Herbalife Ltd. announced its financial results for the second quarter of 2024, reporting net sales of $1.3 billion, a 2.5% decline from the same period last year. Second quarter gross profit margin improved by 0.9% year over year to 77.9%.
Net income for the second quarter was $4.7 million with an adjusted net income of $54.8 million. The company’s adjusted EBITDA exceeded guidance, reaching $180 million, and diluted EPS was $0.05.
“Our Q2 Adjusted EBITDA is the highest it’s been in seven quarters,” said Michael Johnson, Herbalife Chairman and CEO. “We remain focused on driving shareholder value as the continued increase in new distributors builds the foundation for sales growth.”
Net cash provided by operating activities was $102.5 million, with capital expenditures of approximately $36 million.
The company’s Restructuring Program, which was initiated during Q1 2024, is expected to deliver annual savings of at least $80 million beginning in 2025, with at least $50 million to be achieved in 2024. The company also completed a $1.6 billion debt refinancing earlier this year and completed a sale and 16-month leaseback transaction of its office building in Torrance, California.
“We continue to make significant progress in our initiatives to enhance profitability,” said John DeSimone, Herbalife Chief Financial Officer. “We remain focused on further expanding margins, creating shareholder value and reducing our total leverage ratio to 3.0x by the end of 2025.”
