Herbalife Reports Q4 Net Sales at High End of Guidance, Q4 and Full-Year Net Sales Growth Excluding FX Headwinds 1 ; Q4 Adjusted EBITDA 2 Exceeds Guidance Stephan Gratziani Appointed CEO; Michael Johnson Named Executive

Reports Q4 Net Sales at High End of Guidance,

Q4 and Full-Year Net Sales Growth Excluding FX Headwinds1;

Q4 Adjusted EBITDA2 Exceeds Guidance

Gratziani Appointed CEO; Michael Johnson Named Executive Chairman

ANGELES, February 19, 2025 - Herbalife Ltd. (NYSE: HLF) today reported financial results for the fourth quarter and year ended

Growth/decline in net sales excluding the effects of foreign exchange is based on "net sales in local currency," a

non-GAAP financial measure. Refer to Schedule A - "Reconciliation of Non-GAAP Financial Measures" for a discussion

of why the Company believes adjusting for the effects of foreign exchange is useful.

Non-GAAP measure. Refer to Schedule A - "Reconciliation of Non-GAAP Financial Measures" for a detailed reconciliation

of these measures to the most directly comparable U.S. GAAP measure for historical periods, as applicable, and a discussion of why the

Company believes these non-GAAP measures are useful and certain information regarding non-GAAP guidance.

reported fourth quarter 2024 net sales of $1.2 billion, down 0.6% year-over-year, including

330 basis points of foreign currency headwinds. On a constant currency basis1,

net sales increased 2.7% year-over-year.

quarter gross profit margin improved to 77.8% compared to 76.3% in the fourth quarter of 2023. On a year-over-year basis, gross profit

margin primarily benefited from approximately 80 basis points of pricing, approximately 30 basis points of favorable input costs, mainly

related to manufacturing efficiencies, approximately 30 basis points from lower inventory write-downs and approximately 20 basis points

of favorable foreign currency, partially offset by approximately 20 basis points of unfavorable sales mix.

quarter net income was $177.9 million, with net income margin of 14.7% and adjusted net income2 of $36.8 million. Net income

includes $147.3 million of non-cash net deferred income tax benefits related to changes the Company initiated to its corporate entity

structure during the fourth quarter of 2024, including intra-entity transfers of intellectual property to one of its European subsidiaries.

These non-cash net deferred income tax benefits are excluded from the adjusted results. Adjusted EBITDA2 of $150.0 million

includes approximately $12 million of foreign currency headwinds year-over-year, with adjusted EBITDA2 margin of 12.4%, up

340 basis points versus the fourth quarter of 2023. Diluted EPS was $1.74 and includes $1.44 favorable impact related to the non-cash

deferred income tax benefits recognized in the quarter. Adjusted diluted EPS2 was $0.36, which includes a $0.07 year-over-year

foreign currency headwind.

full-year 2024, net sales were $5.0 billion, down 1.4% year-over-year, including 260 basis points of foreign currency headwinds. On a

constant currency basis1, net sales increased 1.2% year-over-year.

2024 net income was $254.3 million, with net income margin of 5.1% and adjusted net income2 of $198.9 million. Net income

includes $147.3 million of non-cash net deferred income tax benefits related to changes the Company initiated to its corporate entity

structure during the fourth quarter of 2024, which are excluded from the adjusted results. Adjusted EBITDA2 of $634.8 million

includes approximately $42 million of foreign currency headwinds year-over-year, with adjusted EBITDA2 margin of 12.7%, up

140 basis points versus 2023. Diluted EPS was $2.50 and includes $1.45 favorable impact related to the non-cash deferred income tax benefits

recognized in the fourth quarter. Adjusted diluted EPS2 was $1.96, which includes a $0.28 year-over-year foreign currency

cash provided by operating activities was $69.6 million and $285.4 million for the three and twelve months ended December 31, 2024, respectively.

Capital expenditures were $25.7 million and $122.0 million for the three and twelve months ended December 31, 2024, respectively, and

capitalized SaaS implementation costs were approximately $3 million and $16 million, respectively. The Company expects to incur total

capitalized SaaS implementation costs of approximately $25 million to $30 million for the full year of 2025, which are not included in

capital expenditures.

the first quarter of 2024, the Company initiated a Restructuring Program designed to bring leadership closer to its markets, streamline

the employee structure and accelerate productivity. Substantially all actions related to the program were completed as of June 30. The

Restructuring Program is expected to deliver annual savings of at least $80 million beginning in 2025, with at least $20 million and

at least $50 million of savings realized during the three and twelve months ended December 31, 2024, respectively. The Company expects

to incur total program pre-tax expenses of approximately $74 million (up from approximately $70 million) related to the program, which

are primarily related to severance costs. For the three and twelve months ended December 31, 2024, approximately $1 million and $69 million,

respectively, of pre-tax expenses were recognized in SG&A related to the restructuring and are excluded from the adjusted results.

February 11, 2025, and consistent with its capital allocation priorities, the Company redeemed $65.0 million aggregate principal amount

of the 7.875% Senior Notes due 2025 ("2025 Notes") for an aggregate purchase price of $67.3 million, which included $2.3

million of accrued and unpaid interest. Following the redemption, the outstanding principal balance of the 2025 Notes is $197.3 million

and remains due in September 2025.

was a transformative year for Herbalife," said John DeSimone, Chief Financial Officer. "Our strong margin improvement and

progress in paying down debt have positioned us to deliver long-term shareholder value."

trends remain strong and reflect greater engagement globally. For the fourth quarter, the number of new distributors joining Herbalife

worldwide increased 22% year-over-year - marking the Company's third consecutive quarter of year-over-year growth. Overall

event attendance at the Company's Extravaganza training events across the globe was greater in 2024 than in 2023, further reflecting

the demand and value these in-person events provide for development and networking. In 2025, the Company expects to host multi-city and

multi-day events in select regions to accommodate the increased demand. The Company believes these events and other initiatives have

supported an increase in sales leader retention. For the twelve-month requalification period ending January 2025, approximately 70.3%

of the distributor sales leaders, excluding China, requalified to retain their status, up from 68.3% for the same period a year ago.

positive trends continued into the new year as the Company began its global rollout of the Diamond Development Mastermind Program, an

ongoing training and accountability program led by President Stephan Gratziani and supported by network marketing industry leader and

coach, Eric Worre. In January, a kickoff event was held for the Asia Pacific region, with approximately 400 distributors attending the

in-person session in Korea and nearly 2,600 distributors attending virtually or via the live streamed event from 13 other locations across

the region. This weekend, the program will be expanded to the Mexico market, with approximately 2,000 attendees expected, with

additional markets to follow throughout the year.

February, the Company celebrated its 45th anniversary of changing people's lives through science-backed nutrition products

and a business opportunity. In March, the Company will host Herbalife Honors in Los Angeles, California, with approximately 3,000 distributor

leaders from around the world expected to attend the annual leadership training and recognition event.

announced in a separate press release today, the Board of Directors have appointed Stephan Gratziani as Chief Executive Officer. Mr.

Gratziani succeeds Michael Johnson who will transition to the role of Executive Chairman. In addition, Rob Levy has been appointed to

President, Worldwide Markets. All appointments are effective as of May 1, 2025.

both the fourth quarter and full year, we delivered net sales growth on a constant currency basis1," said Michael Johnson.

"Our 2024 results reflect the resilience of Herbalife, our distributors and our communities. I am excited and confident in the

future of Herbalife under the experienced and visionary leadership of Stephan Gratziani."

Net Sales and Foreign Exchange ("FX") Impact

Volume Point Metrics

Note: During Q2 24, most markets within the Latin America region,

excluding Mexico, implemented a 5% price reduction and Volume Point adjustments for most products to enhance the competitiveness of product

pricing and aiming to stimulate incremental volume growth.

During Q4 24, the U.S. and Puerto Rico markets within the North

America region, implemented Volume Point adjustments for most products for strategic reasons.

Refer to the Company's Annual Report on Form 10-K for the year ended

December 31, 2024, for additional details.

First Quarter 2025 Guidance

Full-Year 2025 Guidance

Guidance Assumptions

Herbalife's senior management team will host a live audio webcast

and conference call to discuss its fourth quarter and full-year 2024 financial results on Wednesday, February 19, 2025, at 5:30 p.m. ET

The live audio webcast will be available at the following link: https://edge.media-server.com/mmc/p/mssckczw.

Participants joining via the conference call may obtain the dial-in

information and personal PIN to access the call by registering at the following link: https://register.vevent.com/register/BI34b011f4acb546d392c732dd054eb4c4.

also plans to reference slides during the webcast and call, which will be available under the Investor Relations section of Herbalife's

website at https://ir.herbalife.com, where financial