Q3 2025 Herbalife Ltd Earnings Call Transcript
Key Points
- Herbalife Ltd (HLF) returned to net sales growth in North America and worldwide, marking a significant milestone.
- The company reported Q3 net sales of $1.3 billion, up 2.7% year-over-year, exceeding the midpoint of their guidance range.
- Adjusted EBITDA of $163 million exceeded guidance, demonstrating strong financial performance.
- Herbalife Ltd (HLF) fully repaid the 2025 notes, leaving no significant debt maturities until 2028, and reduced its leverage ratio to 2.8 times.
- The launch of the PROTOCOL app and other personalized nutrition initiatives showed strong engagement, with thousands of app users actively participating.
- Despite overall growth, new distributor growth declined 2% worldwide compared to Q3 of last year.
- The adjusted EBITDA margin declined by 60 basis points year-over-year, partly due to non-repeating income from a China government grant.
- China net sales were down 5% year-over-year, primarily due to a 12% decline in volumes.
- The company faced foreign currency headwinds, impacting net sales and adjusted EBITDA negatively.
- The adjusted effective tax rate increased to 32.7%, up from 22.3% in Q3 of 2024, negatively impacting adjusted diluted EPS.
Good afternoon and thank you for joining the third quarter 2025 earnings conference call for Herbal Life Limited. During the company's opening remarks, all participants will be in a listen-only mode. Following the opening remarks, we will conduct a question and answer session. As a reminder, today's conference call is being recorded. I would now like to turn the call over to Erin Benyus, Vice President and Head of Investor Relations, to begin today's call. You may begin.
Thank you, and good morning, good afternoon, or good evening to everyone joining us. Joining us today are Stefan Graciani, our Chief Executive Officer, and John DeSimone, our Chief Financial Officer. Before we begin today's call, I would like to direct you to the cautionary statement regarding forward-looking statements on page two of our presentation and in our earnings release issued earlier today, which are both available under the investor relations section of our website. The presentation and earnings release include a
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