Mannatech’s brief momentum surge seems over with steep sales decline

By Hank Schultz

- Last updated on GMT

©Getty Images - Oakozhan
©Getty Images - Oakozhan

Related tags Dietary supplement companies Dietary supplement industry Dietary supplements Multi-level marketing

Multilevel marketing company Mannatech saw sales fall by more than 17% in its latest earnings report.

The Flower Mound, TX-based company sells a variety of dietary supplements and personal care items.  The company’s foundational product was branded as Ambrotose, and is based on the ingredient arabinogalactan, a starch molecule derived from larch trees.  The company refers to this ingredient as a ‘glyconutrient.’

Like many other dietary supplement marketers, the company saw a sales bump during the pandemic.  In 2021, the company brought in $159.8 million in top line revenue, which reversed a trend of falling sales that stretches back for a number of years.  

Downward slide resumed?

But that gradual downward trend may have resumed, as the company’s sales fell by more than might be attributed to just a letdown from the pandemic-induced sales highs.  In its second quarter of fiscal 2022, Mannatech brought in $35 million, down from $42.5 in the same period in 2021, a decline of 17.7%.

The company also saw the recruitment of new sales associates, the lifeblood of any MLM, decline by 7.9% in the quarter compared to the same period in 2021.

For the first six months of 2022 Mannatech notched $67.4 million, in revenue, a decrease of $13.4 million, or 16.7%, as compared to $80.8 million for the same period in 2021.

The slight resurgence in 2021 was attributed to the company having regained ‘momentum,’​ in the words of CEO Al Bala, al longtime veteran of the direct selling industry.  That brief resurgence saw the company’s stock price surge to close to $20 share before falling back below $10 a share earlier in 2022. The stock sells for about $11.50 a share today.

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