Natural Health Trends Posts a Sixth Straight Profitable Quarter

Natural Health Trends reported third quarter revenue of 14.3 million dollars, up 1 percent from 14.1 million dollars a year earlier and down 12 percent from the second quarter. Operating income was 479,000 dollars, down 28 percent from a year earlier. Net income was 471,000 dollars, or 0.04 dollars per diluted share, compared with 635,000 dollars, or 0.06 dollars, a year earlier. It was the sixth straight quarter of positive operating income and net income.

Active members, defined as people who ordered in the prior twelve months, were 45,950, down 14 percent from a year earlier. President Chris Sharng said renewed restrictions meant the company could not hold in-person member events in China, Macau, or Hong Kong, and that a September event was canceled. Growth in Peru, Japan, and India offset that pressure on a year-over-year basis.

The board declared a quarterly dividend of 0.20 dollars a share, payable November 26 to holders of record on November 16. Cash was 84.6 million dollars. Sharng also said the commission investigation was closed and that an Internal Revenue Service tax audit was finished. Nine-month revenue was 43.9 million dollars, down 3 percent, with net income of 853,000 dollars.