Herbalife Ltd

Latest Results (20.08.2024):

Net Sales

Herbalife Ltd. reported net sales of $1.3 billion for the second quarter of 2024, reflecting a 2.5% decrease compared to the same period in 2023. This decline was primarily due to 270 basis points of foreign exchange headwinds. However, on a constant currency basis, net sales saw a slight increase of 0.2% year-over-year, driven by growth in Latin America, EMEA, and Asia Pacific regions.

Net Income

For the second quarter of 2024, Herbalife Ltd. achieved a net income of $4.7 million. When adjusted for certain items, the adjusted net income was significantly higher at $54.8 million. The company faced headwinds from restructuring program expenses and a loss on extinguishment of debt, which impacted the reported net income figures.

Adjusted EBITDA

Herbalife Ltd.'s adjusted EBITDA for the second quarter of 2024 was $180.0 million, surpassing the company's guidance. This figure represents a year-over-year increase in the adjusted EBITDA margin by 120 basis points, reaching 14.1%. The company attributed this performance to improved operational efficiencies and cost management.

Cash Flow and Capital Expenditures

During the second quarter of 2024, Herbalife Ltd. generated $102.5 million in net cash from operating activities. The company also reported capital expenditures of approximately $36 million for the same period. For the full year of 2024, Herbalife expects total capital expenditures to range between $120 million and $150 million.

Outlook and Guidance

Herbalife Ltd. has provided guidance for the third quarter of 2024 and revised its full-year 2024 outlook. The company has reduced its net sales guidance but raised its adjusted EBITDA guidance for the full year. Capital expenditures for the year are expected to remain within the previously stated range, reaffirming the company's commitment to strategic investments.