Natural Health Trends Corp. announced a 16% sequential increase in revenue, totaling $13.4 million, compared to $11.5 million in the first quarter of this year. Year over year, revenue dipped 17% from $16.2 million in the second quarter of 2021.
Operating income was $215,000, compared to an operating loss of $383,000 in the first quarter of the year and down from an operating income of $385,000 in the second quarter of 2021. Net income also improved over the first quarter to $183,000 ($0.02 per diluted share), compared to a net loss of $105,000 in Q1 ($0.01 per diluted share), but was down from the second quarter of last year’s net income of $229,000 ($0.02 per share).
Active members dipped by 8% compared to the second quarter of last year to just over 43,000 people.
“We continued to face significant and unpredictable COVID-related disruptions in the second quarter as lockdowns and social restrictions, along with supply chain bottlenecks, persisted in Greater China,” said Chris Sharng, President of Natural Health Trends Corp. “Despite not being able to host any larger in-person activities, we finished the quarter strong with a well-attended virtual event and our members’ positive response to promotional incentives. In June, working closely with our leaders, we rolled out a new virtual training system that incorporates company-sponsored product training and member-led business, motivational and leadership training to better support the ongoing development and engagement of members in the Greater China market.”
At the end of the quarter, total cash and cash equivalents for the company were $75.6 million, and the board of directors declared a quarterly cash dividend of $0.20 on each share of common stock outstanding.
“We are encouraged about the growth in the European market that emanated from our Swedish team after hosting a successful face-to-face event in April,” Sharng said. “In other markets outside of Greater China we supported our members both online and in person through virtual events, incentive trips and local sales initiatives aimed at driving member and customer growth. We remain committed to the fundamentals of our business and to implementing strategies for future growth with the objective of returning value to our shareholders.”