Herbalife Nutrition — Financial Results
Revenue Nearly Flat, With Price Increases Masking a Volume Dip
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Net Sales | $5,037.5M | $4,993.1M | +0.9% |
| Local Currency Growth | — | — | +2.5% |
| Price Impact | — | — | +3.2% |
| Volume Impact | — | — | -0.5% |
| FX Impact | — | — | -1.6% |
Herbalife's top line barely moved in 2025, growing less than 1% in dollar terms. The real story is that price increases — pushed through across most markets — are doing the heavy lifting, while the actual number of products being sold is slightly declining. Currency headwinds (a stronger U.S. dollar) are also shaving off gains earned internationally.
Operating Efficiency Improved, But Net Income Fell Due to a Tax Swing
| Metric | 2025 | 2024 |
|---|---|---|
| Operating Income (% of sales) | 9.6% | 7.7% |
| Net Income | $228.3M | $254.3M |
| Earnings Per Share (diluted) | $2.20 | ~$2.45 |
| Income Tax Expense/(Benefit) | $47.3M | -$84.9M |
The business itself ran more efficiently in 2025 — operating income as a share of sales improved meaningfully, helped by $61.3M in lower administrative costs from restructuring savings. However, reported net income fell 10.2% because 2024 included a one-time $147.3M tax benefit from a corporate restructuring that didn't repeat. Strip that out and the underlying picture looks more stable.
Latin America and India Are the Growth Engines; China and North America Are Struggling
| Region | 2025 Sales | Change (USD) | Change (Local Currency) |
|---|---|---|---|
| North America | $1,033.0M | -2.0% | -2.0% |
| Latin America | $881.2M | +5.8% | +10.5% |
| EMEA | $1,114.4M | +2.7% | +2.3% |
| Asia Pacific | $1,729.8M | +0.3% | +3.0% |
| China | $279.1M | -6.2% | -6.3% |
The company's growth is geographically uneven. Latin America (up 10.5% in local currency) and India (up 9.7% in local currency, with volume up 6.8%) are genuinely expanding. China, by contrast, is shrinking — sales volume fell 10.6% — and North America continues a slow decline in actual units sold.
Restructuring Programs Delivered Real Savings, New Tech Overhaul Now Underway
Herbalife completed two cost-cutting programs in 2025. The Restructuring Program (started early 2024) delivered ~$80M in annual savings; the earlier Transformation Program delivered ~$110M annually. Together these explain the drop in general and administrative expenses from 34.6% to 33.0% of sales. A newer Technology Realignment Program, launched April 2025, is targeting a further ~$13M in annual savings beginning 2026, at an expected cost of at least $11M to execute.
Debt Load Remains High, With Refinancing Coming
| Debt Instrument | Outstanding | Rate | Maturity |
|---|---|---|---|
| 2029 Secured Notes | $800.0M | 12.25% | April 2029 |
| 2029 Unsecured Notes | $600.0M | 4.875% | June 2029 |
| 2028 Convertible Notes | $277.5M | 4.25% | June 2028 |
| 2024 Term Loan B | $370.0M | ~11.64% | April 2029 |
Herbalife carries roughly $2 billion in debt, a legacy of years of share buybacks. The 2029 Secured Notes carry a notably high 12.25% interest rate, and the company is planning to refinance both those notes and the Term Loan B. Operating cash flow improved to $333.3M in 2025 (from $285.4M in 2024), which provides some headroom, but interest costs remain a significant drag at 4.3% of net sales.