Herbalife Nutrition Reports Fourth Straight Quarter of Year-Over-Year Double-Digit Net Sales Growth LOS ANGELES--(BUSINESS WIRE)

LOS ANGELES--(BUSINESS WIRE)--August 3, 2021--Herbalife Nutrition Ltd. (NYSE: HLF) today reported financial results for the second quarter ended June 30, 2021:

Second quarter 2021 net sales of $1.6 billion, a 15% increase compared to the second quarter 2020.

Five of six geographic regions reported year-over-year net sales growth in the quarter with four of six regions exceeding 20% growth.

Second quarter 2021 reported diluted EPS of $1.31 and adjusted1 diluted EPS of $1.522, compared to $0.82 and $0.972, respectively, for the second quarter 2020. Second quarter 2021 reported and adjusted

earnings per share increased 60% and 57%, respectively, compared to the second quarter 2020.

Reported net income for the quarter of $144.2 million increased 25% compared to the second quarter 2020.

Second quarter 2021 adjusted1 EBITDA of $262.1 million represents the largest quarterly adjusted EBITDA result in Company history.

Updating FY 2021 guidance, including net sales guidance range to 8.5% to 12.5% growth, and adjusted3 diluted EPS guidance range to $4.70 - $5.10.

Initiating FY 2021 adjusted3 EBITDA guidance of $875 million - $935 million.

MANAGEMENT COMMENTARY

Herbalife Nutrition reported second quarter net sales of $1.6 billion, a 15% increase compared to the second quarter 2020. This was the largest quarterly net sales result in Company history and reflects the Company's growth strategy and

demand for Herbalife Nutrition products.

"We delivered double-digit net sales growth for the fourth straight quarter," said John Agwunobi, Chairman and CEO of Herbalife Nutrition. "All three of our core product categories grew double-digits, which includes the Energy, Sports and

Fitness category, which increased 45% compared to the prior year."

The demand for the Company's full line of nutrition products contributed to double-digit growth in over 50 of the Company's markets. In addition to the 45% growth in the Energy, Sports and Fitness category, the Company's targeted

nutrition category, which includes vitamins and supplements, grew by 19%, while the Company s core weight management product category grew by 12% in the quarter.

Five of the Company's six regions experienced net sales growth with four of the regions increasing by more than 20%. In North America, net sales increased 7% compared to the second quarter of 2020. The Asia Pacific region had another

quarter of substantial growth, up 38% compared to the prior year, led by India which grew 93% this quarter compared to Q2 2020. This growth was a testament to the Company's distributors as pandemic conditions continued to impact the Asia

Additionally, reported net income for the quarter of $144 million increased 25% compared to the second quarter 2020. The company reported year-to-date net income of $292 million.

"Our second quarter adjusted EBITDA of $262 million was a record for the second quarter in a row, resulting in over $500 million of adjusted EBITDA generated during the first half of the year," said Alex Amezquita, Chief Financial

Officer, Herbalife Nutrition.

The Company is also seeing a higher interest in the business from young adults. Approximately two-thirds of new distributors and preferred customers who joined Herbalife Nutrition during the second quarter were millennials or Gen-Z.

The Company's revised full year 2021 guidance calls for net sales growth to be in a range of 8.5% to 12.5%, lowering the midpoint by 150 basis points compared to prior full year 2021 guidance. The Company also updated full year 2021

adjusted3 diluted EPS guidance to a range of $4.70 - $5.10, increasing the midpoint by $0.05 compared to prior full year 2021 guidance. Agwunobi added, "We are initiating full year 2021 guidance for adjusted EBITDA3 of

$875 million - $935 million, which highlights the ongoing profitability and underpins the cash flow generation of our business."

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1 Adjusted diluted EPS and adjusted EBITDA are non-GAAP measures. See Schedule A - "Reconciliation of Non-GAAP Financial Measures" for a detailed reconciliation of these measures to the most directly comparable GAAP measure,

and a discussion of why we believe these non-GAAP measures are useful.

2 Second quarter 2021 results were impacted by China grant income of approximately $0.5 million, or $0.00 per diluted share and expenses related to the China Growth and Impact Investment Program of approximately $5.2 million

or $0.04 per diluted share. Second quarter 2020 results were impacted by China grant income of approximately $3.3 million, or $0.02 per diluted share and expenses related to the China Growth and Impact Investment Program of approximately

$2.3 million or $0.01 per diluted share. Second quarter 2020 adjusted results have been updated in Schedule A to no longer exclude China grant income.

3 Adjusted diluted EPS and adjusted EBITDA are non-GAAP measures. See the "Outlook" discussion below and the related footnotes and Schedule A for additional information regarding adjusted diluted EPS and adjusted EBITDA

Second Quarter 2021 Key Metrics

Regional Net Sales and Foreign Exchange ("FX") Impact

(a) Growth/decline in net sales excluding the effects of foreign exchange is based on "net sales in local currency," a non-GAAP financial measure. See Schedule A - "Reconciliation of Non-GAAP Financial Measures" for a

discussion of why we believe adjusting for the effects of foreign exchange is useful.

(b) Venezuela has been generally impacted by significant price increases and erosion in foreign currency exchange rates. Venezuela represents less than 1% of the Company's consolidated net sales. See Schedule A -

"Reconciliation of Non-GAAP Financial Measures" for a discussion of why we believe adjusting for Venezuela is useful.

* Figure not meaningful due to significant foreign currency fluctuations in Venezuela and the price increases implemented as a result thereof that, when considered in isolation, have a disproportionately large impact on the Company's

South and Central American region and consolidated results. Amounts were 33.5% and 10.5% for South & Central America and Worldwide Total, respectively.

Regional Volume Point Metrics

Following is the Company's third quarter and updated full year 2021 guidance based on current business trends:

Currency Fluctuation in Guidance

Guidance is based on the average daily exchange rates for the first two weeks of July 2021.

For the third quarter 2021, net sales guidance includes a projected currency tailwind of approximately 200bps, adjusted(a)(b)(c) diluted EPS guidance includes a projected currency tailwind of approximately $0.06 per diluted

share, and adjusted(a)(b)(c) EBITDA guidance includes a projected currency tailwind of approximately $8 million, all versus the third quarter 2020.

For the full year 2021, net sales guidance includes a projected currency tailwind of approximately 220bps, adjusted(a)(b)(c) diluted EPS guidance includes a projected currency tailwind of approximately $0.15 per diluted

share, and adjusted(a)(b)(c) EBITDA guidance includes a projected currency tailwind of approximately $20 million, all versus the full year 2020.

Currency adjusted net sales, adjusted(a)(b)(c) diluted EPS, and adjusted(a)(b)(c) EBITDA represent projections translated into US dollars at currency rates equal to the average rates used to translate 2020 third

quarter and full year net sales and diluted EPS and adjusted for items such as hedging gains/losses and Venezuela to be directly comparable to 2020 values. See our Company's Form 10-Q for the three months ended June 30, 2021 and Schedule

A - "Reconciliation of Non-GAAP Financial Measures" for a discussion of why we believe adjusting for the effects of foreign exchange is useful.

Share Repurchase in Guidance

With respect to guidance, the Company cannot accurately predict the impact to its share base from any future share repurchases. Accordingly, any impact thereof is excluded from the guidance table above.

(a) Excludes any future potential Venezuela currency devaluations and associated pricing and inflationary consequences.

(b) Excludes the following items that cannot be accurately predicted: any future potential ongoing tax effects from the exercise or vesting of equity awards that could impact the Company's tax rate due to the stock

compensation accounting standard, benefits from future potential China grant income, any future potential dilution from the Company's convertible notes due in 2024, as well as any future impact of the China Growth and Impact Investment

(c) Adjusted diluted EPS and adjusted EBITDA guidance are non-GAAP measures and exclude potential charges or gains that may be recorded during the applicable period, such as, among other things, loss contingencies, gain/loss

on debt extinguishments and refinancing, tax charges relating to tax law changes, net expenses related to the COVID-19 pandemic, and other unanticipated charges and event. The Company does not provide reconciliations of forward-looking

non-GAAP Adjusted EPS and adjusted EBITDA guidance to net income, the comparable GAAP measure because the impact and timing of these potential charges and gains cannot be determined without unreasonable efforts due to their inherent

historical variability, complexity, and unpredictability. These items, which are necessary for a presentation of the reconciliation to GAAP, could have a potentially significant impact on the Company's GAAP results.

Earnings Conference Call

Herbalife Nutrition senior management will host an investor conference call to discuss its recent financial results and provide an update on current business trends on Tuesday, August 3rd, 2021, at 2:30 p.m. PT (5:30 p.m. ET).

The dial-in number for this conference call for domestic callers is (833) 962-1459, and (956) 394-3596 for international callers (conference ID: 6962339). Live audio of the conference call will be simultaneously webcast in the investor

relations section of the Company's website at http://ir.Herbalife.com.

An audio replay will be available following the completion of the conference call in MP3 format or by dialing (855) 859-2056 for domestic callers or (404) 537-3406 for international callers (conference ID: 6962339). The webcast of the

teleconference will be archived and available on Herbalife Nutrition's website.

About Herbalife Nutrition Ltd.

Herbalife Nutrition (NYSE: HLF) is a global company that has been changing people's lives with great nutrition products and a business opportunity for its independent distributors since 1980. The Company offers high-quality,

science-backed products, sold in over 90 countries by entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle. Through the Company's

global campaign to eradicate hunger, Herbalife Nutrition is also committed to bringing nutrition and education to communities around the world.

For more information, please visit IAmHerbalifeNutrition.com.

Herbalife Nutrition also encourages investors to visit its investor relations website at ir.herbalife.com as financial and other information is updated and new information is posted.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although we believe that the expectations reflected in any of our

forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any

forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Additionally, many of these risks and uncertainties are, and may continue to be, amplified by the COVID-19

pandemic. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the

the potential impacts of the COVID-19 pandemic on us; our Members, customers, and supply chain; and the world economy;

our ability to attract and retain Members;

our relationship with, and our ability to influence the actions of, our Members;

our noncompliance with, or improper action by our employees or Members in violation of, applicable U.S. and foreign laws, rules, and regulations;

adverse publicity associated with our Company or the direct-selling industry, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws;

changing consumer preferences and demands;

the competitive nature of our business and industry;

legal and regulatory matters, including regulatory actions concerning, or legal challenges to, our products or network marketing program and product liability claims;

the Consent Order entered into with the FTC, the effects thereof and any failure to comply therewith;

risks associated with operating internationally and in China;

our dependence on increased penetration of existing markets;

any material disruption to our business caused by natural disasters, other catastrophic events, acts of war or terrorism, cybersecurity incidents, pandemics and/or other acts by third parties;

noncompliance by us or our Members with any privacy laws, rules, or regulations or any security breach involving the misappropriation, loss, or other unauthorized use or disclosure of confidential information;

contractual limitations on our ability to expand or change our direct-selling business model;

our reliance on our information technology infrastructure and manufacturing facilities and those of our outside manufacturers;

the sufficiency of our trademarks and other intellectual property;

product concentration;

our reliance upon, or the loss or departure of any member of, our senior management team;

restrictions imposed by covenants in the agreements governing our indebtedness;