Herbalife 2021 Revenue Up 4.7% To $5.8 Billion

Herbalife Nutrition Ltd. (NYSE: HLF) today reported financial results for the fourth quarter and full year ended December 31, 2021.

“Global trends continue to drive demand for our science-backed nutrition products, resulting in another record year for Herbalife Nutrition,”

said John Agwunobi, Chairman and CEO of Herbalife Nutrition.

HIGHLIGHTS

• Full year 2021 net sales of $5.8 billion increased 4.7% compared to full year 2020, representing the largest annual net sales result in Company history. The Company’s three largest regions: Asia Pacific, North America and EMEA, each set annual net sales records.

• Full year 2021 reported diluted EPS of $4.13 and adjusted¹diluted EPS of $4.79, increased by approximately 49% and 29%, respectively, compared to the full year 2020 reported and adjusted¹ diluted EPS of $2.77 and $3.71, respectively.

• Full year 2021 reported net income of $447.2 million and adjusted¹ EBITDA of $873.5 million, both annual records for the Company.

• During the full year, the Company repurchased approximately 20.4 million shares for a total purchase price of $983 million.

• Fourth quarter 2021 net sales of $1.3 billion decreased 6.6% compared to the fourth quarter 2020.

• Fourth quarter 2021 reported diluted EPS of $0.37 and adjusted¹ diluted EPS of $0.57, compared to $0.59 and $0.71, respectively, for the fourth quarter 2020.

• Fourth quarter 2021 reported net income of $38.2 million and adjusted¹ EBITDA of $131.6 million.

• Initiating FY 2022 net sales guidance range of 0% – 6% growth, adjusted² diluted EPS guidance range of $4.25 – $4.75, and adjusted² EBITDA guidance of $785 million – $845 million. Guidance assumes $50 million in share repurchases per quarter.

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¹ Adjusted diluted EPS and adjusted EBITDA are non-GAAP measures. See Schedule A – “Reconciliation of Non-GAAP Financial Measures” for a detailed reconciliation of these measures to the most directly comparable GAAP measure, and a discussion of why we believe these non-GAAP measures are useful.

² Adjusted diluted EPS and adjusted EBITDA are non-GAAP measures. See the “Outlook” discussion below and the related footnotes and Schedule A – “Reconciliation of Non-GAAP Financial Measures” for additional information regarding adjusted diluted EPS and adjusted EBITDA guidance.

MANAGEMENT COMMENTARY

Herbalife Nutrition reported net sales of $5.8 billion for the full year 2021, an increase of 5% compared to the prior year and an annual record for the Company. The Company also set annual records for reported diluted EPS, adjusted¹ diluted EPS, reported net income and adjusted¹ EBITDA. Additionally, the Company completed approximately $1 billion in share repurchases during the year.

“Global trends continue to drive demand for our science-backed nutrition products, resulting in another record year for Herbalife Nutrition,” said Chairman and CEO John Agwunobi.

In 2021, the number of distributors continued to grow as more individuals are seeking entrepreneurial and flexible business opportunities, while fulfilling the increasing global demand for health & wellness products. Over the course of the year the Company added 2.9 million new distributors and preferred members. Additionally, the Company announced record sales leader retention results for the last 12-month requalification period ending in January of 2022 of 68.9%.