Herbalife Q3 Revenue 6% Down To $1.4 Billion

Herbalife Nutrition Ltd. (NYSE: HLF) today reported financial results for the third quarter ended September 30, 2021:

HIGHLIGHTS

• Third quarter 2021 net sales of $1.4 billion, a 6% decrease compared to the third quarter 2020 and in-line with guidance issued on September 13, 2021.
• Third quarter 2021 reported diluted EPS of $1.09 and adjusted¹ diluted EPS of $1.21², compared to $1.04 and $1.15², respectively, for the third quarter 2020. Third quarter 2021 reported and adjusted earnings per share both increased by approximately 5% compared to the third quarter 2020.
• Third quarter 2021 reported net income of $117.4 million and adjusted¹ EBITDA of $222.4 million.
• Third quarter 2021 adjusted¹ diluted EPS and adjusted¹ EBITDA exceeded the high-end of the guidance ranges issued on September 13, 2021.
• Reiterating FY 2021 outlook for the top and bottom line, including net sales guidance range of 4.5% to 8.5% growth, adjusted³ diluted EPS guidance range of $4.55 – $4.95, and adjusted³ EBITDA guidance of $860 million – $910 million.
• During the third quarter, the Company repurchased approximately 3.5 million shares for a total of $162 million.

MANAGEMENT COMMENTARY

Herbalife Nutrition reported net sales of $1.4 billion, a decline of 6% compared to the prior year. These results were in-line with guidance. The quarter was impacted by a challenging year-over-year comparison period, while on a two-year stack basis, net sales grew 15% compared to the third quarter of 2019.

The Company exceeded the high-end of its guidance range for adjusted¹ diluted EPS and adjusted¹ EBITDA.

“Over the course of the global pandemic, we have delivered unprecedented business performance and growth. Despite challenging comparison periods in the third and fourth quarters, we remain on track for another record sales year,”

said John Agwunobi, Chairman and Chief Executive Officer, Herbalife Nutrition.

“The fundamental tailwinds driving the global nutrition industry, along with demand for our science-based nutrition products, continue to benefit the Company.”

The Company continues to demonstrate solid business fundamentals as evidenced by a 10% increase in the number of sales leaders actively selling in the quarter, compared to the prior year period, excluding China. The number of new distributors and preferred customers joining the business in the third quarter was down compared to the record number of new entrants in Q3 2020 but was up 28% compared to Q3 2019.

In the regions, Asia Pacific led with double-digit net sales growth, up 11% compared to the prior year. India demonstrated 46% growth in the quarter and set its fifth straight quarterly net sales record, as well as had over 220,000 new preferred customers join the business.

In North America, though net sales declined 11% when compared to an extraordinarily high prior year, when comparing to a more normalized, pre-COVID third quarter 2019, the two-year stack increased 38%. Similarly, in EMEA, when looking at the two-year stack against the third quarter 2019, the region grew 33%.

About Herbalife Nutrition Ltd.

Herbalife Nutrition (NYSE: HLF) is a global company that has been changing people’s lives with great nutrition products and a business opportunity for its independent distributors since 1980. The Company offers high-quality, science-backed products, sold in over 90 countries by entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle. Through the Company’s global campaign to eradicate hunger, Herbalife Nutrition is also committed to bringing nutrition and education to communities around the world.

For more information, please visit IAmHerbalifeNutrition.com.