Herbalife : Overview - March 2025
HLF
Herbalife-at-a-Glance
Herbalife 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
• ~140 high-quality branded product types primarily in the categories of weight management, targeted nutrition and sports nutrition
• Use a direct-selling business model to distribute and market our products
through a global network of independent members
• Scalable and industry-leading infrastructure driven by "Seed-to-Feed" strategy
o ~47% of inner nutrition products in 2024 were self-manufactured in our four facilities (U.S. and China)
• ~8,600 employees worldwide, ~2,300 in U.S. as of Dec 31 '24
2024 Net Sales by Geography
2024 Net Sales by Product Category
(1) Non-GAAP Measure. Refer to Appendix for further details and reconciliation to most directly comparable U.S. GAAP measure.
(2) Literature, Promotional and Other. Product buybacks and returns in all product categories are included in the Literature, Promotional and Other category
(3) Euromonitor; CH2024ed, protein shake as sports protein powder, sports protein RTDs, meal replacement, supplement nutrition drinks & protein supplements; combined % RSP share GBO for 2023 RSP = Retail Selling Price; GBO = Global Brand Owner
(4) As of Dec 31 '24. Members include consumers who purchase products for their own household use and distributors who also wish to resell products or build a sales organization
(5) As of Dec 31 '24
Why Herbalife?
Through Distribution Channel & Branding
Brand Investing in Integrated
Modernized Digital Technology Platform Excellent Geographic
Diversification
High-Quality, Nutrient Dense Products
Positive Cash Flow
Generation
TAM with Strong Secular Tailwinds
Engaged and Passionate Management Team with Proven Track Record
1 The Power of Our Distribution Channel
Herbalife Generated $50B of Net Sales
Over Last 10 Years
• One-on-One Support
• Personal Connection
• Community Localization
• Celebrating Results
• Relevance Among Emerging Generations
1 Nutrition Club - An Industry Differentiator
Physical Location, Single Servings, Community and Support
• Originated in Mexico in early 2000s
• Brick-and-mortar fosters connection and community
• Independently run and branded by our distributors
• Powered by Herbalife products and technology
• Expanded addressable customer audience through affordable single-serve option
• Offer programs based on interests and needs of their community, including weight-loss challenges and fit clubs, which integrate nutrition with a workout
• Popular go-to-market method worldwide
1 Geographic Spread of ~65,000 Nutrition Clubs Worldwide1
Nutrition Club Overview
• Provide an activity center and community hub
• Model adjusted based upon regional nuances
• Many U.S. clubs moved to food-service style retail model, spawning enhanced growth
2024 U.S. Nutrition Clubs ~10K nutrition clubs1 ~3.9M unique customers ~50M retail transactions ~$17.40 average transaction value ~$870M retail business for our clubs
A Strong Foundation to Grow From
(1) As of Dec 31 '24
Percentage calculated based on number of regional nutrition clubs to number of global nutrition clubs as of Dec 31 '24
1 Strong Sales Leader Retention Across Markets
Distributors are Key
Go-to-Market Differentiators
• Supported by Herbalife experts in nutrition, wellness and fitness
• Education and training provided by Herbalife and distributor leaders is believed to strengthen credibility and results with customers
• Proven track record of delivering results by combining Herbalife products with the know-how and support of our distributors
Sales Leader Retention Rate by Region1
As of Jan 31 '25
70.3% Global (ex China)
• Customer results supported by positive distributor communities
Latin America
North America
EMEA Asia Pacific
(ex China)
(1) The information set forth in this chart should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended Dec 31 '24, for further information on sales leader requalification and retention. Our network of independent members through which we distribute and market our nutrition products, or Members, must achieve specified thresholds of product sales or earn certain amounts of royalty overrides during specified time periods and generally must requalify once each year to retain their status as "Sales Leaders". Requalification and retention results exclude certain markets for which, due to local operating conditions, sales leaders were not required to requalify for the period presented; such exclusions are not material to the Company's retention results.
2 A Global Market Leader with Well-Recognized Brand
Leaders in Weight Management1
Leaders in Protein Shake2
#1 Claims Source: Euromonitor; CH2024ed, Active & Lifestyle Nutrition as weight management & wellbeing, sports nutrition, and vitamins & dietary supplements definitions; combined % RSP share GBO for
2023; Weight Management & Wellbeing definition; combined % RSP share GBO for 2023; and Protein Shake as sports protein powder, sports protein RTDs, meal replacement, supplement nutrition drinks & protein supplements; combined % RSP share GBO for 2023. RSP = Retail Selling Price; GBO = Global Brand Owner
Market Share Source: Euromonitor. Data as of Sept '24.
(1) Weight Management includes: meal replacement, slimming teas, supplement nutrition drinks and weight loss supplements
(2) Protein Shake includes: sports protein powder, sports protein RTDs, meal replacement, supplement nutrition drinks & protein supplements
3 Seed-to-Feed: Cornerstone of Herbalife Excellence
• Seed-to-Feed strategy is rooted in using quality ingredients from traceable sources
• Procurement process for many of Herbalife's botanical products stretches back to farms and includes self-processing of teas and herbal ingredients into finished raw materials at Herbalife's facilities
• Involves high-quality manufacturing of ingredients into finished products, which are produced at both Herbalife's manufacturing facilities and third-party manufacturers
• Supported by significant investments in quality assurance, scientific personnel, product testing and self-manufacturing
• Herbalife has 8 state-of-the-art quality control laboratories around the world conducting robust testing of our raw materials and finished goods, in addition to numerous third-party partners conducting testing on our products
• In-house R&D, manufacturing capability and proprietary distribution channel create a strategic advantage
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Disclaimer
Herbalife Ltd. published this content on April 01, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 01, 2025 at 12:22 UTC.