2021 ANNUAL REPORT
As a company, we see a world in
which people find it easier and
more rewarding to transform their
lives for the better, through a
health and wellbeing journey that
is powered and optimized through
deep and engaged community.
Chairman & Chief Executive Officer
Dear Fellow Stockholder:
of the most illustrious and well-known
names in the consumer world. In terms
of revenue, we are now the publicly
traded market leader in the U.S. $7
billion weight management industry,
surpassing companies that just a few
years ago were several times our size.
It’s a truly remarkable achievement
in a very short time period, and
a testament to the passion and
dedication of the OPTAVIA community
and our employees. Together we
have shown that our shared mission
of providing the world lifelong
transformation, one healthy habit
at a time not only inspires change
in our growing OPTAVIA community
but has also built a foundation for a
fast growing and vibrant company
that is changing the way individuals
approach health and wellness.
In 2021, Medifast recorded a 63.2%
increase in revenues over the prior
year. Net income increased 59.5%
year-over-year to $164.0 million, while
earnings per share grew 60% to $13.89.
Continued growth in Coach attraction,
retention and productivity were
significant drivers of this outstanding
success. By the fourth quarter of 2021,
our number of active earning coaches
grew to 59,800, an increase of more
than 35% over the prior year, while
average revenue per active earning
OPTAVIA Coach was $6,321 compared
to $5,932 for the fourth quarter of 2020,
an increase of 6.6%.
Our commitment to client experience
has played an important role in this
success. We have made significant
investments in our supply chain over
the course of the past eighteen
months, more than doubling our
manufacturing and distribution
capacity so that we can power
growth and ensure that Clients can
get products in a timely and effective
manner.
We’ve also driven Coach productivity
by harnessing the power of digital and
social technology. During 2021, we
launched two integrated digital apps
to help Coaches support their current
and future clients, as well as to help
Clients better manage their OPTAVIA
relationship and their overall health
and wellness journey.
By the end of 2021, these apps were
being used by more than 300,000 users
in the OPTAVIA community, and we
continue to see further potential for
growth in the months ahead.
As a company, we see a world in
which people find it easier and more
rewarding to transform their lives for
the better, through a health and
wellbeing journey that is powered
and optimized through a deep and
engaged community.
When we began our business
transformation five years ago, we
defined our market in the United States
as the commercial weight loss meal
plan and replacement sector, worth
an estimated $7 billion.
Three years ago we laid out our vision
to grow Medifast to a billion dollars
in sales by the end of 2021. We built
a wide-ranging and methodical
plan to deliver against our goals,
invested in growth, and created the
organizational rigor and structure to
help us maximize our effectiveness
and prepare for our next growth
objective. I’m delighted to say that this
intentional approach paid dividends in
2021, as we not only hit that $1 billion
revenue milestone, but ended the year
above $1.5 billion.
Our health and wellness brand,
OPTAVIA, now reaches a community
of more than one million people
annually who have used our coaching
services, branded products and digital
apps. It’s no wonder that OPTAVIA
has now joined the ranks of just a
small number of food and beverage
brands that have broken through the
billion dollar revenue mark in the 21st
century, placing us alongside some
Having achieved so much in
this space, we believe that our
differentiated model gives us a unique
opportunity to expand and operate
in a much wider addressable market
than we do today.
The health and wellness market as a
whole is worth $230 billion in the United
States alone, and it’s our intention to
pursue deeper penetration of that
market through new and existing
products and services in the future.
As we move forward to 2022, we have
set a new growth milestone to double
our revenue to $3 billion. With our long-
term growth objective of 15% firmly in
focus, we anticipate we will achieve
this goal within five years.
Technology will be at the core
of our expanded growth vision.
We’ll leverage social media,
communication platforms, apps and
data to improve the efficiency of
our Coach and Client community,
and add to our strong platform of
clinically proven products as well as
our pioneering Habits of Health system.
Through this process, we’ll make our
offer more attractive to increasing
numbers of Clients, and unlock further
opportunities for new service and
subscription offers.
This process, in combination with
continued improvement in field-led
training, will be important to driving
increased Coach efficiency and
productivity, both in the United States
and in international markets.
We continue to believe that there is
significant opportunity around the
globe, and as we expand into the
broader health and wellness segment,
we’ll be looking for further ways to
bring our deep insight and knowledge
to bear in markets outside our
domestic stronghold.
Our commitment to helping clients
achieve lifelong transformation is
relentless, with more than two million
lives now impacted. Whether it’s at
home or internationally, it always
starts with the work that we do in the
communities where we live and work.
Our corporate social responsibility
initiative, Healthy Habits for All,
advances our mission by providing
underserved communities with
education and access to tools and
support to help build their personal
and family wellbeing.
Through partnerships with a number of
non-profits, we can help break inter-
generational chains of poor health to
give kids and families in underserved
communities the ability to transform
their health and wellness destinies. It
is important work, and I am proud of
the role our employees, Coaches and
Clients play in driving its success.
Whether we are working in the
community or driving organizational
effectiveness, the Medifast team is
working with passion and commitment
to drive positive outcomes.
We are building our operational
effectiveness and repeatable business
rhythms as we power our economic
engine for consistent growth over the
years ahead. We believe we have
a fast-moving agile organization
that can shift to take advantage of
opportunities, and we have the solid
financial foundation to give us a
platform from which to expand into
the wider health and wellness sector.
More than anything, we have a world-
class team that continues to improve
all the time. It’s no wonder we are
optimistic about the future.
Thank you for your continued support
as an investor in this company. I look
forward to updating you further on our
progress and success for many years to
come.
Sincerely,
Dan Chard
Chairman & Chief Executive Officer
FORWARD-LOOKING STATEMENTS
Certain information included in this Annual Report, such as descriptions
of Medifast’s objectives, goals or targets, constitute “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements give expectations or forecasts
of future events. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and other
factors, many of which are beyond the Company’s control and are
difficult to predict. Although Medifast believes that the expectations,
statements, and assumptions reflected in these forward-looking
statements are reasonable, actual results could differ materially from
those expressed or implied in the forward-looking statements. Risks,
uncertainties, and other factors that might cause such differences
include, among others, Medifast’s inability to attract and retain
independent OPTAVIA Coaches, increases in competition, litigation,
regulatory changes, its planned growth into new domestic and
international markets and new channels of distribution, disruptions in
Medifast’s supply chain, the impact of the COVID-19 pandemic on
Medifast’s results, and uncertainties and factors identified in Medifast’s
filings with the U.S. Securities and Exchange Commission. The reader
should not place undue reliance on these forward-looking statements,
which speak only as of the date of this Annual Report. Unless legally
required, Medifast undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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