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Mar 31, 2022
Herbalife Q1 2022 Earnings Report
Net sales decreased due to unfavorable foreign exchange rates and geographic mix shift, while EPS was at the high end of guidance due to strong cost control.
Key Takeaways
Herbalife Nutrition reported a decrease in net sales by 11% compared to Q1 2021, with net sales of $1.3 billion. Reported EPS was $0.96, and adjusted EPS was $0.99, at the high end of the company's guidance range. The company is updating its full year outlook, lowering net sales guidance to a range of down 10.0% to down 4.0%.
Q1 2022 net sales were $1.3 billion, an 11.0% decrease compared to Q1 2021.
Reported diluted EPS was $0.96, and adjusted diluted EPS was $0.99, compared to $1.33 and $1.42 in Q1 2021, respectively.
Net income was $98.2 million and adjusted EBITDA was $185.6 million.
Full year 2022 net sales guidance range updated to down (10.0%) to (4.0%), adjusted diluted EPS guidance range to $3.50 to $4.00, and adjusted EBITDA guidance to $680 million to $740 million.
Revenue by Geographic Location
Forward Guidance
The Company is updating its outlook for the year. For the full year, the Company is lowering net sales guidance to be in the range of down 10.0% to down 4.0%. Despite this reduction, the Company anticipates net sales will be flat in the back half of 2022, and will return to year-over-year net sales growth in the fourth quarter.
Positive Outlook
- The Company anticipates net sales will be flat in the back half of 2022.
- Net sales will return to year-over-year growth in the fourth quarter.
- The return of in-person events could act as a catalyst.
- Implemented numerous sales initiatives at a local level that are all aimed at driving increased engagement in the business.
- Taking meaningful steps to improve margins, through both pricing actions and cost controls.
Challenges Ahead
- The Company is lowering net sales guidance to be in the range of down 10.0% to down 4.0%.
- Behavior of distributors that joined the business during the pandemic has departed from historical trends and is below the Company’s expectations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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