Natural Health Trends Corp. Reports Mixed Q3 and Nine-Month Results, Focuses on Key Markets and Compliance

Natural Health Trends Corp. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance compared to the previous fiscal period. The company, which operates in the international direct-selling and e-commerce sector, generated net sales of $10.7 million for the third quarter, a slight increase of $76,000 (1%) from $10.6 million in the same period of 2023. However, for the nine months ended September 30, 2024, net sales decreased by $870,000 (3%) to $32.1 million, down from $32.9 million in the prior year.

Gross profit for the third quarter remained stable at $7.9 million, while the gross profit margin slightly declined to 74.1% from 74.7% year-over-year. For the nine-month period, gross profit decreased to $23.7 million from $24.6 million, with a corresponding drop in gross profit margin from 74.6% to 73.9%. The company reported a loss from operations of $(275,000) for the third quarter, an improvement from $(292,000) in the same quarter of 2023, and a reduced loss of $(878,000) for the nine months, down from $(1.4 million) in the previous year.

Net income for the third quarter was $35,000, a decrease from $172,000 in the same period last year, while net income for the nine months increased to $396,000 from $210,000. The company’s comprehensive income also improved, reaching $324,000 for the third quarter compared to $150,000 in 2023, and $505,000 for the nine months, up from a loss of $(53,000) in the prior year.

As of September 30, 2024, total assets decreased to $58.3 million from $69.1 million at the end of 2023, with cash and cash equivalents significantly down to $22.9 million from $56.2 million. Current liabilities increased to $21.1 million from $20.0 million, contributing to a decline in total stockholders’ equity to $35.3 million from $41.6 million.

The company continues to focus on key markets, particularly Greater China and Southeast Asia, and is evaluating compliance with direct selling regulations in these regions. Despite challenges, including a decrease in active members from 34,660 to 30,880 since the previous year, the company is optimistic about future growth opportunities. Additionally, the company has a stock repurchase program with $21.9 million remaining available for future purchases, and it declared a quarterly cash dividend of $0.20 per share, consistent with the previous year.