NYSE$HLF

Herbalife Nutrition Ltd. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Herbalife experienced year-over-year net sales growth and implemented cost-saving measures.

Herbalife reported Q4 2023 net sales of $1.2 billion, a 2.9% increase year-over-year. Net income was $10.2 million, and diluted EPS was $0.10. The company realized $27 million in cost savings related to its Transformation Program and expects further savings in 2024.

  • Net sales increased by 2.9% compared to Q4 2022, reaching $1.2 billion.
  • Net income amounted to $10.2 million.
  • Diluted EPS stood at $0.10.
  • Transformation Program yielded $27 million in cost savings during the quarter.

Headline financials

Total Revenue

$1.22B

Previous: $1.18B+2.9%
EPS (adj)

$0.28

Previous: $0.53-47.2%
Adjusted EBITDA Margin

9.0%

No prior period
Capital Expenditures

-$35.3M

Previous: $42.8M-182.5%
Net Income

$10.2M

Previous: $54.4M-81.3%
Operating Income

$55.8M

Previous: $88.9M-37.2%
Gross Profit

$927M

Previous: $915M+1.3%
Stock-Based Comp

$12.3M

Previous: $6.9M+78.3%

Revenue & EPS history

Herbalife · Revenue · Quarterly

$1.22B

Q4 2023+2.9%vs Q4 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Herbalife expects to deliver total program run rate savings of at least $115 million in 2024 and beyond and expects to incur total capital expenditures of approximately $145 million to $195 million for the full year of 2024.

Tailwinds

  • The Company now expects to deliver total program run rate savings of at least $115 million in 2024 and beyond (up from at least $90 million).
  • The rollout to the remaining planned markets is expected to be completed in 2024.
  • Development will continue on offerings to elevate the digital capabilities provided to distributors and their customers, such as distributor e-commerce, customer loyalty and data-enabled solutions.
  • These events helped engage, motivate, inspire and educate the distributor base.
  • The Company believes these interactions have supported an increase in sales leader retention.

Headwinds

  • The Company now expects to incur total program pre-tax expenses of at least $95 million (up from at least $75 million), of which $79 million has been incurred to date.
  • Fourth quarter gross profit margin was 76.3%, down 120 basis points year-over-year, primarily due to the benefit of approximately 100 basis points of pricing more than offset by continued headwinds from input cost inflation of approximately 210 basis points.
  • On February 2, 2024, the Company initiated the refinancing of its 2018 Term Loan A and 2018 Revolving Credit Facility, both of which mature in March 2025.
  • As of December 31, 2023, $236.1 million was outstanding under the Term Loan A and the revolver remained undrawn.
  • The terms of the proposed refinancing transaction will be disclosed upon completion of the transaction.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+2.4%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-1.5%

Avg return

30 days after

53%

36 / 68 earnings

Positive

+42.7%

Q4 2024

Best reaction

-31.9%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.2%-17.2%-30.7%
Q4 2025+18.3%+18.5%-11.1%
Q3 2025+10.7%+10.0%+48.1%
Q1 2025-7.9%-4.7%+8.5%
Q4 2024+42.7%+47.5%+50.0%
Q3 2024+8.5%+18.2%+11.6%
Q2 2024-9.4%-22.8%-34.1%
Q1 2024+8.4%+12.4%+19.1%
Q4 2023-31.9%-31.6%-24.1%
Q3 2023-2.5%-3.3%-7.7%
Q2 2023+14.8%+13.3%-5.7%
Q1 2023-8.6%-6.4%-20.8%
Q4 2022+27.1%+22.0%+7.3%
Q3 2022-2.8%-24.5%-18.5%
Q2 2022+12.0%+13.2%+7.2%
Q1 2022-3.4%-8.7%-16.3%
Q4 2021-16.7%-14.5%-25.8%
Q3 2021-3.7%-5.3%-17.6%
Q2 2021-5.7%-5.2%+2.9%
Q1 2021+3.2%+9.1%+18.0%
Q4 2020-10.5%-18.6%-17.7%
Q3 2020+2.1%-6.0%+5.1%
Q2 2020-3.4%-5.2%-4.6%
Q1 2020+22.0%+16.4%+35.3%
Q4 2019-2.8%-5.6%-26.3%
Q3 2019+10.6%+9.4%+13.0%
Q2 2019-7.4%-6.6%-16.1%
Q1 2019-5.9%-6.7%-22.2%
Q4 2018-0.9%-0.6%-1.0%
Q3 2018-1.9%-1.5%+4.8%
Q2 2018+11.8%+15.0%+9.6%
Q1 2018+5.1%+4.6%-3.9%
Q4 2017+3.2%+4.5%+18.0%
Q3 2017-3.4%-6.5%-1.7%
Q2 2017-1.9%-0.9%+3.8%
Q1 2017+11.2%+16.6%+18.4%
Q4 2016-6.6%-7.0%-6.1%
Q3 2016-8.6%-9.4%-20.5%
Q2 2016+1.1%+0.4%-8.1%
Q1 2016+9.9%
Q4 2015+19.3%
Q3 2015-1.7%
Q2 2015+14.4%
Q1 2015+11.0%
Q4 2014-7.9%
Q3 2014-15.6%
Q2 2014-11.7%
Q1 2014+4.0%
Q4 2013-0.3%
Q3 2013+2.4%
Q2 2013+2.7%
Q1 2013+3.8%
Q4 2012-2.5%
Q3 2012+1.5%
Q2 2012+2.0%
Q1 2012-15.3%
Q4 2011+10.2%
Q3 2011-5.4%
Q2 2011+5.3%
Q1 2010+13.9%
Q1 2011-0.7%
Q4 2008+10.6%
Q4 2010+10.6%
Q3 2009-1.7%
Q3 2010-1.7%
Q2 2009+10.7%
Q2 2010+10.7%
Q4 2009+10.7%

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