Herbalife (HLF) investor relations material

Key business highlights

• Operates in 95 markets with over 6.4 million distributors/members, 2 million of whom are active, and offers 144+ products spanning weight management, protein, and personalized nutrition.

• Achieved $5 billion in net sales and $658 million in EBITDA last year, with steady EBITDA margin improvement and strong cash generation; $147 million in operating cash year-to-date.

• Paid down $806 million in debt since 2021, targeting $1.4 billion gross debt and $1 billion net debt by 2028, with $45 million in annual interest savings from recent refinancing.

• Nutrition clubs, a key differentiator, number 63,000 globally and drive significant U.S. volume, with 49 million annual transactions and 3.7 million unique customers.

• Sales leader retention is 70% globally (78% in the U.S.), with seven consecutive quarters of growth in active sales leaders and four consecutive quarters of net sales growth.

Regional performance and growth drivers

• APAC led Q2 growth with net sales up 15.2%, driven by India and GST-related price changes; LATAM saw 16% growth, while North America stabilized after post-COVID declines.

• EMEA is in a rebuilding phase following geopolitical disruptions, with ongoing investments to capture future growth.

• North America represents 21% of business and is a focus for stabilization and future growth.

• Net sales growth is supported by geographic diversification, with no single market accounting for more than 20% of net sales.

Product innovation and portfolio expansion

• Expanded into personalized nutrition with the Bioniq acquisition, offering tailored vitamin and supplement formulas based on user assessments.

• Launched Prüvit ketone products in North America and introduced the Life I/O Baseline NAD+ product for healthy lifespan.

• HL/Skin Korean skincare line launched in EMEA, with plans for North America in 2027.

• Multi-brand portfolio includes plant-based products and advanced digital health tracking through acquisitions and partnerships.

• Seed to Feed program ensures quality control, with 46% of products manufactured in-house and traceability from ingredient sourcing to finished product.