Feb. 2o, 2025
Herbalife reported Q4 and full year 2024 results. The company sells a significant amount of weight loss and meal replacement products each year.
“With three consecutive quarters of new distributor growth, a new incoming CEO and significantly improved Adjusted EBITDA2 margins, we enter 2025 with strong momentum.” – Michael Johnson, Chairman and CEO. For full-year 2024, net sales were $5.0 billion, down 1.4% year-over-year.
“2024 was a transformative year for Herbalife,” said John DeSimone, Chief Financial Officer. “Our strong margin improvement and progress in paying down debt have positioned us to deliver long-term shareholder value.” Distributor trends remain strong and reflect greater engagement globally. For the fourth quarter, the number of new distributors joining Herbalife worldwide increased 22% year-over-year – marking the Company’s third consecutive quarter of year-over-year growth.
Despite increases in new distributors, we continue to have fewer total number of new Members in the region during the twelve months ended December 31, 2024 compared to the prior year period. We are supporting Members with new product launches, a new training and recognition program, targeted communications and sales incentives, as well as modernizing our technological tools in order to enhance our Members’ ability to market and sell our products and promote business opportunities. The region implemented 3.0% price increases during March 2024.
Total weight management product sales in 2024 were $2.768 billion. The U.S. region accounted for 20.5% of total company sales. Applying that regional share to the weight management category, Marketdata/ DietBusinessWatch estimates that Herbalife had U.S. weight management sales of $567 million in 2024. This was down 8.8% vs. an estimated $622 million in 2023.
Commentary
Like most other weight loss market segments, Herbalife’s MLM distributors have had to contend with strong competition form the GLP-1 drugs. An 8.8 decline in weight loss product sales is not bad at all, considering how much other competitors such as Medifast have been affected (45% sales decline for Medifast).