Mannatech Reports $117.9 Million in Net Sales for Fiscal Year 2024, Down 10.7%

Mannatech, Incorporated reported a consolidated net sales figure of $117.9 million for the fiscal year ending December 31, 2024, a decrease of 10.7% from $132.0 million in 2023. The decline in revenue was attributed to a combination of unfavorable foreign exchange rates, which accounted for a $2.7 million decrease, and a 8.6% drop in sales on a constant dollar basis. The company generated an operating income of $1.4 million, a significant recovery from an operating loss of $1.0 million in the previous year. Net income for 2024 was reported at $2.5 million, or $1.32 per diluted share, compared to a net loss of $2.2 million, or $1.20 per diluted share, in 2023.

The company experienced a notable reduction in its active associate and preferred customer base, which fell to approximately 133,000 from 145,000 in the previous year. This decline was primarily driven by a 9.0% decrease in the number of active associates in the Asia/Pacific region, which also saw a 13.1% drop in sales to $69.0 million. The Americas region reported a 7.2% decrease in sales, totaling $39.7 million, while the EMEA region saw a smaller decline of 6.1%, with sales of $9.2 million. The overall decrease in customer engagement and sales was partially offset by a slight increase in revenue per active associate.

Strategically, Mannatech has made significant changes to its operational structure, including the cessation of its tiered affiliate program in the United States under the brand name "Trulu" in July 2024. The company also liquidated its entity in Sweden during the second quarter of 2024. These decisions are part of a broader strategy to streamline operations and focus on core markets. The company continues to operate its non-direct selling business in China through its subsidiary, Meitai, which utilizes a cross-border e-commerce model.

Mannatech's financial outlook remains cautious, with management emphasizing the need to attract and retain independent associates and preferred customers to drive future growth. The company is implementing a reorganization plan aimed at improving revenue, controlling costs, and enhancing operational efficiency. This includes potential price increases and adjustments to its compensation plan to better align with market conditions. The company believes that its existing cash resources and cash flow from operations will be sufficient to support its business activities over the next twelve months, although it acknowledges the risks associated with market fluctuations and operational challenges.