Herbalife Reports Record Full Year 2016 Worldwide Volume; Number of Preferred Members in the U.S. Approximately 300,000; Record Worldwide Sales Leader Retention; Announces a New Share Buyback Authorization of $1.5 Billio

Reports Record Full Year 2016 Worldwide Volume; Number of Preferred

Members in the U.S. Approximately 300,000; Record Worldwide Sales Leader

Retention; Announces a New Share Buyback Authorization of $1.5 Billion

full year 2016 worldwide volume points of 5.6 billion, representing

year over year growth of approximately 5%

year 2016 net sales of $4.5 billion, consistent with prior year and an

increase of 6% on a constant currency basis compared to the prior year

quarter 2016 reported net sales of $1.0 billion

quarter 2016 reported diluted EPS of $1.16 and adjusted1

diluted EPS of $1.00, which both include an $0.11 negative impact due

to currency fluctuations

300,000 have converted to or signed-up as Preferred Members in the U.S.

worldwide sales leader retention of 60.9%, record U.S. sales leader

announces board approval of a new 3 year $1.5 billion share buyback

LOS ANGELES--(BUSINESS WIRE)--February 23, 2017--Herbalife Ltd. (NYSE:

HLF) reports results for the fourth quarter and full year ended December

Michael O. Johnson, chairman and CEO of Herbalife, stated, "2016 was a

dynamic and record-breaking year. Our members continue to successfully

build customer-focused businesses, which is evident in our record volume

and retention metrics. In addition, our new share buyback authorization

is a further testament of our commitment to enhance shareholder value."

The company reported record full year 2016 worldwide volume points of

5.6 billion, which represents an increase of approximately 5% compared

to 2015. Reported full year 2016 net sales of $4.5 billion was flat,

while constant currency net sales increased 6%, both compared to 2015.

On a reported basis, full year 2016 net income was $260.0 million, or

$3.02 per diluted share, compared to net income of $339.1 million or

$3.97 per diluted share for 2015.

Adjusted1 earnings for 2016 was $4.85 per diluted share

compared to $4.952 per diluted share for 2015. Due to the

negative impact of currency, full year 2016 reported and adjusted1

net income were each negatively impacted by $82.2 million, and reported

diluted EPS and adjusted1 diluted EPS were each negatively

For the fourth quarter 2016, the company reported net sales of $1.0

billion and a volume point decline of 1% compared to the prior year

On a reported basis, fourth quarter 2016 net income was $99.4 million,

or $1.16 per diluted share, compared to net income of $84.5 million or

$0.98 per diluted share for the fourth quarter in 2015.

Adjusted1 earnings for the fourth quarter was $1.00 per

diluted share compared to $1.172 per diluted share for the

comparable quarter in 2015. Due to the negative impact of currency,

fourth quarter 2016 reported and adjusted1 net income were

each negatively impacted by $9.5 million, and reported diluted EPS and

adjusted1 diluted EPS were each negatively impacted by $0.11.

In a separate press release this afternoon, the Company announced that

it has reached an agreement in principle to form a joint venture with

China's Tasly Holding Group. The press release can be found here http://ir.Herbalife.com.

Fourth Quarter and Fiscal 2016 Key Metrics3

Regional Volume Point Metrics

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

John DeSimone, CFO of Herbalife, stated "the company's new $1.45 billion

debt deal and $1.5 billion share repurchase authorization combined with

the strength of our balance sheet, allows us to capitalize on our global

market potential, and gives us the financial flexibility to further

create long-term shareholder value through investments that includes

With respect to guidance, the company cannot accurately predict the

impact to its share base from any repurchases that may be made under the

new authorization during 2017 and therefore the guidance table below

excludes any impact thereof to EPS. However, the cost of the new debt

deal is predictable and has been included.

Forward guidance is based on the average daily exchange rates of the

first three weeks of January.

Adjusted1 diluted EPS guidance for the first quarter 2017

includes a projected currency headwind of approximately $0.10 per

diluted share versus the first quarter of 2016.

Full year 2017 adjusted1 diluted EPS guidance includes a

projected currency headwind of approximately $0.50 per diluted share,

compared to 2016, which is higher than the $0.15 headwind included in

the guidance the company provided on its third quarter earnings call.

The Herbalife Investor Relations website contains a significant amount

of financial and other information about the company at http://ir.herbalife.com.

The company encourages investors to visit its website from time to time,

as information is updated and new information is posted.

Fourth Quarter and Full Year 2016 Earnings Conference Call

Herbalife senior management will host an investor conference call to

discuss its recent financial results and provide an update on current

business trends on Thursday, February 23, 2017, at 2:30 p.m. PT (5:30

The dial-in number for this conference call for domestic callers is

(877) 317-1296, and (262) 320-2006 for international callers (conference

ID 50583540). 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

50583540). The webcast of the teleconference will be archived and

available on Herbalife's website.

About Herbalife Ltd.

Herbalife is a global nutrition company that has been changing people's

lives with great products since 1980. Our nutrition, weight-management,

energy and fitness and personal care products are available

exclusively to and through dedicated Herbalife Independent Members in

more than 90 countries. We are committed to fighting the worldwide

problems of poor nutrition and obesity by offering high-quality

products, one-on-one coaching with an Herbalife Member and a community

that inspires customers to live a healthy, active life.

We support the Herbalife Family Foundation (HFF) and its Casa