Herbalife Q4 Revenue Down 11% To $1.1 Billion

 

Herbalife  Announces Fourth Quarter and Full Year 2014 Results, and 2015 Earnings Guidance:

Fourth quarter adjusted¹ EPS increased 10% to $1.41 per diluted share compared to $1.28 per diluted share for the prior year comparable quarter. Reported EPS increased 5% to $1.21 per diluted share compared to $1.15 per diluted share in the prior year.

Fourth quarter worldwide net sales of $1.1 billion, down 11% due to an unfavorable impact from currency; net sales excluding currency impact were flat compared to the prior year period.

Annual sales leader retention of approximately 54.2% percent.

FY'15 adjusted EPS guidance to a range of $4.10 to $4.50.

Herbalife Ltd. (NYSE: HLF) today reported fourth quarter net sales of $1.1 billion, reflecting a decline of 11 percent, primarily due to the unfavorable impact of currency fluctuations. Net sales, excluding currency impact, were flat compared to the prior year. Adjusted net income for the quarter was $121.0 million, or $1.41 per diluted share, compared to $137.2 million, or $1.28 per diluted share for the same period in 2013. On a reported basis, the company announced fourth quarter net income of $103.3 million, or $1.21 per diluted share, compared to $123.5 million, or $1.15 per diluted share for the same period in 2013. Fourth quarter 2014 EPS was negatively impacted by a $0.31 currency headwind.

For the twelve months ended December 31, 2014, the company reported net sales of $5.0 billion, a 3 percent increase compared to 2013. Net sales, excluding currency impact, increased 8 percent compared to 2013. For the twelve months ended December 31, 2014, the company reported net income of $308.7 million, or $3.40 per diluted share. On an adjusted basis, net income of $538.5 million decreased 7 percent versus adjusted net income of $577.4 million for the same period in 2013. Adjusted EPS for full year 2014 of $5.93 increased by 10 percent versus adjusted EPS of $5.37 for full year 2013.

Michael Johnson, chairman and CEO stated, 2014 was a record year in terms of net sales, volume and sales leader retention. It was also a year of transition, as we continue to implement changes that we believe will create a stronger company with the ideal combination of growth and sustainability. We have seen the success of these changes in early adopter markets and remain confident that our other markets will follow a similar pattern through 2015 and beyond.

Johnson continued, Our revised guidance reflects the currency landscape faced by all global companies and the short-term volume impact of the enhancements we are making. We believe we are executing the right long-term strategy and are confident in our ability to create sustainable value for our shareholders and the millions of Herbalife members and their customers worldwide.

For the year ended December 31, 2014, the company generated cash flow from operations of $511.4 million, invested $156.7 million in capital expenditures, and repurchased approximately $1.3 billion in common shares outstanding under the approved share repurchase program.