Mannatech, Incorporated reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, net sales were $31.7 million, a decrease of 2.5% from $32.6 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $88.9 million, down 10.5% from $99.3 million in the prior year. The decline in revenue was attributed to weakened demand in Asia due to unfavorable economic conditions.

Gross profit for Q3 2024 was $23.6 million, representing a gross margin of 74.5%, down from 79.6% in Q3 2023. For the nine-month period, gross profit was $68.1 million, with a gross margin of 76.6%, down from 78.8% in 2023. The decrease in gross profit margins was influenced by increased product costs and $0.6 million in inventory markdowns.

Operating expenses decreased significantly, with total operating expenses for Q3 2024 at $22.7 million, down 11.7% from $25.8 million in Q3 2023. For the nine months, operating expenses were $67.5 million, a reduction of 13.7% from $78.3 million in the same period last year. This reduction was primarily due to a $4.3 million decrease in payroll costs and a $1.5 million reduction in consulting and professional services.

Mannatech reported a net loss of $328,000 for Q3 2024, compared to a net income of $18,000 in Q3 2023. However, for the nine months ended September 30, 2024, the company achieved a net income of $228,000, a significant improvement from a net loss of $483,000 in the same period of 2023. Basic earnings per share for the nine months were $0.12, compared to a loss of $0.26 in the previous year.

Cash and cash equivalents increased to $12.2 million as of September 30, 2024, up from $7.7 million at the end of 2023. The company generated $2.5 million in net cash from operating activities for the nine months, a turnaround from a cash use of $1.0 million in the same period in 2023. Financing activities provided $2.9 million, including $3.6 million from the issuance of notes payable.

Mannatech also liquidated its entity in Sweden during Q2 2024 and has implemented a business reorganization plan aimed at revenue growth, margin improvement, and cost control. The company is monitoring compliance with Nasdaq Marketplace Rules to ensure continued listing of its stock.