Reliv Implements Strategy for Better FY02

Reliv Implements Strategy for Better FY02

CHESTERFIELD, Mo.--Reliv International Inc. (NASDAQ:RELV) reported March 18 that for its fiscal year (FY01), ended Dec. 31, its sales were negatively affected by exiting a contract manufacturing and packaging business, a move that ultimately boosted its bottom line.

Sales for the year were down to $52.9 million from $61.3 million. Gross margin increased to 76.3 percent of sales from FY00's 59.2 percent. Operating expenses, which included distributor royalties and commissions, increased to $39.4 million from $36.5 million. Net profit for the year improved to $.3 million, or $.03 per share earned, compared to last year's net loss of $.9 million, or $.09 per share lost.

According to the company, Reliv's net profit reflects the effect of eliminating losses associated with its contract packaging segment, as well as reducing international operating expenses. The company remains positive about its strong sales growth in its network marketing business. "Although our earnings were relatively modest for the year, they prove that our business is fundamentally sound and that we are poised for profitable growth," stated Robert Montgomery, president and chief executive officer. He added that the Philippines is now the company's second-largest market worldwide, and sales in Mexico, Australia and New Zealand have experienced sharp increases. Montgomery reported that the company's withdrawal from Columbia should benefit 2002 results, as this market incurred operating losses in 2001. 

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