Herbalife Ltd. · NYSE:HLF
Herbalife — Q1 2025 Earnings Presentation
23 slides from Herbalife's earnings presentation, Apr 30, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation April 30, 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: Business Update
Q1 2025 Business Update Stephan Gratziani President Incoming CEO effective May 1 ‘25 Q1 2025 Earnings | 3
Slide 4: Business Highlights
Business Highlights • Q1 2025 net sales of $1.2B; at midpoint of guidance range o Up 1.4% YoY on constant currency basis1; at low end of guidance range o Second consecutive quarter of YoY growth excluding FX headwinds • Q1 Adjusted EBITDA2 of $165M exceeds guidance o Adjusted EBITDA2 at constant cur
Slide 5: Strategic Acquisitions to Drive Growth and Innovation
Strategic Acquisitions to Drive Growth and Innovation • Health and wellness digital application • Established, personalized nutrition • Direct-seller of patented ketone company manufacturing company supplements • Platform designed to deliver tailored • Unique, proprietary equipment • ~19K independen
Slide 6: Personalized Wellness Platform Powering an Individual's Health Journey
Personalized Wellness Platform Powering an Individual’s Health Journey Data & Biometrics Digital Health & Lifestyle Data & Biometrics Advanced data analysis assesses key Personalized digital health solutions biomarkers providing a comprehensive, deliver tailored lifestyle plans, built from measurabl
Slide 7: Personalized Wellness Platform
Personalized Wellness Platform* Beta Launch July 2025 and Commercial Release Q4 ‘25 (U.S. Only) Daily Intake Tracking Personalized Health Dashboard Supplements Nutrition Hydration Utilizes cutting-edge biometric analysis to accurately Workout Eating Window Steps assess, measure and track an individu
Slide 8: Financial Update
Q1 2025 Financial Update John DeSimone CFO Q1 2025 Earnings | 8
Slide 9: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights Net Sales Adjusted EBITDA1 Capital Expenditures $1.2B (3.4)% $165M +19% $18M vs Q1 2024 vs Q1 2024 Adjusted EBITDA1 Margin 480 bps of FX Headwinds $5M Capitalized SaaS vs Q1 2024 13.5% Implementation Costs +260 bps vs Q1 2024 +1.4% YoY at Constant Currency2 $182M at Cons
Slide 10: Net Sales Bridge
Net Sales Bridge $ million (3.4)% +1.4% (4.8)% 46.3 4.1 1,282.2 1,264.3 1,221.7 (3.2) (29.3) (60.5) Q1 2024 Q1 2025 Q1 2025 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 the Company be
Slide 11: Regional Net Sales
Regional Net Sales Local Currency Reported Net Sales Net Sales1 Q1 2025 Q1 2024 YoY % Change YoY % Change $ million North America 254.4 265.8 (4)% (4)% Latin America 206.7 214.2 (4)% +11% EMEA 273.3 277.9 (2)% +3% Asia Pacific 422.5 431.2 (2)% +2% China 64.8 75.2 (14)% (13)% Worldwide 1,221.7 1,264.
Slide 12: Adjusted EBITDA Bridge
Adjusted EBITDA1 Bridge $ million % = Adjusted EBITDA1 margin +19% 16.4 11.8 27.8 5.9 164.9 (3.7) 138.3 (9.9) (1.9) (16.6) (3.2) (5.7) Higher inventory write-downs 10.9% 13.5% Input Employee Technology Q1 2024 Volume Pricing Sales Mix Salaries Other FX Q1 2025 Costs Bonus Costs (1) Non-GAAP Measure.
Slide 13: Capital Structure
Capital Structure • Repaid $70M of debt, including $65M of 2025 Notes redeemed in February Debt Maturities • ~$400M revolving credit facility undrawn as of Mar 31; as of Mar 31 ‘252 ~$355M available for borrowing1 $ million 310 • Reduced total leverage ratio to 3.0x at Mar 31 2025 7.875% Sr. Notes 2
Slide 14: Outlook
Outlook Second Quarter 2025 Guidance Guidance Assumptions $ million Net Sales Adjusted EBITDA1 CapEx • Net sales and adjusted EBITDA1 use the average Reported (3.5)% to +0.5% YoY 160 – 170 25 – 35 daily exchange rates for the first two weeks of Constant Currency2 (0.5)% to +3.5% YoY 177 – 187 April
Slide 15: Appendix
Appendix Q1 2025 Earnings | 15
Slide 16: 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 17: 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 Q1 2025 Q1 2024 % = YoY change Q1 2025 Q1 2024 North America (1)% +7% President’s Team +23% (0)% Sales Leader Millionaire Team +36% (3)% Latin America +43
Slide 18: Reconciliation of SG&A to Adjusted SG&A
Reconciliation of SG&A to Adjusted SG&A $ million Q1 2025 Q1 2024 Net sales 1,221.7 1,264.3 Selling, general, and administrative expenses (SG&A) 431.9 492.2 SG&A as a percentage of net sales 35.4% 38.9% Expenses related to Restructuring Program (3.3) (16.7) Expenses related to Transformation Program
Slide 19: Reconciliation of Net Income to Adjusted EBITDA to Credit Agreement EBITDA and Total Leverage Ratio
Reconciliation of Net Income to Adjusted EBITDA to Credit Agreement EBITDA and Total Leverage Ratio Quarters TTM Full Year $ million Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Mar 2025 2024 Net sales 1,264.3 1,281.1 1,240.3 1,207.4 1,221.7 4,950.5 4,993.1 Net income 24.3 4.7 47.4 177.9 50.4 280.4 254.3
Slide 20: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income $ million Q1 2025 Q1 2024 Net income 50.4 24.3 Expenses related to Restructuring Program1 3.3 16.7 Expenses related to Transformation Program1 ― 5.9 Digital technology program costs1 2.4 11.0 Income tax adjustments for above items (details below)1
Slide 21: Reconciliation of Diluted EPS to Adjusted Diluted EPS
Reconciliation of Diluted EPS to Adjusted Diluted EPS $ per share Q1 2025 Q1 2024 Diluted earnings per share 0.49 0.24 Expenses related to Restructuring Program1 0.03 0.17 Expenses related to Transformation Program1 ― 0.06 Digital technology program costs1 0.02 0.11 Income tax adjustments for above
Slide 22: FX Translation Impact
FX Translation Impact $ million, except EPS Net Sales EBITDA Net Income Diluted EPS1 Q1 2025 as reported 1,221.7 153.5 50.4 0.49 Non-GAAP adjustments2 ― 11.4 9.5 0.09 Q1 2025 adjusted 1,221.7 164.9 59.9 0.59 FX rate adjustments3 60.5 16.6 13.0 0.13 Q1 2025 FX Adjusted 1,282.2 181.5 72.9 0.71 (1) Amo
Slide 23: Herbalife
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