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USANA Reports Q4 and Full Year 2024 Financial Results

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USANA Health Sciences, Inc. announced its financial results for the fourth quarter and full year 2024. Total net sales in 2024 were $855 million, down from $921 million in 2023. Net earnings for the year were $42 million, compared to $63.8 million in 2023, with a diluted EPS of $2.12, down from $3.30 in 2023.

Net sales in the fourth quarter of 2024 were $214 million, down from $221 million in Q4 2023, while net earnings were $4.5 million, compared to $16.8 million.

In a $206 million deal, the company acquired a controlling stake (78.8%) of Hiya Health Products, LLC in the fourth quarter of 2024, describing Hiya as a “highly cash generative, direct-to-consumer children’s wellness brand” with a “compelling subscription business model” that the company believes will position USANA to deliver long-term sustainable growth.

“USANA delivered fourth quarter results above our internal expectations, highlighted by 7% sequential net sales growth,” said Jim Brown, USANA President and Chief Executive Officer. “Positive momentum in the Americas & Europe region generated year-over-year and sequential sales growth in this region while performance in our Asia Pacific region declined slightly and was in line with our expectations. On a consolidated basis, we generated solid cash flow during the quarter and our balance sheet remains in a healthy net cash position. Overall, we delivered solid performance to finish the year and are confident in our ability to build on this performance in 2025.”

The company now forecasts consolidated net sales for fiscal year 2025 between $920 million and $1 billion with net earnings between $29 million and $41 million, and ended 2024 with $182 million in cash and cash equivalents.

Partner.Co Announces 2025 Wellness and Athletes Council Appointments

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Each year, Partner.Co assembles a Brand Partner team of athletes, nutritionists and health specialists to form its Wellness Council and Athletes Council. These councils, which serve a one-year term, provide Brand Partners with a voice in product innovation.

“When we choose new members for our councils, we look for Brand Partners who embody Partner.Co’s values,” said Darren Zobrist, Partner.Co Founder & Chief Executive Officer. “This year, we’re lucky to have brought back some incredibly talented partners while welcoming new members to our councils. Together, this group will help us stay on the cutting-edge of product innovation by utilizing their unique experiences and specialties.”

The Athletes Council includes:

  • Briamst Castro
  • Steve Dingman
  • Kristen Doyle White
  • Carla McCarty
  • Justin Solidarios

The Wellness Council includes:

  • Ashley Antley
  • Cynthia Bolden
  • David Daugherty
  • Karen Grisham
  • Carrie Hicks
  • Dr. John R. Jacobsen
  • Sherry Keye
  • Maria Long
  • Michele McCay
  • Pam Middleton
  • Diane Odom
  • Laura Sales
  • Colleen Saunders
  • Dr. Queeney Tang
  • Dr. Kristal Vance
  • Layce Watson

“We live in an amazing time where people around the world are discovering how to care for their bodies so they can live longer, happier, healthier lives,” said Barbara Cox-Lovesy, Partner.Co Sr. Director of Health and Nutrition. “The members of our councils are at the forefront of those movements. Their insight into what each person needs to support their body is critical as Partner.Co continues to innovate.”

Herbalife Named Official Nutrition Sponsor of Desert Smash

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Herbalife Ltd. announced it would serve as the Official Nutrition Sponsor for the 21st annual Desert Smash, a world-famous celebrity tennis event. Held in La Quinta, California, the tennis matches bring together Hollywood and pro tennis players to raise money for the WTA Foundation’s Global Women’s Health Fund, which provides critical nutrition programs for women and children worldwide. This year’s event welcomes well-known celebrities and tennis professionals Naomi Osaka, Nick Kyrgios, Ons Jabeur, Aryna Sabalenka, Holger Rune, Mike & Bob Bryan, Jason Derulo, Mustard, Gavin Rossdale, Nicole Ari Parker, Yvonne Orji, Sam Asghari, Colton Underwood, and others.

As a sponsor, Herbalife will host a Nutrition Lounge at the event, where guests will be treated to a VIP experience and mocktails made from Herbalife Aloe Concentrate Mango, Herbalife SKIN Collagen Beauty Booster and Protein Shakes from the NSF Certified for Sport Herbalife24 line. Guests will also be given to-go swag including protein-packed snacks and nutrient-dense product samples.

“Nutrition is essential to athlete performance, and as the first-ever Official Nutrition Sponsor of this event, Herbalife is proud to support an occasion that not only celebrates the tennis community but also raises funds for vital nutrition programs benefiting women and children,” said Luigi Gratton, MD, MPH, Herbalife Vice President of the Office of Health and Wellness. “Desert Smash has built a remarkable legacy over 21 years, and we’re honored to be part of an event that blends philanthropy, sports, and community.”

Herbalife described its partnership with Desert Smash as an event that “underscores its long-standing dedication to supporting athletes at every level and highlighting the vital role of nutrition in athletic performance.”

Green Compass Launches THC Jellies

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Green Compass, Inc. announced the debut of its Unwind THC Jellies. Created to promote better sleep, relaxation and stress relief, Unwind THC Jellies were formulated with USDA organic hemp-derived THC (2.5 mg) and 25 mg of CBD.

“Now is the time for something new and bold in our business,” said Meredith Cook, Green Compass Chief Executive Officer. “Surveys and half-joking memes about 2025 already being several years long would show us that stress is at an all-time high. Our core consumers—as well as younger and more senior generations—are turning away from alcohol and toward hemp for healthier alternatives for relaxation. With Unwind Jellies, we’re delivering an intentional solution—one that provides just the right balance of calm and clarity, without feeling out of control. It’s unique in the market in its degree of trustworthiness. The hemp in Unwind is cultivated by 6th generation farmers in idyllic Columbus County, North Carolina and the product is certified USDA organic.”

The company described the Unwind THC Jellies as “a natural extension of Green Compass’ wellness mission” and was designed to complement the company’s existing line of USDA Organic hemp products.

Payment Tech Is Now a Non-Negotiable

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In a survey of UK and US merchants, global payments company PXP and polling firm Censuswide found that 64% of merchants now report that payment technology is a strategic growth driver for their business. Payment tech has been an operational necessity for years, as buyers have become heavily reliant on ecommerce, but business owners now see that it is also helping expand their businesses as well.

The evolution of payment tech has brought enhanced security and fraud prevention, which 36% of businesses ranked as their top priority when selecting payment partners, while also bringing more reliability during high-traffic and peak sales periods, which 28% reported was their highest priority.

More than half (51%) of merchants said they are actively leveraging payment systems to create new revenue streams and monetize payment capabilities, while a similar segment (49%) said they are exploring the value of digital wallets and account-to-account payments.

Front-end interactions with customers and back-end data-heavy workflows are being transformed as enhanced digital payment tech streamlines data analysis, business intelligence and operational tasks, but different merchant segments reported key distinctions in their payment tech needs. More than a third of traditional storefront businesses (37%) wanted system stability, while 30% prioritized one unified payment platform across all channels. In the omnichannel sector, 35% of businesses wanted customer transaction protections.

Grading Your Company’s Risk Scorecard

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Are you taking the most proactive measures to stay compliant and avoid legal loopholes?

This issue we are launching a new department, Legal Briefs. In each issue, Direct Selling News will ask a leading attorney to share their perspective on the channel’s most pressing issues and opportunities.

Direct selling companies face constantly evolving legal and regulatory challenges. Business practices and methods once viewed as compliant may now invite legal or regulatory risk. Here are some areas where companies may be creating unnecessary and avoidable risk.

Is Your Distributor Agreement Enforceable?

The consultant agreement plays a critical part in protecting a company from legal and regulatory exposure. No company wants to discover during a pending lawsuit that it cannot legally enforce provisions in its consultant agreement. Yet this is a recurring problem for many companies.

fizkes/shutterstock.com

Most enforceability problems stem from flaws in the electronic enrollment process. A company should not process a consultant enrollment without creating a valid electronic record of the new consultant’s agreement to be bound by the terms of all documents comprising the consultant agreement. Even if a company captures the applicant’s assent to the agreement terms (or any amendments), it must still be able to demonstrate that the electronic signature can be attributed to the individual who electronically enrolled.

Sufficient evidence of attribution can include requiring the applicant to provide personal identifying information such as a social security number or address; assigning a unique identifier to a user; or maintaining a single, secure system for tracking user activities that prevents unauthorized access. If not done properly, a judge or arbitrator may find that a company’s consultant agreement is not enforceable because the company cannot prove that the new consultant agreed to the agreement terms. This can lead to a harsh result, such as a company’s inability to enforce an arbitration provision or class action waiver.

Another enforceability issue can arise if there are similar or identical provisions of the consultant agreement in different parts of the distributor agreement. For example, a provision in the online terms and conditions and a similar provision in a policies and procedures (P&P) document. If a company amends one of these provisions but neglects to amend the other, the two provisions may conflict—nullifying the enforceability of either provision. This very occurrence forced one multi-level marketing (MLM) company to defend a costly class action lawsuit that could have been avoided if not for conflicting provisions in the consultant agreement and P&P.

Are All Material Terms Disclosed During the Enrollment Process?

Legal enforceability is not the only problem that can arise from a flawed online enrollment process. The Federal Trade Commission (FTC) views any failure to “clearly and conspicuously disclose all material terms of the transaction before obtaining the consumer’s billing information” to be a violation of Section 5 of the FTC Act.

Material terms include a full description of auto-renewal and cancellation provisions. If a company utilizes a separate policy and procedures document, it is not sufficient to incorporate it by reference but not provide the complete document for review or to require the consultant to agree to the P&Ps within 30 days of enrollment. Similarly, if a company uses hyperlinks to reference other documents during the enrollment process, the applicant should be required to open the link, review and expressly agree to the terms of all contract documents before the enrollment is processed.

Do Restrictions on Consultant Mobility Create Misclassification Exposure?

At one time or another, MLM companies experience the disruption of a top leader leaving to join another company. The disruption is magnified if the leader solicits other consultants to join the other company.

MLM companies have historically tried to prevent this disruption by including non-compete or non-solicitation restrictions in the consultant agreement. With the evolution of the gig economy and influencer/social media-generated advertising, there is a clear trend that company and brand loyalty are less important to today’s workers. Moreover, the ability to work for more than one company is a key factor in numerous state independent contractor classification tests.

fizkes/shutterstock.com

A non-solicitation policy is a less risky alternative to a non-compete provision. It simply prohibits a consultant from recruiting or soliciting other consultants to join another company. Still, companies should proceed with caution in utilizing a non-solicitation provision.

The non-solicitation restriction must be “reasonable.” Reasonableness focuses on two things: the scope and length of the restriction. MLM companies often “compete” with one another regardless of whether they market similar products or services. This fact may not be obvious to a judge or arbitrator not familiar with this industry. For this reason, a non-solicitation provision should define other MLM or network marketing companies as “competitors.” As for the length of the restriction, non-solicitation restrictions that extend past the termination of the agreement are much more scrutinized than non-solicitation restrictions limited to the term of the agreement.

Is Your Company’s Compensation Plan in Need of a Makeover?

It’s no secret that the FTC has prioritized scrutiny of MLM compensation plans. It is imperative that companies undertake regular, periodic reviews of their compensation plans to avoid getting caught in the FTC’s crosshairs. Companies must be able to demonstrate that commissions are derived primarily from the retail sale of products to non-participant purchasers. The failure to monitor or collect this data, or the non-existence of such data, is viewed by the FTC as indicative of an illegal pyramid scheme.

Additionally, the words and terms used in a compensation plan matter. One of the first things a regulator looks at is how “volume” is defined in the compensation plan. Volume should be defined to reflect an emphasis on retail sales to non-consultants. Many comp plans define volume as inclusive of both volume from participant personal purchases and volume generated from sales to non-consultant customers. If volume is defined this way, this means that the compensation plan—at least theoretically—allows for rewards to be earned exclusively from participant personal purchases.

Even if this does not accurately reflect how commissions are generated in reality, a loose definition of volume allows a regulator to conclude that a company is an illegal pyramid because rewards attainable in the compensation plan can be achieved based on volume with no retail sales activity. A company can spend years—and millions of dollars—seeking to correct a regulator’s misperception created by imprecise language in the company’s compensation plan.

Brent Kugler is a prominent attorney in the direct selling industry with over 23 years of experience. Formerly the General Counsel for a large MLM company, Brent provides comprehensive legal representation to direct sales companies including advice on regulatory issues, distributor policies and procedures, compensation plans, independent contractor classification, governmental affairs and risk management.

From the January/February 2025 issue of Direct Selling News magazine.

What is an Affiliate?

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It’s not about the label, it’s about the behaviors!

This issue we are launching a new department, Insights from the Outside. In each issue, Direct Selling News will ask a leading industry consultant, advisor or advocate to share their perspective on the channel’s most pressing issues and opportunities.

Having been involved in a significant amount of research over the past three years relative to the phenomenal growth of the gig economy and the changes in marketplace behavior, we have not found one common definition of an Affiliate Program. The Amazon definition is very different from how a direct selling company might embrace the concept.

Recent observations reveal that the label “Affiliate” is critiqued and discussed as if there is a common definition applicable to all who embrace its use. Our caution—and the motivation for this article—is to be careful about critiquing or praising any label that cannot be described with one universal description.

For example, we as direct sellers have witnessed the hijacking of the label MLM by adversaries who applied it to all companies who embraced a tiered compensation architecture as if tiered compensation was a new evil. To explain further, the label MLM became identified as the architecture of a pyramid scheme. One can easily say that we have never recovered from the impact of using a label which has many nuanced definitions and applications.

All MLM compensation plans are not the same. Some are intentionally designed to focus on income possibilities while most are designed to focus on rewarding positive behaviors which are duplicated by others, ensuring that brand awareness is enhanced and real consumers are engaged.

The Amazon Blueprint

Amazon might have the most successful Affiliate Program of any type of business. The commission available to Amazon Affiliates is between one percent and 20 percent depending upon the criteria applied to Affiliates. Based upon available literature, we can hypothesize that the average Amazon Affiliate earns between five to ten percent, although we do not have data on the hypothesis.

Amazon Affiliates are expected to influence purchasing from the Amazon digital platform through promotion initiated by Affiliates on their personal websites, blogs and social media. Amazon provides their Affiliates with excellent support—perhaps, the finest digital platform, support and service created by a business model in our lifetime. Amazon appears to ensure that the relationship with Affiliates is focused on customer acquisition. Amazon does not appear to pay Affiliates on customer retention and repurchase activity which is an attribute of most direct selling models.

Direct selling companies certainly reward their independent contractors for their customers’ ongoing purchases. During the last round of research we conducted on the gig economy, we did find that Simplicity vs. Complexity is a viable strategy, and therefore, an attribute of gig-providing models. We did not find a viable Affiliate Program of any type to be based upon commissions only. Amazon rewards its Affiliates with what might be considered a modest commission. However, Amazon can boast a very successful Affiliate Program.

Our Opportunity

Direct selling companies have the opportunity to design their programs to be very rewarding and encouraging, supporting a focus on customer acquisition, retention and frequent ordering. The label should not be the focus. Behavior is the focus supported by simplicity in how the behavior is rewarded.

Offering and encouraging the development of 20, 25, 50 or more customers purchasing frequently without time zone or geographic restriction is a very exciting opportunity for many who seek the freedom and flexibility associated with any form of micro entrepreneurship.

A direct seller who adds their personal experience and passion to how they share the products/services and opportunity for someone else to also engage in affiliating with the brand, adds a powerful ingredient to their personal marketing and business building efforts. Using the previous example of 20, 25, 50 customers purchasing frequently at an average order of close to $100 creates an exciting, duplicable opportunity, regardless of the label used.

If the label used is “Come Fly with Us” we must simply ensure that the marketplace of potential new participants understands what we are saying. Why should we simply adopt a label created by someone else that has many different definitions?

Excellent Affiliate Programs are supported by companies who offer stellar products, exciting marketing, creative communications and promotions as well as flawless customer service and support. The companies that create such programs are not relying upon each individual participant to create their own marketing and support. The new direct seller is more of an intermediary dependent upon a company to provide them with excellent products, services and support. These new intermediaries are motivated differently.

When we respect the differences by simply realizing that everyone will not engage for the same reason, we simplify our approach to attracting and engaging more market share. In my many years of observation, I have never experienced a marketplace as favorable as the one we now find ourselves in. This marketplace purchases their products and services differently and seeks to better utilize their underutilized assets including time, knowledge, skill, passion and purpose to enhance their incomes.

So remember, the labels you use to grow market share are not as important as the behaviors you attract, encourage and reward!

John T. Fleming is the author of Ultimate Gig: Flexibility, Freedom & Rewards which provides an in-depth glimpse of the future of work and how the gig economy has fueled the growth and appeal of flexible work opportunities. John is principal of Ideas and Design Group, LLC and in both the DSA Hall of Fame and DSEF Circle of Honor. John is also a recipient of the DSN Bravo Lifetime Achievement Award.

From the January/February 2025 issue of Direct Selling News magazine.

eXp World Holdings Reports Q4 and Full-Year 2024 Financial Results

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eXp World Holdings, the holding company for eXp Realty, announced its financial results for the fourth quarter and full-year 2024.

Full-year revenue for the company reached $4.6 billion, a 7% increase year-over-year, with adjusted EBITDA of $75.5 million. Fourth quarter revenue was $1.1 billion with an adjusted EBITDA of $7.7 million. Real estate transactions and transaction volume increased 3% and 9% respectively from 2023. Agents and brokers on the eXp Realty platform saw a 5% decline year-over-year to 82,980 at the end of 2024.

“At eXp, we redefine what’s possible in real estate, with our agent-centric platform offering unlimited growth opportunities for agents,” said Glenn Sanford, eXp World Holdings Founder, Chairman and CEO. “I’m especially proud that we issued 1.8 million shares to agents, at an estimated value of $22 million in 2024. We ended the year with strong momentum, with our top 10 U.S. agents closing over $100 million of transaction volume in December alone. We are the platform where the pros go to grow, and we look forward to more exciting announcements in the weeks and months ahead.”

The company ended 2024 with cash and cash equivalents of $113.6 million, down from $125.9 million at the end of 2023.

4Life Welcomes 320 Guests at India Event

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At its Hyderabad, India leadership event, 4Life Founder David Lisonbee emphasized the company’s commitment to health and wellness, and Foundation 4Life Director Jenna Lisonbee spoke about the company’s service initiatives and vision to impact communities on a global scale.

Senior Vice President of Global Sales Preston Richards shared 4Life’s global strategy with attendees before 4Life India Head of Marketing Vishal Godkhindi launched three new products: Energy Go Stix, RioVida Stix, and Shweka Moisturizer.

The event also featured a recognition and awards ceremony as well as motivational speeches from high-ranking distributors for the crowd of more than 320 people.

The Super Patch Company: Driven by Data, Destined to Grow.

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Launched | 2023

Headquarters | Canada

Products | Health & Wellness

Top Executive | Jay Dhaliwal / Founder & CEO

The Super Patch Company Founder Jay Dhaliwal only greenlights products he knows the market wants. A career running sales operations for powerhouse corporations within the software space taught him how to identify these golden opportunities. Jay quickly leveraged his drive and expertise in IT research to make tech-adjacent investments and launch ventures that would go on to amass him a net worth near $100 million—all before the age of 30.

Cracking the Code

This echelon of money was certainly a game-changer for Jay, but there was one significant problem his wealth couldn’t fix. His mother, diagnosed with multiple sclerosis decades prior, was experiencing ongoing and debilitating symptoms that even the best care that he could attain across the globe couldn’t resolve.

“I started asking the doctors engineering questions,” Jay shared. “I’m an engineer, and my thinking was that if the signal her brain is sending wasn’t getting to her body, maybe I could build a connector as a bridge.”

Jay dug into studying neurological coding and neural networks, research that felt like second nature after working in encryption coding for so many years. He analyzed brainwaves from a database in Switzerland; spent three years developing machine learning algorithms and tools that could analyze EEG data (brain activity); and wrote five million lines of code, all in search of understanding the neural “programs” that regulate health and wellness. What he found were data sets that speak to the body’s entire physiological function.

“Over time it became clear that I could understand the underlying neural programs of the mind and then develop systems of skin stimulation to help correct those programs that went offline,” he said. “Once we accept that our mind regulates every physiological function, like an app on our phone, we also understand that if the app gets corrupted or stuck, we have to reset it.”

Jay spent the next 15 years and $25 million of his own personal wealth developing a product that could help his mother with her strength, balance and stability, resulting in an intricately embossed and textured 3M adhesive patch—the first Liberty Super Patch—that uses vibrotactile technology to speak to the body much like Braille allows those with vision impairment to read books with their fingers.

When it came time to bring that product to market, direct selling was an obvious—and effective—choice. “We had the option to go the traditional routes of brick and mortar or ecommerce. But in a retail or ecommerce setting, the amount of education involved would lead to a very steep learning curve and low adoption rate,” he said. “So, this product was seemingly perfect for direct selling. There’s a demonstration, an explanation and an experience of the product. That’s how we ended up with network marketing.”

The Super Patch leadership team, from left: Christopher Thomann, President, EMEA; Chandan Choubey, Chief Operating Officer; Jay Dhaliwal, Founder & CEO; Tom Brown, Chief Procurement Officer; Sean Feeney, Creative Director

The Procter & Gamble Approach

Jay began bringing his new clinically researched product to market the same way he approached every new endeavor: through data analysis. With a background steeped in Fortune 500 tech company protocols, he followed what he christened the “Procter & Gamble Approach,” aligning every phase of development with consumer-centric research. Jay engaged two separate Consumer Packaged Goods (CPG) market research firms to conduct studies across sample sets of 10,000 consumers, then tested every detail of the products, from the name and packaging to the branding and color scheme.

“I don’t invest any more money until we are sure this is what the market wants,” he explained. “Just because we can make it, doesn’t mean we should.”

When his flagship product was fully vetted, Jay used the data from his market research teams to discover what his target demographic would be willing to pay and then worked backwards, designing the economic model and price point first before building a compensation plan around it.

The Liberty Super Patch is the company’s hero product, but they’ve developed over thirteen different patches to address different needs and concerns from skin health to stress relief, immunity, weight loss and athletic performance, among others.

The result has provided Super Patch with the growth and adequate margin to continue scaling, reinvesting into the compensation plan and growing commissions during a time when many companies are shrinking.

“I know what the business can afford to pay,” he said. “Once we had 18 months’ worth of data, I found efficiencies for how to add more money into the compensation plan. We could do that because we had the data to make the analysis and do the right thing.”

Crowdsourcing Advertising Costs

Historically, direct sales companies haven’t invested heavily in traditional advertising. Mass media as a customer acquisition strategy builds consumer credibility and can be highly effective, but it typically carries a higher price tag than the multi-tier model can tolerate. For Jay, engineering a new solution was imperative if he was to follow his Procter & Gamble model.

The result was the CapX Platform, or crowd advertising. With this strategy, The Super Patch Company foots the bill for large-scale advertising, including a billboard in Times Square, television spots and an upcoming informercial featuring well-known celebrities. Independent distributors can buy “tokens,” the estimated marketing cost per customer, and then profit share in the lifetime sales of repurchases. Typically the price of these “tokens” ranges from $15 to $22.

This “tokenizing” of the marketing costs was a way for Jay to expand the product’s reach without stepping on the sales field’s territory. It also created a revenue stream for those who believe in the product but don’t feel equipped to sell.

“The CapX Platform was designed to help the field and the company work together and share in the lifetime value of the customer,” Jay explained. “Distributors don’t have half a million dollars a month to spend on mass media advertising, but together the company can buy the best media and then share the upsides with the field and leaders.”

Built to Last, Built to Grow

Jay’s strategy for growing The Super Patch Company is rooted in authenticity. “The secret to our culture is I didn’t buy any leadership. It’s all organic. We’ve got people making over $100,000 a month organically in 18 months. We’ve got the first three millionaires in the company.”

This commitment extends to his corporate team where strategic innovation is top of mind. “We have been able to hire the very best people in their field. Everyone on the corporate team has done startups, worked and led departments at $100-million-dollar and multi-billion-dollar companies. We understand what growth looks like. And when we bring all these things together, we can build products that resonate with the consumer and drive growth.”

As for the future, Jay expects limited competition. His proprietary technology is protected in 186 countries, and he has already devised a product roadmap for exactly which products will be dropping in the next five, eight, ten years. This continued innovation has given his company incredible momentum, reaching $60 million in revenue in 2023 with expectations to double that number in 2024.

“My goal over the next five years is to have five million customers globally. If only 20 percent of those customers are buying every month, we’ll have a $720 million a year business just from customer revenue. That’s scalable globally.”

From the January/February 2025 issue of Direct Selling News magazine.

Herbalife Announces Q4 and Full Year 2024 Financial Report

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Herbalife reported its financial results for the fourth quarter and full year 2024. Net sales in the fourth quarter were $1.2 billion while net income was $177.9 million. Adjusted EBITDA during the quarter was $150 million, which exceeded guidance. New distributors joining Herbalife increased worldwide by 22% year-over-year in the quarter.

Net sales for the full year 2024 were $5 billion, which was a 1.4% decline from 2023, but at the high end of the company’s guidance range. Adjusted EBITDA was $634.8 million.

The company’s Restructuring Program, which was launched in the first quarter of 2024, is expected to deliver annual savings of $80 million beginning in 2025. Additionally, the company announced that Stephan Gratziani would succeed Michael Johnson as CEO. Johnson will now transition to Executive Chairman and Rob Levy will be appointed President, Worldwide Markets.

“With three consecutive quarters of new distributor growth, a new incoming CEO and significantly improved Adjusted EBITDA margins, we enter 2025 with strong momentum,” Johnson said.

The company described 2024 as a “transformative year for Herbalife” and said its strong margin improvement and progress in debt payment has positioned the company to deliver long-term shareholder value.

Medifast Reports Financial Results for Q4 and Full Year 2024

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Medifast announced its financial results for the fourth quarter and full year 2024. The parent company for direct selling organization OPTAVIA, Medifast reported fourth quarter revenue of $119 million, a 37.7% decrease from Q4 2023, with OPTAVIA Coaches decreasing in number from 41,100 to 27,100 year-over-year.

Gross profit during the fourth quarter declined 37.6% to $88.2 million from $141.4 million in Q4 2023, which the company attributes to a lower sales volume. Income from operations decreased 91.8% to $0.7 million from $8.7 million in Q4 2023. Earnings per diluted share during the quarter was $0.07.

Full year 2024 revenue decreased 43.8% to $602.5 million, compared to revenue of $1.1 billion last year. Net income was $2.1 million, or $0.19 per diluted share, a significant decline from $99.4 million and $9.10 per diluted share in 2023. Net income decreased 80.8% to $20.2 million.

The company maintains cash, cash equivalents and investment securities of $162.3 million with no interest-bearing debt, up from $150 million in 2023.

“This past year was a pivotal year for Medifast, as we continued to transform our business to meet the changing nature of a health and wellness market that has been revolutionized by the rising acceptance of GLP-1 medications,” said Dan Chard, Medifast Chairman & CEO. “Throughout the year, our team has shown resilience and adaptability as we navigated evolving market dynamics, enabling Medifast to remain positioned to be a leader in health and wellness in a GLP-1 world. We’re committed to offering solutions that meet the diverse needs of our customers, whether they are focusing solely on our habit-based approach to weight loss, using GLP-1 medications, or transitioning off them. As we look ahead, our top priorities center on reestablishing growth across all of our key metrics, including driving coach productivity through accelerated customer acquisition, and expanding the number of active earning coaches. These efforts should allow us to broaden our reach, restore revenue and profitability growth and deliver long-term value to all our stakeholders.”

The company now expects Q1 2025 to include revenue between $100 million to $120 million.