Herbalife Ltd. reported its financial results for the third quarter of 2024. Net sales for the period reached $1.2 billion, down 3.2% from the same period of 2023. Net income was $47.4 million with an adjusted EBITDA that exceeded guidance at $166.5 million. Diluted EPS was $0.46 with net cash provided by operating activities of $99.5 million.
“Our financial foundation is strong,” said Michael Johnson, Herbalife Chairman and CEO. “Third quarter net sales were in line with our expectations, adjusted EBITDA exceeded guidance and distributor recruiting is up worldwide year-over-year. Our new business initiatives are taking root as we continue on our path to sustainable top-line growth.”
The company also enacted a Restructuring Program at the beginning of 2024 intended to bring leadership closer to its markets, streamline employee structure and accelerate productivity. This program is expected to deliver annual savings of at least $80 million beginning in 2025, with at least $50 million to be achieved by year-end 2024.
“Our margins have improved year-over-year, and we continue to strengthen our financial foundation,” said John DeSimone, Herbalife Chief Financial Officer. “We paid down debt in the quarter. Our total leverage ratio is down to 3.3x at September 30 and we are on track to reduce our total leverage ratio to 3.0x by the end of 2025, as well as reduce total debt by $1 billion over the next 4 to 5 years.”
