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August 08, 2017

U.S. News

Mannatech Q2 2017 Earnings Down 2.3%

Mannatech Inc., the Coppell, Texas-based health and wellness company, today announced financial results for the second quarter of 2017. For the three months ended June 31, net sales were $47.7 million, a decrease of $1.1 million, or 2.3 percent as compared to $48.8 million in the second quarter of 2016.

For the three months ended June 30, 2017, net sales declined 3.5 percent on a constant dollar basis as compared to the same period in 2016. Excluding the effects due to the translation of foreign currencies into U.S. dollars, net sales would have declined $1.7 million for the three months ended June 30, 2017.

Operations outside of the Americas accounted for approximately 59.1 percent of Mannatech’s consolidated net sales.

Second quarter 2017 Asia/Pacific net sales decreased by $1.6 million, or 6.1 percent, to $24.7 million, as compared to $26.3 million for the same period in 2016. This decrease was primarily due to a 9.0 percent decrease in revenue per active independent associate and member, which was partially offset by a 3.2 percent increase in the number of active independent associates and members. During the three months ended June 30, 2017, the loyalty program increased sales by $0.3 million, as compared to the same period in 2016. Foreign currency exchange had the effect of increasing revenue by $0.4 million for the three months ended June 30, 2017, as compared to the same period in 2016. The currency impact is primarily due to the strengthening of the Korean Won and Taiwanese Dollar, which was partially offset by the weakening of the Japanese Yen and Chinese Yuan (Renminbi).

EMEA net sales remained the same at $3.5 million for the three months ended June 30, 2017 and 2016. During this comparative period, the number of active independent associates and members in EMEA increased 1.0 percent, which was partially offset by a 1.0 percent decrease in revenue per active independent associate and member. Foreign currency exchange had the effect of increasing revenue by $0.2 million when the three-month period ending June 30, 2017 is compared to the same period in 2016. The currency impact is primarily due to the strengthening of the South Africa Rand, which was partially offset by the weakening of the British Pound and the Euro.

Net sales in the Americas increased by $0.5 million, or 2.6 percent, to $19.5 million, as compared to $19.0 million for the same period in 2016. This increase was primarily due to a 12.1 percent increase in revenue per active independent associate and member, which was partially offset by an 8.5 percent decline in the number of active independent associates and members. During the three months ended June 30, 2017, the loyalty program in the Americas increased sales by $0.4 million, as compared to the same period in 2016.

The number of new and continuing active independent associates and members who purchased packs or products during the 12 months ended June 30, 2017 and 2016 were approximately 218,000 and 222,000, respectively. Recruitment of new independent associates and members decreased 6.7 percent during the three months ended June 30, 2017 as compared to the same period in 2016. The number of new independent associate and member positions held by individuals in the network for the quarter was approximately 26,500, as compared to 28,400 for the same period in 2016.

To read the full Q2 2017 report, click here.