Natural Health Trends reported positive cash flow from operations for the third consecutive quarter and positive operating income and net income for the fifth consecutive quarter in its second-quarter financial performance. The company’s revenue for the quarter was $16.2 million, up 20% from the previous quarter but down 2% from the same time in 2020.
Operating income climbed to $385,000 from $220,000 the previous quarter and $183,000 the following quarter in 2020. The number of active members (those who have placed at least one product order in the past 12 months) fell by 5% to 46,860. This represents a 14% drop from the same quarter in 2020.
“Despite persisting socioeconomic concerns, we were delighted with our second-quarter financial performance, which reflected sequential growth,” stated Chris Sharing, President of Natural Health Trends Corp. “Multiple in-person events and roadshows helped to renew momentum in our main regions, resulting in revenue of $16.2 million, up 20% from the first quarter of 2021. Sporadic outbreaks hampered meeting turnout, and worldwide supply chain restrictions lengthened lead times, contributing to a $1.5 million raised in our deferred revenue balance from March to June.”
Revenue during the first six months of 2021 totaled $29.6 million, down 6% from $31.4 million in the first half of 2020. The diluted share price is $0.03.
At the end of the quarter, total cash and cash equivalents were $88.1 million, down from $90.2 million in the previous quarter.
“We’re still managing the difficulties of the COVID-19 epidemic around the world, as well as the periodic pockets of breakouts in Asia,” Sharing added. “Despite these obstacles, we generated positive operating and net income for the fifth consecutive quarter, as well as positive cash flow for the third consecutive quarter. Looking ahead, we remain cautiously optimistic that continued loosening of pandemic-related limitations will be beneficial to our industry.”