Herbalife Nutrition Announces Full Year Record Results for the Second Consecutive Year|||

Annual Records Include: Net Sales of $5.eight Billion, Reported and Adjusted1
Diluted EPS of $four.xiii and $4.79, Net Income of $447 Million and Adjustedone
EBITDA of $874 Million

Provides Guidance Including FY 2022 Internet Sales Range of Apartment to 6% Growth

LOS ANGELES–(BUSINESS WIRE)–Herbalife Diet Ltd. (NYSE: HLF) today reported financial results for the fourth quarter and full year ended December 31, 2021.



“Global trends continue to drive demand for our science-backed nutrition products, resulting in some other tape year for Herbalife Diet,” said John Agwunobi, Chairman and CEO of Herbalife Nutrition.

HIGHLIGHTS

  • Total twelvemonth 2021 net sales of $five.8 billion increased iv.7% compared to full twelvemonth 2020, representing the largest annual net sales consequence in Company history. The Company’s 3 largest regions: Asia Pacific, Due north America and EMEA, each set annual net sales records.
  • Full year 2021 reported diluted EPS of $iv.xiii and adjusted1diluted EPS of $4.79, increased by approximately 49% and 29%, respectively, compared to the total year 2020 reported and adjusted1
    diluted EPS of $2.77 and $3.71, respectively.
  • Full year 2021 reported net income of $447.two million and adjustedi
    EBITDA of $873.5 million, both almanac records for the Company.
  • During the full yr, the Company repurchased approximately 20.4 million shares for a full purchase price of $983 million.
  • Fourth quarter 2021 net sales of $i.three billion decreased half-dozen.six% compared to the fourth quarter 2020.
  • Fourth quarter 2021 reported diluted EPS of $0.37 and adapted1
    diluted EPS of $0.57, compared to $0.59 and $0.71, respectively, for the 4th quarter 2020.
  • Fourth quarter 2021 reported cyberspace income of $38.2 meg and adjusted1
    EBITDA of $131.6 1000000.
  • Initiating FY 2022 internet sales guidance range of 0% – 6% growth, adjustedtwo
    diluted EPS guidance range of $four.25 – $4.75, and adjusted2
    EBITDA guidance of $785 meg – $845 million. Guidance assumes $50 meg in share repurchases per quarter.

____________________

1
Adjusted diluted EPS and adjusted EBITDA are non-GAAP measures. See Schedule A – “Reconciliation of Non-GAAP Financial Measures” for a detailed reconciliation of these measures to the most directly comparable GAAP measure, and a word of why we believe these non-GAAP measures are useful.

2
Adjusted diluted EPS and adapted EBITDA are not-GAAP measures. See the “Outlook” discussion below and the related footnotes and Schedule A – “Reconciliation of Non-GAAP Financial Measures” for additional information regarding adjusted diluted EPS and adjusted EBITDA guidance.

Direction COMMENTARY

Herbalife Nutrition reported net sales of $5.8 billion for the full yr 2021, an increment of v% compared to the prior year and an annual record for the Visitor. The Visitor as well set annual records for reported diluted EPS, adjusted1
diluted EPS, reported net income and adjusted1
EBITDA. Additionally, the Company completed approximately $i billion in share repurchases during the yr.

“Global trends proceed to drive demand for our science-backed nutrition products, resulting in another record yr for Herbalife Nutrition,” said Chairman and CEO John Agwunobi.

In 2021, the number of distributors connected to grow as more individuals are seeking entrepreneurial and flexible business opportunities, while fulfilling the increasing global demand for health & wellness products. Over the form of the twelvemonth the Company added 2.9 meg new distributors and preferred members. Additionally, the Company announced tape sales leader retention results for the final 12-calendar month requalification period ending in January of 2022 of 68.9%.

For the fourth quarter 2021, net sales declined 7% compared to the fourth quarter 2020 as the year-over-year trend was impacted by a challenging comparison menses. On a two-twelvemonth stack ground, the Company saw growth of 8% compared to the fourth quarter 2019.

During the quarter, the Indian concern continued its growth trajectory with a twelvemonth-over-year increase in net sales of 33%. The Company appear additional investments in the Indian market with the opening of a 155,000 square pes center of excellence that will house a new global business services center, quality laboratory, benefactor innovation space, equally well equally a research and development facility.

Looking to the future, the Visitor has initiated full year 2022 guidance, including net sales in the range of flat to 6% growth. Given current inflationary pressures, the Company expects 2022 adapted2
diluted EPS and adaptedii
EBITDA to be impacted due to college than usual cost increases inside its supply chain. Guidance for adjusted2
diluted EPS is inside the range of $four.25 – $four.75, and adapted2
EBITDA guidance is $785 million – $845 million. Total year 2022 guidance assumes $50 million in share repurchases per quarter.

The Visitor likewise has appear details related to its transformation program, which will realign the Company and its employees to better support distributors and their customers, as well every bit invest in engineering science for the hereafter. For the first stage of the program, the Visitor expects total pre-revenue enhancement charges in the range of $25 1000000 to $30 million, which is expected to result in annual incremental savings in the range of $10 one thousand thousand to $15 1000000, with some savings showtime in 2022, and total yr savings expected to be realized in 2024.

“Investing in the futurity of our business remains a key priority, as well every bit identifying opportunities for efficiencies and improvements in productivity in order to drive long-term shareholder value,” said CFO Alex Amezquita.

4th Quarter and Full Year 2021 Key Metrics

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Regional Net Sales and Foreign Commutation (“FX”) Impact

Region

Reported Cyberspace

Sales

4Q’21 (mil)

Growth/Reject

including FX

vs. 4Q’20

Growth/Decline

excluding FX

vs. 4Q’20


(a)

Asia Pacific

$

397.3

five.1%

6.4%

North America

$

302.3

(2.6%)

(two.8%)

EMEA

$

291.6

(7.4%)

(4.iv%)

Communist china

$

130.four

(31.iv%)

(33.9%)

United mexican states

$

109.two

(5.3%)

(iv.3%)

South & Central America
(b)

$

87.ii

(fourteen.3%)

*

Worldwide Full

$

1,318.0

(6.6%)

*

Due south & Key America excl.
Venezuela
(b)

$

86.7

(14.five%)

(9.three%)

Worldwide Total excl Venezuela
(b)

$

ane,317.5

(6.six%)

(5.5%)

Region

Reported Cyberspace

Sales

FY’21 (mil)

Growth/Decline

including FX

vs. FY’xx

Growth/Decline

excluding FX

vs. FY’twenty


(a)

Asia Pacific

$

1,586.1

17.seven%

16.one%

North America

$

i,428.9

4.1%

3.ix%

EMEA

$

1,335.iv

10.5%

8.1%

Cathay

$

629.5

(22.2%)

(27.v%)

United mexican states

$

463.7

6.1%

0.7%

S & Key America
(b)

$

359.2

(2.0%)

*

Worldwide Total

$

v,802.8

4.7%

*

South & Primal America excl.
Venezuela
(b)

$

357.5

(2.0%)

2.5%

Worldwide Total excl Venezuela
(b)

$

5,801.1

4.seven%

two.ix%

(a)
Growth/decline in net sales excluding the effects of foreign exchange is based on “internet sales in local currency,” a non-GAAP financial measure. Run into Schedule A – “Reconciliation of Not-GAAP Fiscal Measures” for a discussion of why we believe adjusting for the furnishings of foreign substitution is useful.

(b)
Venezuela has been generally impacted past significant price increases and erosion in foreign currency exchange rates. Venezuela represents less than 1% of the Company’southward consolidated net sales. Run into Schedule A – “Reconciliation of Non-GAAP Financial Measures” for a word of why we believe adjusting for Venezuela is useful.

* Effigy not meaningful due to significant foreign currency fluctuations in Venezuela and the price increases implemented as a upshot thereof that, when considered in isolation, have a disproportionately large bear upon on the Company’south Due south and Key American region and consolidated results. For the quaternary quarter 2021 amounts were (7.1%) and (5.three%) for South & Key America and Worldwide Total, respectively. For the full year 2021 amounts were viii.9% and 3.three% for Due south & Central America and Worldwide Full, respectively.

Regional Book Point Metrics

Volume Points

Volume Points

Region

4Q ’21 (mil)

Year/Year % Chg

FY ’21 (mil)

Twelvemonth/Yr % Chg

Asia Pacific

490.half dozen

2.four%

1,960.1

sixteen.0%

Due north America

374.0

(3.0%)

1,783.eight

2.8%

EMEA

369.3

(6.7%)

1,629.3

4.3%

Cathay

76.8

(30.viii%)

375.8

(28.3%)

Mexico

210.2

(six.2%)

851.0

(three.iii%)

South & Central America

123.5

(16.9%)

497.eight

(7.0%)

Worldwide Total

1,644.four

(5.seven%)

7,097.eight

2.v%

Outlook

Following is the Company’s start quarter and full twelvemonth 2022 guidance based on current business trends:

Three Months Catastrophe

Twelve Months Catastrophe

March 31, 2022

December 31, 2022

Depression

Loftier

Low

Loftier

Volume Point Growth vs 2021

(ix.5%)

(three.5%)

(2.0%)

4.0%

Cyberspace Sales Growth vs 2021
(a)

(10.0%)

(4.0%)

0.0%

vi.0%

Adjusted Diluted EPS
(a) (b) (c)

$0.80

$1.00

$4.25

$four.75

Adjusted EBITDA ($ millions)
(a) (c)

$165

$185

$785

$845

Cap Ex ($ millions)

$175

$225

Currency Fluctuation in Guidance

  • Guidance is based on the average daily substitution rates for the first 3 weeks of Jan 2022.
  • For the first quarter 2022, internet sales guidance includes a projected currency headwind of approximately 240bps, adjusted(a)(b)(c)
    diluted EPS guidance includes a projected currency headwind of approximately $0.03 per diluted share, and adapted(a)(b)(c)
    EBITDA guidance includes a projected currency headwind of approximately $4 million, all versus the first quarter 2021.
  • For the full yr 2022, internet sales guidance includes a projected currency headwind of approximately 160bps, adjusted(a)(b)(c)
    diluted EPS guidance includes a projected currency headwind of approximately $0.17 per diluted share, and adjusted(a)(b)(c)
    EBITDA guidance includes a projected currency headwind of approximately $21 million, all versus the total year 2021.
  • Net sales, adjusted(a)(b)(c)
    diluted EPS, and adjusted(a)(b)(c)
    EBITDA correspond projections translated into US dollars at currency rates equal to the average rates used to translate 2021 offset quarter and full twelvemonth internet sales and diluted EPS and adjusted for items such as hedging gains/losses and Venezuela to exist directly comparable to 2021 values. See our Company’due south Form x-K for the yr ended Dec 31, 2021 and Schedule A – “Reconciliation of Non-GAAP Financial Measures” for a discussion of why we believe adjusting for the effects of strange exchange is useful.

Share Repurchase in Guidance

  • With respect to guidance, the Company has assumed $50 one thousand thousand in share repurchases will be completed per quarter.

(a)
Excludes any time to come potential Venezuela currency devaluations and associated pricing and inflationary consequences.

(b)
Excludes the following items that cannot be accurately predicted: any future potential ongoing taxation furnishings from the exercise or vesting of disinterestedness awards that could impact the Company’s tax rate due to the stock bounty bookkeeping standard, as well as any future potential dilution from the Company’due south convertible notes due in 2024.

(c)
Adapted diluted EPS and adjusted EBITDA guidance are non-GAAP measures and exclude potential charges or gains that may be recorded during the applicable menses, such equally, among other things, loss contingencies, gain/loss on debt extinguishments and refinancing, tax charges relating to tax law changes, net expenses related to the COVID-xix pandemic, and other unanticipated charges and events. The Company does not provide reconciliations of forward-looking not-GAAP Adjusted diluted EPS and adapted EBITDA guidance to cyberspace income, the comparable GAAP measure, because the impact and timing of these potential charges and gains cannot be adamant without unreasonable efforts due to their inherent historical variability, complexity, and unpredictability. These items, which are necessary for a presentation of the reconciliation to GAAP, could accept a potentially significant impact on the Company’southward GAAP results.

Earnings Conference Call

Herbalife Nutrition senior management will host an investor conference telephone call to discuss its recent fiscal results and provide an update on electric current business concern trends on Wednesday, February 23rd
2022, at ii:30 p.chiliad. PT (5:xxx p.m. ET).

The dial-in number for this conference call for domestic callers is (833) 962-1459, and (956) 394-3596 for international callers (briefing ID: 5170349). Live audio of the conference call will be simultaneously webcast in the investor relations section of the Company’s website at http://ir.Herbalife.com.

An audio replay will be available following the completion of the briefing call in MP3 format or past dialing (855) 859-2056 for domestic callers or (404) 537-3406 for international callers (briefing ID: 5170349). The webcast of the teleconference will be archived and available on Herbalife Diet’southward website.

About Herbalife Diet Ltd.

Herbalife Nutrition (NYSE: HLF) is a global nutrition company that has been irresolute people’south lives with bang-up diet products and a business opportunity for its independent distributors since 1980. The Company offers science-backed products to consumers in 95 markets past entrepreneurial distributors who provide ane-on-one coaching and a supportive community that inspires their customers to comprehend a healthier, more active lifestyle. Through the Company’s global campaign to eradicate hunger, Herbalife Nutrition is as well committed to bringing nutrition and didactics to communities around the world.

For more information, please visit https://iamherbalifenutrition.com/.

Herbalife Nutrition as well encourages investors to visit its investor relations website at ir.herbalife.com as financial and other information is updated and new data is posted.

Forrad-Looking Statements

This release contains “forrad-looking statements” within the meaning of the safe harbor provisions of the Individual Securities Litigation Reform Deed of 1995. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in whatsoever of our forrad-looking statements. Our future financial condition and results of operations, as well as whatever forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Additionally, many of these risks and uncertainties are, and may continue to be, amplified past the COVID-19 pandemic. Important factors that could cause our bodily results, functioning and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the following:

  • the potential impacts of the COVID-19 pandemic on us; our Members, customers, and supply concatenation; and the world economic system;
  • our ability to attract and retain Members;
  • our relationship with, and our ability to influence the actions of, our Members;
  • our noncompliance with, or improper action past our employees or Members in violation of, applicative U.South. and foreign laws, rules, and regulations;
  • adverse publicity associated with our Visitor or the direct-selling industry, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws;
  • irresolute consumer preferences and demands
    and evolving industry standards, including with respect to climatic change, sustainability, and other ecology, social, and governance, or ESG, matters;
  • the competitive nature of our business and industry;
  • legal and regulatory matters, including regulatory deportment concerning, or legal challenges to, our products or network marketing program and product liability claims;
  • the Consent Social club entered into with the FTC, the effects thereof and any failure to comply therewith;
  • risks associated with operating internationally and in China;
  • our ability to execute our growth and other strategic initiatives, including implementation of our transformation plan and increased penetration of our existing markets;
  • any material disruption to our business concern acquired past natural disasters, other catastrophic events, acts of war or terrorism, cybersecurity incidents, pandemics, and/or other acts by third parties;
  • our ability to fairly source ingredients, packaging materials, and other raw materials and industry and distribute our products;
  • our reliance on our it infrastructure;
  • noncompliance by us or our Members with any privacy laws, rules, or regulations or any security alienation involving the misappropriation, loss, or other unauthorized utilise or disclosure of confidential information;
  • contractual limitations on our ability to expand or alter our straight-selling business model;
  • the sufficiency of our trademarks and other intellectual property;
  • product concentration;
  • our reliance upon, or the loss or divergence of any fellow member of, our senior management team;
  • restrictions imposed by covenants in the agreements governing our indebtedness;
  • risks related to our convertible notes;
  • changes in, and uncertainties relating to, the application of transfer pricing, income tax, community duties, value added taxes, and other revenue enhancement laws, treaties, and regulations, or their estimation;
  • our incorporation under the laws of the Cayman Islands; and
  • share price volatility related to, among other things, speculative trading and certain traders shorting our common shares.

Nosotros practise not undertake whatsoever obligation to update or release any revisions to whatever forward-looking argument or to report whatsoever events or circumstances afterwards the appointment hereof or to reverberate the occurrence of unanticipated events, except as required past law.

Results of Operations

Herbalife Nutrition Ltd. and Subsidiaries
Condensed Consolidated Statements of Income
(In millions, except per share amounts)
Three Months Ended Twelve Months Concluded
12/31/2021 12/31/2020 12/31/2021 12/31/2020
(unaudited)
Due north America

$

302.3

$

310.five

$

1,428.9

$

1,372.9

EMEA

291.six

315.0

1,335.4

1,208.3

Asia Pacific

397.three

377.nine

1,586.1

ane,347.vii

Mexico

109.ii

115.iii

463.7

436.9

Communist china

130.iv

190.2

629.5

809.half-dozen

South and Fundamental America

87.2

101.8

359.2

366.four

Worldwide Net Sales

1,318.0

1,410.7

5,802.8

v,541.8

Cost of Sales

296.6

309.4

1,239.3

1,150.half dozen

Gross Profit

i,021.iv

one,101.3

4,563.5

4,391.2

Royalty Overrides

423.nine

438.ix

one,833.7

1,690.1

Selling, General, and Authoritative Expenses

513.ii

515.5

two,012.ane

2,075.0

Other Operating Income
(1)

(1.five

)

(sixteen.4

)

(fourteen.five

)

Operating Income

84.three

148.four

734.one

640.6

Interest Expense, net

36.7

35.ii

148.7

124.2

Other Expense, cyberspace
(two)

24.6

Income Before Income Taxes

47.6

113.ii

560.8

516.iv

Income Taxes

9.four

39.iv

113.6

143.8

Cyberspace Income

$

38.2

$

73.eight

$

447.2

$

372.six

Weighted-Average Shares Outstanding:
Bones

101.half dozen

121.iii

105.9

131.five

Diluted

103.half-dozen

124.3

108.3

134.5

Earnings Per Share:
Bones

$

0.38

$

0.61

$

iv.22

$

2.83

Diluted

$

0.37

$

0.59

$

iv.thirteen

$

2.77

(one)
Other Operating Income for the three months ended December 31, 2020 and for the twelve months ended December 31, 2021 and 2020 relates to sure Red china government grant income.

(ii)
Other Expense, net for the twelve months ended December 31, 2021 relates to loss on the extinguishment of the 2026 Notes.

Herbalife Diet Ltd. and Subsidiaries
Condensed Consolidated Rest Sheets
(In millions)

Dec 31,

Dec 31,

2021

2020

Avails
Electric current Assets:
Greenbacks and cash equivalents

$

601.5

$

1,045.4

Receivables, cyberspace

66.9

83.3

Inventories

575.7

501.iv

Prepaid expenses and other current avails

187.vii

145.7

Total Current Assets

1,431.8

1,775.8

Property, establish and equipment, cyberspace

442.1

390.2

Operating charter right-of-utilize assets

220.0

222.8

Marketing-related intangibles and other intangible assets, net

317.three

313.3

Goodwill

95.4

100.v

Other assets

313.two

273.5

Total Avails

$

2,819.8

$

3,076.i

LIABILITIES AND SHAREHOLDERS’ DEFICIT
Current Liabilities:
Accounts payable

$

92.0

$

88.7

Royalty overrides

363.2

358.2

Electric current portion of long-term debt

29.four

22.9

Other current liabilities

595.eight

657.5

Total Current Liabilities

ane,080.4

1,127.iii

Non-current liabilities:
Long-term debt, internet of current portion

2,733.2

two,405.v

Non-current operating lease liabilities

201.2

206.seven

Other not-current liabilities

196.five

192.vii

Total Liabilities

4,211.3

3,932.2

Commitments and Contingencies
Shareholders’ deficit:
Common shares

0.1

0.1

Paid-in uppercase in excess of par value

318.i

342.3

Accumulated other comprehensive loss

(211.8

)

(182.2

)

Accumulated deficit

(1,169.0

)

(687.four

)

Treasury stock

(328.9

)

(328.9

)

Total Shareholders’ Deficit

(1,391.5

)

(856.1

)

Total Liabilities and Shareholders’ Arrears

$

two,819.8

$

3,076.i

Herbalife Diet Ltd. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In millions)
Twelve Months Concluded
12/31/2021 12/31/2020
Cash FLOWS FROM OPERATING ACTIVITIES:
Net income

$

447.2

$

372.6

Adjustments to reconcile cyberspace income to net cash provided by operating activities:
Depreciation and acquittal

107.6

100.3

Share-based bounty expenses

54.1

51.0

Non-greenbacks interest expense

thirty.i

26.7

Deferred income taxes

(33.3

)

2.0

Inventory write-downs

28.8

20.6

Foreign commutation transaction loss

14.3

9.9

Loss on extinguishment of debt

24.six

Other

5.2

5.iii

Changes in operating assets and liabilities:
Receivables

ix.vi

(5.viii

)

Inventories

(129.1

)

(76.vi

)

Prepaid expenses and other current avails

(49.3

)

(11.ix

)

Accounts payable

6.ix

5.5

Royalty overrides

17.8

61.ii

Other current liabilities

(68.8

)

77.6

Other

(five.four

)

(ix.8

)

Internet Cash PROVIDED Past OPERATING ACTIVITIES

460.3

628.6

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment

(151.iv

)

(112.0

)

Other

(5.0

)

(xi.ii

)

Cyberspace Greenbacks USED IN INVESTING ACTIVITIES

(156.4

)

(123.two

)

CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from senior secured credit facility, cyberspace of discount

671.one

31.5

Main payments on senior secured credit facility and other debt

(563.5

)

(24.5

)

Proceeds from senior notes

600.0

600.0

Repayment of senior notes

(420.7

)

Debt issuance cost

(viii.four

)

(vii.9

)

Share repurchases

(1,011.3

)

(923.5

)

Other

4.2

three.5

Net Greenbacks USED IN FINANCING ACTIVITIES

(728.six

)

(320.9

)

Effect OF Exchange RATE CHANGES ON Greenbacks, CASH EQUIVALENTS, AND RESTRICTED CASH

(eighteen.ix

)

22.0

Internet Alter IN CASH, Greenbacks EQUIVALENTS, AND RESTRICTED CASH

(443.half dozen

)

206.five

Cash, Cash EQUIVALENTS, AND RESTRICTED Greenbacks, BEGINNING OF Flow

1,054.0

847.5

Greenbacks, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD

$

610.4

$

1,054.0

Cash paid during the year:
Interest paid

$

143.5

$

78.nine

Income taxes paid

$

156.iii

$

138.2

Supplemental Information

SCHEDULE A: RECONCILIATION OF NON-GAAP Financial MEASURES

(Unaudited and unreviewed), (All tables provide Dollars in millions, except per Share Data)

Adapted Internet Income, Adjusted Diluted EPS and Adapted EBITDA

In addition to its reported results and guidance calculated in accordance with GAAP, the Company has included in this release adjusted net income, adjusted diluted EPS and adapted EBITDA, performance measures that the Securities and Exchange Commission defines as “non-GAAP financial measures.” Adjusted cyberspace income, adjusted diluted EPS and adjusted EBITDA exclude the impact of sure unusual or non-recurring items such every bit not-greenbacks involvement expense and amortization associated with the Company’southward convertible notes, expenses related to regulatory inquiries and legal accruals, debt issuance costs and losses on extinguishment of debt, expenses related to COVID-19 pandemic, non-income tax items, and expenses related to transformation program, as further detailed in the reconciliations beneath.

Contacts

Media Contact:

Jennifer Butler

VP, Media Relations

213.745.0420

Investor Contact:

Eric Monroe

Senior Managing director, Investor Relations

213.745.0449

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Source: https://www.dailyhostnews.com/herbalife-nutrition-announces-full-year-record-results-for-the-second-consecutive-year

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