ForeverGreen Worldwide Corp (OTCMKTS:FVRG) 4Q2014 revenue surged 184% to $17 million compared to $6 million in the same quarter, a year ago. The gross profit came at $14.2 million with gross profit margins at 79.6%. The net income increased to $0.01 per share compared to $0.00 on 4Q2013. The operating income surged 713% to $685,341 against $83,284 in the same quarter, a year ago. The cash at the end of quarter was almost $1 million.
Full year highlights
For FY2014, revenue jumped 229% to $58,341,422 compared to $17,757,388 last year. The gross profit surged 253% to $45,871,378 in FY2014. The gross profit margins expanded to 78.6% in FY2014 compared to 73.3% in Fy2013.
The management view
Jack Eldridge, the CFO of ForeverGreen Worldwide Corp (OTCMKTS:FVRG), said that the company experienced robust sales growth around the world in 2014. The gross profits came higher due to surge in revenue and reduced sales expenses, shipping and product costs. The company successfully optimized pricing with key raw material suppliers and vendors. The product costs declined due to the favorable product mix. The shipping costs came lower due to shipment of high volume products. The total tangible assets surged to $7.7 million due to rise in inventory and purchase of fixed assets. There was substantial improvement recorded in cash positions.
ForeverGreen Worldwide said that the company continued to reduce the debt and just own short term ‘Note’ payable of approximately $1million. The net margins are expected to escalate as fixed costs stabilize. The company expects more than 50% sales growth during FY2015 and FY2016. Ron Williams, the CEO of ForeverGreen Worldwide, said that the envelope model of SolarStrips, BeautyStrips and PowerStrips and the pre-launch of FGXpress helped the company to improve its financial performance. The new products along with the improved marketing plans will continue to fuel growth in the coming years.