Natural Health Trends Reports $10.7 Million in Net Sales for Q1 2025, Down 2% Year-Over-Year

Natural Health Trends Corp. reported a net sales figure of $10.7 million for the first quarter of 2025, a decrease of 2% from $10.9 million in the same period of the previous year. The company's gross profit margin improved slightly to 73.6%, compared to 73.4% in the prior year. Despite the decline in sales, the company managed to maintain a relatively stable gross profit, attributed to a slight reduction in cost of sales, which accounted for 26.4% of net sales. The net income for the quarter was $122,000, down from $188,000 in the first quarter of 2024, resulting in earnings per share of $0.01, consistent with the previous year.

In terms of operational metrics, Natural Health Trends reported a decrease in active members, with 30,180 as of March 31, 2025, down from 30,870 at the end of 2024 and 31,620 a year earlier. The company continues to derive a significant portion of its revenue from international markets, with approximately 94% of net sales coming from subsidiaries outside the Americas. Notably, sales from the Hong Kong subsidiary, which primarily serves customers in China, represented 85% of total net sales for the quarter. The company is focusing its resources on markets it considers promising, particularly Greater China and Southeast Asia.

The company’s financial position showed a decrease in total assets to $53.2 million as of March 31, 2025, down from $55.4 million at the end of 2024. Cash and cash equivalents increased to $21.7 million, up from $13.5 million, primarily due to cash flows from investing activities, which totaled $10 million in the first quarter. However, working capital decreased to $28.1 million, reflecting a decline of $2.1 million compared to the previous quarter. The company continues to pay a quarterly dividend of $0.20 per share, totaling $2.3 million for the quarter, consistent with the previous year.

Looking ahead, Natural Health Trends is navigating a challenging geopolitical landscape, particularly concerning its operations in China and Hong Kong. The company has expressed intentions to reapply for a direct selling license in China when conditions are favorable. Additionally, the impact of recent U.S. tariffs on imports from China remains uncertain, with potential implications for product pricing and sales volumes. The company is exploring options to mitigate these effects, including sourcing products from other jurisdictions. Overall, while the company faces headwinds, it remains focused on strategic investments in key markets to drive future growth.