Herbalife Q2 Revenue Down 2.5% To $1.3 Billion

Herbalife Ltd. (NYSE: HLF) reported financial results for the second quarter ended June 30, 2024:

“Our Q2 Adjusted EBITDA1 is the highest it’s been in seven quarters. We remain focused on driving shareholder value as the continued increase in new distributors builds the foundation for sales growth,”

stated Michael Johnson, Chairman and CEO.

• Net sales of $1.3 billion, down 2.5% vs. Q2 ’23 due to 270 basis points of FX headwinds
  • Achieved year-over-year net sales growth on constant currency basis², up 0.2%, driven by increases in Latin America, EMEA and Asia Pacific
• Net income of $4.7 million; adjusted net income¹ of $54.8 million
• Adjusted EBITDA¹ of $180.0 million exceeds guidance; adjusted EBITDA¹ margin up 120 basis points year-over-year
• Diluted EPS of $0.05; adjusted diluted EPS¹ of $0.54
  • Restructuring Program expenses, net of tax, $0.33 diluted EPS headwind; excluded from adjusted results
  • Loss on extinguishment of debt, net of tax, $0.07 diluted EPS headwind; excluded from adjusted results
• Net cash provided by operating activities of $102.5 million; capital expenditures of approximately $36 million
• Credit Agreement EBITDA¹ $208.0 million; total leverage ratio reduced to 3.5x at June 30.

“We continue to make significant progress in our initiatives to enhance profitability,” said John DeSimone, Chief Financial Officer.

“We remain focused on further expanding margins, creating shareholder value and reducing our total leverage ratio to 3.0x by the end of 2025.”

Over the past three months, approximately 83,300 attendees from around the world convened at Extravaganza training events in Thailand, Colombia, India and the U.S.

The Asia Pacific region set a new attendance record in Bangkok with approximately 24,000 attendees present.

India held its first-ever multi-city Extravaganza with events in both Bangalore and Delhi, collectively setting a new record with approximately 35,700 attendees.

About Herbalife Ltd.

Herbalife (NYSE: HLF) is a premier health and wellness company, community and platform 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.