Mannatech Q3 net sales fall 14.6%, operating income declines
Overview
US health and wellness firm's Q3 net sales fell 14.6% yr/yr
Q3 net income rose, driven by non-cash tax benefit, not operating improvement
Q3 income from operations declined sharply from prior year
Outlook
Company says changes in trade policies, including tariffs, could affect future cost structure and profitability
Result Drivers
SALES DECLINE - Co said Q3 net sales fell 14.6% yr/yr, with decreases across all regions and a 30.5% drop in new associate and customer recruiting
GROSS MARGIN PRESSURE - Gross profit margin declined to 74.7% from 76.4% yr/yr, reflecting lower sales leverage
NON-CASH TAX BENEFIT - Q3 net income was driven by a $10.9 mln non-cash income tax benefit from remeasurement of deferred tax liabilities, not improved operations
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | $24.87 mln | ||
Q3 Net Income | $8.91 mln | ||
Q3 Gross Profit | $18.58 mln | ||
Q3 Income from Operations | $272,000 | ||
Q3 Operating Expenses | $18.31 mln | ||
Q3 Pretax Loss | $1.95 mln |
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)