Herbalife Ltd. · NYSE:HLF
Herbalife — Q1 2024 Earnings Presentation
21 slides from Herbalife's earnings presentation, May 2, 2024
Slide 1: Q1 2024 Earnings Presentation
Q1 2024 Earnings Presentation May 1, 2024
Slide 2: Forward-Looking Statements
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-loo
Slide 3: Strategic Update
Q1 2024 Strategic Update Michael Johnson Chairman & CEO Q1 2024 Earnings | 3
Slide 4: CEO Highlights
CEO Highlights • Achieved Q1 2024 YoY net sales growth, up 1.0% to $1.3B o 2 consecutive quarters of YoY net sales growth • Exceeded Q1 2024 Adjusted EBITDA1 guidance and raised FY 2024 expectations • Recently launched initiatives are driving new distributor growth • Redesigning and streamlining org
Slide 5: Business Update
Q1 2024 Business Update Stephan Gratziani President Q1 2024 Earnings | 5
Slide 6: New Distributor Trends
New Distributor Trends Month-to-Date Month-to-Date Mar ‘24 vs Feb ‘24 Apr ‘24 vs Mar ‘241 Apr ‘24 vs Apr ‘232 North America +9% +27% +41% Latin America +5% +23% +49% EMEA +5% +16% +25% Asia Pacific +35% +22% +8% China +75% (2)% +8% Worldwide +22% +17% +20% New Distributors Increasing Following Launc
Slide 7: Financial Update
Q1 2024 Financial Update John DeSimone CFO Q1 2024 Earnings | 7
Slide 8: Q1 2024 Financial Highlights
Q1 2024 Financial Highlights Net Sales Adjusted EBITDA1 Capital Expenditures $1.3B +1.0% $138M +7.3% $33M vs Q1 2023 vs Q1 2023 Adjusted EBITDA1 Margin Second Consecutive Quarter of YoY Net Sales Growth 10.9% ~$5M Capitalized SaaS Implementation Costs +2.4% YoY at Constant Currency2 +60 bps vs Q1 20
Slide 9: Net Sales Bridge
Net Sales Bridge $ million +1.0% +2.4% -1.4% 82.4 3.5 1,282.1 1,252.1 1,264.3 (10.6) (17.8) (45.3) Q1 2023 Q1 2024 Q1 2024 Reported Volume Pricing Country Mix Other Local Currency FX Reported Net Sales Net Sales1 Net Sales (1) Non-GAAP Measure. Refer to Appendix for discussion of why we believe adju
Slide 10: Regional Net Sales
Regional Net Sales Local Currency Reported Net Sales Net Sales1 Q1 2024 Q1 2023 YoY % Change YoY % Change $ million North America 265.8 297.2 (11)% (11)% Latin America 214.2 205.5 +4% +2% EMEA 277.9 268.1 +4% +7% Asia Pacific 431.2 413.6 +4% +7% China 75.2 67.7 +11% +17% Worldwide 1,264.3 1,252.1 +1
Slide 11: Adjusted EBITDA Bridge
Adjusted EBITDA1 Bridge $ million % = Adjusted EBITDA1 Margin +7.3% 49.4 15.4 138.3 128.9 (13.6) (18.8) (4.9) (4.5) (4.7) (8.9) +7.5 Lower inventory write-downs 10.3% 10.9% Input Employee Technology China Gov’t Q1 2023 Volume Pricing Other FX Q1 2024 Costs Bonus Costs Grant Income (1) Non-GAAP Measu
Slide 12: Capital Structure Update
Capital Structure Update ~$155M Debt Reduction in First Quarter Majority of Debt Maturities Pushed to 2029 • Reduced total leverage ratio from 3.9x at Dec 31 ‘23 to 3.6x at Mar 31 $ million • $398M cash on hand as of Mar 31 2025 7.875% Sr. Notes Revolver 600 2028 Convertible Notes Term Loan B Comple
Slide 13: Outlook
Outlook Second Quarter Full-Year 2024 Guidance 2024 Guidance 2024 Guidance 2023 Results 2023 Results $ million REVISED (as of Mar 20 ‘24) Net Sales 0% to +3% YoY 1,314.0 0% to +5% YoY 0% to +5% YoY 5,062.4 Adjusted EBITDA1 140 – 160 169.6 550 – 590 540 – 580 570.6 Capital Expenditures 30 – 40 38.3 1
Slide 14: Appendix
Appendix Q1 2024 Earnings | 14
Slide 15: Supplemental Information
Supplemental Information Non-GAAP Financial Measures (unaudited) Adjusted SG&A, Adjusted EBITDA, Credit Agreement EBITDA, Adjusted Net Income and Adjusted Diluted EPS In addition to its reported results calculated in accordance with U.S. GAAP, the Company has included in this presentation adjusted S
Slide 16: Reconciliation of SG&A to Adjusted SG&A
Reconciliation of SG&A to Adjusted SG&A $ million Q1 2024 Q1 2023 Net Sales 1,264.3 1.252.1 Selling, general, and administrative expenses (SG&A) 492.2 475.9 SG&A as a percentage of net sales 38.9% 38.1% Expenses related to Restructuring Program (16.7) ― Expenses related to Transformation Program (5.
Slide 17: Reconciliation of Net Income to Adjusted EBITDA to Credit Agreement EBITDA
Reconciliation of Net Income to Adjusted EBITDA to Credit Agreement EBITDA and Total Leverage Ratio $ million Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 TTM March 2024 FY 2023 Net Sales 1,252.1 1,314.0 1,281.3 1,215.0 1,264.3 5,074.6 5,062.4 Net income 29.3 59.9 42.8 10.2 24.3 137.2 142.2 Interest expe
Slide 18: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income $ million Q1 2024 Q1 2023 Net income 24.3 29.3 Expenses related to Restructuring Program 16.7 ― Expenses related to Transformation Program 5.9 27.3 Digital technology program costs 11.0 3.5 Income tax adjustments for above items (details below) (8.
Slide 19: Reconciliation of Diluted EPS to Adjusted Diluted EPS
Reconciliation of Diluted EPS to Adjusted Diluted EPS $ per share Q1 2024 Q1 2023 Diluted earnings per share 0.24 0.29 Expenses related to Restructuring Program 0.17 ― Expenses related to Transformation Program 0.06 0.27 Digital technology program costs 0.11 0.03 Income tax adjustments for above ite
Slide 20: FX Translation Impact
FX Translation Impact $ million, except EPS Net Sales EBITDA Net Income Diluted EPS1 Q1 2024 as reported 1,264.3 101.1 24.3 0.24 Non-GAAP adjustments2 ― 37.2 25.0 0.25 Q1 2024 adjusted 1,264.3 138.3 49.3 0.49 FX rate adjustments3 17.8 4.4 3.2 0.03 Q1 2024 FX Adjusted 1,282.1 142.7 52.5 0.52 (1) Amou
Slide 21: Herbalife
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