Mannatech Q2 Revenue Down 17,7% To $35 Million

Mannatech, Incorporated (NASDAQ: MTEX), a global health and wellness company committed to transforming lives to make a better world, today announced financial results for its second quarter of 2022.

Second Quarter End Results

Second quarter net sales for 2022 were $35.0 million, a decrease of $7.5 million, or 17.7%, as compared to $42.5 million in the second quarter of 2021.

Our net sales declined 11.3% on a constant dollar basis (see Non-GAAP Measures, below) as foreign exchange decreased GAAP net sales by $2.7 million, mostly due to the decline of the Korean Won and Japanese Yen.

During the second quarter, logistics in Hong Kong improved, and we were better able to deliver products to our customers. However, during the quarter, supply chain constraints worldwide continued to impact our sales. We have experienced a shortage of an ingredient used in some core products, and we have begun to move forward with our manufacturing partners with an alternative.

Second quarter operating income for 2022 was $0.9 million as compared to $2.0 million for the second quarter of 2021.

Net income was $0.7 million, or $0.34 per diluted share, for the second quarter of 2022, as compared to net income of $2.1 million, or $0.99 per diluted share, for the second quarter of 2021.

For the three months ended June 30, 2022, overall selling and administrative expenses decreased by $0.7 million to $6.9 million, as compared to $7.6 million for the same period in 2021.

The decrease in selling and administrative expenses consisted of a $0.4 million decrease in marketing costs, a $0.1 million decrease in contract labor costs, a $0.1 million decrease in warehouse costs and a $0.1 million decrease in payroll costs.

For the three months ended June 30, 2022, other operating costs decreased by $0.6 million to $4.9 million, as compared to $5.4 million for the same period in 2021. The decrease in operating costs was primarily due to a $0.2 million decrease in credit card fees, a $0.2 million decrease in bad debt expense, a $0.1 million decrease in legal and consulting fees, and a $0.1 million decrease in other costs that are variable to revenue.

The approximate number of new and continuing independent associate and preferred customer positions held by individuals in Mannatech’s network and associated with purchases of products as of June 30, 2022 and 2021 were approximately 152,000 and 176,000, respectively.

Recruitment of new independent associates and preferred customers decreased by 7.9% to 19,823 in the second quarter of 2022 as compared to 21,527 in the second quarter of 2021.

Year-to-date Second Quarter Results

For the six months ended June 30, 2022, net sales were $67.4 million, a decrease of $13.4 million, or 16.7%, as compared to $80.8 million for the same period in 2021. Our net sales declined 11.3% on a constant dollar basis (see Non-GAAP Measures, below) as foreign exchange decreased GAAP net sales by $4.3 million mostly due to the decline of the Korean Won and Japanese Yen. Income from operations decreased to $0.9 million for the six months ended June 30, 2022, from $4.8 million in the same period in 2021.

Net income was $0.8 million, or $0.40 per diluted share, for the six months ended June 30, 2022, as compared to net income of $4.3 million, or $2.03 per diluted share, for the same period in 2021.

About Mannatech

Mannatech, Incorporated is committed to transforming lives through the development of high-quality integrated health, weight management, fitness, and skincare products distributed through its global network of independent associates and members. The company has been operating for more than 25 years with operations in 25 markets. For more information, visit www.Mannatech.com.