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Jun 30, 2024
Herbalife Q2 2024 Earnings Report
Herbalife's Q2 2024 results were announced, revealing a slight sales decrease but exceeded adjusted EBITDA guidance.
Key Takeaways
Herbalife reported a 2.5% decrease in net sales, totaling $1.3 billion, but achieved growth on a constant currency basis. The adjusted EBITDA of $180.0 million exceeded expectations, with a margin increase of 120 basis points year-over-year. The company is focused on driving shareholder value and reducing total leverage.
Net sales were $1.3 billion, a decrease of 2.5% compared to Q2 2023.
Net income reached $4.7 million, with an adjusted net income of $54.8 million.
Adjusted EBITDA was $180.0 million, exceeding the company's guidance.
Diluted EPS was $0.05, while adjusted diluted EPS was $0.54.
Revenue by Geographic Location
Forward Guidance
Herbalife provided guidance for the third quarter and revised full-year 2024 guidance, reducing net sales expectations but raising adjusted EBITDA guidance and reaffirming capital expenditure plans.
Positive Outlook
- Adjusted EBITDA for Q3 2024 is expected to be between $125 million and $155 million.
- Full-year 2024 adjusted EBITDA guidance has been raised to $560 million - $600 million.
- Capital expenditures for the full year are reaffirmed at $120 million - $150 million.
- The company expects to realize at least $50 million in savings in 2024 from the Restructuring Program.
- Focus on expanding margins, creating shareholder value, and reducing total leverage ratio to 3.0x by the end of 2025.
Challenges Ahead
- Net sales for Q3 2024 are expected to decline between (4.5)% and 0% year-over-year.
- Full-year 2024 net sales guidance has been reduced to between (3.5)% and +1.5% year-over-year.
- The Company expects to incur total program pre-tax expenses of approximately $70 million related to the restructuring.
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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