Mannatech Inc (MTEX) Reports Decrease in Third Quarter Net Sales and Net Income for 2023
Third quarter net sales for 2023 were $32.6 million, a decrease of 8.3% compared to the same period in 2022.
Operating income for the third quarter of 2023 was $0.2 million, down from $1.4 million in the third quarter of 2022.
Net income for the third quarter of 2023 was $18,000, a significant decrease from $1.2 million in the third quarter of 2022.
Recruitment of new independent associates and preferred customers increased by 20.9% in the third quarter of 2023 compared to the same period in 2022.
On November 7, 2023, Mannatech Inc (NASDAQ:MTEX), a global health and wellness company, announced its financial results for the third quarter of 2023. The company reported a decrease in net sales, operating income, and net income compared to the same period in 2022.
Financial Performance
For the third quarter of 2023, Mannatech Inc (NASDAQ:MTEX) reported net sales of $32.6 million, a decrease of $2.9 million, or 8.3%, compared to $35.5 million in the third quarter of 2022. The company's operating income for the third quarter of 2023 was $0.2 million, down from $1.4 million in the third quarter of 2022. Net income for the third quarter of 2023 was $18,000, a significant decrease from $1.2 million in the third quarter of 2022.
Operating Expenses
Overall selling and administrative expenses for the three months ended September 30, 2023, increased by $0.2 million to $6.9 million, compared to $6.7 million for the same period in 2022. The increase in selling and administrative expenses consisted of a $0.2 million increase in marketing costs and a $0.1 million increase in warehouse costs, which was partially offset by a $0.1 million decrease in payroll costs.
Recruitment and Customer Positions
The approximate number of new and continuing independent associate and preferred customer positions held by individuals in Mannatechs network and associated with purchases of products as of September 30, 2023, and 2022 were approximately 146,000 and 152,000, respectively. Recruitment of new independent associates and preferred customers increased by 20.9% to 23,296 in the third quarter of 2023 as compared to 19,273 in the third quarter of 2022.
Year-to-Date Results
For the nine months ended September 30, 2023, net sales were $99.3 million, a decrease of $3.6 million, or 3.5%, as compared to $102.9 million for the same period in 2022. Operating loss for the nine months ended September 30, 2023 was $0.1 million as compared to operating income of $2.2 million for the same period in 2022. Net loss was $0.5 million for the nine months ended September 30, 2023, as compared to net income of $2.0 million for the same period in 2022.
Balance Sheet and Cash Flow
As of September 30, 2023, Mannatech Inc (NASDAQ:MTEX) had cash and cash equivalents of $7.9 million, a decrease from $13.8 million as of December 31, 2022. The company's total current assets were $28.6 million, down from $34.9 million as of December 31, 2022. Total liabilities were $31.5 million, down from $34.9 million as of December 31, 2022.
Explore the complete 8-K earnings release (here) from Mannatech Inc for further details.
This article first appeared on GuruFocus.
