Herbalife returns to growth

 

 as Q4 FY2025 revenue $1.3B (+6% YoY) beats and EPS $0.45 (+25% YoY) misses estimates; says Q4 and full-year 2025 net sales and adjusted EBITDA exceeded guidance, outlines modest 2026 expansion with China lagging, and announces Cristiano Ronaldo’s $7.5M investment for a 10% stake in its HBL Pro2col Software subsidiary.

• Q4 net sales $1.3B, +6.3% YoY, exceeding high end of company guidance.
• Q4 adjusted EBITDA $156M, above guidance; full-year adjusted EBITDA $658M, margin 13.1%.
• India delivered record $250M Q4 sales, ~15% growth, benefiting from GST rate reduction.
• Latin America, EMEA, and Asia Pacific grew; North America nearly flat but guided to 2026 growth.
• China remains weak with Q4 sales down mid-single digits and volume down 11% YoY.
• Management expects 2026 sales growth in every region except China, which is more 2027 story.
• 2026 guidance: net sales up 1–6%, adjusted EBITDA $670–710M, modest margin expansion after GST drag.
• Leverage reduced to 2.8x from 3.9x in 2023; $530M debt repaid over two years.
• Pro2col personalization platform still in beta; minimal 2026 revenue assumed, Cristiano Ronaldo takes 10% stake.
• Distributor health improving, with strong new distributor growth in North America and Latin America sustaining momentum.
• Strong quarter, driven by broad-based regional growth (especially India/Latin America) and disciplined cost control. Main concern: China’s ongoing weakness and uncertain pace of Pro2col monetization despite strategic progress and Ronaldo partnership.

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