Reliv International, an international manufacturer and network marketer of nutritional supplements and other food technology products, has reported net profits of $308,000 (€350,469) on sales of $52.9 million in fiscal 2001.
The profits compare to losses of $898,000 in 2000, and the company said the improvement reflected the impact of eliminating losses associated with the contract packaging segment, as well as reduced expenses in its international operations.
Reliv saw network marketing sales grow by 10 per cent worldwide in 2001 to $49.1 million, with international sales particularly strong, advancing 54 per cent. However, the company's total sales declined $8.4 million, reflecting a previously announced decision to exit a contract manufacturing and packaging business that had proven unprofitable.
Sales for contract packaging were $3.9 million in 2001 compared to $16.7 million in 2000. For the year, Reliv's net sales totalled $52.9 million, down from $61.3 million in 2000.
Robert L. Montgomery, president and chief executive officer of Reliv, said: "We are encouraged by the strong sales growth produced by our core network marketing business in 2001. 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."
Montgomery noted that international sales contributed significantly to the company's performance in 2001. "The Philippines grew to become our second-largest market worldwide, even though we've been operating there for just a little over a year. In addition, our sales increased sharply in both Mexico and the Australia/New Zealand market during the fourth quarter."
He added that 2002 results should benefit from the company's decision to exit Colombia - a market where Reliv had incurred operating losses in 2001.
Reliv International manufactures and distributes several lines of food products, including nutritional and fibre supplements, diet management products, functional foods, sports drink mixes and a line of premium skin care products. Its proprietary product lines include an extensive line of soy-based products.