Full Press Release Details
Reports Third Quarter 2017 Results; Provides Initial Full Year 2018
quarter 2017 reported diluted EPS of $0.66 and adjusted1
diluted EPS of $0.82
quarter 2017 reported net sales of $1.1 billion declined 3.3% on an as
reported basis compared to the third quarter 2016
quarter 2017 volume points of 1.3 billion declined 5.6% compared to
the third quarter 2016
reported and adjusted1
diluted EPS guidance narrowed to ranges of $3.90 to $4.10 and $4.42 to
$4.62, respectively, from the previous ranges of $3.80 to $4.20 and
$4.30 to $4.70, respectively
full year 2018 volume point guidance range of 2% to 6% growth and
initial full year 2018 GAAP diluted and adjusted1
diluted EPS guidance ranges of $3.82 to $4.22 and $4.60 to $5.00,
February 2017, the Company has repurchased a total of approximately
$757 million of common stock and has approximately $743 million
remaining under the current repurchase authorization
LOS ANGELES--(BUSINESS WIRE)--November 2, 2017--Herbalife Ltd. (NYSE:
HLF) reports results for the third quarter ended September 30, 2017.
"During this year of transition, we believe our performance has now
stabilized and we are seeing improvements in trends," said Rich Goudis,
CEO of Herbalife. "By continuing to implement our strategic plan, we
expect to build on the improving trends and return to growth in 2018."
For the third quarter 2017, the company reported net sales of $1.1
billion, which represents a decline of 3.3% and 4.0% on an as reported
and constant currency basis, respectively, compared to the third quarter
Third quarter 2017 volume points of 1.3 billion declined 5.6% compared
to the prior year period.
On a reported basis, third quarter 2017 net income was $54.5 million, or
$0.66 per diluted share, compared to third quarter 2016 net income of
$87.7 million, or $1.01 per diluted share.
Adjusted1 earnings for the third quarter 2017 was $0.82 per
diluted share compared to $1.21 per diluted share for the third quarter
For the full year 2017, the company is narrowing its 2017 reported and
adjusted1 diluted EPS guidance to ranges of $3.90 to $4.10
and $4.42 to $4.62, respectively, from the previous ranges of $3.80 to
$4.20 and $4.30 to $4.70, respectively.
For the full year 2018, the company is providing initial volume guidance
in the range of 2% to 6% growth and initial full year 2018 GAAP diluted
and adjusted1 diluted EPS guidance in the range of $3.82 to
$4.22 and $4.60 to $5.00, respectively.
Third Quarter 2017 Key Metrics2
Regional Volume Point Metrics
| Volume Points (Mil) | |||||
| Region | 3Q '17 | Yr/Yr % Chg | |||
| North America | 261.5 | -16.1 | % | ||
| Asia Pacific | 278.7 | 1.0 | % | ||
| EMEA | 258.9 | 2.7 | % | ||
| Mexico | 213.3 | -9.0 | % | ||
| South & Central America | 150.2 | -6.8 | % | ||
| China | 147.8 | -3.5 | % | ||
| Worldwide Total | 1,310.4 | -5.6 | % |
Regional Net Sales and Foreign Exchange ("FX") Impact
| Reported Net Sales | Growth/Decline | Growth/Decline | |||||||
| Region | 3Q '17 (mil) | including FX | excluding FX | ||||||
| North America | $ | 199.8 | -17.1 | % | -17.2 | % | |||
| Asia Pacific | $ | 230.9 | -0.2 | % | -0.5 | % | |||
| EMEA | $ | 213.9 | 6.1 | % | 2.0 | % | |||
| Mexico | $ | 114.3 | 1.3 | % | -3.6 | % | |||
| South & Central America | $ | 116.7 | -3.6 | % | 1.5 | % | |||
| China | $ | 209.8 | -2.1 | % | -2.0 | % | |||
| Worldwide Total | $ | 1,085.4 | -3.3 | % | -4.0 | % |
Based on current business trends the company's fourth quarter 2017, full
year 2017, and full year 2018 guidance are as follows:
| Three Months Ending | Twelve Months Ending | |||||||||||||||
| December 31, 2017 | December 31, 2017 | |||||||||||||||
| Low | High | Low | High | |||||||||||||
| Volume Point Growth vs 2016 | (4.0 | %) | 1.0 | % | (4.2 | %) | (2.9 | %) | ||||||||
| Net Sales Growth vs 2016 | 2.3 | % | 7.3 | % | (1.9 | %) | (0.6 | %) | ||||||||
| Diluted EPS (a) | $ | 0.64 | $ | 0.84 | $ | 3.90 | $ | 4.10 | ||||||||
| Adjusted Diluted EPS (a) (b) | $ | 0.84 | $ | 1.04 | $ | 4.42 | $ | 4.62 | ||||||||
| Cap Ex ($ millions) | $ | 20.0 | $ | 40.0 | $ | 88.0 | $ | 108.0 | ||||||||
| Effective Tax Rate (a) | 30.0 | % | 36.0 | % | 24.4 | % | 25.9 | % | ||||||||
| Adjusted Effective Tax Rate (a) (b) | 27.0 | % | 33.0 | % | 22.1 | % | 23.6 | % | ||||||||
| Currency Adjusted Net Sales Growth vs 2016 | (0.7 | %) | 4.3 | % | (2.1 | %) | (0.8 | %) | ||||||||
| Currency Adjusted Diluted EPS | $ | 0.80 | $ | 1.00 | $ | 4.62 | $ | 4.82 | ||||||||
| Twelve Months Ending | ||||||||||||||||
| December 31, 2018 | ||||||||||||||||
| Low | High | |||||||||||||||
| Volume Point Growth vs 2017 | 2.0 | % | 6.0 | % | ||||||||||||
| Net Sales Growth vs 2017 | 5.5 | % | 9.5 | % | ||||||||||||
| Diluted EPS (a) | $ | 3.82 | $ | 4.22 | ||||||||||||
| Adjusted Diluted EPS (a) (b) | $ | 4.60 | $ | 5.00 | ||||||||||||
| Cap Ex ($ millions) | $ | 115.0 | $ | 155.0 | ||||||||||||
| Effective Tax Rate (a) | 29.0 | % | 33.0 | % | ||||||||||||
| Adjusted Effective Tax Rate (a) (b) | 26.0 | % | 30.0 | % | ||||||||||||
| Currency Adjusted Net Sales Growth vs 2017 | 4.3 | % | 8.3 | % | ||||||||||||
| Currency Adjusted Diluted EPS | $ | 4.50 | $ | 4.90 |
| (a) Excludes any future potential ongoing tax effects from the exercise of equity awards that could impact the company's tax rate due to the updated stock compensation accounting standard. |
| (b) Adjusted diluted EPS and adjusted effective tax rate, for the purposes of guidance, excludes the impact of expenses relating to challenges to the company's business model, the impact of non-cash interest costs associated with the company's convertible notes, benefits from future potential China grants, FTC settlement implementation and expenses related to regulatory inquiries, as applicable and 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 believe these non-GAAP measures are useful. |
With respect to guidance, the company cannot accurately predict the
impact to its share base from any future repurchases in 2017 and 2018
that may be made under its share repurchase program and therefore the
guidance table above excludes any impact thereof to EPS. Guidance
includes the impact of the recently completed tender offer.
Guidance is based on the average daily exchange rates during the first
two weeks of October.
Adjusted1 diluted EPS guidance for the fourth quarter 2017
includes a projected currency benefit of approximately $0.04 per diluted
share versus the fourth quarter of 2016.
Full year 2017 adjusted1 diluted EPS guidance includes a
projected currency headwind of approximately $0.20 per diluted share,
compared to 2016, which is consistent with the headwind included in the
updated guidance the company provided on August 1, 2017.
Full year 2018 adjusted1 diluted EPS guidance includes a
projected currency benefit of approximately $0.10 per diluted share,
Third Quarter 2017 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, November 2, 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 34074913). 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
34074913). 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
Herbalife programs to help bring good nutrition to children in need. We
also sponsor more than 190 world-class athletes, teams and events around
the globe, including Cristiano Ronaldo, the LA Galaxy and champions in
The company has over 8,000 employees worldwide, and its shares are
traded on the New York Stock Exchange (NYSE: HLF) with net sales of
approximately $4.5 billion in 2016. To learn more, visit Herbalife.com
or IAmHerbalife.com.
The Herbalife Investor Relations website at http://ir.herbalife.com
contains a significant amount of financial and other information about
the company. The company encourages investors to visit its website from
time to time, as information is updated and new information is posted.