Herbalife Reports 2016 Sales Flat $4.5 Billion

 

Herbalife Reports Record Full Year 2016 Worldwide Volume; Number of Preferred Members in the U.S. Approximately 300,000; Record Worldwide Sales Leader Retention; Announces a New Share Buyback Authorization of $1.5 Billion.

The company reported record full year 2016 worldwide volume points of 5.6 billion, which represents an increase of approximately 5% compared to 2015. Reported full year 2016 net sales of $4.5 billion was flat, while constant currency net sales increased 6%, both compared to 2015.

On a reported basis, full year 2016 net income was $260.0 million, or $3.02 per diluted share, compared to net income of $339.1 million or $3.97 per diluted share for 2015.

Michael O. Johnson, chairman and CEO of Herbalife, stated,

2016 was a dynamic and record-breaking year. Our members continue to successfully build customer-focused businesses, which is evident in our record volume and retention metrics. In addition, our new share buyback authorization is a further testament of our commitment to enhance shareholder value.

• Record full year 2016 worldwide volume points of 5.6 billion, representing year over year growth of approximately 5%
• Full year 2016 net sales of $4.5 billion, consistent with prior year and an increase of 6% on a constant currency basis compared to the prior year period.
• Fourth quarter 2016 reported net sales of $1.0 billion
• Fourth quarter 2016 reported diluted EPS of $1.16 and adjusted¹ diluted EPS of $1.00, which both include an $0.11 negative impact due to currency fluctuations
• Approximately 300,000 have converted to or signed-up as Preferred Members in the U.S.
• Record worldwide sales leader retention of 60.9%, record U.S. sales leader retention of 75.3%
• Company announces board approval of a new 3 year $1.5 billion share buyback program

Herbalife Ltd. (NYSE: HLF) reports results for the fourth quarter and full year ended December 31, 2016.

Adjusted¹ earnings for 2016 was $4.85 per diluted share compared to $4.95² per diluted share for 2015. Due to the negative impact of currency, full year 2016 reported and adjusted¹ net income were each negatively impacted by $82.2 million, and reported diluted EPS and adjusted¹ diluted EPS were each negatively impacted by $0.95.

For the fourth quarter 2016, the company reported net sales of $1.0 billion and a volume point decline of 1% compared to the prior year period.

On a reported basis, fourth quarter 2016 net income was $99.4 million, or $1.16 per diluted share, compared to net income of $84.5 million or $0.98 per diluted share for the fourth quarter in 2015.

Adjusted¹ earnings for the fourth quarter was $1.00 per diluted share compared to $1.17² per diluted share for the comparable quarter in 2015. Due to the negative impact of currency, fourth quarter 2016 reported and adjusted¹ net income were each negatively impacted by $9.5 million, and reported diluted EPS and adjusted¹ diluted EPS were each negatively impacted by $0.11.

In a separate press release this afternoon, the Company announced that it has reached an agreement in principle to form a joint venture with China's Tasly Holding Group. The press release can be found here https://ir.Herbalife.com.

About Herbalife Ltd.

Herbalife is a global nutrition company that has been changing people's lives with great products since 1980. Our nutrition, weight-management, energy and fitness and personal care products are available exclusively to and through dedicated Herbalife Independent Members in more than 90 countries. We are committed to fighting the worldwide problems of poor nutrition and obesity by offering high-quality products, one-on-one coaching with an Herbalife Member and a community that inspires customers to live a healthy, active life.

We support the Herbalife Family Foundation (HFF) and its Casa Herbalife programs to help bring good nutrition to children in need. We also sponsor more than 190 world-class athletes, teams and events around the globe, including Cristiano Ronaldo, the LA Galaxy and champions in many other sports.

The company has over 8,000 employees worldwide, and its shares are traded on the New York Stock Exchange (NYSE: HLF) with net sales of approximately $4.5 billion in 2016. To learn more, visit Herbalife.com or IAmHerbalife.com.