Herbalife 2024 Revenue Down 2.7% To $5.1 Billion

Herbalife Ltd. (NYSE: HLF) today reported financial results for the fourth quarter and year ended December 31, 2023.

“We continue to modernize Herbalife with a sharp focus on top-line growth and margin expansion for 2024,”

said Michael Johnson, Chairman and CEO.

Highlights

Fourth Quarter 2023

• Achieved year-over-year net sales growth on both reported and constant currency basis¹
• Fourth consecutive quarter of improved year-over-year reported net sales trends
• Net sales of $1.2 billion, up 2.9% vs. 4Q ‘22; on constant currency basis¹, net sales increased 2.5% vs. 4Q ‘22
• Net income of $10.2 million and adjusted EBITDA² of $108.8 million
• Diluted EPS of $0.10 and adjusted diluted EPS² of $0.28
• Achieved cost savings of approximately $27 million related to Company’s Transformation Program, approximately $70 million realized in 2023
• Recognized pre-tax expenses of approximately $12 million related to Transformation Program
• Continued roll out of all-new Herbalife.com website; now live in markets representing approximately 70% of Company’s sales

Full-Year 2023

• Net sales of $5.1 billion, down 2.7% vs. 2022; on constant currency basis¹, net sales declined 1.6% vs. 2022
• Net income of $142.2 million and adjusted EBITDA² of $570.6 million
• Diluted EPS of $1.42 and adjusted diluted EPS² of $2.21
• Net cash provided by operating activities of $357.5 million; free cash flow² of $222.5 million

Recent Developments

• Initiated process to refinance 2018 Term Loan A and 2018 Revolving Credit Facility, due in March 2025.

¹ Growth/decline in net sales excluding the effects of foreign exchange is based on “net sales in local currency,” a non-GAAP financial measure. See Schedule A – “Reconciliation of Non-GAAP Financial Measures” for a discussion of why we believe adjusting for the effects of foreign exchange is useful.

² Adjusted EBITDA, adjusted diluted EPS and free cash flow 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 U.S. GAAP measure, and a discussion of why we believe these non-GAAP measures are useful.

About Herbalife Ltd.

Herbalife (NYSE: HLF) is a premier health and wellness company and community that has been changing people’s lives with great nutrition products and a business opportunity for its independent distributors since 1980. The Company offers science-backed products to consumers in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle to live their best life.

For more information, visit https://ir.herbalife.com.