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Dec 31, 2024
Herbalife Q4 2024 Earnings Report
Herbalife reported Q4 net sales at the high end of guidance, with Q4 and full-year net sales growth excluding FX headwinds, and Q4 adjusted EBITDA exceeded guidance.
Key Takeaways
Herbalife reported fourth quarter 2024 net sales of $1.2 billion, a slight decrease of 0.6% year-over-year, but an increase of 2.7% on a constant currency basis. Adjusted EBITDA of $150.0 million exceeded guidance, with the adjusted EBITDA margin up 340 basis points compared to Q4 2023. Diluted EPS was $1.74, and adjusted diluted EPS was $0.36.
Net sales for Q4 2024 were $1.2 billion, down 0.6% year-over-year, but up 2.7% on a constant currency basis, reaching the high end of guidance.
Adjusted EBITDA for Q4 2024 was $150.0 million, exceeding guidance, with the adjusted EBITDA margin increasing by 340 basis points compared to Q4 2023.
Diluted EPS for Q4 2024 was $1.74, and adjusted diluted EPS was $0.36.
The company reported three consecutive quarters of new distributor growth, with a 22% year-over-year increase in new distributors joining worldwide in Q4.
Revenue by Geographic Location
Forward Guidance
For Q1 2025, Herbalife expects net sales to decline by 5.5% to 1.5% year-over-year, but to be flat to up 4% on a constant currency basis. Adjusted EBITDA is projected to be between $140 million and $150 million, or $158 million to $168 million at constant currency. For the full year 2025, net sales are expected to be down 3% to up 3% year-over-year, or up 1% to 7% at constant currency. Adjusted EBITDA is projected to be between $600 million and $640 million, or $670 million to $710 million at constant currency.
Positive Outlook
- Net sales at constant currency are expected to grow 0% to +4% YoY in Q1 2025.
- Net sales at constant currency are expected to grow +1% to +7% YoY for the full year 2025.
- Adjusted EBITDA at constant currency is projected to be $158-$168 million for Q1 2025.
- Adjusted EBITDA at constant currency is projected to be $670-$710 million for the full year 2025.
- The company expects to incur total capitalized SaaS implementation costs of approximately $25 million to $30 million for the full year of 2025, which are not included in capital expenditures.
Challenges Ahead
- Net sales are expected to decline (5.5)% to (1.5)% YoY in Q1 2025.
Revenue & Expenses
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