ANALYSIS OF VISALUS DIVE!
50% GONE ONE YEAR DROP!
Blyth Inc. Parent Publically Traded stock had to give reports Q4 – 2013 earnings:
In the Health & Wellness segment, ViSalus's fourth quarter net sales were $62.9 million versus $126.6 million for the same period last year, a decline of 50%, largely reflecting the reduced promoter base in North America.
At the end of the fourth quarter, qualified independent North American promoters totaled approximately 35,000 versus 76,000 promoters at the end of the prior year's fourth quarter. International promoters totaled nearly 2,500 at the end of 2013, reflecting the entry into the U.K. in April.
Health & Wellness fourth quarter segment operating loss was $7.7 million this year versus operating profit of $8.7 million last year.
Editorial Analysis note #1: Blythe has never been really Distributor friendly going back to termination complaints with Party Lite. BUT I TOTALLY HATE....The title> PROMOTERS! Call them Distributors, Consultants.... but not PROMOTERS> sounds like hucksters! I would leave for that alone!
Excluding allocated corporate expenses of $2.4 million both this year and last year, and the EIP charge of $2.2 million last year, fourth quarter operating loss for ViSalus was $5.3 million this year versus $13.3 million operating profit in the fourth quarter of 2012.
Editorial Analysis note #2: The financial drops no doubt trickled out the back door of the office to the field early and scared top Distributors.
The decrease in ViSalus's operating profit was due primarily to the sales reduction and costs associated with its global expansion initiatives.
Ryan Blair, Chief Executive Officer of ViSalus noted that,
"In North America, our core market, we have launched additional products, programs and incentives to retain and motivate customers and promoters.
Editorial Analysis note #3: This is probably to restore some of the midrange reductions in the pay plan..
Monavie found this out too..the hardway too with their $ reduction to midrage leaders:
Editorial Analysis note #5: Some so called (some I would call anti MLM) nutrition experts attacked Visalus for it's weight loss program. Visalus did make some formula changes but, there was never any proven negative effects. Did this hurt? A little probably!
Editorial Analysis how to kill your work force of MLMer's note #6: Distributor terminations, which Visalus, did always makes Distributors shaky and they start drifting out the back door to other MLM homes!
In addition, we have identified several million dollars of savings to right-size the business and free up capital for investment in international expansion and new product development.
By the end of 2014, we will have invested over $13 million to open six new markets, including the UK, which we entered in 2013, and Germany and Austria, which we launched during the first quarter."
UR EDITORS FULL DISCLOSURE NOTE: I worked with the Owners of Visalus when they owned a phone company. I told them to drop the penny phone business and go into nutrition. They did! And put in a lot of hard work..