Mannatech Q3 net sales fall 14.6%, operating income declines
MTEX•Mannatech’s Q3 net sales fell 14.6% year over year to $24.87 million, while income from operations declined to $272,000. Net income was $8.91 million, driven by a $10.9 million non-cash tax benefit.
1. Sales and operating income
Mannatech reported Q3 net sales of $24.87 million, down 14.6% year over year, with decreases across all regions. Income from operations fell to $272,000, and gross profit margin declined to 74.7% from 76.4%.
2. Tax benefit lifts net income
Net income was $8.91 million, driven by a $10.9 million non-cash income tax benefit from remeasurement of deferred tax liabilities, rather than improved operations. New associate and customer recruiting fell 30.5%.
3. Company outlook
Mannatech said changes in trade policies, including tariffs, could affect its future cost structure and profitability.
