Herbalife Ltd, a leading global health and wellness company, has established itself as a key player in the nutrition industry. Herbalife Ltd focuses on providing science-backed products that support weight management, targeted nutrition, and overall wellness. As Herbalife Ltd celebrates its 45th anniversary in 2024, the company continues to emphasize its commitment to improving lives through high-quality nutrition solutions and a robust direct-selling model. Herbalife Ltd operates in 95 markets worldwide, leveraging a network of independent distributors to deliver products directly to consumers. This Herbalife Ltd profile delves into the company’s structure, operations, and financial performance, highlighting key aspects of Herbalife Ltd’s business strategy and market presence.
Herbalife Ltd’s success is rooted in its innovative approach to health and wellness, combining premium products with personalized coaching from its distributors. The Herbalife Ltd brand stands for quality, science, and community, making Herbalife Ltd a trusted name in nutrition. All details are drawn from Herbalife Ltd’s operational and financial framework, showcasing Herbalife Ltd’s position as a premier health and wellness platform.
Detailed Profile of Herbalife Ltd
Herbalife Ltd is a Cayman Islands-based global health and wellness company, marking its 45th anniversary in 2024. It operates in 95 markets, offering science-backed nutrition and skin care products through a direct-selling model with ~6.2 million independent Members (3.0M preferred, 2.1M distributors; 0.2M in China). Net sales: $5.0B; adjusted EBITDA: $634.8M. Leadership: Michael Johnson (Chairman/CEO, transitioning to Executive Chairman); Stephan Gratziani (incoming CEO May 1, 2025). Focus: Member training, product innovation, sustainability, and technology integration. Employs ~8,600 people; emphasizes ESG and daily consumption strategies.
Business Segments of Herbalife Ltd with Comprehensive Details and Revenue Breakup %
Herbalife Ltd operates through two reportable segments: the Primary Reporting Segment and China. The Primary Reporting Segment encompasses all markets except China, where Herbalife Ltd uses a modified business model to comply with local regulations. This segmentation allows Herbalife Ltd to tailor its operations to regional needs and regulatory environments.
Primary Reporting Segment
The Primary Reporting Segment includes Herbalife Ltd’s operations in North America, Latin America, EMEA (Europe, Middle East, and Africa), Asia Pacific (excluding China), and other regions. In this segment, Herbalife Ltd distributes products through independent Members who can be preferred members (consumers) or distributors (resellers building teams). Herbalife Ltd’s Marketing Plan in these markets uses Volume Points for qualification and compensation, with payouts based on retail sales and team activity.
Comprehensive details: Herbalife Ltd’s Primary Reporting Segment drives the majority of net sales, focusing on direct-selling with emphasis on daily consumption methods like Nutrition Clubs. Herbalife Ltd supports Members with training, events, and technology tools. As of 2024, sales leaders in this segment totaled 571,245, with retention at 70.3%. Herbalife Ltd’s products are sold at discounts to Members, who earn from retail profits and bonuses.
Revenue breakup: In 2024, the Primary Reporting Segment generated $4,695.5 million in net sales, representing 94.0% of Herbalife Ltd’s total net sales of $4,993.1 million. (2023: $4,735.0 million, 93.5%; 2022: $4,813.4 million, 92.5%).
China Segment
Herbalife Ltd’s China operations use a unique model due to regulations prohibiting multi-level marketing. In China, Herbalife Ltd sells through independent service providers, sales representatives, and company-operated retail platforms. Chinese citizens become sales representatives, selling away from fixed locations in licensed provinces. Service providers earn compensation for marketing and support services.
Comprehensive details: Herbalife Ltd has direct-selling licenses in 28 provinces, with a retail store in Xinjiang. Compensation in China is based on sales volume and service hours, comparable to other markets. Herbalife Ltd’s China facilities (HIM Suzhou and Nanjing) produce for the local market. Sales leaders in China: 22,794 in 2024. Herbalife Ltd plans to consolidate Nanjing into Suzhou by June 2025.
Revenue breakup: In 2024, the China Segment generated $297.6 million in net sales, representing 6.0% of Herbalife Ltd’s total net sales. (2023: $327.4 million, 6.5%; 2022: $391.0 million, 7.5%).
Herbalife Ltd’s segment structure supports its global strategy, with the Primary Reporting Segment providing scale and China offering growth potential. Herbalife Ltd’s contribution margin for the Primary Reporting Segment was $2,004.3 million in 2024 (China: $101.7 million). Herbalife Ltd reviews segment performance regularly to optimize operations.
(Expanding on Herbalife Ltd business segments: Herbalife Ltd Primary Reporting Segment, Herbalife Ltd China segment, Herbalife Ltd net sales by segment, Herbalife Ltd revenue percentage. Herbalife Ltd’s segmented approach allows for localized compliance and efficiency. Herbalife Ltd invests in both segments to drive sales and Member engagement. Herbalife Ltd’s segment details highlight its adaptable business model in diverse markets.)
Details of Products or Services Offered by Herbalife Ltd and List with Revenue Breakup %
Herbalife Ltd offers approximately 140 product types, categorized into Weight Management, Targeted Nutrition, Energy, Sports, and Fitness, Outer Nutrition, and Literature, Promotional, and Other. Herbalife Ltd’s products are science-backed, focusing on nutrition and personal care. Herbalife Ltd also provides services like Member training, events, and technology tools to support business building.
Product Categories and Details
- Weight Management (55.4% of 2024 net sales): Herbalife Ltd’s core category includes meal replacements, protein shakes, drink mixes, weight loss supplements, healthy snacks, and metabolism-boosting teas. Representative products: Formula 1 Healthy Meal (26% of net sales), Herbal Tea Concentrate, Protein Drink Mix, Personalized Protein Powder, Total Control®, Formula 2 Multivitamin Complex, Prolessa™ Duo, Protein Bars. Herbalife Ltd emphasizes daily consumption for sustainable results.
- Targeted Nutrition (29.7%): Herbalife Ltd offers functional beverages and dietary supplements with herbs, vitamins, minerals, and natural ingredients. Products: Herbal Aloe Concentrate, Active Fiber Complex, Niteworks®, Herbalifeline®. Herbalife Ltd tailors these for specific health needs.
- Energy, Sports, and Fitness (11.5%): Herbalife Ltd supports active lifestyles with products like Herbalife24® line, N-R-G Tea, Liftoff® energy drink. Herbalife Ltd sponsors athletes and teams, fueling 33 athletes at the 2024 Olympics.
- Outer Nutrition (1.7%): Herbalife Ltd’s skin and hair care includes Herbalife SKIN line and Herbal Aloe Bath and Body Care line. Herbalife Ltd focuses on natural ingredients.
- Literature, Promotional, and Other (1.7%): Herbalife Ltd provides start-up kits, sales tools, and educational materials like Herbalife Member Packs and BizWorks.
Herbalife Ltd’s product development involves innovation, with launches like vegan Herbalife V in North America and chewable gels in Europe. Herbalife Ltd invests in advisory boards and labs for quality.
Revenue Breakup % (2024 net sales $4,993.1 million):
- Weight Management: $2,768.1 million (55.4%)
- Targeted Nutrition: $1,484.3 million (29.7%)
- Energy, Sports, and Fitness: $572.2 million (11.5%)
- Outer Nutrition: $83.6 million (1.7%)
- Literature, Promotional, and Other: $84.9 million (1.7%)
(2023: Weight Management 56.3%, Targeted Nutrition 29.2%, Energy 11.1%, Outer 1.7%, Literature 1.7%) (2022: Weight Management 56.8%, Targeted Nutrition 29.1%, Energy 10.6%, Outer 1.6%, Literature 1.9%)
Herbalife Ltd’s services include distributor training programs like Herbalife Premier League, Extravaganza events, and technology platforms like Herbalife One. Herbalife Ltd’s buyback program and satisfaction guarantee support customer confidence.
(Expanding on Herbalife Ltd products: Herbalife Ltd Weight Management products, Herbalife Ltd Targeted Nutrition supplements, Herbalife Ltd Energy drinks, Herbalife Ltd Outer Nutrition care, Herbalife Ltd promotional tools. Herbalife Ltd’s product lineup caters to diverse wellness needs, with Herbalife Ltd Formula 1 as the top seller. Herbalife Ltd innovates to meet consumer trends, ensuring Herbalife Ltd remains competitive in nutrition.)
Company History of Herbalife Ltd
Herbalife Ltd has a rich 45-year history, beginning in 1980 when it was founded by Mark Hughes. Herbalife Ltd started as a direct-selling company focused on weight management and nutrition products, revolutionizing the industry with its protein shake and community-based approach. Over the decades, Herbalife Ltd expanded globally, entering new markets and diversifying its product line to include targeted nutrition, sports fitness, and personal care.
In the 1980s, Herbalife Ltd faced regulatory challenges, resulting in a 1986 injunction in California that shaped its compliance practices. Herbalife Ltd went public in 2004, listing on the NYSE as HLF. The 2010s saw Herbalife Ltd navigate investigations, culminating in the 2016 FTC Consent Order, which Herbalife Ltd has complied with to enhance business practices.
Herbalife Ltd’s history includes significant milestones like launching the Herbalife24 sports line, sponsoring major events, and investing in manufacturing facilities. In 2024, Herbalife Ltd marked its 45th anniversary with stabilized net sales, improved margins, and debt reduction. Herbalife Ltd’s history reflects resilience, innovation, and commitment to health.
(Expanding on Herbalife Ltd history: Herbalife Ltd founded in 1980, Herbalife Ltd Mark Hughes founder, Herbalife Ltd 45 years, Herbalife Ltd direct-selling evolution, Herbalife Ltd global expansion, Herbalife Ltd regulatory milestones, Herbalife Ltd product innovation history. Herbalife Ltd’s journey from startup to global leader demonstrates its enduring impact in nutrition.)
Brands Details and List of Herbalife Ltd with Revenue Breakup %
Herbalife Ltd owns and markets several brands, with the umbrella trademarks Herbalife®, Herbalife Nutrition®, Tri-Leaf device, and Rising Leaf designs used worldwide. Herbalife Ltd protects these and other trademarks like Niteworks®, Liftoff®. Herbalife Ltd’s branding emphasizes science, quality, and wellness, supported by sponsorships and campaigns like Women In Sports.
List of key brands/products:
- Herbalife®: Core brand for all products.
- Formula 1 Healthy Meal: Flagship shake.
- Herbalife24®: Sports nutrition line.
- Herbalife SKIN: Facial care.
- Herbal Aloe: Bath and body care.
- Niteworks®, Liftoff®, Herbalifeline®: Specific supplements.
- Herbalife V: Vegan line.
Revenue is not broken down by individual brand but by category (as above). Herbalife Ltd’s brands contribute to category revenues, with Weight Management (including Formula 1) at 55.4%.
Herbalife Ltd uses branding to build awareness, leveraging Member marketing and partnerships.
(Expanding on Herbalife Ltd brands: Herbalife Ltd trademarks, Herbalife Ltd product brands, Herbalife Ltd Herbalife24, Herbalife Ltd SKIN line, Herbalife Ltd branding strategy. Herbalife Ltd’s brands are synonymous with quality nutrition, driving Herbalife Ltd’s market position.)
Geographical Presence of Herbalife Ltd and List with Revenue Breakup %
Herbalife Ltd has a presence in 95 markets worldwide, with operations segmented by region for reporting.
List of regions and presence:
- North America: U.S., Canada. Sales leaders: 58,782. Key facilities: Lake Forest, Winston-Salem.
- Latin America: Mexico, South & Central America. Sales leaders: 107,247. Facilities: Guadalajara, Querétaro.
- EMEA: Europe, Middle East, Africa. Sales leaders: 162,424. Packaging changes for sustainability.
- Asia Pacific: India, others excluding China. Sales leaders: 242,792. Facilities: Bangalore.
- China: 28 provinces licensed, store in Xinjiang. Sales leaders: 22,794. Facilities: Suzhou, Nanjing, Changsha, Dalian.
Revenue Breakup % (2024 net sales $4,993.1 million):
- United States: $1,026.0 million (20.5%)
- China: $297.6 million (6.0%)
- India: $844.8 million (16.9%)
- Mexico: $538.6 million (10.8%)
- Others: $2,286.1 million (45.8%)
(2023: US 21.7%, China 6.5%, India 15.7%, Mexico 10.4%, Others 45.7%) (2022: US 23.5%, China 7.5%, India 13.0%, Mexico 9.1%, Others 46.9%)
Herbalife Ltd’s geographical presence supports its global strategy, with focus on emerging markets like India.
(Expanding on Herbalife Ltd geographical presence: Herbalife Ltd 95 markets, Herbalife Ltd regional operations, Herbalife Ltd net sales by geography, Herbalife Ltd international expansion. Herbalife Ltd’s diverse presence ensures resilience and growth opportunities.)
Financial Details of Herbalife Ltd: Consolidated P&L, Balance Sheet, and Cash Flow Statement
Herbalife Ltd’s financial performance in 2024 showed net sales of $5.0 billion and net income of $254.3 million. Below are the consolidated statements in tables.
Consolidated Profit & Loss Statement (P&L)
| Item | 2024 ($ millions) | 2023 ($ millions) | 2022 ($ millions) |
|---|---|---|---|
| Net sales | 4,993.1 | 5,062.4 | 5,204.4 |
| Cost of sales | 1,104.3 | 1,191.0 | 1,173.6 |
| Gross profit | 3,888.8 | 3,871.4 | 4,030.8 |
| Royalty overrides | 1,633.0 | 1,659.2 | 1,690.1 |
| Selling, general, and administrative expenses | 1,875.4 | 1,866.0 | 1,810.4 |
| Other operating income | (5.5) | (10.2) | (14.9) |
| Operating income | 385.9 | 356.4 | 545.2 |
| Interest expense | 218.3 | 165.9 | 139.3 |
| Interest income | 12.3 | 11.5 | 6.1 |
| Other expense (income), net | 10.5 | (1.0) | (12.8) |
| Income before income taxes | 169.4 | 203.0 | 424.8 |
| Income taxes | (84.9) | 60.8 | 103.5 |
| Net income | 254.3 | 142.2 | 321.3 |
| Earnings per share: Basic | 2.53 | 1.44 | 3.26 |
| Diluted | 2.50 | 1.42 | 3.23 |
Herbalife Ltd’s P&L reflects stabilized sales and improved margins in 2024.
Consolidated Balance Sheet
| Assets | 2024 ($ millions) | 2023 ($ millions) |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | 415.3 | 575.2 |
| Receivables, net | 68.9 | 81.2 |
| Inventories | 475.4 | 505.2 |
| Prepaid expenses and other current assets | 184.1 | 237.7 |
| Total current assets | 1,143.7 | 1,399.3 |
| Property, plant, and equipment, net | 460.2 | 506.5 |
| Operating lease right-of-use assets | 185.7 | 185.8 |
| Marketing-related intangibles and other intangible assets, net | 312.3 | 314.0 |
| Goodwill | 87.7 | 95.4 |
| Deferred income tax assets | 398.6 | 179.3 |
| Other assets | 139.9 | 129.1 |
| Total assets | 2,728.1 | 2,809.4 |
| Liabilities and Shareholders’ Deficit | 2024 ($ millions) | 2023 ($ millions) |
|---|---|---|
| Current liabilities: | ||
| Accounts payable | 70.0 | 84.0 |
| Royalty overrides | 334.1 | 343.4 |
| Current portion of long-term debt | 283.5 | 309.5 |
| Other current liabilities | 542.8 | 540.7 |
| Total current liabilities | 1,230.4 | 1,277.6 |
| Long-term debt, net | 1,976.6 | 2,252.9 |
| Non-current operating lease liabilities | 169.5 | 167.6 |
| Other non-current liabilities | 152.7 | 171.6 |
| Total liabilities | 3,529.2 | 3,869.7 |
| Shareholders’ deficit: | ||
| Common shares | 0.1 | 0.1 |
| Paid-in capital in excess of par value | 278.2 | 233.9 |
| Accumulated other comprehensive loss | (271.4) | (232.0) |
| Accumulated deficit | (808.0) | (1,062.3) |
| Total shareholders’ deficit | (801.1) | (1,060.3) |
| Total liabilities and shareholders’ deficit | 2,728.1 | 2,809.4 |
Herbalife Ltd’s balance sheet shows a reduction in cash and debt in 2024.
Consolidated Cash Flow Statement
| Item | 2024 ($ millions) | 2023 ($ millions) | 2022 ($ millions) |
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net income | 254.3 | 142.2 | 321.3 |
| Adjustments… (depreciation, etc.) | (various) | (various) | (various) |
| Net cash provided by operating activities | 285.4 | 357.5 | 352.5 |
| Cash flows from investing activities: | |||
| Purchases of property, plant, and equipment | (122.0) | (135.0) | (156.4) |
| Proceeds from sale and leaseback | 37.9 | 0 | 0 |
| Other | (0.5) | 0.2 | 0.2 |
| Net cash used in investing activities | (84.6) | (134.8) | (156.2) |
| Cash flows from financing activities: | |||
| Borrowings | 1,394.4 | 215.2 | 564.2 |
| Principal payments | (1,937.0) | (289.6) | (683.5) |
| Other (notes, repurchases, etc.) | (various) | (various) | (various) |
| Net cash used in financing activities | (335.3) | (148.3) | (264.7) |
| Effect of exchange rate changes | (22.9) | 4.8 | (25.7) |
| Net change in cash | (157.4) | 79.2 | (94.1) |
| Cash at beginning | 595.5 | 516.3 | 610.4 |
| Cash at end | 438.1 | 595.5 | 516.3 |
Herbalife Ltd’s cash flows highlight operating strength and investment in growth.
(Expanding on Herbalife Ltd financials: Herbalife Ltd P&L, Herbalife Ltd balance sheet, Herbalife Ltd cash flow, Herbalife Ltd net income, Herbalife Ltd net sales. Herbalife Ltd’s financial tables demonstrate stability and efficiency.)
Subsidiary, Wholly-Owned Subsidiary, and Associate Details of Herbalife Ltd with % and List (Revenue Breakup %)
Herbalife Ltd is a holding company with substantially all assets consisting of capital stock of direct and indirect subsidiaries. Herbalife Ltd has no associates mentioned. Subsidiaries are wholly-owned unless noted.
Full list from report mentions (not exhaustive, as full Exhibit 21 not found, but key subsidiaries from text):
- Herbalife International, Inc. (U.S., wholly-owned, guarantor).
- Herbalife International Luxembourg S.à R.L. (Luxembourg, wholly-owned, guarantor).
- HBL IHB Operations S.à R.L. (Luxembourg, wholly-owned).
- Herbalife Asia Pacific Services Ltd. (Hong Kong, wholly-owned).
- Herbalife Products Malaysia Sdn. Bhd. (Malaysia, wholly-owned).
- Herbalife International of America, Inc. (U.S., wholly-owned).
- Other domestic and foreign subsidiaries as guarantors under credit facilities.
Revenue breakup by subsidiary not provided; revenues are consolidated, with China subsidiaries contributing 6%.
Herbalife Ltd’s subsidiaries support global operations, with no revenue breakup % available per subsidiary.
(Expanding on Herbalife Ltd subsidiaries: Herbalife Ltd wholly-owned subsidiaries, Herbalife Ltd international subsidiaries, Herbalife Ltd guarantor subsidiaries. Herbalife Ltd’s subsidiary structure enables efficient global management.)
Information about Physical Properties of Herbalife Ltd (Offices, Plants, Factories, etc.) and List
Herbalife Ltd leases most physical properties, with key facilities:
- Corporate offices: Downtown Los Angeles (95,000 sq ft leased), Torrance CA (315,000 sq ft HQ leased).
- Manufacturing: HIM Winston-Salem NC (800,000 sq ft, owned/leased?), HIM Lake Forest CA, HIM Suzhou China, HIM Nanjing China (consolidating to Suzhou by 2025), Changsha China (tea/herbal processing).
- Innovation Centers: Bangalore India, Guadalajara Mexico.
- Distribution/Offices: Memphis TN, Venray Netherlands, Querétaro Mexico, Krakow Poland, Kuala Lumpur Malaysia, Dalian China.
- Other: Warehouses and offices in majority of 95 markets.
Herbalife Ltd’s properties support manufacturing (47% self-produced), distribution (~1,000 points), and operations.
(Expanding on Herbalife Ltd properties: Herbalife Ltd offices, Herbalife Ltd manufacturing facilities, Herbalife Ltd distribution centers, Herbalife Ltd global properties. Herbalife Ltd invests in properties for efficiency and sustainability.)
Founders Details of Herbalife Ltd
Herbalife Ltd was founded by Mark Hughes in 1980. Mark Hughes envisioned a company that provided effective nutrition products through direct-selling, starting with the Formula 1 shake. His legacy continues through the Mark Hughes bonus in Herbalife Ltd’s Marketing Plan. Mark Hughes’ passion for wellness shaped Herbalife Ltd’s mission.
(Expanding on Herbalife Ltd founder: Herbalife Ltd Mark Hughes, Herbalife Ltd founded 1980, Herbalife Ltd founder vision. Mark Hughes’ innovation drove Herbalife Ltd’s early success.)
Board of Directors Details and List Every Director with Details
Herbalife Ltd’s Board of Directors oversees governance and strategy. Details from report:
- Michael O. Johnson: Chairman and CEO, leads Herbalife Ltd since 2003, transitioning to Executive Chairman in 2025.
- Stephan Gratziani: Incoming CEO effective May 1, 2025, current executive.
- Celine Del Genes: Director, Global Chief Customer Officer at Decathlon.
- Sophie L’Hélias: Director, President and Founder of LeaderXXchange.
- Alan W. LeFevre: Director, Former Executive Vice President of Finance and CFO at Canyon Ranch.
Other directors mentioned in context include those on committees (Audit, Compensation, Nominating, ESG). The board determines dividends, authorizes repurchases, and oversees risks.
(Expanding on Herbalife Ltd board: Herbalife Ltd directors list, Herbalife Ltd board members, Herbalife Ltd governance. Herbalife Ltd’s board ensures strategic oversight and compliance.)
Investment Details of Herbalife Ltd and List Every Passive Investment Details %
Herbalife Ltd’s investments include capital expenditures (~$122 million in 2024 for IT, manufacturing), but no specific passive investments listed. Cash equivalents are short-term liquid investments. Herbalife Ltd invests in technology (Herbalife One), manufacturing, and sustainability.
No passive investment % breakdown.
(Expanding on Herbalife Ltd investments: Herbalife Ltd capital investments, Herbalife Ltd technology investments, Herbalife Ltd manufacturing investments. Herbalife Ltd’s investments fuel growth.)
Future Investment Plan of Herbalife Ltd
Herbalife Ltd plans continued investments in technology (Herbalife One platform for digital capabilities), product innovation, sustainability (packaging, carbon footprint reduction), and infrastructure (consolidating China facilities). Herbalife Ltd expects capital expenditures of $100-130 million in 2025, focusing on Member tools, events, and market expansion. Herbalife Ltd’s vision includes merging distributor network with wellness technology to redefine direct-selling.
