Feb. 26, 2021
Medifast reported Q4 and full year 2020 results. To achieve any kind of growth during a year of pandemic and recession is admirable. To post the kind of record sales that Medifast did last year is just remarkable. The company continues to post impressive growth and is now the #2 weight loss company by sales, with record revenues of $934 million.
"This has been another very strong year for Medifast, with our independent OPTAVIA Coaches attracting and retaining a record number of new clients. Despite the continued macroeconomic challenges from the COVID-19 pandemic, we have seen significant revenue and earnings growth along with a new record level of active earning coaches," said Dan Chard, Chairman and CEO of Medifast. "That powerful momentum maintained in the fourth quarter, as people continue prioritizing health and wellness in their lives. "
The total number of active earning OPTAVIA Coaches increased 39.0% to 44,200, compared to 31,800 for the fourth quarter of 2019. The average revenue per active earning OPTAVIA Coach was $5,932 compared to $5,229 for the fourth quarter last year.
For the fiscal year ended December 31, 2020, revenue increased 31.0% to $934.8 million compared to revenue of $713.7 million in 2019.
Fourth Quarter 2020 Highlights Compared to the Prior-Year Period
- Revenue increased 55.3% to $264.9 million
- 39.0% growth in active earning OPTAVIA Coaches to a record level of 44,200
- Revenue per active earning OPTAVIA Coach increased 13.4% to $5,932
- Net income increased 40.8% to $28.0 million.
Full Year 2020 Highlights Compared to the Prior-Year Period
- Revenue of $934.8 million, an increase of 31.0% year-over-year
- Net income of $102.9 million, an increase of 32.0% year-over-year
To increase sales by 31% in a recession and pandemic is simply remarkable. We wonder how long the company can maintain this kind of growth. At this rate, it will overtake WW to be the largest U.S. weight loss company in a few years. As we've said many times, don't underestimate the power of the MLM model when it comes to weight loss products and programs. We thought that with lockdowns and social distancing, MLM coaches might have a hard time keeping in touch with their customers. Apparently not.
For More Insights About Commercial Weight Loss Centers and Weight Loss Market Forecasts, watch for Marketdata's upcoming newly revised report: "The U.S. Weight Loss & Diet Control Market, due out in early-mid March. See www.marketdataenterprises.com for a Table of Contents and to order the study. Or call: 813-971-8080, M-F, 9-5.
The complete Press Release and detailed financial tables can be found here: