Herbalife (HLF) 16th Annual East Coast IDEAS Conference summary

Key themes and business overview

• Emphasizes resilience, strong cash generation, and leadership in the protein shake market, with a 20%+ free cash flow yield projected for 2025.

• Vision to be the world's premier health and wellness company, leveraging a global direct-selling model and broad, science-backed product portfolio across weight management, targeted nutrition, sports, and outer nutrition.

• Competitive advantages include a well-recognized brand, robust distribution channel, geographic diversification, and strong management team.

• Operates in 95 markets with 6.4 million members and over 2 million distributors, highlighting geographic and product diversification.

• Focus on community-based selling and being a premier health and wellness platform.

Distribution model and Nutrition Clubs

• Nutrition Clubs are a unique, brick-and-mortar model enabling single-serving sales, driving customer engagement and distributor discipline.

• About a third of U.S. sales occur through single-serving clubs, with nearly 9,000 clubs and $900 million in retail sales.

• Nutrition clubs generated ~$900M in U.S. retail business in 2025, with ~3.7M unique customers and ~49M transactions.

• Clubs do not display company signage to protect distributor incentives and avoid retail channel conflicts.

• POS systems in U.S. clubs enable transaction tracking and customer data collection.

Product portfolio and growth strategy

• Focuses on functional foods, with two-thirds of products in this category and a smaller presence in supplements.

• Recent acquisitions target personalized nutrition (Bioniq, Link BioSciences), a health app (Pro2col), and ketone products (Pruvit).

• Bioniq launches in 11 European countries and the U.S. in July, aiming to expand supplement market share.

• Pro2col app integrates health data, product recommendations, and influencer partnerships, including Cristiano Ronaldo, who invested $7.5M in Pro2col technology.

• Acquisition strategy prioritizes leveraging distribution to scale acquired brands and technologies.