Q3 2024 Natural Health Trends Corp Earnings Call

In This Article:

Participants

Michelle Glidewell; Investor Relations; Natural Health Trends Corp

Chris Sharng; President; Natural Health Trends Corp

Timothy Davidson; Chief Financial Officer, Senior Vice President, Corporate Secretary; Natural Health Trends Corp

Presentation

Operator

Greetings, and welcome to Natural Health Trends Corp., third quarter 2024 earnings conference call. (Operator Instructions)
I would now like to turn the conference over to your host, Michelle Glidewell, with Natural Health Trends Corp. Thank you. You may begin.

Michelle Glidewell

Thank you, and welcome to Natural Health Trends third-quarter 2024 earnings conference call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements through the result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission.
It would also be noted that today's call will be webcast live and can be found on the Investors section of the company's corporate website at naturalhealthtrendscorp.com. Instructions for [excising] the archived version of the conference call can be found in today's financial results press release, which was issued at approximately 9:00 AM Eastern Time.
At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.

Chris Sharng

Thank you, Michelle, and thanks to everyone for joining us this morning to discuss our third-quarter 2024 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. During the third quarter, revenue was $10.7 million, a 1% increase compared to the third quarter of 2023.
Our business has been affected by the widely reported consumer hesitancy to invest or spend in our main market. Still, we managed to increase net sales sequentially and year over year, at the same time improving our operating bottom line over three consecutive quarters. Though the pace of growth is not where we like it to be, our customers and leaders continue to demonstrate strong engagement, and we are working closely with them to navigate these changing times. Our ability to adapt, adjust programs and fine-tune our plans has been instrumental in supporting our customer base while also acting in the best interest of our shareholders.
In China and Hong Kong, our teams maintained aggressive calendars of activities ranging from local, smaller scale in-person meetings to two-day train-the-trainer professional and personal development sessions and charity activities to help drive business growth and support our branding.
Also in Q3, more than 200 members joined us on an incentive trip to Turkey, a great opportunity for knowledge sharing, motivation, personal growth and cultural exposure. This ambitious calendar of activities will continue through Q4 as we roll out new products in the region, including our Skindulgence revitalizing serum and eye cream, along with the new flavored collagen supreme supplement and Root Revive, a new hair growth serum to promote a healthier, stronger looking hair.
Around the world, our global staff and field teams are hard at work, hosting local and regional meetings, providing team training and conducting recognition events. Their focus is on expanding product education, growing our member and customer base, driving product repurchase and developing strong teams to carry the business forward. In September, we held prelaunch activities in Colombia. And on October 1, we officially opened the market.
We look forward to what this market may bring in terms of new customers and exposure to a broader Latin America base of entrepreneurs. During the quarter, we embarked on incentive trips to destinations abroad. In August, members from North America traveled together to Peru, visiting Lima and Machu Picchu for some inspiring team building and sizing.
And earlier this month, several markets combined incentive activities as our leaders and qualifiers from Peru, Mexico and Japan were treated to an incredible incentive trip to Paris. We continue to make steady advancements toward our digital enhancement project, which we believe will fuel future growth by boosting member productivity and improving the overall selling and shopping experience.
We anticipate rolling out these developments to our members and customers early next year. We appreciate the hard work and dedication that our few leaders and members continue to demonstrate in spite of a complicated sales landscape.
Our thoughtful planning and careful execution of strategies to support business growth and navigate this challenging economic environment remains key. Included in that is maintaining a vigilant focus on cost control, including expense management, inventory and product optimization to ensure the company remains positioned for future success.
With that, I'd like to turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?

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