Herbalife Ltd. · NYSE:HLF
Herbalife — Q4 2024 Earnings Presentation
25 slides from Herbalife's earnings presentation, Feb 19, 2025
Slide 1: Q4 2024 Earnings Presentation
Q4 2024 Earnings Presentation February 19, 2025
Slide 2: Forward-Looking Statements and Non-GAAP Measures
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
Q4 2024 Strategic Update Michael Johnson Chairman & CEO Q4 2024 Earnings | 3
Slide 4: CEO Highlights
CEO Highlights • Executive leadership changes effective May 1 ‘25 o Stephan Gratziani appointed CEO o Michael Johnson named Executive Chairman o Rob Levy appointed President, Worldwide Markets • Net sales at high end of guidance for Q4 and FY 2024 o Q4 $1.2B, up 2.7% YoY on constant currency basis1
Slide 5: Business Update
Q4 2024 Business Update Stephan Gratziani President Q4 2024 Earnings | 5
Slide 6: New Distributors and Active Non-Sales Leaders Growth
New Distributors and Active Non-Sales Leaders Growth New Distributor Growth by Region Recruiting Activity by Marketing Plan Level2 % = YoY change Q4 2024 FY 2024 % = YoY change Q4 2024 FY 2024 North America +13% +13% President’s Team +75% +47% Sales Leader Millionaire Team +59% +39% Latin America +5
Slide 7: Financial Update
Q4 2024 Financial Update John DeSimone CFO Q4 2024 Earnings | 7
Slide 8: Q4 2024 Financial Highlights
Q4 2024 Financial Highlights Net Sales Adjusted EBITDA1 Capital Expenditures $1.2B (0.6)% $150M +38% $26M vs Q4 2023 vs Q4 2023 Adjusted EBITDA1 Margin 330 bps of FX Headwinds vs Q4 2023 12.4% ~$3M Capitalized SaaS Implementation Costs +2.7% YoY at Constant Currency2 +340 bps vs Q4 2023 • Gross prof
Slide 9: Net Sales Bridge
Net Sales Bridge $ million (0.6)% +2.7% (3.3)% 43.9 1,247.7 1,215.0 1,207.4 (0.5) (1.8) (8.9) (40.3) Q4 2023 Q4 2024 Q4 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 ad
Slide 10: Regional Net Sales
Regional Net Sales Local Currency Reported Net Sales Net Sales1 Q4 2024 Q4 2023 YoY % Change YoY % Change $ million North America 245.0 252.8 (3)% (3)% Latin America 199.5 196.4 +2% +15% EMEA 257.2 250.1 +3% +6% Asia Pacific 439.8 433.5 +1% +3% China 65.9 82.2 (20)% (20)% Worldwide 1,207.4 1,215.0 (
Slide 11: Adjusted EBITDA Bridge
Adjusted EBITDA1 Bridge $ million % = Adjusted EBITDA1 margin +38% 0.4 9.0 9.3 6.7 1.0 150.0 26.3 3.7 108.8 (12.4) (2.0) +3.0 Lower inventory write-downs (0.8) 9.0% 12.4% Input Employee Technology China Gov’t Q4 2023 Volume Pricing Sales Mix Salaries Other FX Q4 2024 Costs Bonus Costs Grant Income (
Slide 12: Capital Structure
Capital Structure • Reduced debt by nearly $250M in 2024, including ~$180M repaid following Apr ‘24 refinancing transaction Debt Maturities as of Dec 31 ‘242 • ~$400M revolving credit facility fully undrawn as of Dec 31; ~$355M available for borrowing1 $ million 2025 7.875% Sr. Notes 310 • $415M cas
Slide 13: Outlook
Outlook First Quarter Full-Year $ million 2025 Guidance 2024 Results 2025 Guidance 2024 Results Net sales (5.5)% to (1.5)% YoY 1,264.3 (3)% to +3% YoY 4,993.1 Net sales at constant currency1 0% to +4% YoY +1% to +7% YoY Adjusted EBITDA2 140 – 150 138.3 600 – 640 634.8 Adjusted EBITDA2 at constant cu
Slide 14: Appendix
Appendix Q4 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: FY 2024 Financial Highlights
FY 2024 Financial Highlights Net Sales Adjusted EBITDA1 Capital Expenditures $5.0B (1.4)% $635M +11% $122M vs FY 2023 vs FY 2023 Adjusted EBITDA1 Margin +1.2% YoY at Constant Currency2 12.7% ~$16M Capitalized SaaS Implementation Costs +140 bps vs FY 2023 • Gross profit margin of 77.9%, up 140 bps Yo
Slide 17: Full Year Net Sales Bridge
Full Year Net Sales Bridge $ million (1.4)% +1.2% (2.6)% 266.2 7.0 5,124.3 5,062.4 4,993.1 (8.8) (131.2) (202.5) FY 2023 FY 2024 FY 2024 Reported Volume Pricing Country Mix Other Local Currency FX Reported Net Sales Net Sales1 Net Sales (1) Non-GAAP Measure. Refer to Supplemental Information include
Slide 18: Full Year Regional Net Sales
Full Year Regional Net Sales Local Currency Reported Net Sales Net Sales1 FY 2024 FY 2023 YoY % Change YoY % Change $ million North America 1,054.4 1,131.4 (7)% (7)% Latin America 832.5 820.9 +1% +8% EMEA 1,084.8 1,068.8 +1% +4% Asia Pacific 1,723.8 1,713.9 +1% +3% China 297.6 327.4 (9)% (7)% Worldw
Slide 19: Full Year Adjusted EBITDA Bridge
Full Year Adjusted EBITDA1 Bridge $ million % = Adjusted EBITDA1 margin +11% 159.8 28.0 16.5 634.8 570.6 (9.2) (1.7) (42.8) (17.3) (4.7) (41.6) (22.8) +9.1 Lower inventory write-downs 11.3% 12.7% Input Employee Technology China Gov’t FY 2023 Volume Pricing Sales Mix Salaries Other FX FY 2024 Costs B
Slide 20: Reconciliation of SG&A to Adjusted SG&A
Reconciliation of SG&A to Adjusted SG&A $ million Q4 2024 Q4 2023 YTD 2024 YTD 2023 Net sales 1,207.4 1,215.0 4,993.1 5,062.4 Selling, general, and administrative expenses (SG&A) 436.9 474.3 1,875.4 1,866.0 SG&A as a percentage of net sales 36.2% 39.0% 37.6% 36.9% Expenses related to Restructuring P
Slide 21: 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 Quarters Full Year $ million Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 2023 Net sales 1,215.0 1,264.3 1,281.1 1,240.3 1,207.4 4,993.1 5,062.4 Net income 10.2 24.3 4.7 47.4 177.9 254.3 142.2 Interes
Slide 22: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income $ million Q4 2024 Q4 2023 FY 2024 FY 2023 Net income 177.9 10.2 254.3 142.2 Expenses related to Restructuring Program1 0.9 ― 69.1 ― Expenses related to Transformation Program1 4.0 12.2 13.4 54.2 Digital technology program costs1 4.6 9.5 26.7 32.1 G
Slide 23: Reconciliation of Diluted EPS to Adjusted Diluted EPS
Reconciliation of Diluted EPS to Adjusted Diluted EPS $ per share Q4 2024 Q4 2023 FY 2024 FY 2023 Diluted earnings per share 1.74 0.10 2.50 1.42 Expenses related to Restructuring Program1 0.01 ― 0.68 ― Expenses related to Transformation Program1 0.04 0.12 0.13 0.54 Digital technology program costs1
Slide 24: FX Translation Impact
FX Translation Impact $ million, except EPS Net Sales EBITDA Net Income Diluted EPS1 Q4 2024 as reported 1,207.4 135.5 177.9 1.74 Non-GAAP adjustments2 ― 14.5 (141.1) (1.37) Q4 2024 adjusted 1,207.4 150.0 36.8 0.36 FX rate adjustments3 40.3 12.4 7.4 0.07 Q4 2024 FX Adjusted 1,247.7 162.4 44.2 0.43 F
Slide 25: Herbalife
Herbalife”