Herbalife Nutrition Ltd. Q4 FY2025 earnings call

• CEO Stephan Gratziani reflected on 2025 accomplishments, reduced total leverage ratio to 2.8x, sharpened operations, advanced innovation. - CFO John DeSimone detailed fourth quarter financial highlights: net sales growth, adjusted EBITDA, margin details, regional net sales results, capital structure update. - Emphasized strengthening distributor network, product innovation, Pro2col's role, and strategic partnerships like with Cristiano Ronaldo.

Fourth quarter net sales were $1.3 billion, up 6.3% year-over-year. Full year net sales were up nearly 1% to just over $5 billion; excluding FX, up 2.5%. Adjusted EBITDA for the quarter was $156 million. Full year adjusted EBITDA was $658 million, margin at 13.1%. Q4 India delivered highest quarterly net sales. North America had second consecutive quarter of double-digit new distributor growth (up 19%). Latin America had seventh consecutive quarter of year-over-year growth. On 2-year basis, new distributors up 16% with 4 of 5 regions reporting increases. 2025 was strong for product innovation with launches like MultiBurn, HL/Skin, Life I/O Baseline. Pro2col is health and wellness operating system with phased beta rollout, expanded to U.S., Canada, Puerto Rico, and to be extended to select EMEA markets.

First quarter expected reported net sales growth of 3% to 7% year-over-year (including ~250 basis point currency tailwind), constant currency net sales growth 0.5% to 4.5%, adjusted EBITDA range $155 million to $175 million. Full year expected reported net sales growth 1% to 6% year-over-year (including ~100 basis point currency tailwind), constant currency net sales flat to up 5%, adjusted EBITDA range $670 million to $710 million or $665 million to $705 million on constant currency basis, capital expenditures range $50 million to $80 million, capitalized SaaS implementation costs $40 million to $60 million, adjusted effective tax rate ~30%.

Q: Asked about regional sales guidance and Pro2col sales contribution and EBITDA margin assumptions.

A: John DeSimone said expecting net sales growth in every region except China, Pro2col has little top line built in, GST in India has net $16 million incremental cost impact.

Q: Asked about product categories momentum and Nutrition Clubs expansion.

A: John DeSimone noted energy, sports and fitness category outpacing overall performance, Stephan Gratziani talked about Nutrition Clubs like Breakfast Budget Clubs with master classes.

Q: Asked about product contribution and distributor events spending.

A: Stephan Gratziani mentioned successful product launches, John DeSimone said event costs expected to go up next year.

Q: Asked about product customer fit and consumer base expansion.

A: Stephan Gratziani talked about expanding product offering to attract more customers, leveraging Cristiano Ronaldo partnership.

Q: Asked about distributor to member model and growth mismatch.

A: Stephan Gratziani said both distributor and preferred member recruitment are attractive, adjustments made in 2025.

Q: Asked about acquisitions and equity partnerships strategy.

A: John DeSimone and Stephan Gratziani talked about acquisitions to support distribution reach, partnerships aligning with platform vision