Mannatech, Incorporated announced its financial results for the second quarter of 2024, reporting a 14.9% decline in net sales, a decrease of $4.9 million year over year, to $27.7 million. Gross profit as a percentage of net sales decreased to 77.1%, compared to 78.5% in the same quarter of 2023.
New and continuing independent associates and preferred customers remained constant at approximately 142,000. Associate attrition rate decreased by 21%, while recruitment declined by 13.6% year over year.
“We are a multinational company and therefore we are subject to fluctuations in the value of the US dollar versus other currencies in the countries we operate,” said Landen Fredrick, Mannatech President and CEO. “Although we recorded a second quarter loss in 2024, we recorded an overall gain in the first six months of 2024. The gain was, in part, a result of a second quarter $1.1 million foreign exchange gain, reflected in ‘Other Income’ in our Statement of Operations. This gain in the second quarter, coupled with our $0.9 million foreign exchange gain in the first quarter of 2024 contributed to the net income for the six months ended 2024 of $0.6 million. Demand remained weak in the second quarter across our world-wide operations but was most pronounced in our Asia/Pacific region where economic conditions have not improved. We see continued economic challenges for the remainder of 2024, however, we remain committed to increasing our revenues through increasing the number of our sales associates and preferred customers while maintaining disciplined cost controls.”
The company ended the quarter with cash and cash equivalents of $9.2 million, an 18.9% increase from the end of 2023.
