Natural Health Trends Corp. reported fourth quarter 2022 revenue of $12.5 million, a 7% increase over the third quarter of 2022, but a 22% decline from the same quarter of 2021. The company also experienced a positive turnaround with an operating income of $43,000 during the fourth quarter, compared to an operating loss of $145,000 in the previous quarter of 2022, but this number remains a sharp contrast to the operating income of $487,000 in the same quarter of 2021.
Active members for the company were down 6% sequentially in Q4 and down 12% year-over-year.
For full year 2022, Natural Health Trends posted revenue of $49.1 million, down 18% from $60 million in 2021. Net income was $313,000, compared to $1.1 million in 2021.
Net cash provided by operating activities reached $938,000 in Q4 of 2022 and total cash and cash equivalents were $69.7 million.
“During most of the fourth quarter, much of the urban Chinese population was still under some forms of restrictions,” said Chris Sharng, President of Natural Health Trends Corp. “In this difficult operating environment, we focused on protecting our margin by diligently controlling costs and exercising discipline in marketing and product mix, while still managing to increase revenue sequentially compared to the third quarter. The result of our effort was positive operating and net income for the fourth quarter, as well as cash from operations. With the ending of the ‘Zero-Covid’ policy, we are hopeful that our members can conduct more in-person meetings while we support more events and incentive trips. We wish to thank all of our hardworking members, old and new, who have endured the past few years and demonstrated strong commitment to our products and our business.”