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Dec 31, 2023
Herbalife Q4 2023 Earnings Report
Herbalife experienced year-over-year net sales growth and implemented cost-saving measures.
Key Takeaways
Herbalife reported Q4 2023 net sales of $1.2 billion, a 2.9% increase year-over-year. Net income was $10.2 million, and diluted EPS was $0.10. The company realized $27 million in cost savings related to its Transformation Program and expects further savings in 2024.
Net sales increased by 2.9% compared to Q4 2022, reaching $1.2 billion.
Net income amounted to $10.2 million.
Diluted EPS stood at $0.10.
Transformation Program yielded $27 million in cost savings during the quarter.
Revenue by Geographic Location
Forward Guidance
Herbalife expects to deliver total program run rate savings of at least $115 million in 2024 and beyond and expects to incur total capital expenditures of approximately $145 million to $195 million for the full year of 2024.
Positive Outlook
- The Company now expects to deliver total program run rate savings of at least $115 million in 2024 and beyond (up from at least $90 million).
- The rollout to the remaining planned markets is expected to be completed in 2024.
- Development will continue on offerings to elevate the digital capabilities provided to distributors and their customers, such as distributor e-commerce, customer loyalty and data-enabled solutions.
- These events helped engage, motivate, inspire and educate the distributor base.
- The Company believes these interactions have supported an increase in sales leader retention.
Challenges Ahead
- The Company now expects to incur total program pre-tax expenses of at least $95 million (up from at least $75 million), of which $79 million has been incurred to date.
- Fourth quarter gross profit margin was 76.3%, down 120 basis points year-over-year, primarily due to the benefit of approximately 100 basis points of pricing more than offset by continued headwinds from input cost inflation of approximately 210 basis points.
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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