Herbalife Reports Third Quarter 2024 Results Net Sales In Line with Expectations, Adjusted EBITDA 1 Exceeds Guidance; Raised Full-Year Adjusted EBITDA 1 Guidance

Reports Third Quarter 2024 Results

Sales In Line with Expectations, Adjusted EBITDA1 Exceeds Guidance;

Raised Full-Year Adjusted EBITDA1 Guidance

October 30, 2024 - Herbalife Ltd. (NYSE: HLF) today reported financial results for the third quarter ended September 30, 2024:

1 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.

2 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.

reported third quarter 2024 net sales of $1.2 billion, down 3.2% year-over-year, including 290 basis points of foreign currency headwinds.

On a constant currency basis2, net sales decreased 0.3% year-over-year.

gross profit margin improved to 78.3% compared to 76.3% in the third quarter of 2023. On a year-over-year basis, gross profit margin

primarily benefited from approximately 110 basis points of pricing and approximately 110 basis points of favorable input costs, mainly

related to manufacturing efficiencies and lower raw material costs, partially offset by approximately 30 basis points of unfavorable

was $47.4 million, with net income margin of 3.8% and adjusted net income1 of $58.0 million. Adjusted EBITDA1 of

$166.5 million includes approximately $14 million of foreign currency headwinds year-over-year, with adjusted EBITDA1 margin

of 13.4%, up 70 basis points year-over-year. Diluted EPS was $0.46, with adjusted diluted EPS1 of $0.57, which includes a

$0.10 year-over-year foreign currency headwind.

by operating activities was $99.5 million and $215.8 million for the three and nine months ended September 30, 2024, respectively. Capital

expenditures were approximately $27 million and $96 million for the three and nine months ended September 30, 2024, respectively, and

capitalized SaaS implementation costs were approximately $3 million and $13 million, respectively. The Company expects to incur total

capital expenditures of approximately $120 million to $140 million (reduced from $120 million to $150 million) and total capitalized

SaaS implementation costs of approximately $20 million (reduced from approximately $20 million to $25 million) for the full year of 2024.

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, with the

remainder to be completed by the end of 2024. The Restructuring Program is expected to deliver annual savings of at least $80 million

beginning in 2025, with at least $50 million expected to be achieved in 2024. Based on actions through September 30, at least $20 million

and at least $30 million of savings were realized during the three and nine months ended September 30, 2024, respectively. The Company

expects to incur total program pre-tax expenses of approximately $70 million related to the program in 2024, which are primarily

related to severance costs and will be excluded from adjusted results. For the three and nine months ended September 30, 2024, approximately

$3 million and $68 million, respectively, of pre-tax expenses were recognized in SG&A related to the restructuring.

Company completed the sale and a sixteen-month leaseback transaction of its office building in Torrance, California. The short-term lease

will provide adequate time to relocate employees, as well as research and development and quality laboratories to other office locations

in Southern California. The net proceeds from the sale transaction were approximately $38 million. The Company recognized a pre-tax gain

of approximately $4 million related to the sale in SG&A in the third quarter of 2024, which is excluded from adjusted results.

margins have improved year-over-year, and we continue to strengthen our financial foundation," said John DeSimone, Chief Financial

Officer. "We paid down debt in the quarter. Our total leverage ratio is down to 3.3x at September 30 and we are on track to reduce

our total leverage ratio to 3.0x by the end of 2025, as well as reduce total debt by $1 billion over the next 4 to 5 years."

quarter of 2024, the number of new distributors joining Herbalife worldwide increased 14% year-over-year, representing the second consecutive

quarter of year-over-year improvement. Distributor engagement remains strong with enhanced training opportunities and community-building

the Company launched its all-new Diamond Development Mastermind Program in the U.S., an ongoing training and accountability program led

by President Stephan Gratziani and supported by network marketing industry leader and coach, Eric Worre. Approximately 800 distributor

leaders received interactive, hands-on mentoring that leverages Mr. Gratziani's previous experience as an Herbalife independent

distributor, combined with Mr. Worre's deep knowledge of the direct selling business. Content presented included core business

principles to further optimize and scale their Herbalife business, leadership concepts to support their organization's development,

and the introduction of a key account management model that analyzes distributor performance metrics and identifies potential new business

training events also continued in September and October. Approximately 37,300 attendees convened at events in Mexico, the UK and Uzbekistan

to learn best practices, trends and new business insights. The Mexico event was highly anticipated among attendees and sold out in five

weeks, three and a half months in advance of the training. A virtual attendance option was later added to accommodate the demand. To

date, the Company's 2024 Extravaganza training events have attracted approximately 134,600 attendees.

21, independent distributors, fitness enthusiasts and employees participated in the Herbalife 2024 Worldwide Workout, demonstrating their

unique ability to activate their communities through a healthy active lifestyle. During the event, the Company set a new GUINNESS WORLD

RECORDS title for the Largest High-Intensity Interval Training Class across multiple venues. Over 4,900 individuals took

part in workouts at host sites in Las Vegas, Nevada, Los Angeles, California, Mexico City, Mexico and Mumbai, India, among others. More

than 11,000 participants from all over the world also joined the workout virtually via Herbalife's YouTube livestream.

see a new and exciting energy all across Herbalife," said Michael Johnson. "We are providing opportunities for our distributors

to enhance their skills and create a community for their customers through good nutrition and health and wellness. In our 44 years as

a company, our impact continues to stand on its own merit."

Net Sales and Foreign Exchange ("FX") Impact

Volume Point Metrics

During Q2 24, most markets within the Latin America region, excluding Mexico, implemented a 5% price reduction and Volume Point

adjustments to enhance the competitiveness of product pricing, aiming to stimulate incremental volume growth and increase Members'

ability to promote business opportunities. Refer to the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September

30, 2024, for additional details.

Quarter 2024 Guidance

2024 Guidance - Revised

senior management team will host a live audio webcast and conference call to discuss its third quarter 2024 financial results on Wednesday,

October 30, 2024, at 5:30 p.m. ET (2:30 p.m. PT).

webcast will be available at the following link: https://edge.media-server.com/mmc/p/i5tx7naj.

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/BIe4627c57c8fd4c99b8cda37657987d7c.

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

and other information is posted from time to time. The live webcast will also be available at the same website, along with a replay

of the webcast following the completion of the event and for 12 months thereafter.

(NYSE: HLF) is a premier health and wellness company, community and platform that has been changing people's lives with great nutrition

products and a business opportunity for its independent distributors since 1980. The Company offers science-backed products to consumers

in more than 90 markets through entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires

their customers to embrace a healthier, more active lifestyle to live their best life.

more information, visit https://ir.herbalife.com.

contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section

21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking

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items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures, or

share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic

conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing

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"intend," "continue," "believe," "expect," "anticipate" or any other similar

believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes 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, many of which are beyond our

control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially

from estimates or projections contained in or implied by our forward-looking statements include the following:

factors and uncertainties that could cause actual results or outcomes to differ materially from our forward-looking statements are set

forth in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024, filed with the Securities and Exchange

Commission on October 30, 2024, including under the heading "Management's Discussion and Analysis of Financial Condition