Herbalife Reports $4.99 Billion in Net Sales for 2024, Net Income Rises 78.8%

Herbalife Ltd. reported net sales of $4.99 billion for the year ended December 31, 2024, a 1.4% decrease compared to 2023. However, net sales in local currency showed a 1.2% increase. This decrease in U.S. dollar net sales was primarily attributed to a 4% decrease in Volume Points (a key non-financial measure of product sales volume, down 4.3% excluding adjustments), a 2.6% negative impact from foreign currency exchange rate fluctuations, and partially offset by a 5.3% positive impact from price increases. Net income rose significantly to $254.3 million (or $2.50 per diluted share), a 78.8% increase from 2023, mainly due to lower income taxes ($145.7 million) and lower royalty overrides ($26.2 million), partially offset by higher net interest expense ($51.6 million).

The company's five geographic regions experienced varied performance. North America saw a 6.8% decrease in net sales, primarily due to an 11.3% drop in Volume Points (11.7% excluding adjustments), partially offset by price increases. Latin America reported a 1.4% increase in net sales, driven by price increases and a slight increase in Volume Points (0.8%, or a 0.6% decrease excluding adjustments), despite unfavorable currency fluctuations. EMEA experienced a 1.5% increase in net sales, with price increases offsetting volume decreases. The Asia Pacific region (excluding China) saw a 0.6% increase in net sales, while China experienced a 9.1% decrease in net sales due to lower sales volume and unfavorable currency fluctuations.

Herbalife's product categories also showed mixed results. Weight management sales decreased by 2.9%, while targeted nutrition, energy/sports/fitness, and outer nutrition saw slight increases. Literature and promotional items decreased by 3.4%. The company attributed these fluctuations to various factors, including global inflationary pressures, supply chain challenges, geopolitical conflicts, and changing consumer preferences. The company implemented pricing actions in several markets to address these conditions.

Herbalife's operational developments included a new training and recognition program aimed at boosting distributor recruitment and activity. The company also highlighted its ongoing investments in technology infrastructure, including the Herbalife One program, designed to enhance digital capabilities for its members. The company completed its Transformation Program in 2024, aiming for annual savings of $110 million, and initiated a Restructuring Program expected to deliver at least $80 million in annual savings starting in 2025. As of December 31, 2024, Herbalife had approximately 8,600 employees, with about 2,300 in the United States, and 6.2 million total members globally.

Looking ahead, Herbalife noted that its future financial condition and results are subject to various risks and uncertainties, including global economic conditions, Member retention, regulatory matters, international operations, and indebtedness. The company did not provide specific forward-looking financial guidance beyond mentioning expected capital expenditures of $100 million to $130 million for 2025, including investments in Herbalife One.