ir.herbalife.com<\/a> as financial and other information is posted.<\/p>\n\n\nForward-Looking Statements<\/p>\n
This release contains \u201cforward-looking statements\u201d within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are \u201cforward-looking statements\u201d for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures, or share repurchases; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief or expectation; and any statements of assumptions underlying any of the foregoing or other future events. Forward-looking statements may include, among other, the words \u201cmay,\u201d \u201cwill,\u201d \u201cestimate,\u201d \u201cintend,\u201d \u201ccontinue,\u201d \u201cbelieve,\u201d \u201cexpect,\u201d \u201canticipate\u201d or any other similar words.<\/i><\/p>\n
Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the following:<\/i><\/p>\n\n- the potential impacts of current global economic conditions, including inflation, on us; our Members, customers, and supply chain; and the world economy;<\/i><\/li>\n
- our ability to attract and retain Members;<\/i><\/li>\n
- our relationship with, and our ability to influence the actions of, our Members;<\/i><\/li>\n
- our noncompliance with, or improper action by our employees or Members in violation of, applicable U.S. and foreign laws, rules, and regulations;<\/i><\/li>\n
- adverse publicity associated with our Company or the direct-selling industry, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws;<\/i><\/li>\n
- changing consumer preferences and demands<\/i>and evolving industry standards, including with respect to climate change, sustainability, and other environmental, social, and governance, or ESG, matters;<\/i><\/li>\n
- the competitive nature of our business and industry;<\/i><\/li>\n
- legal and regulatory matters, including regulatory actions concerning, or legal challenges to, our products or network marketing program and product liability claims;<\/i><\/li>\n
- the Consent Order entered into with the FTC, the effects thereof and any failure to comply therewith;<\/i><\/li>\n
- risks associated with operating internationally and in China;<\/i><\/li>\n
- our ability to execute our growth and other strategic initiatives, including implementation of our Transformation Program and increased penetration of our existing markets;<\/i><\/li>\n
- any material disruption to our business caused by natural disasters, other catastrophic events, acts of war or terrorism, including the war in Ukraine, cybersecurity incidents, pandemics such as the COVID-19 pandemic, and\/or other acts by third parties;<\/i><\/li>\n
- our ability to adequately source ingredients, packaging materials, and other raw materials and manufacture and distribute our products;<\/i><\/li>\n
- our reliance on our information technology infrastructure;<\/i><\/li>\n
- noncompliance by us or our Members with any privacy laws, rules, or regulations or any security breach involving the misappropriation, loss, or other unauthorized use or disclosure of confidential information;<\/i><\/li>\n
- contractual limitations on our ability to expand or change our direct-selling business model;<\/i><\/li>\n
- the sufficiency of our trademarks and other intellectual property;<\/i><\/li>\n
- product concentration;<\/i><\/li>\n
- our reliance upon, or the loss or departure of any member of, our senior management team;<\/i><\/li>\n
- restrictions imposed by covenants in the agreements governing our indebtedness;<\/i><\/li>\n
- risks related to our convertible notes;<\/i><\/li>\n
- changes in, and uncertainties relating to, the application of transfer pricing, income tax, customs duties, value added taxes, and other tax laws, treaties, and regulations, or their interpretation;<\/i><\/li>\n
- our incorporation under the laws of the Cayman Islands; and<\/i><\/li>\n
- share price volatility related to, among other things, speculative trading and certain traders shorting our common shares.<\/i><\/li>\n<\/ul>\n\n
Additional factors and uncertainties that could cause actual results or outcomes to differ materially from our forward-looking statements are set forth in the Company<\/i>\u2019<\/i>s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023, filed with the Securities and Exchange Commission on May 2, 2023, including under the heading <\/i>\u201c<\/i>Management<\/i>\u2019<\/i>s Discussion and Analysis of Financial Condition and Results of Operations<\/i>\u201d<\/i> and in our Condensed Consolidated Financial Statements and the related Notes, and in Part I, Item 1A, Risk Factors, of the Company\u2019s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the Securities and Exchange Commission on February 14, 2023. In addition, historical, current, and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.<\/i><\/p>\n
Forward-looking statements made in this release speak only as of the date hereof. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.<\/i><\/p>\n
\n
Results of Operations<\/b><\/p>\n\n\n| Herbalife Ltd. and Subsidiaries<\/td>\n<\/tr>\n |
\n| Condensed Consolidated Statements of Income<\/td>\n<\/tr>\n |
\n| (In millions, except per share amounts)<\/td>\n<\/tr>\n |
\n | <\/tr>\n
\n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n |
\n | \n | \nThree Months Ended<\/td>\n | | <\/tr>\n
\n | \n | \n3\/31\/2023<\/span><\/td>\n | | \n3\/31\/2022<\/span><\/td>\n | | <\/tr>\n
\n | \n | \n(unaudited)<\/span><\/td>\n | | <\/tr>\n
\n| North America<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n297.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n326.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n
\n| EMEA<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n268.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n295.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n
\n| Asia Pacific<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n413.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n407.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n
\n| Latin America<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n205.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n201.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n
\n| China<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n67.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n105.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n
\n| Worldwide Net Sales<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,252.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,335.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n
\n| Cost of Sales<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n298.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n307.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n
\n| Gross Profit<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n953.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,028.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n
\n| Royalty Overrides<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n416.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n433.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n
\n| Selling, General, and Administrative Expenses<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n475.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n454.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n
\nOther Operating Income (1)<\/sup><\/td>\n | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(8.9<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(13.1<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | <\/tr>\n\n| Operating Income<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n70.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n153.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Interest Expense, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n39.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n29.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Income Before Income Taxes<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n31.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n123.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Income Taxes<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n25.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Net Income<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n29.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n98.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Weighted-Average Shares Outstanding:<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Basic<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n98.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n99.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Diluted<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n100.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n101.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Earnings Per Share:<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Basic<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n0.30<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n0.98<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Diluted<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n0.29<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n0.96<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n(1) Other Operating Income for the three months ended March 31, 2023 and March 31, 2022 relates to certain China government grant income.<\/td>\n<\/tr>\n<\/table>\n\n\n\n| Herbalife Ltd. and Subsidiaries<\/td>\n<\/tr>\n | \n| Condensed Consolidated Balance Sheets<\/td>\n<\/tr>\n | \n| (In millions)<\/td>\n<\/tr>\n | \n | <\/tr>\n \n | \n | \nMar 31,<\/td>\n | | \nDec 31,<\/td>\n | | <\/tr>\n \n | \n | \n\n 2023<\/span><\/p>\n<\/td>\n | | \n\n 2022<\/span><\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n(unaudited)<\/span><\/td>\n | | <\/tr>\n \n| ASSETS<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Current Assets:<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Cash and cash equivalents<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n454.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n508.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Receivables, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n85.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n70.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Inventories<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n545.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n580.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Prepaid expenses and other current assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n237.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n196.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Total Current Assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,322.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,356.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Property, plant and equipment, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n479.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n486.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Operating lease right-of-use assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n202.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n207.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Marketing-related intangibles and other intangible assets, net<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n315.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n315.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Goodwill<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n94.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n93.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Other assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n274.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n273.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Total Assets<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n2,687.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n2,732.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| LIABILITIES AND SHAREHOLDERS’ DEFICIT<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Current Liabilities:<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Accounts payable<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n67.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n89.8<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Royalty overrides<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n317.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n343.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Current portion of long-term debt<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n293.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n29.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Other current liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n548.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n514.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Total Current Liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1,227.2<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n976.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Non-current liabilities:<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Long-term debt, net of current portion<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,335.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2,662.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Non-current operating lease liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n186.5<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n192.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Other non-current liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n161.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n166.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Total Liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n3,910.4<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n3,997.9<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Commitments and Contingencies<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Shareholders’ deficit:<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Common shares<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n0.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n0.1<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Paid-in capital in excess of par value<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n191.3<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n188.7<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n| Accumulated other comprehensive loss<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(239.0<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(250.2<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | <\/tr>\n \n| Accumulated deficit<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(1,175.2<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(1,204.5<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | <\/tr>\n \n| Total Shareholders’ Deficit<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(1,222.8<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(1,265.9<\/p>\n<\/td>\n | \n \n)<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| Total Liabilities and Shareholders’ Deficit<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n2,687.6<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n2,732.0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n<\/table>\n\n\n\n| Herbalife Ltd. and Subsidiaries<\/td>\n<\/tr>\n | \n| Condensed Consolidated Statements of Cash Flows<\/td>\n<\/tr>\n | \n| (In millions)<\/td>\n<\/tr>\n | \n | <\/tr>\n \n | \n | \nThree Months Ended<\/td>\n | | <\/tr>\n \n | \n | \n3\/31\/2023<\/span><\/td>\n | | \n3\/31\/2022<\/span><\/td>\n | | <\/tr>\n \n| CASH FLOWS FROM OPERATING ACTIVITIES:<\/td>\n | | \n(unaudited)<\/td>\n | | <\/tr>\n \n| Net income<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n29.3<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n98.2<\/p>\n<\/td>\n | | <\/tr>\n \n| Adjustments to reconcile net income to net cash provided by operating activities:<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Depreciation and amortization<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n27.6<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n29.2<\/p>\n<\/td>\n | | <\/tr>\n \n| Share-based compensation expenses<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n10.8<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n12.4<\/p>\n<\/td>\n | | <\/tr>\n \n| Non-cash interest expense<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1.7<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1.7<\/p>\n<\/td>\n | | <\/tr>\n \n| Deferred income taxes<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n8.8<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5.9<\/p>\n<\/td>\n | | <\/tr>\n \n| Inventory write-downs<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n11.5<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n10.9<\/p>\n<\/td>\n | | <\/tr>\n \n| Foreign exchange transaction loss<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n3.2<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2.4<\/p>\n<\/td>\n | | <\/tr>\n \n| Other<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n2.4<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(3.8)<\/p>\n<\/td>\n | | <\/tr>\n \n| Changes in operating assets and liabilities:<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Receivables<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(13.8)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(16.7)<\/p>\n<\/td>\n | | <\/tr>\n \n| Inventories<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n35.8<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(7.9)<\/p>\n<\/td>\n | | <\/tr>\n \n| Prepaid expenses and other current assets<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(35.7)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(28.8)<\/p>\n<\/td>\n | | <\/tr>\n \n| Accounts payable<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(24.1)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(2.3)<\/p>\n<\/td>\n | | <\/tr>\n \n| Royalty overrides<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(31.7)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n42.8<\/p>\n<\/td>\n | | <\/tr>\n \n| Other current liabilities<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n28.9<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(22.3)<\/p>\n<\/td>\n | | <\/tr>\n \n| Other<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(8.5)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n8.8<\/p>\n<\/td>\n | | <\/tr>\n \n| NET CASH PROVIDED BY OPERATING ACTIVITIES<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n46.2<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n130.5<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| CASH FLOWS FROM INVESTING ACTIVITIES:<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Purchases of property, plant and equipment<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(30.3)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(41.3)<\/p>\n<\/td>\n | | <\/tr>\n \n| Other<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n0.1<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n0.1<\/p>\n<\/td>\n | | <\/tr>\n \n| NET CASH USED IN INVESTING ACTIVITIES<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(30.2)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(41.2)<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| CASH FLOWS FROM FINANCING ACTIVITIES:<\/td>\n | | \n | \n | \n | \n | <\/tr>\n \n| Borrowings from senior secured credit facility<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n71.0<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n82.0<\/p>\n<\/td>\n | | <\/tr>\n \n| Principal payments on senior secured credit facility and other debt<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(138.4)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(89.3)<\/p>\n<\/td>\n | | <\/tr>\n \n| Debt issuance costs<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(0.3)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n–<\/p>\n<\/td>\n | | <\/tr>\n \n| Share repurchases<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(8.7)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(116.2)<\/p>\n<\/td>\n | | <\/tr>\n \n| Other<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n0.4<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1.1<\/p>\n<\/td>\n | | <\/tr>\n \n| NET CASH USED IN FINANCING ACTIVITIES<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(76.0)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(122.4)<\/p>\n<\/td>\n | | <\/tr>\n \n| EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n5.5<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n1.3<\/p>\n<\/td>\n | | <\/tr>\n \n| NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(54.5)<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n(31.8)<\/p>\n<\/td>\n | | <\/tr>\n \n| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n516.3<\/p>\n<\/td>\n | | \n\n \n\u00a0<\/p>\n<\/td>\n | \n \n610.4<\/p>\n<\/td>\n | | <\/tr>\n \n| CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n461.8<\/p>\n<\/td>\n | | \n\n \n$<\/p>\n<\/td>\n | \n \n578.6<\/p>\n<\/td>\n | | <\/tr>\n \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n<\/table>\n\n \nSupplemental Information<\/p>\n \nSCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES<\/p>\n \n(Unaudited and unreviewed), (All tables provide Dollars in millions, except per Share Data)<\/p>\n \nAdjusted Net Income, Adjusted Diluted EPS and Adjusted EBITDA<\/p>\n \nIn addition to its reported results calculated in accordance with GAAP, the Company has included in this release adjusted net income, adjusted diluted EPS and adjusted EBITDA, performance measures that the Securities and Exchange Commission defines as \u201cnon-GAAP financial measures.\u201d Adjusted net income, adjusted diluted EPS and adjusted EBITDA exclude the impact of certain unusual or non-recurring items such as net expenses related to COVID-19 pandemic, expenses related to Transformation Program and expenses related to digital technology program, as further detailed in the reconciliations below.<\/p>\n \nManagement believes that such non-GAAP financial measures, when read in conjunction with the Company\u2019s reported results, calculated in accordance with GAAP, can provide useful supplemental information for investors because they facilitate a period to period comparative assessment of the Company\u2019s operating performance relative to its performance based on reported results under GAAP, while isolating the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the Company\u2019s operations and underlying operational performance. The Company\u2019s definition and calculation as set forth in the tables below of adjusted net income, adjusted diluted EPS and adjusted EBITDA may not be comparable to similarly titled measures used by other companies because other companies may not calculate them in the same manner as the Company does and should not be viewed in isolation from nor as alternatives to net income or diluted EPS calculated in accordance with GAAP.<\/p>\n \nCurrency Fluctuation<\/p>\n \nOur international operations have provided and will continue to provide a significant portion of our total net sales. As a result, total net sales will continue to be affected by fluctuations in the U.S. dollar against foreign currencies. In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, in addition to comparing the percent change in net sales from one period to another in U.S. dollars, we also compare the percent change in net sales from one period to another period using \u201cnet sales in local currency.\u201d Net sales in local currency is not a measure presented in accordance with U.S. GAAP. Net sales in local currency removes from net sales in U.S. dollars the impact of changes in exchange rates between the U.S. dollar and the local currencies of our foreign subsidiaries, by translating the current period net sales into U.S. dollars using the same foreign currency exchange rates that were used to translate the net sales for the previous comparable period. We believe presenting net sales in local currency is useful to investors because it allows a meaningful comparison of net sales of our foreign operations from period to period. However, net sales in local currency should not be considered in isolation or as an alternative to net sales in U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.<\/p>\n \n | | | |
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20230501005791\/en\/1770462\/3\/Herbalife_Brandmark_Primary_Garden_Green_CMYK.jpg\")
<\/td>\n<\/tr>\n