Herbalife Nutrition Reports Results with Net Sales Growth in Four of our Six Regions LOS ANGELES--(BUSINESS WIRE)--August 1st, 2019--Herbalife Nutrition Ltd. (NYSE: HLF) today reported financial results for the second qu

LOS ANGELES--(BUSINESS WIRE)--August 1st, 2019--Herbalife Nutrition Ltd. (NYSE: HLF) today reported financial results for the second quarter ended June 30, 2019:

"Our performance demonstrates the strength of our geographic diversity as this was the Company's second largest quarter in history, despite the challenges in China," said Michael O. Johnson, Chairman and CEO of Herbalife Nutrition

Reported net sales of $1.2 billion decreased 3.5% compared to the second quarter 2018. Excluding China, net sales increased 5.4% compared to the second quarter 2018 with growth in eight of our top ten countries.

Volume points of 1.5 billion were flat compared to the prior year period, with three of six regions setting quarterly volume point records. Excluding China, volume points increased 5.6% compared to the prior year period.1

Second quarter reported diluted EPS of $0.54 and adjusted2 earnings of $0.70 per adjusted3 diluted share, both of which were negatively impacted by expenses of approximately $4.0 million or $0.02 per diluted share

and adjusted3 diluted share, respectively, related to the China Growth and Impact Investment Program.

The Company is revising full year 2019 volume point guidance to a range of 0.5% - 5.0% growth, net sales guidance to a range of (1.7%) - 2.8%, as well as reported and adjusted1,3 diluted EPS guidance to a range of $2.11 -

$2.51 and $2.40 - $2.80, respectively.

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1 Excluding adjustments to volume point values in 2018, the year over year change would have been a decrease of 0.2% and an increase of 5.2% 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, income related to finalization of insurance recoveries, impact of adjusted shares outstanding and expenses related to regulatory inquiries and legal accrual. 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 second quarter of 2019, year to date periods of 2018 and 2019, and third quarter and full year 2019 guidance.

Second 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 a decrease of 0.2% for the second quarter and an increase of 5.2% for the second 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.

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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 third quarter and full year 2019 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, any future contingent value rights revaluation, benefits from future potential China grant income, any future potential dilution from the Company's convertible notes due in 2019 and 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 associated with the Company's convertible notes, impacts relating to contingent value rights revaluation, and expenses

related to regulatory inquiries and legal accrual, 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 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 2018 values.

With respect to guidance, the Company cannot accurately predict the impact to its share base from any share repurchases in 2019. 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 July 2019.

Adjusted2 diluted EPS guidance for the third quarter 2019 includes a projected currency headwind of approximately $0.06 per diluted share versus the third quarter of 2018.

Full year 2019 adjusted2 diluted EPS guidance includes a projected currency headwind of approximately $0.27 per diluted share, $0.01 unfavorable compared to the impact included in the full year 2019 guidance provided on May 2,

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 Thursday, August 1, 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: 8993169). 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: 8993169). The webcast of the

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

About Herbalife Nutrition Ltd.

Herbalife Nutrition is a global nutrition company whose purpose is to make the world healthier and happier. The Company has been on a mission for nutrition - changing people's lives with great nutrition products and programs - since 1980.

Together with our Herbalife Nutrition independent distributors, we are committed to providing solutions to poor nutrition and obesity, an aging population, and skyrocketing public healthcare costs, while also providing a means for

entrepreneurs of all ages to pursue a business opportunity. Herbalife Nutrition offers high-quality, science-backed products, most of which are produced in Company-operated facilities, one-on-one coaching with an Herbalife Nutrition

independent distributor, and a supportive community approach that inspires customers to embrace a healthier, more active lifestyle.

Herbalife Nutrition's targeted nutrition, weight-management, energy and fitness and personal care products are available exclusively to and through its independent distributors in more than 90 countries.

Through its corporate social responsibility efforts, Herbalife Nutrition supports the Herbalife Nutrition Foundation (HNF) and its Casa Herbalife programs to help bring good nutrition to children in need. Herbalife Nutrition is also proud

to sponsor more than 190 world-class athletes, teams and events around the globe.

Herbalife Nutrition has approximately 8,900 employees worldwide, and its shares are traded on the New York Stock Exchange (NYSE: HLF) with net sales of approximately $4.9 billion in 2018. To learn more, visit Herbalife.com or

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

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.

We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as

Results of Operations

(1) Other Operating Income for the six months ended June 30, 2019 relates to certain China government grant income and income related to the finalization of insurance recoveries in connection with the flooding at one of the