Herbalife Ltd. (HLF, Financial) filed Quarterly Report for the period ended 2010-03-31.
Herbalife Ltd. has a market cap of $2.91 billion; its shares were traded at around $48.25 with a P/E ratio of 14.67 and P/S ratio of 1.25. The dividend yield of Herbalife Ltd. stocks is 1.66%. Herbalife Ltd. had an annual average earning growth of 18.4% over the past 5 years.HLF is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Net sales for the three months ended March 31, 2010 increased 18.6% to $618.6 million as compared to $521.7 million in 2009. In local currency, net sales for the three months ended March 31, 2010 increased 13.3%, as compared to the same period in 2009. For the three months ended March 31, 2010, net sales in U.S. dollars in our top ten countries for the period, namely the U.S., Mexico, Brazil, South Korea, China, Italy, Malaysia and India increased 23.2%, 21.3%, 42.1%, 109.5%, 20.5%, 5.0%, 16.7% and 102.0%, respectively, as compared to the same period in 2009, while Taiwan and Japan, decreased 12.0% and 6.6%, respectively, as compared to the same period in 2009. The increase in net sales in most of our top markets was primarily due to the continued successful adoption and operation of daily consumption business models, an increase in average active sales leaders, branding activities and increased distributor recruiting. The decline in Taiwan was mainly due to a government coupon promotion in the first quarter of 2009 that increased net sales in that period and was not available in 2010. In Japan, lower net sales were mainly due to decline in distributor recruiting and average active sales leaders.
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Herbalife Ltd. has a market cap of $2.91 billion; its shares were traded at around $48.25 with a P/E ratio of 14.67 and P/S ratio of 1.25. The dividend yield of Herbalife Ltd. stocks is 1.66%. Herbalife Ltd. had an annual average earning growth of 18.4% over the past 5 years.HLF is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
Royalty overrides are generally earned based on retail sales and provide potential earnings to distributors of up to 23% of retail sales or approximately 33% of our net sales. Royalty overrides together with distributor allowances of up to 50% represent the potential earnings to distributors of up to approximately 73% of retail sales. The compensation to distributors is generally for the development, retention and improved productivity of their distributor sales organizations and is paid to several levels of distributors on each sale. Due to restrictions on direct selling in China, our full-time employed sales representatives in China are compensated with wages, bonuses and benefits and our licensed business providers in China are compensated with service fees instead of the distributor allowances and royalty overrides utilized in our traditional marketing program used in our other five regions. Because of local country regulatory constraints, we may be required to modify our typical distributor incentive plans as described above. Consequently, the total distributor discount percentage may vary over time. We also offer reduced distributor allowances and pay reduced royalty overrides with respect to certain products worldwide.Net sales for the three months ended March 31, 2010 increased 18.6% to $618.6 million as compared to $521.7 million in 2009. In local currency, net sales for the three months ended March 31, 2010 increased 13.3%, as compared to the same period in 2009. For the three months ended March 31, 2010, net sales in U.S. dollars in our top ten countries for the period, namely the U.S., Mexico, Brazil, South Korea, China, Italy, Malaysia and India increased 23.2%, 21.3%, 42.1%, 109.5%, 20.5%, 5.0%, 16.7% and 102.0%, respectively, as compared to the same period in 2009, while Taiwan and Japan, decreased 12.0% and 6.6%, respectively, as compared to the same period in 2009. The increase in net sales in most of our top markets was primarily due to the continued successful adoption and operation of daily consumption business models, an increase in average active sales leaders, branding activities and increased distributor recruiting. The decline in Taiwan was mainly due to a government coupon promotion in the first quarter of 2009 that increased net sales in that period and was not available in 2010. In Japan, lower net sales were mainly due to decline in distributor recruiting and average active sales leaders.
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