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