Natural Health Trends Corp. announced the financial results for the third quarter of 2023, reporting revenue of $10.6 million, a 9% decline from the same quarter in 2022. The company attributes this decrease to the changes in deferred revenue in the two respective quarters, resulting in a $835,000 unfavorable revenue variance.
Net income during the quarter was $172,000, compared to $47,000 in the third quarter of 2022, with an operating loss of $292,000, compared to $145,000 in the same quarter of 2022.
Active Member numbers were down 16% to 34,660 from the previous year.
“Adapting to the current environment in which Chinese consumers are reluctant to spend or invest, we managed to generate orders on pace with those of last year,” said Chris Sharng, Natural Health Trends Corp President. “Orders grew 3% at a constant exchange rate compared to the third quarter of 2022, while year-to-date 2023 orders increased 8% compared to prior year. The reported decrease in revenue was largely due to changes in deferred revenue, partly because orders tended to be received later in the quarter this year. Importantly, our members remained responsive to our programs, demonstrating that our promotions, incentives and high-quality product offerings continue to resonate. Noteworthy to highlight are the signs of momentum extending to several of our other markets including Taiwan, Peru, North America and Japan, each of which delivered strong performance during the quarter. We’re hopeful that these signs of growth will continue supported by careful planning and execution to our strategies around digital enhancements, new product launches, geographic diversification and superior member support.”
Year-to-date revenue decreased by 10% to $33 million, compared to the first nine months of 2022, with an operating loss of $1.4 million. The company wrapped the quarter with total cash and cash equivalents of $58.4 million, down from $61.6 million at the end of June 2023.
