Shares of Herbalife Ltd. fell more than 30% on Thursday, leading activist investor Bill Ackman to revive his feud with the nutritional-supplements company. Ackman, who lost a yearslong $1 billion bet against Herbalife HLF, left a long post on X, formerly Twitter, about Herbalife on Thursday, renewing some of his previous accusations that the company was a “pyramid” scheme and saying it was a good day for his “psychological short” on the company. Herbalife... Master your money. Subscribe to MarketWatch. ...

Herbalife Ltd. (NYSE:HLF) Q4 2023 Earnings Conference Call February 14, 2024 5:30 PM ET Company Participants Erin Banyas - Vice President, Head of Investor Relations Michael O. Johnson - Chairman and Chief Executive Officer Stephan Gratziani - Chief Strategy Officer Alex Amezquita - Chief Financial Officer Conference Call Participants Chasen Bender - Citi Rob Rigby - Bank of America John Baumgartner - Mizuho Securities Linda Bolton Weiser - D.A. Davidson Jeff Van Sinderen - B. Riley Anna Lizzul - Bank of Am ...

Q4 2023 Earnings Presentation Q4 2023 EARNINGS PRESENTATION Forward-Looking Statements 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, includingany projections of earnings, revenue or other financial items; any statemen ...

LOS ANGELES--(BUSINESS WIRE)--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 o ...

Financial Performance - Net sales for the year ended December 31, 2023, were $5,062.4 million, a decrease of $142.0 million, or 2.7%, compared to 2022[299]. - Net income for the year ended December 31, 2023, was $142.2 million, a decrease of $179.1 million, or 55.7%, compared to 2022[300]. - The contribution margin for the Primary Reporting Segment was $1,937.8 million, or 40.9% of net sales, representing a decrease of $67.5 million, or 3.4%, compared to 2022[307]. - The Primary Reporting Segment reported net sales of $4,735.0 million for the year ended December 31, 2023, a decrease of $78.4 million, or 1.6%, compared to 2022[304]. - Total net sales for the year ended December 31, 2023, were $5,062.4 million, a decrease of $142.0 million, or 2.7%, compared to $5,204.4 million in 2022[328]. - Gross profit for the year ended December 31, 2023, was $3,871.4 million, with a gross profit margin of 76.5%, down from 77.4% in 2022[330]. Sales and Volume Analysis - The decrease in net sales was primarily driven by a 9.1% decrease in Volume Points and a 1.1% unfavorable impact from foreign currency exchange rates[299]. - The 1.6% decrease in net sales for the Primary Reporting Segment was primarily due to a 9.1% decrease in Volume Points and a 0.9% unfavorable impact from foreign currency exchange rates[304]. - North America net sales decreased by $130.8 million, or 10.4%, to $1,131.4 million for the year ended December 31, 2023, primarily due to an 18.8% decrease in Volume Points[311]. - EMEA region net sales decreased by $9.7 million, or 0.9%, to $1,068.8 million for the year ended December 31, 2023, with a 9.6% decrease in Volume Points[317]. - China net sales decreased by $63.6 million, or 16.3%, to $327.4 million for the year ended December 31, 2023, attributed to a 9.1% decrease in Volume Points[324]. Expense and Cost Management - The company experienced a 36.9% increase in selling, general, and administrative expenses for the year ended December 31, 2023, compared to 2022[292]. - Selling, general, and administrative expenses increased to $1,866.0 million, or 36.9% of net sales, up from 34.8% in 2022, driven by higher labor costs and professional fees[337][338]. - The company is examining its cost structure and assessing potential pricing actions in response to ongoing inflationary pressures[298]. - The company reported a $54.2 million pre-tax unfavorable impact from Transformation Program expenses, primarily related to employee retention and separation costs[301]. Regional Sales Performance - Latin America net sales increased by $35.1 million, or 4.5%, to $820.9 million for the year ended December 31, 2023, driven by a 10.2% favorable impact of price increases[314]. - Asia Pacific region net sales increased by $27.0 million, or 1.6%, to $1,713.9 million for the year ended December 31, 2023, primarily due to an 8.0% favorable impact of price increases[320]. Product Category Performance - Weight Management product category net sales decreased by $102.5 million, or 3.5%, to $2,851.7 million for the year ended December 31, 2023[328]. - Energy, Sports, and Fitness product category net sales increased by $9.7 million, or 1.8%, to $560.3 million for the year ended December 31, 2023[328]. - Literature, Promotional, and Other category net sales decreased by $13.2 million, or 13.1%, to $87.9 million for the year ended December 31, 2023[328]. Cash Flow and Capital Expenditures - Operating cash flow for 2023 was $357.5 million, slightly up from $352.5 million in 2022, attributed to favorable changes in operating assets and liabilities[348]. - Capital expenditures for 2023 were $140.1 million, with expectations of $145 million to $195 million for 2024, primarily for the Digital Technology Program[349]. Debt and Financing - The company has $575.2 million in cash and cash equivalents as of December 31, 2023, supporting general corporate purposes and potential share repurchases[346]. - The 2018 Credit Facility includes a $1.25 billion senior secured credit facility, with various amendments reducing interest rates and extending maturities[352][354]. - As of December 31, 2023, the outstanding amount under the 2018 Credit Facility was $886.7 million, with $236.1 million under Term Loan A and $650.6 million under Term Loan B[360]. - The weighted-average interest rate for borrowings under the 2018 Credit Facility increased to 7.62% as of December 31, 2023, compared to 4.08% in 2022[360]. - A mandatory prepayment of $66.1 million towards the 2018 Term Loan B is expected in Q1 2024 based on the excess cash flow calculation[359]. Shareholder Returns and Dividends - The company has not declared or paid cash dividends since 2014, with future declarations subject to various factors including financial condition and debt restrictions[374]. - The company authorized a three-year $1.5 billion share repurchase program, with approximately $985.5 million remaining as of February 9, 2021[375]. - In 2022, the company repurchased approximately 3.7 million common shares at an aggregate cost of approximately $131.8 million, averaging $35.73 per share[376]. Inventory and Goodwill - The company adjusted obsolete and slow-moving inventories downward by $24.2 million and $31.5 million as of December 31, 2023 and 2022, respectively[387]. - Goodwill increased to approximately $95.4 million as of December 31, 2023, primarily due to foreign currency translation adjustments[391]. - The company had marketing-related intangible assets of approximately $310.0 million as of December 31, 2023, with no impairment recorded during the years ended December 31, 2023 and 2022[391].

LOS ANGELES--(BUSINESS WIRE)--Herbalife, a premier health and wellness company and community, announced today the launch of the Herbalife® GLP-1 Nutrition Companion, a new range of food and supplement product combos fueled by the #1 Protein Shake in the World* and intended to support the nutritional needs of individuals on GLP-1 and other weight-loss medications. Herbalife’s Classic and Vegan options are now available in the United States and Puerto Rico in a variety of flavors. Recent research has shown t ...

Bill Ackman’s Pershing Square Capital Management has re-entered the ranks of the world’s 20 best performing hedge funds following a bumper year for the New York money manager after it previously dropped off the list in 2015. The New York fund, which has $17.9 billion in assets under management (AUM), generated net gains worth $3.5 billion in 2023, bringing its overall gains since its inception in 2004 up to $18.8 billion, research by LCH Investments shows.   Pershing Square’s huge gains saw it supplant Loui ...

LOS ANGELES--(BUSINESS WIRE)--Herbalife, a premier health and wellness company, today announced it was presented with two Brandon Hall Group Gold Excellence in Technology Awards™ for its HN Grow mobile learning application. This application equips Herbalife’s independent distributors with interactive educational materials and tools to further help them build their businesses as trusted wellness coaches. The Company received the gold recognition in two categories - Best Advance in Learning Management Tech ...

Financial Data and Key Metrics Changes - Net sales for Q3 2023 were $1.3 billion, down 1.1% year-over-year, marking the third consecutive quarter of improved year-over-year net sales trends [5][26][30] - Gross profit margin was 76.3%, benefiting from pricing actions but negatively impacted by input cost inflation and unfavorable sales mix [26][27] - Adjusted EBITDA was $163 million with a margin of 12.7%, reflecting a decline due to unfavorable input costs and sales mix [27][31] - Adjusted diluted EPS was $0.65, impacted by a $0.07 true-up for an upward revision of the full-year 2023 tax rate [27][31] Business Line Data and Key Metrics Changes - The company is focusing on the B2C segment, developing tools and platforms to support distributors in managing their customers more effectively [8][20] - New product launches, including a vegan product line and beverage enhancers, have been well received, contributing to sales momentum [10][12][11] Market Data and Key Metrics Changes - EMEA reported a 5% year-over-year increase in net sales, marking the third consecutive quarter of growth [38] - Latin America, particularly Mexico, saw reported net sales up 20% year-over-year, driven by favorable FX and price increases [39] - North America experienced a 13% decline in reported net sales, with ongoing efforts to drive recruitment and engagement [40] Company Strategy and Development Direction - The company is undergoing a transformation process, focusing on modernizing its brand and enhancing distributor engagement through events and community-building activities [5][9] - The launch of the new herbalife.com website is part of the Herbalife One initiative, aimed at improving the customer experience and supporting distributor sales [13][24] - The company is closely monitoring the GLP-1 trend and exploring opportunities to assist customers considering or using these medications [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in Q4 2023, supported by positive internal indicators and ongoing strategic initiatives [18][30] - The leadership team emphasized the importance of engaging distributors and customers in healthy active lifestyle activities to drive sales [20][76] Other Important Information - The company has made key leadership changes to strengthen its management team, including the appointment of a new Chief Strategy Officer [7][17] - The company is actively working to address importation delays in Mexico that may impact future inventory supply [39] Q&A Session Summary Question: Volume points and active sales leader trends - Management noted that improvements in average active sales leaders are driven by regional activities and engagement strategies [44][46] Question: Anticipation of gross margin improvement - Management indicated that gross margin improvement is expected as volumes increase and input cost inflation moderates [48][50] Question: Focus on B2C aspects of the business - Management confirmed that while they track various metrics internally, specific percentages of direct consumer sales are not disclosed [53][54] Question: Impact of major events on sales - Management highlighted that distributor events are crucial for motivation and community building, leading to increased sales and distributor engagement [66][68] Question: Underperformance in the US market - Management attributed the US market's underperformance to slower recovery post-pandemic but remains optimistic about future growth [74][75] Question: Update on China market - Management acknowledged the challenges in China but noted sequential improvements in sales, indicating a potential inflection point [77]

Q3 2023 Earnings Presentation Q3 2023 EARNINGS PRESENTATION Forward-Looking Statements 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, includingany projections of earnings, revenue or other financial items; any statemen ...