Herbalife Nutrition’s third quarter financial report detailed a decrease of 9.5% in third quarter net sales when compared to the previous year’s quarter, totaling $1.3 billion. With this number below company expectations, and with softening sales trends expected to linger into the fourth quarter, Herbalife has withdrawn its full year 2022 guidance.
This announcement was made in tandem with significant changes to the company’s leadership structure, saying that CEO John Agwunobi would be stepping down and Michael O. Johnson would now serve as Chairman and Interim CEO.
“Over our 42-year history we have overcome numerous macroeconomic challenges, and many of our distributors have developed new successful sales strategies and seen positive longer-term impacts on their organizations as a result of these times, as new individuals look to the Herbalife Nutrition business opportunity as a way to supplement their income,” Johnson said. “We remain confident that the resilience of our business model, the entrepreneurial spirit of our independent distributors, the growth profile of our product categories, and the strategic actions we are taking will help us emerge from the current environment stronger than ever.”
Through expense management initiatives, Herbalife’s adjusted EBITDA remained above or near the high-end of the company’s third quarter guidance, at $182.8 million, with net income reaching $82.2 million. Herbalife also reduced its outstanding debt to $50 million.
Asia Pacific remains the company’s top performing market, accounting for $431.7 million in net sales, followed by North America ($317.5 million) and EMEA ($247.7 million).