Youngevity International, Inc. (YGYI) Research Update Released
New York, NY - June 3, 2014 (www.investorideas.com newswire) Taglich Brothers Youngevity International, Inc. (YGYI) Research Update Released:
Youngevity's revenue potential from its direct selling network of nutritional and lifestyle products and services is substantial. We project monthly purchase orders increasing to at least 85,500 in 2015 from about 70,250 in 2014 primarily due to acquisitions. In 2015 we project an average order size of $139 (down from $159 in 2013) due to lower average selling price of products from acquisitions.
YGYI aims to increase international sales by building distribution and logistical organizations in Russia, Malaysia, Israel, Mexico, Chile, and Colombia in the 2H14. In May 2014 the CLR Roasters subsidiary acquired a coffee plantation and a processing facility in Nicaragua for $2 million in cash and 1 million shares of YGYI common stock from the company's CEO.
We project YGYI's commercial coffee revenue of $13.9 million in 2015, up from $8.8 million in 2013. The increase reflects distribution to supermarkets, Sam's club, Walmart stores and website, marketing deals with JBM Sales & Marketing, and contracts signed in May 2014 to sell green coffee from its Nicaragua plantation.
1Q14 revenue (reported on 5-14-14) grew 26.8% to $26.4 million with net income of $423,000, down from $1.1 million with each period at breakeven. While sales exceeded our forecast of $25.9 million, income fell short by $738,000. The shortfall was due to unanticipated international, MK Collaborative, and coffee facility costs.
We project revenues of $121.3 million and $157.1 million, respectively in 2014 and 2015, up from our prior forecast of $107.1 million and $133 million. The increase is due to faster than anticipated monthly purchase orders, international expansion, and purchase of coffee plantation and processing facility in Nicaragua.
We project net income of $1.9 million and $4.7 million, respectively, in 2014, and 2015.
Youngevity International Inc., headquartered in Chula Vista, CA, offers a wide range of consumer products and services, primarily through person-to-person selling relationships (also known as a direct selling model). The company also is a vertically integrated producer of coffees for the commercial, retail, and direct sales channels.
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