Herbalife – Q1 2012 Revenue up 21% to $964 Million

  • April 30, 2012
  • By Team Business For Home
Michael O. Johnson

 

Herbalife Ltd. (NYSE:HLF) today reported first quarter net sales of $964.2 million, a 21 percent increase driven by a 24 percent increase in volume points compared to the prior year period. For the same period, the company reported net income of $108.2 million, or $0.88 per diluted share, reflecting an increase of 22 percent and 24 percent respectively compared to the adjusted first quarter 2011 net income of $88.7 million and $0.71 per diluted share.

Our business momentum has continued into 2012, with strong sales performance from each of our six regions, said Michael O. Johnson, the company's chairman and CEO. The financial strength of our business model is once again reflected in our cash flow generation in the quarter.

For the quarter ended March 31, 2012, the company generated cash flow from operations of $120.4 million, an increase of 11 percent compared to the prior year period, paid dividends of $35.2 million, invested $24.9 million in capital expenditures and repurchased $50.0 million in common shares outstanding under our share repurchase program.

 

First Quarter Regional Key Metrics

Regional Volume Point and Average Active Sales Leader Metrics

  Volume Points (Mil)   Average Active Sales Leaders
Region 1Q'12   Yr/Yr % Chg   1Q'12   Yr/Yr % Chg
North America 298.4   23 %   62,532   19 %
Asia Pacific 273.8   38 %   55,706   38 %
EMEA 145.9   6 %   41,332   15 %
Mexico 191.4   16 %   52,674   24 %
South & Central America 164.7   32 %   40,614   31 %
China 40.9   25 %   9,531   31 %
Worldwide Total 1,115.1   24 %   252,321   23 %

 

RESULTS OF OPERATIONS:

Herbalife Ltd.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
         
    Quarter Ended
      3/31/2012     3/31/2011
         
North America   $ 210,710   $ 167,000
Mexico     117,109     103,877
South and Central America     165,470     125,277
EMEA     153,993     153,937
Asia Pacific     259,948     199,303
China     56,945     45,702
Worldwide net sales     964,175     795,096
Cost of Sales     196,144     162,793
Gross Profit     768,031     632,303
Royalty Overrides     317,533     264,377
SGA     296,393     244,526
Operating Income     154,105     123,400
Interest Expense – net     1,373     2,648
Income before income taxes     152,732     120,752
Income Taxes     44,570     32,733
Net Income     108,162     88,019
         
Basic Shares     116,191     118,206
Diluted Shares     122,373     125,625
         
Basic EPS   $ 0.93   $ 0.74
Diluted EPS   $ 0.88   $ 0.70
         
Dividends declared per share   $ 0.30   $ 0.13

 

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Comments (6)

  1. I still remember those theoretical objections and crazy discussions with prospects about 5to10 years ago about saturation. There’s no such thing, but it was always hard to ‘prove’ or make them see. But these days? Facebook, Spotify, Instagram anyone? Even they are still growing every day, kills the entire objection. Most people fail to see how big the world truly is, and how many people a day reach the legal age of 18 (to do business with). Checkout https://www.internetworldstats.com to get a grasp how big our markets are.

  2. Anybody who uses the word saturation really needs to explain what they mean by saturation!I tell them with negative people like you nothing will ever get saturated accept for their earnings in their job which has reached saturation!

  4. I’ve been with Herbalife for over 19 years now, using the excellent products every day since, lost 15kg in 12 weeks and got rid of my health problems doctors could not find a solution for….
    2011 was my best year ever…and my groupvolume in the first quarter of 2012 grew 33,8% compared to 2011…
    Saturation? Lol, we are just getting started. Watch us; we will double in 4 years now, to retail 10 billion us$,
    it’s like creating a brand new same size herbalife next to the existing one in 4 yrs after 31 years.
    Trust me, the big future stars in herbalife have not signed up yet.
    I just got back from the summit & bonus awards in LA, where herbalife handed out 53,4 Million us$ to 369 people,
    and i saw many many young distributors surpassing the “old” ones….
    Saturation? The “oldest” market, the US grew last year by 23%.
    We’ll become the number one network in the world, trust me.
    [email protected] if you are looking around. I’ll coach you personally.
    wish you all the best,
    Raf

  5. WE HAVE BEEN WITH HERBALIFE OVER 20 YEARS BETWEEN US WE HAVE CONTROLLED 18 KILOS STOPED SMOKING INCREASED OUR ENERGY LEVELS LOVE THE PRODUCTS WE LOVE HERBALIFE WORKING PART TIME HOME BASED TEACHING OTHERS HOW THEY CAN BECOME FINANCHIALLY INDEPENDANT WITH THE BEST FASTEST GROWING WELLNESS COMPANY
    WORLDWIDE —-SIMPLE FUN AND MAGICAL !
    ALL THE BEST PATRICIA & ROY

  6. Roy & I have been using the Herbalife Products for over 20 years We have controlled 18 kilos between us We gave up smoking our energy levels went through the roof health problems disappeared
    because of our results people were asking us what we were taking to look so good ! we now have distributors in several countries we are earning from We love the products and the Opportunity Herbalife has given us Now we mainly teach others to realise their goals and dreams —working Home Based Simple Fun & Magical
    regards Patricia & Roy

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