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Herbalife Nutrition Executive Team Shares Growth Strategies at 2021 Virtual Investor Day

September 15, 2021 3:30pm EDT

LOS ANGELES–(BUSINESS WIRE)–
Herbalife Nutrition, a premier global nutrition company, today hosted a virtual investor day with presentations on the Company’s growth outlook, and its long-term strategy. In addition to presentations from the Company’s CEO, president and CFO, investors sat in on a fireside chat with other members of management, moderated by Jefferies Managing Director Stephanie Wissink. Highlights can be found in this release and a replay of the day’s events along with a copy of the materials referenced will be available on September 15, 2021 on the Company’s investor relations page at https://ir.herbalife.com.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210915005405/en/

‚ÄúWith a renewed focus on driving shareholder value, our long-term strategy will open up a whole new chapter of growth,‚ÄĚ said John Agwunobi, Chairman and CEO of Herbalife Nutrition.

Agwunobi kicked off the day with an overview of the Company’s strategy, long-term growth outlook, and focus on maximizing shareholder value. Then, the Company’s President, John DeSimone detailed a number of key strategic objectives.

‚ÄúOver the past four quarters, the U.S. generated approximately 3.4 million new customers, and we believe there is a huge opportunity to drive top-line growth by improving customer activity and retention rates by focusing on key strategies including new product innovation, nutrition club expansion, digital transformation, and efforts to enhance trust in our brand,‚ÄĚ said DeSimone.

Executive presentations wrapped up with a financial presentation by Chief Financial Officer Alex Amezquita that included among other things insight into historical performance, global trends supporting organic net sales growth, and capital allocation.

The presentation explained why the Company expects long-term organic annual net sales growth in the mid to high-single digit range, believes annual adjusted EBITDA growth in the high-single digit range is achievable, and believes adjusted earnings per share growth is on track to be in the double-digit range. It is important to note that the growth rate estimates for net sales, adjusted EBITDA and adjusted diluted EPS assume a constant currency environment.

‚ÄúConsumer demand for our nutrition products has created momentum in our business that puts us in a position of strength for long-term growth. This opportunity is reflected in our long-term growth algorithm which we believe presents an attractive investment opportunity for investors,‚ÄĚ said Amezquita.

The Company’s capital allocation policy has enabled it to service its debt, invest for the future and return approximately $5.6 billion dollars over the past 10 years.

The event concluded with a financial update and a live Q&A session with the Company’s CEO, President and CFO. During the Q&A session, management confirmed that as part of its ongoing share repurchase program, the Company expects to repurchase more than $200 million in shares in the third and fourth quarters, and that during the third quarter, approximately $76.6 million in shares had been repurchased thus far.

Additionally, management provided the following volume points by region for the third quarter-to-date through August 31 during the Q&A session:

REGIONAL VOLUME POINT METRICS

Third Quarter-to-Date Through August 31

 

 

 

 

Region

2021 (mil)

2020 (mil)

% Change

North America

298.0

349.7

-14.8%

 

Asia-Pacific

325.3

293.2

10.9%

 

EMEA

258.1

285.1

-9.5%

 

China

62.9

97.6

-35.6%

 

Mexico

144.4

159.3

-9.4%

 

South and Central America

82.4

98.4

-16.3%

 

Worldwide

1,171.1

1,283.3

-8.7%

 

Year-to-Date Through August 31

 

 

 

 

Region

2021 (mil)

2020 (mil)

% Change

North America

1,269.3

1,198.1

5.9%

 

Asia-Pacific

1,305.3

1,055.6

23.7%

 

EMEA

1,127.8

1,028.5

9.7%

 

China

270.4

366.9

-26.3%

 

Mexico

576.9

582.6

-1.0%

 

South and Central America

332.3

334.1

-0.5%

 

Worldwide

4,882.0

4,565.8

6.9%

Trends through the first part of September have been consistent with that seen in the first two months of the quarter.

The Company’s third quarter ending September 30, 2021 is still ongoing and although the interim third quarter results and updated third quarter and full year 2021 guidance discussed herein, during the Company’s investor day presentation earlier today and in the Company’s press release dated September 13, 2021 reflect some interim third quarter information, the Company has not begun the quarter-end process of compiling, analyzing and finalizing the full results for the quarter. The Company’s independent registered public accounting firm has not reviewed any of the interim third quarter information. As such, there can be no assurance that reported results will be in the ranges specified. The Company expects to report its final results for the third quarter of 2021 on November 2, 2021.

About Herbalife Nutrition Ltd.

Herbalife Nutrition (NYSE: HLF) is a global company that has been changing people’s lives with great nutrition products and a business opportunity for its independent distributors since 1980. The Company offers high-quality, science-backed products, sold in over 90 countries by entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle. Through the Company‚Äôs global campaign to eradicate hunger, Herbalife Nutrition is also committed to bringing nutrition and education to communities around the world.

Forward-Looking Statements

This release contains ‚Äúforward-looking statements‚ÄĚ within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any 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 by the COVID-19 pandemic. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the following:

We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Non-GAAP Measures

The Company has included in this release adjusted diluted EPS and adjusted EBITDA, performance measures that the Securities and Exchange Commission defines as ‚Äúnon-GAAP financial measures.‚ÄĚ Management believes that such non-GAAP financial measures, which exclude the impact of certain unusual or non-recurring items, when read in conjunction with the Company‚Äôs reported results, calculated in accordance with GAAP, can provide useful supplemental information for investors because they facilitate a period to period comparative assessment of the Company‚Äôs operating performance relative to its performance based on reported results under GAAP, while isolating the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company‚Äôs operations and underlying operational performance. The Company‚Äôs definition and calculation of adjusted diluted earnings per share and adjusted EBITDA may not be comparable to similarly titled measures used by other companies because other companies may not calculate them in the same manner as the Company does and should not be viewed in isolation from nor as alternatives to diluted EPS or net income calculated in accordance with GAAP.

Media Contact:

Jennifer Butler

Vice President, Media Relations

213.745.0420

Investor Contact:

Eric Monroe

Senior Director, Investor Relations

213.745.0449

Source: Herbalife Nutrition