Medifast to raise prices amid profit, revenue decline

Baltimore weight loss company Medifast Inc. plans to increase prices on all its products amid a drop in profits and a slowdown in revenue. Medifast (NYSE: MED) revenues declined in the third quarter by 5.6% to $390.4 million compared to $413.4 million a year ago. The company reported a profit of $36.2 million, or $3.27 per share, compared to $42 million, or $3.56 per share, a year ago, a drop of nearly 14%. On an adjusted basis, Medifast saw a profit of $36.8 million or $3.32 per share. The company also cut its full year outlook for both revenue and profit. The decline comes after a 15% jump in revenue in the second quarter and follows a year of massive growth for the Harbor East company when it hit a record $1.5 billion in sales. It marks the second straight quarter Medifast saw profits decline as inflation, supply chain and the cost of raw materials affected its bottom line.