Revenues for the third quarter ended September 30, 2019 decreased 13.0% to $34,017,000 as compared to $39,082,000 for the three months ended September 30, 2018.
We derived approximately 89.0% of our revenue from our direct selling segment and approximately 10.5% of our revenue from our commercial coffee segment and approximately 0.5% from our commercial hemp segment.
Direct selling segment revenues decreased by $4,024,000 or 11.7% to $30,256,000 in the current quarter as compared to $34,280,000 for the quarter ended September 30, 2018.
This decrease was primarily attributable to a decrease in the number of ordering customers, partially offset by an increase in revenues from distributors due to an increase in the average order amount per distributor
Steve Wallach, Chairman and CEO of Youngevity International stated,
“Although we have recently made great strides in producing revenue growth this year, the third quarter posed a number of challenges as we faced seasonally slower sales for the direct selling segment and our commercial coffee segment contributed to a seasonally slower quarter.
Additionally, our commercial hemp segment was still operating on a pre-revenue basis for this quarter. We enter Q4 with the anticipation of sales growth contribution coming from our latest acquisition within the direct selling segment and with Khrysos Industries beginning to generate revenue which has us anticipating finishing 2019 year with double digit revenue growth.”
Dave Briskie, President and CFO of Youngevity International stated,
“We are not pleased with Q3’s performance, however, we are confident that we made the appropriate moves in Q3 pivoting our commercial hemp enterprise business model.
The decision to expand Khrysos Industries into an 82,000 square foot, pharma grade, post processing facility has prolonged the period of time we will operate our commercial hemp enterprise on a pre-revenue basis, however, ultimately this decision is expected to accelerate our ability to compete, scale, and grow profitable revenue as we close out 2019 and move into 2020”.
About Youngevity International, Inc.
Youngevity International, Inc. ( NASDAQ : YGYI ), is a multi-channel lifestyle company operating in 3 distinct business segments including a commercial coffee enterprise, a commercial hemp enterprise, and a multi-vertical omni direct selling enterprise.
The Company features a multi country selling network and has assembled a virtual Main Street of products and services under one corporate entity, YGYI offers products from the six top selling retail categories: health/nutrition, home/family, food/beverage (including coffee), spa/beauty, apparel/jewelry, as well as innovative services. For investor information, please visit YGYI.com.
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