Natural Health Trends Corp. Reports $42.96 Million in Net Sales for Fiscal Year 2024

Natural Health Trends Corp. reported a net sales figure of $42.96 million for the fiscal year ending December 31, 2024, a decrease of 2% from the previous year's $43.92 million. The company's revenue is heavily reliant on its Hong Kong subsidiary, which accounted for approximately 82% of total sales, primarily from products delivered to members in China. The decline in overall sales was attributed to a 13% drop in net sales outside of Hong Kong, particularly in the Americas and Taiwan, which was partially offset by an increase in the Chinese e-commerce retail business.

The company's gross profit margin slightly decreased to 74.0% in 2024 from 74.6% in 2023, primarily due to increased costs associated with its Premium Noni Juice product. Commissions paid to members also saw a reduction, comprising 40.9% of net sales compared to 41.9% in the prior year, reflecting lower weekly commissions earned. Selling, general, and administrative expenses decreased to $15.5 million from $16.0 million, mainly due to lower insurance and general business costs.

Operationally, Natural Health Trends Corp. experienced a decline in active members, with 30,870 reported as of December 31, 2024, down from 32,410 the previous year. This reduction in membership is a significant concern, as the company relies on its independent members for sales. The company has been focusing its resources on promising markets, particularly Greater China and regions where existing members can recruit new prospects. The total employee headcount stood at 133 as of the end of 2024, with a notable concentration in Greater China.

Looking ahead, the company has expressed intentions to stabilize and potentially increase its member base, which is critical for future revenue growth. The management is also considering reapplying for a direct selling license in China, which could enhance its operational capabilities in that market. However, the company remains cautious about the regulatory environment in China and Hong Kong, which has been subject to significant changes and scrutiny in recent years. The outlook for 2025 will depend on the company's ability to navigate these challenges while maintaining its focus on member engagement and product innovation.