Herbalife Ltd ( (HLF) ) has released its Q4 earnings. Here is a breakdown of the information Herbalife Ltd presented to its investors.
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Herbalife Ltd. is a global health and wellness company known for its science-backed nutrition products and business opportunities, operating in over 90 markets worldwide. The company recently reported its financial results for the fourth quarter and full-year 2024, highlighting net sales of $1.2 billion for Q4 and $5.0 billion for the full year, which were at the high end of previous guidance. This performance was despite facing foreign exchange headwinds, with constant currency sales showing growth. Notably, the adjusted EBITDA for both periods exceeded guidance, indicating strong operational efficiency.
Key financial metrics for Herbalife include a Q4 adjusted EBITDA of $150 million and a full-year adjusted EBITDA of $634.8 million, both surpassing expectations. The company also reported improvements in its gross profit margin and a significant increase in new distributor growth for three consecutive quarters, signaling robust engagement within its network. Additionally, a restructuring program completed during the year is expected to yield substantial cost savings starting in 2025.
Strategic leadership changes were announced with Stephan Gratziani appointed as the new CEO, succeeding Michael Johnson, who will take on the role of Executive Chairman. These changes, along with initiatives like the Diamond Development Mastermind Program, aim to sustain and enhance distributor engagement and sales leader retention, with positive trends noted in distributor growth and event attendance.
Looking ahead, Herbalife’s management remains optimistic, providing guidance for 2025 that anticipates continued sales growth on a constant currency basis. The company plans to further leverage its platform and community-driven model to maintain momentum and deliver value to its shareholders.
