Asian Sales Lead Herbalife Gains

LOS ANGELES—For the 19th consecutive quarter, Herbalife saw double-sigit top-line growth, posting a 13.7-percent increase in net sales to $602.2 million for third quarter (3Q). While each of its global operating regions turned in positive revenue growth, Asia/Pacific led the way with a 24.8-percent rise to $144.9 million in sales. North America churned out $135.9 million on 22.8-percent growth, while Europe/Middle East/Africa posted near equal revenues, but on only 1.2-percent growth. Meeting the challenge of not only a tough sales environment, but also a difficult cost-management economy, Herbalife managed 3Q net income of $58.1 million, or $0.89 per diluted share, up from $48.3 million, or $0.67 per diluted in 3Q last year; management credited the increased bottom line on the net sales growth increase, stable operating margin, a lower effective tax rate, and accretion from our share repurchase program.

"In these turbulent economic times, we believe we're in a fortunate position—at the intersection of health and wealth," said Michael O. Johnson, chairman and CEO. "We offer a solution for part-time or full-time income as well as healthy nutrition and weight-management in the midst of a global obesity epidemic. We are actively refining our growth and infrastructure plans to address global market changes and it continues to be our goal to improve our financial results each year. Although unprecedented fluctuations of the U.S. dollar versus most major currencies are causing headwinds in the fourth quarter 2008, which may continue throughout 2009, our mid-single digit volume point growth reflects our distributors' tremendous opportunity inherent in challenging economic times and they are focused on expanding their businesses."