FitLife Brands gave more than 25 million reasons why it believes in the MusclePharm turnaround. So, why am I not impressed? For those unaware, the supplement brands that are within the FitLife Brands portfolio are now categorized in four segments…NDS Products (which are a collection of brands mostly sold in the GNC franchise system), iSatori Products (which are a collection of brands sold through a diversified retail mix), Mimi’s Rock Corporation Products (which are a collection of brands mostly sold on Amazon), and then MusclePharm Products (which was acquired on October 10, 2023). In total, the FitLife Brands portfolio is sold through more than 20,000 retail locations globally. In the fourth quarter of 2023, FitLife Brands Inc. (NASDAQ: FTLF) had revenues of $13.3 million…which was up 148% YoY. On face value that obviously looks impressive, but you had both the Mimi’s Rock and MusclePharm acquisitions that happened in 2023 and greatly impacted the comparable growth percentage. If you look at the revenue from a QoQ perspective, FitLife Brands revenues declined around 4.3%. While there's strategic initiatives going on at legacy FitLife Brands and Mimi's Rock, the most intriguing segment within FitLife Brands is MusclePharm. But even though MusclePharm was owned for the vast majority of Q4, its contribution to the FitLife Brands quarterly performance was immaterial because they needed to procure inventory (as basically no inventory was acquired in the asset purchase), and they needed to negotiate new retail agreements with MusclePharm’s existing wholesale customers. So, what that all means is the MusclePharm business really didn’t begin ramping up in terms of both wholesale and online sales until this current first quarter of 2024. Because of that…FitLife Brands gave some additional forward-looking statements based on preliminary first quarter numbers to show the early turnaround progress at MusclePharm. In the first quarter of 2024, MusclePharm segment total quarterly revenue will be around $2.25 million. That’s a slight drop in revenue YoY from the 2023 bankrupt MusclePharm era and even a more significant drop from the $3.8 million in Q3 revenue the company generated before the FitLife Brands acquisition. So, then what is needed for FitLife Brands to turnaround MusclePharm? FitLife Brands isn’t looking to hit a homerun with the MusclePharm turnaround…or so I thought before I heard the comments on the earnings call and them sharing a new element of the strategic gameplan. But I’m fearing that FitLife Brands might be getting excited about early indicators of sales performance, getting overly-confident, and might be getting caught up in the last (and biggest) part of that old MusclePharm sales playbook…launching more and more new SKUs. I'll breakdown all the strategic elements within the recent FitLife Brands announcement that they're bringing back the MusclePharm Combat Crunch protein bars...including how it impacts projected margins within the MusclePharm segment, how that relates to FitLife Brands return on investment, and future supplement industry capital deployment strategy overall.

FOLLOW ME ON MY SOCIAL MEDIA ACCOUNTS

• ⁠⁠LINKEDIN⁠⁠


• ⁠⁠YOUTUBE⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠


• ⁠⁠TWITTER⁠⁠


• ⁠⁠INSTAGRAM⁠⁠ ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠


• ⁠⁠FACEBOOK⁠⁠