Herbalife to Launch Social Media Contest Giving Fans a Chance to Win Two Tickets to the Match LOS ANGELES, Feb. 16, 2024 /PRNewswire/ -- Today, Herbalife and the LA Galaxy introduced the club's new 2024 jersey – the Angeleno Kit – in advance of their 2024 Major League Soccer (MLS) season, which will kick-off on February 25th at Dignity Health Sports Park with a highly-awaited match against Inter Miami CF. Herbalife has sponsored the Galaxy's jersey for 17 consecutive seasons, the longest-running jersey spon ...

Core Insights - Herbalife's stock price has significantly declined, dropping over 31% in one day and more than 86% from its peak in February 2021, marking a vindication for Bill Ackman, who previously shorted the stock [1][2] Financial Performance - Herbalife's annual revenue decreased from over $5.54 billion in 2020 to $5.06 billion in the trailing twelve months [2] - The company's net profit fluctuated, rising from $372 million in 2020 to over $447 million in 2021, then falling to $312 million and $142 million in the subsequent two years [2] Debt and Valuation - Herbalife's short-term debt has increased to over $309 million, while long-term debt stands at over $2.2 billion, although it has $575 million in cash to cover debt servicing [4] - The company is currently trading at 4.24 times forward earnings, significantly lower than the sector median of 17.62, and its forward EV to EBITDA is 5.28, compared to the sector median of 11.2 [4] Stock Outlook - The stock has formed a near double-top pattern between 2019 and 2021, with bearish signals indicated by moving averages [6] - The next critical price level to watch is $2.99, which is approximately 62% below the current level, potentially moving the stock into penny stock territory [6]

Core Viewpoint - Herbalife's shares dropped significantly by 31.7% following a substantial earnings miss in the fourth quarter of 2023, with adjusted earnings declining 47.2% year over year [1][2]. Financial Performance - Herbalife's fourth-quarter 2023 net sales increased by 2.5% year over year, reaching $1.215 billion, while adjusted earnings fell to $0.28 per share, missing analysts' expectations of $0.39 per share [2]. - Yearly revenue for Herbalife decreased by 2.7% compared to 2022, despite a slight increase in Q4 revenue [3]. Cost Management and Debt Reduction - The company is undergoing a "transformation program" aimed at optimizing costs and enhancing revenue growth, achieving approximately $70 million in cost savings in 2023, with expectations of at least $115 million in total savings for 2024 [2]. - Herbalife reduced its debt by $155 million, including $126 million in early repayments from its senior credit facility and 2024 convertible notes [2]. Future Outlook - Herbalife did not provide quarterly guidance and indicated that revenue for 2024 is expected to remain relatively flat compared to 2023, contrasting with analysts' projections of modest growth around 1.4% [4].

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. ...

Financial Data and Key Metrics Changes - The fourth quarter revenue was $1.2 billion, up 2.9% compared to Q4 2022, marking the fourth consecutive quarter of improved year-over-year net sales trends [33][39] - For the full year, net sales reached $5.1 billion, down 2.7% versus 2022, with expectations for 2024 to improve to relatively flat net sales compared to 2023 [33][34] - Adjusted EBITDA for Q4 was $109 million, down approximately $22 million from Q4 2022, with an adjusted EBITDA margin of 9.0% [39][41] - Free cash flow increased by $50 million year-over-year to $223 million in 2023, benefiting from working capital optimization [35][39] Business Line Data and Key Metrics Changes - The company introduced 17 innovative products in 2023, including a successful vegan line that experienced higher-than-anticipated demand [5] - The transformation program achieved $115 million in cost savings, exceeding the initial target of $70 million [5][36] - The Nutrition Clubs in the U.S. had 4.4 million unique customers generating approximately $900 million in retail business, with conversion rates for preferred customers varying significantly [20][21][72] Market Data and Key Metrics Changes - China reported year-over-year net sales growth of 16% in Q4, marking the first quarterly growth since Q3 2020 [42] - India’s net sales increased by 26%, contributing significantly to overall growth, while North America showed slower recovery than anticipated [43][45] - Mexico faced importation delays impacting approximately 70% of sales, resulting in an estimated $14 million loss of volume in Q4 [44] Company Strategy and Development Direction - The company aims to enhance distributor engagement and support through account management teams and improved digital tools [6][9] - Focus on top-line sales growth in North America, with a strong emphasis on recruiting new distributors and customers [7][9] - Partnerships with the Mexican Olympic Committee and other national committees aim to enhance brand visibility and align with healthy lifestyle values [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2023 as a challenging year but highlighted improvements in net sales trends and cash generation [4][5] - The company is forecasting flat sales for 2024, with a focus on stabilizing input costs and maintaining gross profit margins [34][56] - Management emphasized the importance of adapting to market changes and enhancing distributor training to meet evolving consumer needs [69] Other Important Information - The company plans to refinance its senior credit facility and utilize excess cash to pay down debt [38][46] - Capital expenditures for 2023 were approximately $170 million, with expectations for 2024 to range between $145 million and $195 million [47] Q&A Session Summary Question: Can you explain the increase in SG&A and the timing of cost savings? - The increase in SG&A is due to investments in digital technology and modernization efforts, offsetting the savings from the transformation program [51] Question: What are the expectations for flat sales in 2024? - The flat sales expectation includes currency headwinds, with India expected to contribute less to growth compared to previous years [52][54] Question: What will be the uses of free cash flow in 2024? - Excess cash flow will primarily be used to reduce total debt levels [58][59] Question: Can you elaborate on distributor training resources? - The need for enhanced training resources is driven by market changes and the evolving skill sets required for distributors [66][69]

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 ...