Medifast (NYSE: MED) released results for the second quarter, 2008. Medifast reported pretty good numbers overall with revenue growing 25% percent over second quarter 2007. Medifast operates through retail sector as well as their Direct Sales subsidiary, Take Shape for Life.
For the six months ending June 30, 2008, Medifast reported revenue of $52.7 million, which was a 25% percent increase over last year, and net income of $2.9 million which was a slight increase over the $2.3 million in net income for the same period in 2007. The company also reported that gross margins increased to 75.8% from 75.6% for the second quarter of 2008, which they attributed to new machines which have increased efficiency.
Take Shape for Life grew 79% percent year-over year and represented 44% percent of overall second quarter revenue. Take Shape operates using “Coaches” who work like distributors helping provide customers with both product and advice on their weight loss and nutrition issues. The number of “coaches” grew 87% percent to 2,800 compared to only 1500 last year. This increase could be partially due to the struggling economy which has forced people to find ways to earn extra income.
“We are pleased with the results of the quarter; particularly in the face of the difficult economic environment,” commented Michael S. McDevitt, Chief Executive Officer of Medifast, Inc. “Our strategy of offering the clinically proven Medifast program via multiple distribution channels continues to gain significant traction.
Medifast is making their entire report available to interested parties on their website.
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