Herbalife Ltd. released its financial report for the fourth quarter and full year 2023. Net sales during the fourth quarter reached $1.2 billion, a 2.9% increase from the previous year’s quarter, and net income of $10.2 million with an adjusted EBITDA of $108.8 million. Fourth quarter gross profit margin was 76.3%.
The company’s previously announced Transformation Program resulted in $27 million in savings during the fourth quarter and approximately $70 million in all of 2023. Total program run rate savings are now expected to reach $115 million in 2024, an increase from previous expectations of $90 million.
Net sales in full-year 2023 reached $5.1 billion, a slight decrease (2.7%) from 2022, with a net income of $142.2 million and an adjusted EBITDA of $570.6 million.
“We continue to take strategic actions to optimize our cost structure and strengthen our balance sheet,” said Alex Amezquita, Herbalife Chief Financial Officer. “The incremental cost savings achieved through the expansion of our Transformation Program is evidence of our commitment to enhance productivity and we are continuing to look at all aspects of our business with a focus on driving top-line growth, expanding margins and securing our balance sheet.”
The company continued its rollout of the new Herbalife.com website during the fourth quarter and is now live in markets across Asia Pacific, EMEA, Latin America and North America—markets that represent approximately 70% of the company’s 2023 sales. This rollout will continue throughout 2024 to the remaining markets.
“Our charge is clear–sales growth, margin expansion and maximizing shareholder value,” said Michael Johnson, Herbalife Chairman and Chief Executive Officer. “Together with our distributors, Herbalife is on the path to becoming the global premier health and wellness company, community and platform.”
