Herbalife International
July 31, 2024
LOS ANGELES, July 31, 2024 --
Herbalife reported second-quarter 2024 net sales of 1.3 billion dollars, down 2.5 percent from a year earlier because of 270 basis points of currency headwinds, but up 0.2 percent in constant currency. Net income was 4.7 million dollars, or 0.05 dollars per diluted share, compared with adjusted EPS of 0.54 dollars, after restructuring costs and a loss on debt extinguishment.
Adjusted EBITDA of 180.0 million dollars beat guidance, and the total leverage ratio fell to 3.5 times. The company said its restructuring program will deliver at least 80 million dollars in annual savings starting in 2025, including at least 50 million dollars in 2024, with total program costs now expected at about 70 million dollars. It also completed a sale and leaseback of its Torrance, California office building in July.
Herbalife lowered its full-year 2024 net sales outlook to a range of down 3.5 percent to up 1.5 percent, from flat to up 5 percent, and raised adjusted EBITDA guidance to 560 million to 600 million dollars. Chairman and CEO Michael Johnson said a rising number of new distributors is laying the foundation for sales growth.