Natural Health Trends Corp. announced third quarter revenue of $14.3 million, a 12% decrease from the previous quarter’s revenue of $16.2 million. Operating income and net income both increased from the previous quarter, bringing in $479,000 and $471,000 respectively. Active member totals dipped to 45,950, a 14% decline from the third quarter of 2020.
“During the third quarter our leaders continued to face challenges in conducting their business following renewed government-mandated restrictions and shutdowns amid scattered outbreaks in COVID-19 cases,” said Chris Sharng, President of Natural Health Trends Corp. “The quarter marked the first quarter since the beginning of the pandemic we were unable to sponsor any in-person member events in China, Macau or Hong Kong and we had to abruptly cancel a previously scheduled event in September. Despite these difficult circumstances, we still managed to deliver revenue and order volume growth year-over-year, and our sixth consecutive quarter of positive operating income and net income. Revenue of $14.3 million increased 1% compared to the third quarter of 2020 driven by strength in Peru, Japan and India, which all experienced strong top-line growth year-over-year.”
Also of note, net cash used in operating activities in the first nine months of 2021 reached $557,000, a sharp decrease compared to net cash used ($1.5 million) in the first nine months of the previous year.
“Further, we are pleased to announce the SEC has closed its investigation and the IRS has completed its tax audit,” Sharng said. “We fully cooperated with the SEC and IRS throughout their respective review processes and we are pleased to put these matters behind us. As we continue to navigate the evolving operating environment resulting from the COVID-19 pandemic, we remain highly focused on the fundamentals of our business including supporting our members, maintaining our strong financial discipline, and operating our business efficiently.”