In the wake of Herbalife Ltd.’s financial report for the fourth quarter (Q4) and full-year ended December 31, 2023, the company’s stock experienced a significant downturn. Trading opened on Thursday morning at $9.05, marking a notable drop from the previous day’s close of $11.75.
At the time of this publication, Herbalife Ltd stock (HLF) has witnessed a decline.
Herbalife Ltd
Current Price: $8.00
Change : -3.75
Change (%): (-31.91%)
Volume: 13.2M
Source: Tomorrow Events Market Data
The company’s Chairman and CEO, Michael Johnson, expressed optimism despite the market’s reaction, stating, “We continue to modernize Herbalife with a sharp focus on top-line growth and margin expansion for 2024.”
Here are the key highlights from the Q4 report of Herbalife:
Fourth Quarter 2023:
– Achieved year-over-year net sales growth on both reported and constant currency basis.
– Recorded net sales of $1.2 billion, reflecting a 2.9% increase compared to the fourth quarter of 2022. On a constant currency basis, net sales rose by 2.5%.
– Net income amounted to $10.2 million, with adjusted EBITDA of $108.8 million.
– Diluted EPS stood at $0.10, while adjusted diluted EPS reached $0.28.
– Successfully implemented cost-saving measures, realizing approximately $27 million in savings related to the Company’s Transformation Program, with an additional $70 million realized in 2023.
– Incurred pre-tax expenses of approximately $12 million associated with the Transformation Program.
– Continued the rollout of the all-new Herbalife.com website, now live in markets representing approximately 70% of the Company’s sales.
Full-Year 2023:
– Reported net sales of $5.1 billion, indicating a 2.7% decline compared to 2022. On a constant currency basis, net sales decreased by 1.6%.
– Achieved a net income of $142.2 million and adjusted EBITDA of $570.6 million.
– Diluted EPS for the full year amounted to $1.42, with adjusted diluted EPS reaching $2.21.
– Generated net cash provided by operating activities of $357.5 million, with free cash flow amounting to $222.5 million.
While Herbalife’s fourth-quarter results demonstrated positive trends, the market’s response underscores investor concerns. The company’s ability to navigate challenges and deliver on its growth and margin expansion targets for 2024 will be closely monitored in the coming months.
