Herbalife – Q3 Sales Up 5% To $1.1 Billion

 

Herbalife Ltd. (NYSE: HLF) reported third quarter net sales of $1.1 billion. Local currency net sales grew by 5%, while reported net sales declined 12% primarily due to the continuing unfavorable impact of currency exchange rates.

Adjusted¹ earnings for the quarter were $1.28 per diluted share compared to $1.45 per diluted share for the same period in 2014. On a reported basis, third quarter net income was $93.6 million, or $1.09 per diluted share, compared to $11.2 million, or $0.13 per diluted share for the same period in 2014. Third quarter 2015 diluted EPS was negatively impacted by a $0.42² currency fluctuation.

For the quarter ended September 30, 2015, the company generated $134.5 million in net operating cash flow, and invested $17.1 million in capital expenditures.

For the full year 2015, the company is raising adjusted diluted EPS guidance to a range of $4.65 to $4.75, from the previous range of $4.50 to $4.70. Currency movement since the company's previous guidance had a negative $0.14 impact to the current full year 2015 adjusted diluted EPS guidance.

For the full year 2016, the company is providing adjusted EPS guidance of $4.35 – $4.75 per share, which includes a $0.50 headwind due to an expected unfavorable impact of currency fluctuations.

• Third quarter adjusted¹ EPS of $1.28 per diluted share exceeded guidance of $1.00 – $1.10; reported EPS of $1.09 per diluted share

• Raises FY'15 adjusted diluted EPS guidance to a range of $4.65 to $4.75; up from the previous range of $4.50 to $4.70

• Reported worldwide net sales of $1.1 billion, grew 5% in constant currency and on a reported basis declined 12% due to the unfavorable impact of currency exchange rates compared to the prior year period

• Cash flow from operations of $134.5 million increased 32% compared to prior year period

• Initial 2016 volume point guidance range of 2.5% – 5.5% growth

Michael Johnson, chairman and CEO stated, The improving trends we continue to see in both performance and member metrics reinforce our belief that we are building an Herbalife focused on creating the very best customer and member experience while delivering long term value for our shareholders.

Johnson continued, We remain focused on building a brand that is synonymous with good nutrition. Our members have embraced this concept and their activity and engagement remains high.