Natural Health Trends Corp. reported second quarter 2023 revenue of $10.5 million, a 21% decrease from the second quarter of 2022. The company attributes this decline in large part to the changes in deferred revenue in the two respective quarters, which increased $1.2 million in Q2 2023, but decreased $1.4 million in Q2 2022. This change accounts for $2.6 million of the $2.8 million revenue variance.
In the first six months of 2023, the company saw an operating loss of $1.1 million, compared to $168,000 in the first six months of 2022, and revenue of $22.4 million.
“Despite tepid consumer sentiment in post zero-Covid China, we were able to generate orders roughly comparable to a year ago as orders in Hong Kong increased 5% year-over-year,” said Chris Sharng, Natural Health Trends Corp. President. “However, as most of the orders were received in mid to late June, they did not all ship during the quarter. This late surge in orders followed our first large-scale event in more than three years in Macau where nearly 900 guests attended and we kicked off an incentive that helped bring in more order volume. We’re pleased to see that our events and programs resonate with our members and they positively respond to our initiatives. We continue to make progress on key initiatives to drive engagement and improve customer experience. We remain committed and focused on our business essentials of providing top-quality, in-demand products to consumers and supporting our dedicated members and leaders on their NHT Global journey.”
The company ended the quarter with total cash and cash equivalents of $61.6 million, a $5 million decrease from the first quarter of 2023.
