NATURAL HEALTH TRENDS CORP Q4 FY2024 earnings call

• In November, two new products were introduced in Hong Kong: raspberry lemonade flavored Collagen Supreme and Root Revive topical hair serum, with roadshows in China and rollouts in other markets planned. - Held the annual Asia Forum in Bangkok in January 2025 with over 430 attendees, setting the roadmap for 2025 programs. - Officially opened the Colombia market for in-country order taking, finalizing an office opening later in the month. - Regularly hold products, business trainings, personal development sessions, and recognition events in person and online. - In October, leaders from Peru, Mexico, and Japan had an incentive trip to Paris; in December, North American qualifiers went on a Cancun incentive trip.

During the fourth quarter, overall reported sales were essentially flat compared to Q4 a year ago. The primary market, Greater China, had a 7% increase in net sales compared to Q4 2023 and a 9% increase compared to Q3 2024. However, Taiwan and North America saw decreases due to strategic price adjustments in 2023 and fewer product promotions in 2024. Total fourth quarter revenue was $10.8 million, roughly unchanged from $10.9 million in Q4 2022. Gross profit margin was 74.2% in Q4 2024, slightly down from 74.5% in Q4 2022 due to higher freight costs. Commissions expense as a percent of net sales increased to 41.9% in Q4 2024 from 41.6% in the prior year quarter. Active member base was 30,870 at December 31st, consistent with September 30th but a 5% decline since December 2023.

• On February 3rd, the board declared a quarterly cash dividend of $0.20 per share, payable on February 28th to stockholders of record as of February 18th. - Confident in being on the right track despite challenging consumer sentiment and macroeconomic conditions in Greater China, with commitment to innovate and support continued success of leaders and members.

• Sluggish consumer sentiment in Greater China persists, which can impact sales. - Macroeconomic conditions in various markets could affect business performance. - Strategic price adjustments and fewer promotions in some markets may continue to impact revenue in those areas.