Core Insights - Herbalife's leadership team, including the CEO and CFO, is actively engaging with investors to provide insights into the company's performance and future outlook [1]. Group 1: Company Overview - Erin Banyas, Head of Investor Relations, welcomed participants to the event, indicating a focus on transparency and communication with stakeholders [1]. - The presence of key executives, including the CEO and CFO, suggests a commitment to addressing investor concerns and providing detailed information about the company's strategy and financial health [1]. Group 2: Financial Disclosures - Herbalife has included cautionary statements regarding forward-looking statements in its recent Form 10-Q filing and earnings release, highlighting the importance of understanding potential risks and uncertainties [2]. - The discussion may involve non-GAAP financial measures, which exclude unusual or nonrecurring items, emphasizing the company's focus on providing a clearer picture of its financial performance [3].

Financial Data and Key Metrics Changes - The company has seen a stabilization in global net sales, with five out of the last seven quarters showing constant currency net sales growth [59] - North America experienced a significant turnaround, with July marking the first year-over-year volume growth since April 2021 [58][60] - The company is guiding for improved EBITDA margins, projecting an increase from 11.3% in 2023 to 12.7% last year, with expectations to exceed this in the current year [93] Business Line Data and Key Metrics Changes - The nutrition club model remains strong, with approximately 10,000 clubs in the U.S. and 4 million consumers engaging in around 50 million transactions [67] - The company is focusing on converting nutrition club visitors into long-term customers who purchase products for home use, which is currently a small percentage of the total visitors [70][72] Market Data and Key Metrics Changes - The company operates in 95 markets, with India being the largest market where Herbalife is perceived as a premium brand with limited competition [26] - The U.S. market is showing signs of recovery, with a focus on leveraging the existing distributor network to drive sales [61][70] Company Strategy and Development Direction - The company aims to transition into a digital-first health and wellness platform, connecting customers directly with distributors and enhancing service offerings [21][22] - Recent acquisitions, including ProveIt, Pro2col app, and Link BioSciences, are intended to enhance the company's digital capabilities and personalized nutrition offerings [37][39] Management's Comments on Operating Environment and Future Outlook - Management views the rise of GLP-1 medications as an opportunity, positioning Herbalife to support customers regardless of their weight loss choices [73][74] - The company is optimistic about future growth, particularly in the U.S. market, and is focused on building credibility through consistent performance [61][92] Other Important Information - The company has a robust forecasting process and tight control over expenses, which has contributed to exceeding EBITDA guidance for several quarters [87][88] - The company is committed to paying down debt, which is expected to enhance shareholder value significantly [93] Q&A Session Summary Question: How is the company addressing the challenges of integrating new technology with distributors? - Management indicated that many distributors are already tech-savvy and excited about new tools, which will help them engage a broader customer base [26][27] Question: What is the revenue model for the Pro2col app? - The app is expected to generate revenue through health and wellness services, product sales, and subscription models, leveraging the existing customer base [50][51] Question: How does the company plan to improve customer conversion in nutrition clubs? - The company is implementing strategies such as QR codes to engage customers and facilitate conversations about health and wellness, aiming to convert them into long-term users of Herbalife products [69][70]

Financial Data and Key Metrics Changes - The company has seen a stabilization in global net sales growth, with five out of the last seven quarters showing constant currency net sales growth [57] - North America experienced a significant turnaround, with July marking the first year-over-year volume growth since April 2021 [56][58] - The adjusted EBITDA margin improved from 11.3% in 2023 to 12.7% in the previous year, with expectations to exceed this in the current year [90] Business Line Data and Key Metrics Changes - The nutrition club model remains strong, with approximately 10,000 clubs in the U.S. and 4 million consumers participating in around 50 million transactions [64] - The company is focusing on converting nutrition club visitors into long-term customers who purchase products for home use [66] Market Data and Key Metrics Changes - The company operates in 95 markets, with India being the largest market where Herbalife is perceived as a premium brand [26] - The U.S. market is showing signs of recovery, with a focus on leveraging the existing distributor network to drive sales [58][66] Company Strategy and Development Direction - The company aims to transition into a digital-first health and wellness platform, similar to models like Airbnb and Uber, to better connect with customers and distributors [20][21] - Recent acquisitions, including ProveIt and Link BioSciences, are intended to enhance the company's digital capabilities and personalized nutrition offerings [36][38] Management's Comments on Operating Environment and Future Outlook - Management views the rise of GLP-1 medications as an opportunity to support customers in their weight loss journeys, regardless of their chosen path [70][71] - The company has a robust forecasting process and tight control over expenses, which has led to consistent guidance achievement [84][85] Other Important Information - The company is in the process of launching a health and wellness app that is expected to generate revenue and enhance customer engagement [48][49] - The app will facilitate incremental product sales and subscription revenue opportunities, although significant impacts are anticipated in 2026 rather than 2025 [55] Q&A Session Summary Question: How is the company managing guidance and revenue predictions? - The company has exceeded EBITDA guidance for six or seven consecutive quarters and maintains a robust forecasting process [84][85] Question: What is the company's stance on GLP-1 medications? - Management considers GLP-1 medications a friend, aiming to support customers regardless of their weight loss choices [70][71] Question: How does the company plan to leverage its distributor network? - The company is focused on converting nutrition club visitors into long-term customers and enhancing distributor engagement through new tools and technology [66][68]

Core Viewpoint - Shanghai Municipal Communications Administration has reported that 145 apps (SDKs) have violated user rights, requiring immediate rectification and self-assessment from the involved companies, including Herbalife (Shanghai) Management Co., Ltd. [1] Group 1: Company Overview - Herbalife (Shanghai) Management Co., Ltd. was established in 2014 and is primarily engaged in business services, with a registered capital of 2 million USD and paid-in capital of 942,000 USD [2]. - The company reported total net sales of 1.222 billion USD for Q1 2025, a decrease from 1.264 billion USD in the same period last year [2]. - In the Chinese market, net sales for Q1 2025 were 64.8 million USD, down from 75.2 million USD year-on-year [2]. Group 2: Financial Performance - For the fiscal year ending December 31, 2024, net sales in China were 297.6 million USD, a decline of 29.8 million USD or 9.1% compared to the previous year [2]. - The decrease in net sales was attributed to a 6.5% drop in sales volume, a 2.5% adverse impact from sales mix, and a 1.6% negative effect from foreign exchange fluctuations [2]. - In 2023, net sales were 327.4 million USD, reflecting a 63.6 million USD decline or 16.3% year-on-year [3]. Group 3: Management Changes and Challenges - In January 2024, Herbalife appointed Cai Menghong as the new General Manager for the China region, taking over from Li Yanliang, who had been in charge since 2007 [3][4]. - The company is facing tensions with its distributors, highlighted by a case where a long-term distributor was accused of "low-price sales" and had their account frozen, leading to public disputes over unpaid fees [4].

Group 1 - The event held in Xining, Qinghai, on August 7-8, 2025, focused on optimizing the consumer environment and boosting health consumption, gathering representatives from market regulatory departments and 56 direct selling companies [1][4] - Herbalife's flagship product, a nutritional shake, has been popular since its launch in 1980, supported by five years of localized clinical research in collaboration with Shanghai Renji Hospital and Xinhua Hospital, confirming its safety and effectiveness for overweight/obese populations in China [3] - Herbalife was awarded the title of the world's leading retail brand in weight management and nutrition for 2024 by Euromonitor International, highlighting the company's commitment to scientific innovation [3] Group 2 - Herbalife has established over 67,000 nutrition club locations globally, creating an integrated health service ecosystem through its "product + service" model, which enhances community engagement and promotes health awareness [5] - The "Healthy China Tour" brand initiative has successfully reached over 100,000 participants across 44 cities, with plans for 2025 to expand to cities like Xi'an and Xiamen, promoting scientific weight loss and dietary nutrition knowledge [6] - Herbalife's representative, Li Xia, shared successful health community service cases at the event, emphasizing the company's role in promoting scientific weight loss and enhancing health literacy [8]

Financial Data and Key Metrics Changes - Net sales for Q2 2025 were $1.3 billion, down 1.7% compared to 2024, but flat on a constant currency basis [7][24] - Adjusted EBITDA was $174 million, exceeding guidance, with an adjusted EBITDA margin of 13.8%, down 30 basis points year over year due to unfavorable currency impacts [24][27] - The company paid down $55 million in debt during the quarter, maintaining a total leverage ratio of slightly under three times as of June 30 [27][28] Business Line Data and Key Metrics Changes - Product innovation included the launch of Multi Burn, a non-pharmaceutical weight loss supplement, and the introduction of a healthy lifespan product [6][19] - Distributor growth initiatives led to strong engagement, with nearly 38,000 attendees at training events globally [9][10] - New distributor growth was flat year over year, but four out of five regions saw increases, with Latin America leading at 16% growth [9] Market Data and Key Metrics Changes - In North America, net sales were down 4%, primarily due to a 6% decline in year-over-year volumes, but July marked the first month of year-over-year volume growth since April 2021 [33][8] - Latin America reported a strong performance with constant currency net sales up 9%, despite reported net sales being down 1% [31] - EMEA net sales were flat on a reported basis, while Asia Pacific saw a 2% decline in reported net sales [32] Company Strategy and Development Direction - The company aims to transform into a data-driven wellness platform, integrating technology and personalized solutions to meet evolving consumer needs [4][5] - The acquisition of Link Biosciences is expected to enhance personalized supplement formulations, providing a competitive advantage [21] - The company is focused on expanding its product offerings and enhancing distributor engagement through digital tools and AI [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation and noted signs of accelerating momentum in sales [5][8] - The outlook for Q3 includes projected net sales growth of 0.5% to 4.5% year over year, with adjusted EBITDA expected to be between $150 million and $160 million [38][39] - The company has raised and narrowed its full-year net sales guidance range to down 1% to up 3% year over year [39][40] Other Important Information - The company is integrating the Protocol app, which aims to enhance distributor-customer connections and provide personalized health insights [11][12] - The launch of the Protocol app is expected to create new monetization opportunities and attract a new customer segment [48][63] - The company plans to expand the Protocol platform globally, with regulatory assessments underway for key markets [68] Q&A Session Summary Question: What are the monetization strategies for the Protocol app? - Management indicated that the app will serve as a tool for distributors to enhance customer engagement and will have options for both product and app subscriptions [48][63] Question: How does the company view pricing in relation to competitors? - The company plans to take pricing in line with market conditions and has not seen significant pressure from competitors [56][58] Question: What are the plans for high-cost debt management? - The company is considering refinancing options for high-cost debt as market conditions improve [69]

This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operati ...

Exhibit 99.1 Herbalife Reports Q2 Net Sales Near Guidance Midpoint; Q2 Adjusted EBITDA Exceeds Guidance; Raises Net Sales and Adjusted EBITDA Full-Year Guidance Highlights MultiBurn™ Launch and Unveiling of Beta Version of Pro2col App and Healthy Lifespan Supplement LOS ANGELES, August 6, 2025 – Herbalife Ltd. (NYSE: HLF) today reported financial results for the second quarter ended June 30, 2025: Highlights Second Quarter 2025 Recent Developments Non-GAAP measure. Refer to Schedule A – "Reconciliation of N ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-32381 (I.R.S. Employer Identification No.) P.O. Box 309 Ugland House Grand Cayman Cayman Islands KY1-1104 (Address of principal ex ...

I am an enthusiastic equity research and investment analyst with a strong interest in applying my valuation and research skills. I am a certified FMVA (Financial Modeling & Valuation Analyst) and FPWMP (Financial Planning & Wealth Management Professional), credentials that have equipped me with the tools to analyze financial statements, build valuation models, and construct diversified investment portfolios. I participated in the CFA Research Challenge, where I gained practical experience in equity analysis ...