Mannatech Inc ( (MTEX) ) has released its Q4 earnings. Here is a breakdown of the information Mannatech Inc presented to its investors.
Mannatech Inc. is a global health and wellness company that specializes in nutritional supplements and skincare products, operating primarily within the direct selling industry. Known for its unique glyconutrient technology, Mannatech aims to enhance health and wellness through its innovative product offerings.
In its fourth-quarter earnings report for 2024, Mannatech Inc. announced a decline in net sales to $29 million, an 11.3% decrease compared to the same period in 2023. Despite the drop in sales, the company reported a significant turnaround in profitability, achieving a net income of $2.3 million for the quarter, compared to a net loss of $1.8 million in the previous year.
Key financial highlights include an improvement in gross profit margin to 80.5% from 75.4% in the fourth quarter of 2023. The company also managed to reduce its selling and administrative expenses by $1.7 million, contributing to an operating income of $0.9 million, a notable improvement from an operating loss in the prior year. However, the company faced challenges with a 19.5% decrease in recruiting new associates and preferred customers.
For the full year 2024, Mannatech’s net sales were $117.9 million, a 10.7% decrease from 2023, impacted by unfavorable foreign exchange rates. Despite this, the company achieved a net income of $2.5 million, reversing a net loss from the previous year, aided by stringent cost management and a reduction in overall expenses by $8.5 million.
Looking ahead, Mannatech’s management remains committed to expanding revenue streams and managing expenses efficiently, despite ongoing economic challenges, particularly in the Asia/Pacific region. The company aims to leverage its cost management strategies to sustain profitability and drive growth in the coming year.