Herbalife Nutrition Ltd. released its fourth quarter and full year financial statement for 2022. Included in the report was a 10.3% dip in full year net sales ($5.2 billion) from 2021 and a 10.4% decrease in fourth quarter net sales ($1.2 billion) from the previous year’s quarter.
Net income for 2022 was $321.3 million with an adjusted EBITDA of $694.5 million. Diluted EPS for 2022 was $3.23, down from $4.13 in 2021.
The company’s expense management initiative, which it has called its Transformation Program, is expected to provide $70 million in annual savings, with half happening within 2023.
“While we are optimistic about revitalizing the topline, we are actively controlling expenses to manage margins, maximize profitability and secure our balance sheet,” said Herbalife Chief Financial Officer Alex Amezquita. “We expect that free cash flow in 2023 will largely be put towards reducing our overall debt as we continue to work towards our long-term target leverage of 3.0x gross debt to adjusted EBITDA.”
The company chose not to provide full year 2023 guidance, citing a “rapidly shifting macroeconomic sentiment and backdrop, as well as increased volatility in the market.”
“We anticipate the energy and engagement being generated at our in-person events will translate to improving metrics in 2023,” said Herbalife Chairman and Chief Executive Officer, Michael O. Johnson. “Since taking on the CEO role, we have aligned with our distributors behind strategies and objectives to refresh and vitalize the company, in order to return to growth.”