Herbalife Ltd reported third quarter 2023 net sales of $1.3 billion, a slight decline (1.1%) from the same quarter in 2022, with net sales trends improving for three sequential quarters. Gross profit margin in the quarter was 76.3% and net income was $42.8 million. Adjusted EBITDA was $163.3 million, which includes approximately $2 million of foreign currency headwinds year-over-year.
“We remain on track to achieve year-over-year net sales growth in the fourth quarter as our trends continue to improve,” said Michael Johnson, Chairman and CEO of Herbalife. “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. More work is ahead of us, and we believe we are on a path to achieve sustainable growth.”
The company’s Transformation Program, initiated in 2021 to optimize global business processes, is expected to deliver total program run rate savings of at least $90 million in 2024 and beyond, of which at least $60 million will be realized in 2023.
“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,” said Alex Amezquita, Herbalife Chief Financial Officer. “We are optimistic the initiatives we have implemented are taking root and will translate into improved future profitability.”
