Herbalife Ltd. announced its first quarter financial results for 2023, posting first quarter net sales of $1.3 billion, down 6.3% from the same period last year. Net income for the quarter reached $29.3 million with an adjusted EBITDA of $128.9 million, each negatively impacted by inflation and lower sales.
The company held more than 700 in-person events in the last 12 months, reaching more than 400,000 people and hosted its first in-person gathering in Los Angeles in three years, which Chairman and CEO Michael Johnson attributed to providing momentum and increased engagement for the business.
The company’s Transformation Program, begun in 2021 to strategically optimize global business processes, continues to make progress, resulting in $35 million of savings to date, with expectations to exceed $70 million of total program run rate savings by 2024.
“We have taken steps to protect profitability and secure our balance sheet in order to provide flexibility to execute on our strategic plan and return to growth,” said Alex Amezquita, Herbalife Chief Financial Officer. “Our capital allocation priorities remain unchanged as we take steps to achieve a long-term target gross leverage ratio of 3.0x.”
Asia Pacific continues to be the company’s strongest region, with $413.6 million in net sales. North America and EMEA followed, with $297.2 million and $268.1 million respectively.
The company stated it will not be providing guidance given the “continued dynamic macroeconomic backdrop.”