Natural Health Trends (NHTC) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 sales remained flat year-over-year, with Greater China (including Hong Kong) net sales up 7% year-over-year and 9% sequentially from Q3 2024.

• Taiwan and North America experienced declines due to strategic price adjustments and fewer promotions.

• New product launches and market expansion, including the opening of Colombia for in-country orders, supported engagement and growth initiatives.

• Incentive trips and recognition events were held to drive motivation, retention, and collaboration among members.

• Full-year 2024 revenue declined 2% to $43.0 million, with net income steady at $572,000 ($0.05 per diluted share).

Financial highlights

• Q4 2024 revenue was $10.8 million, nearly unchanged from Q4 2023.

• Gross profit margin declined slightly to 74.2% from 74.5% year-over-year, mainly due to higher freight costs.

• Q4 operating loss was $421,000, compared to $242,000 or $292,000 in Q4 2023.

• Q4 net income was $176,000 ($0.02 per diluted share), down from $358,000 ($0.03 per diluted share) in Q4 2023.

• Full-year operating loss was $1.3 million versus $1.7 million in 2023.

Outlook and guidance

• Leadership remains confident in long-term strategies despite ongoing macroeconomic challenges in Greater China.

• Management expects long-term margin benefits from 2023 price adjustments and fewer 2024 promotions, despite short-term impact on Taiwan and North America.

• Continued focus on innovation, member support, and global expansion is expected to drive future growth.

• 2024 audited results to be released with the Annual Report in late February; current results are preliminary.