Reliv International Reports First Quarter Financial Results
Reliv reported net sales of $19.7 million for the first quarter of 2012, compared to sales of $21.7 million for the first quarter of 2011. United States sales declined by 14.6 percent for the quarter compared to the same quarter in 2011. International sales for the quarter rose 23.4 percent, led by continued strong growth in Europe.
The company reported net income of $532,000, or $0.04 per diluted share, for the first quarter of 2012 compared to net income of $610,000, or $0.05 per diluted share, for the first quarter of 2011. Income from operations for the first quarter of 2012 was $914,000 compared to $1,077,000 in the same quarter of 2011.
Net sales in Europe increased by 120 percent to $1.6 million in the first quarter of 2012 compared to $724,000 in the prior-year first quarter. "Europe continues to lead all markets in growth with record-setting sales for Europe in the first quarter of 2012," said Robert L. Montgomery, chairman, president and chief executive officer of Reliv. "The double-digit growth that started in 2010 has increased as our European distribution network expands. We plan to build on this expansion throughout 2012."
Sales in Asia increased by 7.3 percent in the first quarter of 2012 compared to the prior-year quarter, led by the Philippines. "In the Philippines, sales growth continues to accelerate as well," he said. "The introduction of single-serving sachets for our most popular products has opened up new selling opportunities for our Philippine Distributors. The launch of LunaRich(TM) soy powder in the Philippines, an event covered by local mainstream media, has provided further sales momentum."
"In the United States, we continue to implement our plan to use innovation to jump start sales," Montgomery said. "Leading the way is LunaRich soy powder, the first Reliv-exclusive nutritional ingredient. LunaRich was created through Reliv's research and development partnership with the Missouri Plant Science Center. It delivers five to ten times more lunasin than standard soy powders.
Lunasin is the peptide scientists have identified as the key to many of soy's documented health benefits, including cholesterol management, cell health and more."
"Backed by clinical studies, LunaRich has energized our distributor base and given us a new competitive edge in the supplement market," he said. "Reliv Now® was the first product to contain LunaRich, followed by Reliv Now for Kids and SoySentials® women's protective supplement. We will add LunaRich to more Reliv formulas in the coming months."
"Reliv's marketing team is implementing additional online capabilities. We have made more online sales tools available, expanded our social media footprint and developed a new video and multimedia strategy. I believe these additional features will make it easier for distributors to share Reliv and make it easier for new people to get started with Reliv. Enhancements such as these are a part of our commitment to provide an affordable home-based business opportunity, and I believe this will be a factor in returning to sales growth," Montgomery said.
"As we work to build on sales momentum overseas and regain momentum in the United States, we strive to reduce costs and strengthen our balance sheet," he added. Reliv reported a reduction in selling, general and administrative expenses of $795,000 for the first quarter of 2012 compared to the prior-year period. Reliv had cash and cash equivalents of $6.6 million as of March 31, 2012, a decrease of $584,000 from the balance as of December 31, 2011.
As of March 31, 2012, Reliv had 58,530 distributors - a decline of 2.2 percent from March 31, 2011 - of which 5,980 are Master Affiliate level and above. Master Affiliate is the level at which distributors are eligible to earn generation royalties.
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