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Medifast revenue continues long fall

Profits continue to decline for Owings Mills-based Medifast Inc., which reported Wednesday that third quarter net income dropped 14 percent compared to the same period last year.

The company, which develops weight-loss products and programs, reported net income of $4.9 million, or 39 cents per diluted share, for the third quarter of this year. During the third quarter of last year, net income was $5.7 million, or 41 cents a share.

Net revenue continued to slip in each of Medifast’s sales channels. Overall, revenue for the quarter totaled $74 million, a 14 percent year-over-year decrease.

Medifast Direct, the channel that includes online sales and the customer call center, saw the largest revenue drop: 22 percent year-over-year.

The company has been experiencing similar declines for the past few quarters. Late last year, Medifast began closing many of its underperforming Weight Control Centers, transitioning some to the franchise model and closing others for good.

And recently, Medifast announced a partnership with Fitbit, a company that manufacturers wearable fitness activity trackers. Company officials have said they hope the changes will help Medifast stay relevant in the evolving diet and fitness industry.

“Our team continued to manage the controllable aspects of our business, and we are pleased these efforts enabled us to generate another quarter of earnings ahead of our expectations,” Chairman and CEO Michael MacDonald said in a statement Wednesday.

“While top line growth continues to be a challenge, we believe the strategic initiatives we have set in place will improve our ability to attract new clients and retain our current customers.”

About Alissa Gulin

Alissa Gulin covers health care, education and general business at The Daily Record.