year.”
July 25th Luke Taffuri Is Brought Onto The Team
On July 25th, more news broke as YGYI made a key addition to its management team. The company announced that it had appointed Luke Taffuri to the position of VP of International Sales and Operations. This is a key addition, as Mr. Taffuri brings more than 22 years of direct selling experience and held the position of COO at Sorvana International, a company that was recently acquired by Youngevity International. In a statement about the appointment, Mr. Taffuri had the following to offer:
“I am impressed with what Youngevity has in place for their current international markets from an operational, technological, and product offering standpoint. I am most impressed, however, with the quality of the people and the culture that has been built throughout the organization. They have a great foundation illustrated by their 20 year history which I believe will lead to more efficient and productive transitions in the international marketplace. Initially I will focus on driving revenue growth across the global platform. As markets begin to scale I will set my sites on operational efficiencies and profitability.”
August 3rd Alliance With Ascaso Announced
Early this month, YGYI kept the news coming when it announced that CLR Roasters, its wholly-owned subsidiary, entered into an alliance with Ascaso. This alliance gave CLR Roasters exclusive distribution rights with regard to Ascaso’s Espresso Equipment for the Food Service market in South Florida. On the same day, the company announced that Café La Rica, A CLR Roasters product, became the Official Cafecito of the Miami Marlins. In a statement regarding the news, Ernesto Aguila, President of CLR Roasters and founder of the Café La Rica brand, offered up the following:
“We are proud to now exclusively provide Ascaso Expresso Equipment alongside our As Café La Rica espresso in the food service market. In my opinion, there is no better espresso equipment available in the market today and we expect this competitive advantage to continue to drive the momentum of Café La Rica as we move toward national distribution.”
August 10th YGYI Announces Impressive Earnings Results
Finally, on August 10th, YGYI announced its financial results for the most recent quarter. During the quarter, revenue rose by $2.8 million compared to the first quarter of the year, direct selling revenue increased by 6.9% over Q1, coffee segment revenues rose by 9.1%, and EBITDA came n at $745 thousand for the quarter, a sizable improvement over the loss of $1.24 million seen in the first quarter. In a statement, Dave Briskie had the following to offer with regard to these results:
“Following the fourth quarter of 2016 and the first quarter of 2017 which we felt were lackluster our executive team has refocused and increased its commitment toward driving consolidated revenue growth, strengthening our adjusted EBITDA, accelerating our international sales, and driving top line revenue growth for our coffee segment. In the second quarter, we made solid progress in each of these key metrics and we will be measuring our performance in these areas in the coming quarters with an expectation of continued progress for the remainder of 2017 and into 2018.”
Youngevity International has been an interesting company to follow. With the company making big moves quite consistently to further take control of the direct selling market, bring new products to the table, and offer growth in key financial data, it’s hard not to keep a close eye and wonder just what’s going to happen next!
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