HERBALIFE LTD. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2015 RESULTS

 

  • Fourth quarter adjusted EPS of $1.19 per diluted share and reported EPS of $0.98 per diluted share

 

  • Fourth quarter volume points grew 5% compared to prior year

 

  • Fourth quarter reported net sales of $1.1 billion, increased 9.7% in local currency and declined 3.1% on a reported basis compared to the prior year period due to the unfavorable impact of currency exchange rates

 

  • Cash flow from operations during the quarter was $135.5 million and for the full year was $628.7 million

 

  • Annual sales leader retention of approximately 54.2%percent

 

  • Due to the continued adverse impact from currency exchange rates, full year 2016 adjusted diluted EPS guidance is now expected to be in a range of $4.05 to $4.50, which reflects an $0.80 currency headwind compared to the prior year

 

herbalifeHerbalife Ltd. (NYSE: HLF) reported fourth quarter net sales of $1.1 billion. Net sales, excluding currency impact, grew by 9.7%, while reported net sales declined 3.1% primarily due to the continuing unfavorable impact of currency exchange rates. Adjusted1 earnings for the quarter were $1.19 per diluted share compared to $1.41 per diluted share for the same period in 2014. On a reported basis, fourth quarter net income was $84.5 million, or $0.98 per diluted share, compared to $103.3 million, or $1.21 per diluted share for the same period in 2014. Fourth quarter 2015 net income and diluted EPS were negatively impacted by $26.0 million and $0.30 per diluted share respectively, due to currency fluctuations.

For the quarter ended December 31, 2015, the company generated $135.5 million in net operating cash flow, and invested $30.4 million in capital expenditures.

For the year ended December 31, 2015, the company reported net sales of $4.5 billion, a 9.9% decrease compared to 2014, primarily due to the continuing unfavorable impact of currency exchange rates. Local currency net sales increased 4.7%, compared to 2014. Adjusted earnings for the year were $5.00 per diluted share compared to $5.93 per diluted share for the full year 2014.  On a reported basis, full year net income grew 9.8% to $339 million, or $3.97 per diluted share, compared to $309 million, or $3.40 per diluted share for full year 2014.  Full year 2015 net income and diluted EPS were negatively impacted $137.8 million or $1.57 per diluted share respectively, due to currency fluctuations.

For the year ended December 31, 2015, the company generated cash flow from operations of $628.7 million and invested $79.1 million in capital expenditures.

For the full year 2016, the company is updating its adjusted EPS guidance, solely to reflect current FX rates, to a range of $4.05 to $4.50 per diluted share, from the previous range of $4.35 to $4.75 per diluted share. Guidance includes a currency headwind of approximately $0.80 per diluted share, compared to 2015, which includes an additional $0.30 negative impact from currency compared to initial guidance provided a quarter ago. Full year 2016 currency adjusted EPS guidance is in a range of $4.85 to $5.30.

Michael O. Johnson, chairman and CEO, Herbalife, stated, “2015 was a significant year for Herbalife, as we completed the rollout of bold and important changes to the marketing plan that will enhance the long-term and sustainable growth of our business. We successfully navigated the associated short-term challenges, believing that we were making the right changes at the right time, and despite ongoing currency and macroeconomic challenges, we finished the year returning to growth.”

Johnson continued, “Across the globe, we see more and more health-conscious consumers looking to take their nutrition and health more seriously.  We believe Herbalife is well positioned to meet these consumers’ needs through our extensive product range and the personalized approach of our members.”

About Herbalife Ltd.

Herbalife is a global nutrition company that has been changing people’s lives with great products since 1980. Our nutrition, weight-management, energy and fitness and personal care products are available exclusively to and through dedicated Independent Herbalife Members in more than 90 countries. We are committed to fighting the worldwide problems of poor nutrition and obesity by offering high-quality products, one-on-one coaching with an Herbalife member and a community that inspires customers to live a healthy, active life.

We support the Herbalife Family Foundation (HFF) and its Casa Herbalife programs to help bring good nutrition to children in need.

Herbalife’s website contains a significant amount of financial and other information about the company at http://ir.herbalife.com. The company encourages investors to visit its website from time to time, as information is updated and new information is posted. To learn more visit Herbalife.com or IAmHerbalife.com.