FLOWER MOUND, Texas - Mannatech, Incorporated (NASDAQ: MTEX), a global health and wellness company, has announced its expansion into the Thailand market, marking its presence in 26 markets worldwide. The official entry into Thailand is scheduled for June 17, 2024, with a grand opening event planned for September.
The Thailand expansion represents Mannatech's first new market venture in several years and is seen as a strategic move to introduce its Glycan technology-based products to a new demographic. Thailand's direct sales market was valued at approximately USD $3.1 billion, with the dietary supplement market reaching USD $3.9 billion in 2020, highlighting the country's potential for Mannatech's growth.
Mannatech's President and CEO, Landen Fredrick, expressed confidence in the suitability of the company's products and business model for the Thai market. The preparation for the launch has been led by Roh Jae-hong, General Manager of Mannatech Korea, following extensive market research.
The new Thailand office, located at No. 90 Ratchadaphisek Road, Bangkok, is designed to support the company's independent sales Associates through meetings and training sessions, fostering a collaborative and innovative environment.
Special guests expected at the grand opening include Landen Fredrick and Roh Jae-Hong, among other Mannatech dignitaries. The event will be open to Mannatech Associates worldwide and the public.
This move is part of Mannatech's broader strategy to pioneer the Southeast Asian market, with Thailand serving as a bridgehead. The company's entry into the region is anticipated to pave the way for a healthier future in Thailand and beyond.
InvestingPro Insights
As Mannatech, Incorporated (NASDAQ: MTEX) gears up for its Thailand expansion, investors and stakeholders can glean valuable insights from the company's financial health and market performance. With a market capitalization of $15.38 million USD, Mannatech presents an intriguing profile in the health and wellness sector.
One of the standout InvestingPro Data points for Mannatech is its impressive gross profit margin, which stood at 77.95% for the last twelve months as of Q4 2023. This high margin indicates a strong ability to control costs and maintain profitability on its products, which is particularly beneficial as the company enters the competitive Thai market. Additionally, Mannatech's strategy is supported by its financial prudence, as indicated by the company holding more cash than debt on its balance sheet, a reassuring sign for investors concerned about financial stability.
Moreover, Mannatech's commitment to returning value to shareholders is evident through a significant dividend yield of 9.6%, as of the latest data. This is coupled with a high shareholder yield, a metric that combines dividends and share repurchases to show the total payout to shareholders. These InvestingPro Tips suggest that Mannatech is focused on delivering shareholder value, an important consideration for both current and prospective investors.
However, it's not all green for the company. Mannatech has not been profitable over the last twelve months, and its valuation implies a poor free cash flow yield, which could be a concern for growth-oriented investors. The company's strategy to expand into new markets might be a move to address these challenges and fuel future profitability.
For those interested in a deeper analysis, there are 7 additional InvestingPro Tips available at https://www.investing.com/pro/MTEX. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering a comprehensive view of Mannatech's potential as an investment opportunity.
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