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Jun 30, 2022
Herbalife Q2 2022 Earnings Report
Herbalife Nutrition exceeded expectations and reaffirmed topline guidance.
Key Takeaways
Herbalife Nutrition reported Q2 2022 net sales of $1.4 billion, a 10.3% decrease compared to Q2 2021, but exceeded guidance for net sales, adjusted EBITDA, and adjusted EPS. The company is reaffirming its full year 2022 guidance for net sales and adjusted EBITDA, while lowering adjusted diluted full year 2022 EPS guidance due to unfavorable currency movement.
Q2 performance exceeded guidance on both top and bottom lines.
Net sales of $1.4 billion, a 10.3% decrease compared to Q2 2021.
Reported diluted EPS of $0.88 and adjusted diluted EPS of $0.96.
Net income of $86.5 million and adjusted EBITDA of $195.4 million.
Revenue by Geographic Location
Forward Guidance
The Company provided the third quarter and updated full year 2022 guidance based on current business and macroeconomic trends.
Positive Outlook
- The Company is reaffirming net sales guidance range of down 10.0% to down 4.0%, with an expected return to year-over-year net sales growth in the fourth quarter.
- The Company is reaffirming full year adjusted EBITDA guidance range of $680 million to $740 million.
- The company took incremental pricing actions in most markets in late Q2, on top of previously implemented price increases during the first quarter to offset significant increases in input and freight costs.
- The Company continues to innovate with local product development, which resulted in approximately 60 new SKU launches during the second quarter, and over 20 so far during the third quarter.
- The Company believes ongoing investments in its business and products will help drive performance and ultimately create meaningful shareholder value.
Challenges Ahead
- The Company is lowering full year adjusted EPS guidance to be in the range of $3.25 to $3.75.
- For the third quarter 2022, net sales guidance includes a projected currency headwind of approximately 550bps
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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