Herbalife Q3 Sales Down 3.2% To $1.2 Billion

Herbalife Ltd. (NYSE: HLF) today reported financial results for the third quarter ended September 30, 2024:

“Our financial foundation is strong. Third quarter net sales were in line with our expectations, adjusted EBITDA1 exceeded guidance and distributor recruiting is up worldwide year-over-year. Our new business initiatives are taking root as we continue on our path to sustainable top-line growth.”

– Michael Johnson, Chairman and CEO

Highlights

Third Quarter 2024

• Net sales of $1.2 billion, down 3.2% vs. Q3 ’23 including 290 basis points of FX headwinds
• Net sales nearly flat year-over-year on constant currency basis2
• Net income of $47.4 million; adjusted net income1 of $58.0 million
• Adjusted EBITDA1 of $166.5 million exceeds guidance; adjusted EBITDA1 margin up 70 basis points year-over-year
• Recognized pre-tax gain on sale of property of approximately $4 million; excluded from adjusted results
• Diluted EPS of $0.46; adjusted diluted EPS1 of $0.57
• Net cash provided by operating activities of $99.5 million; capital expenditures of approximately $27 million
• Credit Agreement EBITDA1 $197.2 million; total leverage ratio reduced to 3.3x at September 30

Management Commentary

In August, the Company launched its all-new Diamond Development Mastermind Program in the U.S., an ongoing training and accountability program led by President Stephan Gratziani and supported by network marketing industry leader and coach, Eric Worre.

Approximately 800 distributor leaders received interactive, hands-on mentoring that leverages Mr. Gratziani’s previous experience as an Herbalife independent distributor, combined with Mr. Worre’s deep knowledge of the direct selling business.

Content presented included core business principles to further optimize and scale their Herbalife business, leadership concepts to support their organization’s development, and the introduction of a key account management model that analyzes distributor performance metrics and identifies potential new business opportunities.

Extravaganza training events also continued in September and October. Approximately 37,300 attendees convened at events in Mexico, the UK and Uzbekistan to learn best practices, trends and new business insights. The Mexico event was highly anticipated among attendees and sold out in five weeks, three and a half months in advance of the training

A virtual attendance option was later added to accommodate the demand. To date, the Company’s 2024 Extravaganza training events have attracted approximately 134,600 attendees.

About Herbalife Ltd.

Herbalife (NYSE: HLF) is a premier health and wellness company and community that has been changing people’s lives with great nutrition products and a business opportunity for its independent distributors since 1980. The Company offers science-backed products to consumers in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle in order to live their best life.