Herbalife is a global network marketing company that sells weight-management, nutritional supplements and personal care products which promote and support healthier lifestyles. Herbalife products are sold in 65 countries through a network of more than 1.8 million independent distributors.
If you are an Herbalife distributor, or thinking about becoming one, you will be interested to know that the company continues to experience amazing sales numbers.
“Herbalife Ltd. Announces Record First-Quarter 2008 Results
First Quarter Net Sales Increase 19.0 Percent to $604.4 Million
LOS ANGELES–(BUSINESS WIRE)–May 1, 2008–Herbalife Ltd. (NYSE: HLF) today reported first quarter net sales of $604.4 million, an increase of 19.0 percent compared to the same period of 2007. This record performance was attributable to double-digit growth in several of the company’s top countries; the U.S. up 14.3 percent, Taiwan up 14.8 percent, Italy up 29.7 percent, China up 111.5 percent, Japan up 10.4 percent, and Spain up 30.2 percent in each case as compared to the same period in 2007, including a 710 basis point favorable impact from currency fluctuations. The company’s Chairman and Chief Executive Officer Michael O. Johnson, said, “We are pleased to report our 17th consecutive quarter of double-digit growth and record net sales, as all five of our regions reported positive sales growth, reflecting the strong performance of our independent distributor organization. Herbalife’s continued success reflects geographic balance among our portfolio of 65 markets coupled with our distributor’s transition to a daily consumption retail model.”
During the first quarter 2008, total Sales Leaders(1) increased 11.9 percent to 351,448 and new Sales Leaders increased 10.4 percent to 48,805 versus the first quarter of 2007. The company’s President’s Team membership increased 12.9 percent to 1,132 members and the company’s prestigious Chairman’s Club increased 16.7 percent to 35 members. “Double-digit growth of our Sales Leaders at all recognition levels of our marketing plan demonstrates the vitality we have throughout the distributor organization. Close collaboration between our independent distributors and our management team, coupled with strong distributor leadership, provides the foundation for our continued strong topline sales performance,” added Johnson.
For the quarter ended March 31, 2008, the company reported net income of $62.4 million, or $0.93 per diluted share, compared to $41.2 million, or $0.55 per diluted share in the first quarter of 2007. The increase in net income was primarily attributable to double-digit net sales growth, expansion in operating profit margins, and a lower effective tax rate. Excluding the impact of expenses associated with the Realignment for Growth initiative and increase in tax reserves in first quarter 2007(2), adjusted diluted earnings per share in the first quarter of 2008 was a $0.32 improvement compared to the $0.61 in the first quarter of 2007, reflecting an increase of 52.1 percent.”