Herbalife Ltd. released its financial report for the second quarter of 2023, reporting that net sales trends improved sequentially for two quarters. When compared to the same period in 2022, net sales declined 5.7% to $1.3 billion, representing a 4.2% decline on a constant currency basis. Net income in the quarter was $59.9 million with an adjusted EBITDA of $169.6 million. Diluted earnings per share (EPS) were $0.60.
The company has expectations that Herbalife One, the company’s new fully integrated, digital technology platform, will streamline the company’s business, accelerate data utilization, reduce costs and simplify transactions for distributors and customers. Including this launch and implementation, the company’s capital expenditures during the first six months of 2023 reached $69 million. Total capital expenditures for the full year 2023 are now expected to reach between $150-$200 million.
“This is a pivotal time for Herbalife,” said Michael Johnson, Herbalife Chairman and CEO. “Our trends are improving; we are delivering on our product innovation commitments and our distributors are more energized and engaged in our business than I’ve ever seen. We expect this high-level of engagement and strong momentum to continue, driving our return to growth by the end of 2023.”
Herbalife’s Transformation Program, which began in 2021 to optimize global business processes, is still in progress and now expects to deliver total program run rate savings of at least $90 million in 2024 and beyond. Anticipated savings for 2023 are predicted to exceed $45 million.
“The second quarter marks our second consecutive quarter of improved year-over-year net sales trends,” said Alex Amezquita, Herbalife Chief Financial Officer. “Our Transformation Program has exceeded our initial expectations and the higher cost savings are positioning us to improve future profitability.”
