Herbalife Ltd (HLF) Reports Q3 2023 Earnings: Net Sales Down 1.1% YoY, Net Income at $42.8 Million
Herbalife Ltd (NYSE:HLF) reported Q3 2023 net sales of $1.3 billion, a decrease of 1.1% compared to Q3 2022.
The company's net income for the quarter was $42.8 million with a diluted EPS of $0.43.
Herbalife's Transformation Program is expected to realize cost savings of at least $60 million in 2023.
The company repurchased $65.5 million of its 2024 Convertible Notes during Q3 2023.
On November 1, 2023, Herbalife Ltd (NYSE:HLF) released its financial results for the third quarter ended September 30, 2023. The company reported net sales of $1.3 billion, marking a 1.1% decrease compared to the same period in 2022. Despite the slight decline, the company's reported net sales trends have improved for three consecutive quarters.
Financial Highlights
Herbalife's Q3 2023 net income stood at $42.8 million, with a reported diluted EPS of $0.43. The company also reported an adjusted EBITDA of $163.3 million. Herbalife recognized pre-tax expenses of approximately $5 million in the third quarter related to the companys Transformation Program, which is expected to realize cost savings of at least $60 million in 2023.
Management Commentary
Michael Johnson, Chairman and CEO of Herbalife, commented on the results, stating,
We remain on track to achieve year-over-year net sales growth in the fourth quarter as our trends continue to improve."
He further added,
We are seeing signs of success and we are delivering on our commitments from Herbalife One and product innovation to how we support our distributors businesses. Our momentum is building steadily as we continue to evolve and transform Herbalife."
Regional Performance
The company's performance varied across different regions. The Asia Pacific region reported a growth of 2.2% in net sales, while North America saw a decline of 12.5%. EMEA and Latin America reported growth of 5.4% and 13.0% respectively, while China experienced a decline of 19.1%.
Future Outlook
Herbalife remains optimistic about its future performance. The company's CFO, Alex Amezquita, stated,
We delivered our third consecutive quarter of improved year-over-year net sales trends and took further strategic actions to reduce our cost structure and further secure our balance sheet. We are optimistic the initiatives we have implemented are taking root and will translate into improved future profitability."
Explore the complete 8-K earnings release (here) from Herbalife Ltd for further details.
This article first appeared on GuruFocus.
