Herbalife(HLF)

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Herbalife(HLF) - 2025 Q1 - Earnings Call Transcript
2025-04-30 21:30
Financial Data and Key Metrics Changes - The company's net sales for Q1 2025 were $1.2 billion, down 3.4% compared to Q1 2024, but showed a constant currency growth of 1.4% year over year [10][27] - Adjusted EBITDA for Q1 was $165 million, exceeding guidance, with adjusted EBITDA margins at 13.5%, up 260 basis points year over year [28] - The total leverage ratio was reduced to three times as of March 31, achieving the target set for the end of 2025 nine months ahead of schedule [11][31] Business Line Data and Key Metrics Changes - The number of new distributors joining Herbalife worldwide increased by 16% year over year, marking the fourth consecutive quarter of new distributor growth [12] - The company reported a gross profit margin improvement to 78.3%, up 80 basis points compared to Q1 2024, driven by pricing actions and reduced input costs [28] Market Data and Key Metrics Changes - In Latin America, net sales were down 4% on a reported basis but up 11% on a local currency basis, with a 4% increase in volumes [33] - EMEA net sales were down 2% year over year on a reported basis, while up 3% on a local currency basis, with a 5% decline in volume [34] - North America saw a 4% decrease in net sales year over year, primarily due to an 8% reduction in volumes [35] Company Strategy and Development Direction - The company aims to lead in the health and wellness economy by leveraging its distributor network and enhancing its product offerings through technology and personalization [7][8] - Recent acquisitions of Protocol Health, Pruvit Ventures, and Link Biosciences are intended to strengthen the company's position in personalized health solutions [13][21] - The focus will be on innovation, operational excellence, and sustainable growth rather than just short-term gains [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to adapt to changing consumer expectations and the gig economy, viewing these changes as opportunities for growth [6][8] - The company expects FX to remain a significant headwind for the remainder of 2025, impacting both net sales and adjusted EBITDA [40][43] - The outlook for Q2 2025 includes expected net sales to range from down 3.5% to up 0.5% year over year, with a constant currency basis expectation of down 0.5% to up 3.5% [41][44] Other Important Information - The company plans to launch a beta version of the Protocol platform in July 2025, with a commercial release planned for Q4 2025 [17][18] - The total cash consideration paid for recent acquisitions was $25.5 million, with contingent payments of up to $5 million based on successful launches [39] Q&A Session Summary Question: Can you expand on the monetization strategy of Protocol? - Management indicated that it is early to discuss ROI, but the digital platform aims to support product consumption and distributor engagement [47][50] Question: What is driving the sequential decline in distributor KPIs in North America? - Management noted that the quarter started strong but faced challenges in February, with expectations for improvement in Q2 [61][63] Question: Why was the constant currency sales guidance for 2025 reduced? - The reduction was primarily due to rolling in Q1 trends, with some weakness noted in Asia Pacific and cautious expectations for China [66][67] Question: What are the intentions for Link Biosciences? - The company aims to target both athletes and a more general audience, focusing on hyper-customization in health products [71][75] Question: Is there any additional CapEx associated with the recently acquired assets? - Management confirmed that the CapEx guidance was lowered due to underspending in Q1, but future months will include necessary expenditures for the acquisitions [92][93]
Herbalife(HLF) - 2025 Q1 - Quarterly Results
2025-04-30 20:40
Herbalife Reports Q1 Net Sales at Midpoint of Guidance Range, Net Sales Growth Excluding FX Headwinds; Q1 Adjusted EBITDA Exceeds Guidance; Updates Full-Year Guidance LOS ANGELES, April 30, 2025 – Herbalife Ltd. (NYSE: HLF) today reported financial results for the first quarter ended March 31, 2025: Highlights First Quarter 2025 Exhibit 99.1 Recent Developments Outlook Non-GAAP measure. Refer to Schedule A – "Reconciliation of Non-GAAP Financial Measures" for a discussion of why the Company believes adjusti ...
Herbalife(HLF) - 2025 Q1 - Quarterly Report
2025-04-30 20:16
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, 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 HERBALIFE LTD. (Exact name of registrant as specified in its charter) Cayman Islands 98-0377871 (State or other jurisdictio ...
Herbalife stock forms rare triangle pattern pointing to a drop to $5
Invezz· 2025-04-17 08:12
Herbalife stock price has imploded in the past few years, erasing billions of dollars in value. HLF plunged from a high of $61.65 in February 2019 to $6.25 today, its lowest level since 2009. This article explains whether Herbalife is a good stock to buy the dip in and what to expect.Why Herbalife stock has crashed Copy link to section Herbalife is an American company in the multi-level marketing industry. It uses its large team of sellers to source new business in the US and other countries. These salespeo ...
Herbalife Fuels the Women's College All-Star Game as Official Nutrition and Hydration Sponsor
Prnewswire· 2025-03-24 11:00
Core Insights - Herbalife has become the Official Nutrition and Hydration Sponsor for the Women's College All-Star Game, emphasizing its commitment to supporting female athletes through tailored nutrition and hydration solutions [1][3][5] Company Commitment - Herbalife has been dedicated to empowering female athletes for over 20 years, providing them with science-backed nutrition products and sponsorships to enhance their performance [3][5] - The company currently sponsors more than 50 female athletes across various sports, highlighting its long-standing support for women in athletics [5] Event Details - The Women's College All-Star Game will take place on April 5, 2025, in Tampa, Florida, featuring 20 top collegiate basketball players [1] - Herbalife will provide athletes with access to premium nutrition products, including those from the Herbalife24 NSF Certified for Sport® line, aimed at replenishing essential nutrients and enhancing hydration and recovery [4][6] Expert Insights - Personalized nutrition is crucial for female athletes, as factors like metabolism and hormonal fluctuations can significantly impact their performance and recovery [4] - Herbalife's approach includes offering athletes access to nutritionists and dietitians, addressing the unique nutritional needs often overlooked in women's sports [5]
Are Retail-Wholesale Stocks Lagging Herbalife Ltd (HLF) This Year?
ZACKS· 2025-03-17 14:40
Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Herbalife Ltd (HLF) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Herbalife Ltd is a member of our Retail-Wholesale group, which includes 214 different companies and currently sits at #8 in the Zacks Sector Rank. The Z ...
What Makes Herbalife Ltd (HLF) a New Strong Buy Stock
ZACKS· 2025-02-26 18:00
Herbalife Ltd (HLF) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a chang ...
Is Herbalife Ltd (HLF) Stock Outpacing Its Retail-Wholesale Peers This Year?
ZACKS· 2025-02-26 15:40
Group 1 - Herbalife Ltd is part of the Retail-Wholesale sector, which includes 212 individual stocks and holds a Zacks Sector Rank of 2, indicating strong performance relative to other sectors [2] - The Zacks Rank system highlights stocks with characteristics that are likely to outperform the market in the next one to three months, with Herbalife Ltd currently holding a Zacks Rank of 1 (Strong Buy) [3] - Over the past three months, the Zacks Consensus Estimate for Herbalife's full-year earnings has increased by 1.5%, reflecting improving analyst sentiment and a positive earnings outlook [4] Group 2 - Herbalife Ltd has gained approximately 23.9% year-to-date, significantly outperforming the average return of 6.2% for Retail-Wholesale companies [4] - Herbalife is part of the Retail - Pharmacies and Drug Stores industry, which ranks 1 in the Zacks Industry Rank, with an average gain of 22.2% year-to-date, indicating strong performance within its specific industry [6] - In comparison, another stock in the Retail-Wholesale sector, Potbelly, has a year-to-date return of 28% and a Zacks Rank of 2 (Buy), with an 8% increase in the consensus EPS estimate over the past three months [5][6]
Herbalife: The Battleground Stock Is Showing Some Turnaround Potential
Seeking Alpha· 2025-02-24 12:45
Herbalife Ltd. (NYSE: HLF ) is a health and wellness company with operations in 95 nations through six million independent distributors in a direct selling and multi-level marketing model (or MLM for short). Its products include things like weight management, targeted nutrition, fitness, skincare, and body careMy name is Myriam Hernandez Alvarez. I received the Electronics and Telecommunication Engineering degree from the Escuela Politecnica Nacional, Quito, Ecuador, the M.Sc. degree in computer science fro ...
Herbalife(HLF) - 2024 Q4 - Earnings Call Presentation
2025-02-20 02:38
Q4 2024 Earnings Presentation February 19, 2025 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, including any projections of earnings, revenue or other financial items; any statements of the p ...