Mannatech, Incorporated announced its fourth quarter and full year 2023 financial highlights, reporting fourth quarter 2023 net sales of $32.7 million, a 4.7% decrease from Q4 2022. Gross profit during the quarter improved 6.4% year over year, which was aided by reduced supply chain shipping costs.
Net sales for the full year 2023 were $132 million, down from $137.2 million in 2022. Trulu, the company’s recently launched tiered affiliate program, which is separate from the company’s network marketing business and operated by its wholly owned subsidiary, NEMO, incurred an operating loss of $1.1 million. Excluding Trulu’s startup costs, the company would have generated an operating profit of $0.7 million in 2023.
New and continuing independent distributors and preferred customers remained steady at approximately 145,000 in 2023. Recruitment increased by 4.4% in Q4 2023 over the previous year.
“Careful supply chain cost controls, price adjustments and favorable product mix contributed to a 210 basis point improvement in gross profit margin in the current year as compared to last year,” said J. Stanley Fredrick, Mannatech Chairman of the Board. “We overcame economic challenges throughout our world-wide footprint in 2023, as well as issues and significant start-up costs related to a new product launch. We believe we are emerging from the severe economic decline of the past few years and the long-term outlook for our business is favorable. In the short term, we expect that we will continue to face challenges of a slow rate of growth in demand in certain markets we operate while other regions will recover at a faster rate. However, we are resolved to continue to focus on growing our customer and associate base, as well as improving our revenues and profitability in 2024.”
