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Dec 31, 2021
Herbalife Q4 2021 Earnings Report
Net sales declined due to a challenging comparison period, but the company saw growth on a two-year stack basis. The Indian business continued its growth with a year-over-year increase.
Key Takeaways
Herbalife Nutrition reported a decrease in net sales for the fourth quarter of 2021 compared to the same period in 2020, but the company saw growth on a two-year stack basis and continued growth in the Indian market. The company is initiating FY 2022 net sales guidance range of 0% - 6% growth.
Fourth quarter net sales decreased 6.6% compared to 2020.
Reported diluted EPS was $0.37, and adjusted diluted EPS was $0.57.
Reported net income was $38.2 million.
Company announced additional investments in the Indian market with the opening of a new center of excellence.
Revenue by Geographic Location
Forward Guidance
Herbalife Nutrition initiated full year 2022 guidance, including net sales in the range of flat to 6% growth. Given current inflationary pressures, the Company expects 2022 adjusted diluted EPS and adjusted EBITDA to be impacted due to higher than usual cost increases within its supply chain.
Positive Outlook
- Net sales in the range of flat to 6% growth.
- Adjusted diluted EPS guidance is within the range of $4.25 – $4.75.
- Adjusted EBITDA guidance is $785 million - $845 million.
- Full year 2022 guidance assumes $50 million in share repurchases per quarter.
- Transformation program expected to result in annual incremental savings in the range of $10 million to $15 million.
Challenges Ahead
- Current inflationary pressures are expected to impact 2022 adjusted diluted EPS and adjusted EBITDA.
- Higher than usual cost increases within its supply chain.
- Net sales guidance includes a projected currency headwind of approximately 160bps.
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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