Mannatech Full-Year Sales Fall 3.8 Percent to 132 Million; Trulu Startup Weighs on Results

FLOWER MOUND, Texas, March 28, 2024 --

Mannatech reported fourth-quarter 2023 net sales of 32.7 million dollars, down 4.7 percent from 34.3 million dollars a year earlier. Gross margin improved to 75.4 percent from 69.0 percent as lower supply-chain shipping costs more than offset raw-material price increases. Net loss narrowed to 1.8 million dollars, or 0.94 dollars per diluted share, from 6.5 million dollars, or 3.50 dollars.

Full-year 2023 net sales were 132.0 million dollars, down 3.8 percent from 137.2 million dollars, or about 2.1 percent excluding a 2.3 million dollar foreign-exchange headwind. Net loss was 2.2 million dollars, or 1.20 dollars per diluted share. The company said its Trulu tiered affiliate program, operated by subsidiary NEMO and separate from network marketing, incurred a 1.1 million dollar operating loss; excluding that startup loss on a constant-dollar basis, Mannatech said it would have posted about 0.7 million dollars of operating profit.

Independent associate and preferred customer positions held steady at about 145,000, while fourth-quarter recruiting rose 4.4 percent. Cash and cash equivalents fell to 7.7 million dollars from 13.8 million dollars. Chairman J. Stanley Fredrick said demand remained weak in some markets but that supply-chain controls and product mix lifted gross margin 210 basis points for the year.