Herbalife Nutrition Reports Record-Breaking Quarterly Volume Point Results and Provides Initial Full Year 2020 Guidance LOS ANGELES--(BUSINESS WIRE)

LOS ANGELES--(BUSINESS WIRE)--October 29, 2019--Herbalife Nutrition Ltd. (NYSE: HLF) today reported financial results for the third quarter ended September 30, 2019.

"The momentum we've built in our business throughout 2019 continued in the third quarter with record-breaking volume point results. We believe this momentum will continue long into the future with the appointment of John Agwunobi as our CEO and

John DeSimone as President, effective March of next year. We are confident Dr. Agwunobi's unique background and John DeSimone's extraordinary knowledge of our business will create an outstanding team and take Herbalife Nutrition to new heights,"

said Michael Johnson, Chairman and CEO of Herbalife Nutrition.

Reported net sales of $1.2 billion increased 0.1% compared to the third quarter 2018. Excluding China, net sales increased 6.1% compared to the prior year period.

Volume points of 1.5 billion increased 2.3% compared to the third quarter 2018, representing the largest quarterly volume point result in Company history. Excluding China, volume points increased 5.2% compared to the prior year period.1

Third quarter reported diluted EPS of $0.58 and adjusted2 earnings of $0.73 per diluted share, both of which were negatively impacted by expenses of approximately $5.8 million or $0.03 per diluted share, related to the China

Growth and Impact Investment Program.

Updating FY 2019 volume point guidance to a range of 2.1% - 3.4% growth, net sales guidance to a range of (1.2%) - 0.1%, as well as reported and adjusted2, 3 diluted EPS guidance to a range of $2.20 - $2.40 and $2.56 - $2.76,

Initiating FY 2020 volume point and net sales guidance range of 1.0% - 7.0% and 1.0% - 7.0% growth, respectively, which includes an approximate 250 bps currency headwind.

In a separate press release this afternoon, the Company announced its CEO transition plan that goes into effect March 2020.

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1 Excluding adjustments to volume point values in 2018, the year over year change would have been an increase of 2.1% and an increase of 5.0% excluding China. See Regional Volume Point Metrics below.

2 Adjusted diluted EPS is a non-GAAP measure and excludes the impact of: non-cash interest expense and amortization of non-cash issuance costs associated with the Company's convertible notes, China grant income, impacts relating to

contingent value rights revaluation, impact related to finalization of insurance recoveries, expenses related to regulatory inquiries and legal accrual, and Mexico VAT Assessment. See Schedule A - "Reconciliation of Non-GAAP Financial Measures"

for a detailed reconciliation of adjusted net income to net income calculated in accordance with GAAP and a reconciliation of adjusted diluted EPS to diluted EPS calculated in accordance with GAAP and a discussion of why we believe these non-GAAP

measures are useful.

3 See Schedule A - "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of adjusted diluted share count to reported diluted share count and a discussion of why the share count has been adjusted for purposes of

calculating adjusted diluted EPS for the year to date periods of 2018 and 2019, and full year 2019 guidance.

Third Quarter 2019 Key Metrics4

(a) During 2018, the Company adjusted volume point values for certain products in North America and South & Central America. Excluding these adjustments, the worldwide total year over year change in volume points would have

been an increase of 2.1% for the third quarter and an increase of 5.0% for the third quarter excluding China. Adjustments to Volume Points during 2019 were not material.

(a) Venezuela was 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 1,180.1%, 102.1% and 135.2% for South & Central America, Worldwide Total and Worldwide Total excluding China, respectively.

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4 Supplemental tables that include Average Active Sales Leader and additional business metrics can be found at http://ir.Herbalife.com.

Following is the Company's fourth quarter 2019, full year 2019 and full year 2020 guidance based on current business trends:

(a) The Company is evaluating our current approach to assigning and maintaining volume point values for certain products or markets. Guidance excludes any future potential impact of volume point adjustments, which may have an impact

on the use of volume points as a proxy for sales trends in future periods.

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

(c) Excludes the following items that cannot be accurately predicted: any future potential ongoing tax effects from the exercise 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 impact of the China Growth and Impact Investment Program.

(d) Adjusted diluted EPS and adjusted effective tax rate excludes the impact of: non-cash interest expense and amortization of non-cash issuance costs associated with the Company's convertible notes, China grant income, impacts

relating to contingent value rights revaluation, impact related to finalization of insurance recoveries, expenses related to regulatory inquiries and legal accrual, and Mexico VAT Assessment, as detailed in Schedule A. See Schedule A -

"Reconciliation of Non-GAAP Financial Measures" for a detailed reconciliation of adjusted diluted EPS to diluted EPS calculated in accordance with GAAP and a discussion of why the Company believes these non-GAAP measures are useful.

(e) Currency adjusted net sales and adjusted diluted EPS represent projections translated into US dollars at currency rates equal to the average rates used to translate 2018 fourth 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 2018 values.

(f) Currency adjusted net sales and adjusted diluted EPS represent projections translated into US dollars at currency rates equal to the average rates used to translate 2019 full year net sales and diluted EPS and adjusted for items

such as hedging gains/losses and Venezuela to be directly comparable to 2019 values.

With respect to guidance, the Company cannot accurately predict the impact to its share base from any share repurchases in 2019 or 2020. Accordingly, any impact thereof is excluded from the guidance tables above.

Guidance is based on the average daily exchange rates during the first two weeks of October 2019.

Adjusted2 diluted EPS guidance for the fourth quarter 2019 includes a projected currency headwind of approximately $0.04 per diluted share versus the fourth quarter of 2018.

Full year 2019 adjusted2 diluted EPS guidance includes a projected currency headwind of approximately $0.33 per diluted share, $0.06 unfavorable compared to the impact included in the full year 2019 guidance provided on August 1,

Full year 2020 adjusted2 diluted EPS guidance includes a projected currency headwind of $0.15 compared to 2019.

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, October 29, 2019, at 2:30 p.m. PT (5:30 p.m. ET).

The dial-in number for this conference call for domestic callers is (877) 317-1296, and (262) 320-2006 for international callers (conference ID: 2178226). 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: 2178226). The webcast of the

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

About Herbalife Nutrition Ltd.

Herbalife Nutrition is a global company that has been changing people's lives with great nutrition products and a proven 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, such as those disclosed or incorporated by reference in our filings with the Securities and Exchange Commission. Important factors that could cause our actual results, performance and

achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, among others, the following:

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

improper action by our employees or Members in violation of applicable law;

adverse publicity associated with our products or network marketing organization, 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;

regulatory matters governing our products, including potential governmental or regulatory actions concerning the safety or efficacy of our products and network marketing program, including the direct selling markets in which we operate;

legal challenges to our network marketing program;

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

risks associated with operating internationally and the effect of economic factors, including foreign exchange, inflation, disruptions or conflicts with our third-party importers, pricing and currency devaluation risks, especially in

countries such as Venezuela;

uncertainties relating to interpretation and enforcement of legislation in China governing direct selling and anti-pyramiding;

our inability to obtain or maintain the necessary licenses for our direct selling business in China and elsewhere;

adverse changes in the Chinese economy;

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, or cybersecurity incidents;

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

contractual limitations on our ability to expand our business;

our reliance on our information technology infrastructure and outside manufacturers;

the sufficiency of our trademarks and other intellectual property rights;

product concentration;

our reliance upon, or the loss or departure of any member of, our senior management team which could negatively impact our Member relations and operating results;

U.S. and foreign laws and regulations applicable to our operations;

uncertainties relating to the United Kingdom's vote to exit from the European Union;

restrictions imposed by covenants in our existing indebtedness;

risks related to the convertible notes;

uncertainties relating to the application of transfer pricing, duties, value added taxes, and other tax regulations, and changes thereto;

changes in tax laws, treaties or regulations, or their interpretation;

taxation relating to our Members;

product liability claims;

our incorporation under the laws of the Cayman Islands;

whether we will purchase any of our shares in the open markets or otherwise; and

share price volatility related to, among other things, speculative trading and certain traders shorting our common shares.