Natural Health Trends released its first quarter financial results, revealing a 14% decrease in revenue for the quarter to total $11.5 million, and an operating loss of $383,000, compared to an operating income of $220,000 in the first quarter of 2021.
The number of active members within the organization also decreased 3% to 44,490.
“The first quarter was challenging due to a significant increase in COVID-19 government-mandated restrictions and lockdowns impacting Hong Kong and China, especially Shenzhen, immediately following the Chinese New Year holiday,” said Chris Sharng, President of Natural Health Trends Corp. “The additional measures disrupted supply chains, created order delivery uncertainty, and prohibited us from holding in-person member events in China and Macau. Even though much of the Mainland Chinese population was under some forms of lockdown during the quarter, our leaders remain committed to finding and implementing innovative ways to conduct business as our staff continues to adjust to the ever-changing needs of our global business.”
The company’s balance sheet includes $79.4 million in cash and cash equivalents, down from $83.8 million at the end of 2021. Net cash used in operating activities was $2.3 million.
“We are encouraged by the sustained growth in Japan and Southeast Asia and continue to ready ourselves for expansion and diversification in Latin America,” Sharng said. “We recently conducted successful virtual events for members in North America, Peru, Japan, India and CIS markets and an in-person event for members in Europe. We are pleased with the enthusiasm and participation to embrace our products and marketing programs as they bring our health, wellness and beauty products to customers around the world.”