Herbalife Nutrition reports record quarterly net sales with 22% growth

Consumer interest in health and wellness continued to drive demand for its nutrition products

Herbalife Nutrition recently reported financial results for the third quarter ended September 30, 2020.

“We achieved another net sales record for the quarter, exceeding US$1.5 billion, as consumer interest in health and wellness continued to drive demand for our nutrition products,” said John Agwunobi, Chairman and CEO of Herbalife Nutrition.

Reported net sales of $1.5 billion for the third quarter of 2020 increased by 22.3% compared to the third quarter 2019 and represents the largest quarterly result in Company history.

Excluding the impact of foreign exchange rates and Venezuela, net sales increased by 25.1% during the third quarter compared to 2019.

Volume points of 1.9 billion, also a quarterly record for the Company, increased 23.2% compared to the third quarter of 2019.

This is the tenth consecutive quarter of year-over-year volume point growth.

Year-over-year volume point growth in all six geographic regions with four of six regions delivering double-digit increases.

Third-quarter 2020 reported diluted EPS of $1.04 and adjusted1 diluted EPS of $1.15, compared to $0.58 and $0.73, respectively, for the third quarter 2019, which were negatively impacted in 2020 by expenses of approximately $3.2 million, or $0.02 per diluted share, and in third quarter 2019 of $5.8 million, or $0.03 per diluted share, related to the China Growth and Impact Investment Program.

During the third quarter, the Company repurchased approximately 16.4 million of its common shares at an aggregate cost of approximately $800 million, including $750 million from the modified Dutch auction tender offer completed in August 2020.

Providing Q4 and FY 2020 net sales guidance ranges of 10.0% – 20.0% and 12.2% – 14.7% growth, respectively.

Initial FY 2021 net sales guidance range of 3.0% – 11.0% growth, as well as reported and adjusted1 diluted EPS guidance ranges of $3.50 – $4.00 and $3.65 – $4.15, respectively.