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 ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the period ended September 30, 2023 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Herbalife Ltd.'s unaudited condensed consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes, for the period ended September 30, 2023 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$2,724.7 million** as of September 30, 2023, while total liabilities and shareholders' deficit improved Condensed Consolidated Balance Sheet Highlights (in millions) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$2,724.7** | **$2,732.0** | | Cash and cash equivalents | $495.7 | $508.0 | | Inventories | $496.8 | $580.7 | | **Total Liabilities** | **$3,828.2** | **$3,997.9** | | Current portion of long-term debt | $232.6 | $29.5 | | Long-term debt, net | $2,319.0 | $2,662.5 | | **Total Shareholders' Deficit** | **$(1,103.5)** | **$(1,265.9)** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q3 2023 net sales slightly decreased to **$1,281.3 million**, while net income significantly declined to **$42.8 million** year-over-year Q3 2023 vs Q3 2022 Income Statement (in millions, except EPS) | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Net Sales | $1,281.3 | $1,295.1 | | Gross Profit | $978.1 | $1,010.0 | | Operating Income | $106.7 | $147.4 | | Net Income | $42.8 | $82.2 | | Diluted EPS | $0.43 | $0.83 | Nine Months 2023 vs 2022 Income Statement (in millions, except EPS) | Metric | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | | Net Sales | $3,847.4 | $4,023.6 | | Gross Profit | $2,944.0 | $3,115.6 | | Operating Income | $300.6 | $456.3 | | Net Income | $132.0 | $266.9 | | Diluted EPS | $1.32 | $2.68 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased to **$261.4 million** for the nine months ended September 30, 2023 Cash Flow Summary for Nine Months Ended Sep 30 (in millions) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $261.4 | $298.9 | | Net Cash used in Investing Activities | $(99.6) | $(113.4) | | Net Cash used in Financing Activities | $(156.6) | $(215.2) | | **Net Change in Cash** | **$(0.3)** | **$(69.7)** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, debt, contingencies, segment performance, and the financial impact of the Transformation Program - The company operates in five geographic regions: North America, Latin America, EMEA, Asia Pacific (excluding China), and China is treated as a separate reporting segment[21](index=21&type=chunk)[104](index=104&type=chunk) - Total long-term debt, including the current portion, was **$2,551.6 million** as of September 30, 2023, a decrease from **$2,692.0 million** at year-end 2022[44](index=44&type=chunk) - In October 2023, the company reached an **$8.6 million** settlement with the Korea Customs Service for assessments from 2011 through 2017, with a loss recognized in SG&A for Q3 2023[94](index=94&type=chunk) - The company's Transformation Program has incurred total pre-tax expenses of **$67.0 million** through September 30, 2023, with an expected total of at least **$75.0 million**, and is expected to be completed in 2024[178](index=178&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2023 financial results, highlighting decreased net sales and net income, regional performance, and liquidity [Summary Financial Results](index=40&type=section&id=Summary%20Financial%20Results) Q3 2023 net sales decreased by **1.1%** to **$1,281.3 million**, with net income falling **47.9%** to **$42.8 million** Financial Performance Summary (in millions) | Period | Net Sales | % Change (USD) | % Change (Local Currency) | Net Income | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Q3 2023 | $1,281.3 | (1.1%) | (1.5%) | $42.8 | (47.9%) | | 9M 2023 | $3,847.4 | (4.4%) | (2.8%) | $132.0 | (50.5%) | - Q3 2023 net income included unfavorable pre-tax impacts of **$12.1 million** for the Digital Technology Program, **$8.6 million** for the Korea customs settlement, and **$4.6 million** for the Transformation Program[210](index=210&type=chunk) [Sales by Geographic Region](index=42&type=section&id=Sales%20by%20Geographic%20Region) Q3 2023 net sales varied by region, with North America and China declining, while Latin America, EMEA, and Asia Pacific grew Net Sales by Geographic Region - Q3 2023 (in millions) | Region | Net Sales | % Change (USD) | % Change (Local Currency) | | :--- | :--- | :--- | :--- | | North America | $277.8 | (12.5%) | (12.5%) | | Latin America | $212.0 | 13.0% | 3.8% | | EMEA | $261.0 | 5.4% | 3.3% | | Asia Pacific | $441.0 | 2.2% | 4.9% | | China | $89.5 | (19.1%) | (14.3%) | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow for the nine months ended September 30, 2023, was **$261.4 million**, with sufficient liquidity to meet obligations - Net cash from operating activities decreased to **$261.4 million** for the nine months ended Sep 30, 2023, compared to **$298.9 million** for the same period in 2022[262](index=262&type=chunk) - Capital expenditures are expected to be **$120 million to $160 million** for the full year 2023, driven by investments in the Herbalife One digital platform[263](index=263&type=chunk) - The company's **$1.5 billion** share repurchase program, expiring in February 2024, had approximately **$985.5 million** of remaining authorized capacity as of September 30, 2023, with no shares repurchased in Q3 2023[289](index=289&type=chunk)[290](index=290&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from foreign currency exchange rates and interest rates using derivative financial instruments - The company is subject to foreign exchange risk as it transacts business globally and uses foreign currency derivatives to reduce exposure to currency fluctuations on a short-term basis[314](index=314&type=chunk) - As of September 30, 2023, the company had outstanding foreign currency forward contracts with a total notional amount of **$329.2 million**[320](index=320&type=chunk) - The company is exposed to interest rate risk on its variable-rate 2018 Credit Facility, where a hypothetical **1%** change in interest rates would affect annual interest expense by approximately **$8.9 million**[323](index=323&type=chunk) [Item 4. Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[329](index=329&type=chunk) - No changes occurred during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[330](index=330&type=chunk) [PART II. OTHER INFORMATION](index=63&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides other information, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 5 of the financial statements - Information regarding legal proceedings is incorporated by reference from Note 5, Contingencies, in Part I, Item 1 of the financial statements[339](index=339&type=chunk) [Item 1A. Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the 2022 Annual Report on Form 10-K - There have been no material changes to the risk factors disclosed in the 2022 10-K[340](index=340&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred, and no common shares were repurchased in Q3 2023 - As of September 30, 2023, the remaining authorized capacity under the company's **$1.5 billion** share repurchase program was approximately **$985.5 million**[342](index=342&type=chunk) - The company did not repurchase any of its common shares during the three months ended September 30, 2023[342](index=342&type=chunk) [Item 5. Other Information](index=63&type=section&id=Item%205.%20Other%20Information) A Rule 10b5-1 trading plan for EVP, Chief of Staff Ibelis Montesino was terminated on September 6, 2023 - A Rule 10b5-1 trading plan for Section 16 officer Ibelis Montesino was terminated on September 6, 2023[344](index=344&type=chunk)[345](index=345&type=chunk) [Item 6. Exhibits](index=63&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including certifications and corporate documents

Q2 2023 Earnings Presentation Q2 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 ...

Financial Data and Key Metrics Changes - Net sales for Q2 2023 were $1.3 billion, down 5.7% year-over-year, but this marks the second consecutive quarter of improved year-over-year net sales trends [20][23] - Q2 gross profit margin improved to 77%, benefiting from pricing actions taken over the past year, which provided an approximate 300 basis point benefit [20][21] - Adjusted EBITDA for Q2 was $170 million, with a margin of 12.9%, reflecting a 260 basis point improvement from Q1 2023 [20][21] - Adjusted diluted EPS was $0.74, negatively impacted by a $0.12 currency headwind [20][21] Business Line Data and Key Metrics Changes - The company launched a new vegan product line, Herbalife V, which includes five plant-based products, receiving overwhelmingly positive initial reactions from distributors [10][49] - The launch of Herbalife One, a new digital technology platform, began in Singapore, with plans to expand to approximately 40 additional markets by the end of the year [12][53] Market Data and Key Metrics Changes - In North America, reported net sales declined primarily due to an 11% year-over-year decline in the U.S. market [33] - The EMEA region was relatively flat year-over-year on a reported basis, while Latin America saw reported net sales positively impacted by FX, particularly the Mexican peso [32] - India reported net sales growth of 16% year-over-year, indicating strong performance in the Asia Pacific region [32] Company Strategy and Development Direction - The company is focused on modernizing its business model and enhancing distributor engagement through in-person events and new product launches [7][9] - The introduction of the vegan product line and the Herbalife One platform are part of the company's strategy to connect with younger demographics and improve operational efficiency [10][12] - The appointment of Stephan Gratziani as Chief Strategy Officer aims to create synergy between the company and its distributors, leveraging his extensive experience in the field [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in Q4 2023, citing positive trends in various markets and the effectiveness of recent initiatives [17][18] - The company is closely monitoring the impact of GLP-1 drugs on the market and exploring potential opportunities to integrate these into its offerings [13][80] - Management emphasized the importance of adapting to changing consumer preferences and the gig economy to ensure future growth [17][18] Other Important Information - The company expects to deliver an incremental $20 million in annual cost savings from its transformation program, raising the total expected savings to at least $90 million [22] - Operating cash flows for Q2 were approximately $136 million, with cash on hand increasing to $527 million [25][34] Q&A Session Summary Question: Trends in volumes and members in North America and LatAm - Management noted stabilization in distributor metrics in North America and Latin America, which is encouraging despite not seeing the desired growth yet [38] Question: Global price increase strategy - The company indicated that price increases are at saturation levels, with CPI being the ceiling for future increases [40] Question: Update on 2024 converts and 2025 senior notes - The company plans to use free cash flow to address the remaining $260 million of 2024 converts, with no specific moves yet for the 2025 notes [43] Question: Outlook for gross margin in the second half - Management expects gross margin to hover around 77% for the remainder of the year, with potential for slight expansion depending on currency rates [46][47] Question: Status of the vegan line launch - The vegan line has received a warm reception in the U.S. and is being evaluated for broader packaging and branding in other markets [49][66] Question: Evaluation of GLP-1s and potential market entry - The company is exploring various avenues to integrate GLP-1s into its offerings while ensuring that it aligns with its core business model [80]

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, 2023 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 HERBALIFE LTD. (Exact name of registrant as specified in its charter) Cayman Islands 98-0377871 (State or other jurisdiction ...

Herbalife Ltd. (NYSE:HLF) Q1 2023 Earnings Conference Call May 2, 2023 5:30 PM ET Company Participants Erin Banyas - Vice President & Head, Investor Relations Michael Johnson - Chairman & Chief Executive Officer Alex Amezquita - Chief Financial Officer Mark Schissel - Chief Operating Officer Conference Call Participants Chasen Bender - Citi Jeff Van Sinderen - B. Riley William Reuter - Bank of America Hale Holden - Barclays Karru Martinson - Jefferies Operator Good afternoon, and thank you for joining the f ...

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 March 31, 2023 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 HERBALIFE LTD. (Exact name of registrant as specified in its charter) Cayman Islands 98-0377871 (State or other jurisdictio ...

Financial Data and Key Metrics Changes - Fourth quarter net sales were $1.2 billion, down 10% from the prior year, and down 4% on a constant currency basis [6][14] - Full year net sales totaled $5.2 billion, also down 10%, with a constant currency decline of 5% [6][18] - Full year adjusted EPS was $3.40, negatively impacted by a $0.60 currency headwind [6][18] - Adjusted EBITDA for the fourth quarter was approximately flat compared to the prior year, with an adjusted EBITDA margin of 11.1%, an improvement of 110 basis points [17][21] - Full year adjusted EBITDA was approximately $694 million, resulting in an adjusted EBITDA margin of 13.3%, approximately 170 basis points lower than the previous year [18][21] Business Line Data and Key Metrics Changes - The company launched new promotions and held 170 in-person events in 2023, reaching 175,000 distributors [5] - Pricing increases contributed 12.7 percentage points to fourth quarter net sales, but unfavorable country mix resulted in a net sales headwind of approximately 270 basis points [19] - The company is focusing on enhancing its product portfolio, including expanding its daily nutrition products and exploring new categories such as sleep products [8][9] Market Data and Key Metrics Changes - The Asia Pacific region was flat compared to the prior year, led by India which grew 22% [24] - The EMEA region saw a 3% decline in local currency net sales, amplified by 12 points of currency pressure, resulting in reported net sales down 15% [24] - Mexico returned to growth with an 8% increase compared to the prior year, offset by declines in Chile, Colombia, and Brazil [24] Company Strategy and Development Direction - The company aims to modernize and relaunch itself as a public health and wellness company, moving beyond its origins as a weight loss company [8] - A digital transformation initiative, Herbalife One, is being implemented to enhance data utilization and improve distributor and consumer experiences [10][12] - The company is focusing on cost management and has identified $70 million in ongoing efficiencies through its transformation program [15][25] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment in the performance for fiscal 2022 but remains optimistic about future growth [6][7] - The company is not providing guidance for 2023 due to the need for time to analyze new initiatives and the challenging macroeconomic environment [16][37] - Management emphasized the importance of improving distributor metrics and returning to growth through strategic initiatives [14][37] Other Important Information - The company strategically reduced approximately $60 million of outstanding debt during the fourth quarter [17][26] - The company plans to use free cash flow generated in 2023 to continue reducing nominal debt levels [26] Q&A Session Summary Question: Can you elaborate on the Herbalife 2.0 initiative and its execution? - Management stated that the initiative will be additive and not disruptive, with a rollout planned for March [30] Question: Why is guidance not being provided for 2023? - Management explained that the unpredictable environment and new initiatives make it difficult to provide guidance at this time [36][37] Question: What are the primary mistakes made under the previous regime? - Management emphasized the need to look forward and focus on product content and distribution as vital components for success [40] Question: How will cash flow generation be allocated? - Cash flow will be directed towards nominal debt reduction and optimizing the debt capital structure [54][68] Question: What is the outlook for China and its profitability? - Management believes there are opportunities for growth in China while maintaining margin initiatives [71]