Youngevity International, Inc. (OTCQX: YGYI) is a nutritional and coffee company offering more than 1,000 high quality, technologically advanced products across a collection of consumer markets. The company’s primary brands include Youngevity® Essential Life Sciences, which offers consumers a wide selection of life-enhancing products, as well as CLR Roasters, one of the largest coffee roasters in the United States. Through these brands, Youngevity is adhering to an aggressive growth strategy through direct selling, traditional marketing, mergers and acquisitions.
In the first quarter of 2015, the company leveraged its growth strategy to post impressive financial results. For the period, Youngevity realized a 39.4 percent increase in year-over-year net revenue, posting $36.8 million, as well as a 28.1 percent boost in gross profit.
“In the first quarter, we remained focused on accelerating our revenue via targeted acquisitions, strengthening our geographic expansion, and steady organic growth in both our direct selling and coffee business segments,” Steve Wallach, chief executive officer of Youngevity, stated in a news release. “We are very excited about the opportunities ahead of us and believe that we are well positioned to deliver long-term shareholder value.”
In May, Youngevity took a major step toward securing future growth through the acquisition of Mialisia, a direct-sales company that specializes in interchangeable jewelry. Through the agreement, the company will add Mialisia’s patent-pending line of jewelry to its product offerings while effectively expanding its distribution network to include the existing customer base of its new subsidiary.
The company has also made significant strides toward growing its CLR Roasters brand in recent weeks. In particular, Youngevity announced a five year agreement with a leading specialty food sales and marketing company for exclusive rights to roast, grind and package eight different coffee products in single-serve capsules. The deal should provide the company with over $13 million in additional revenue over the five year period, in addition to providing for automatic renewals for successive five year terms upon its completion.
By building upon its presence in the single-serve coffee niche, Youngevity should be in a strong strategic position to realize continued growth in the future. The single-cup brewing market is expected to climb to $8 billion by 2017, which would be a 250 percent increase from 2012, according to a global leader in food and agribusiness financing.
For prospective shareholders, Youngevity’s recent growth across a collection of expanding markets makes the company an intriguing investment opportunity. The company should be kept on radar as the management team builds on its progress through a combination of strategic acquisitions and expanding distribution efforts.
For more information, visit www.ygyi.com
