康宝莱的财报电话会议显示其增长正在逐步反弹

Herbalife Ltd ((HLF)) has held its Q4 earnings call. Read on for the main highlights of the call.

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Herbalife’s latest earnings call balanced optimism with realism as management pointed to a clear return to growth alongside disciplined cost control and deleveraging. Net sales, profits and cash flow all showed improvement, while new products and digital initiatives signaled a more modern, tech-enabled strategy despite headwinds in China, FX pressure and cautious near-term guidance.

Q4 Net Sales Acceleration Marks Strongest Growth Since 2021

Herbalife reported Q4 net sales of $1.3 billion, up 6.3% year over year and 5.5% in constant currency, marking the second straight quarter of growth. Management highlighted this as the strongest annual growth rate since Q2 2021, suggesting that the business is emerging from its recent slowdown and rebuilding sales momentum globally.

Full-Year Revenue Shows Stability Despite FX Drag

For the full year, net sales were just over $5.0 billion, growing nearly 1% versus 2024, or 2.5% once currency headwinds are stripped out. While hardly booming, the company framed this as evidence of top-line stability, emphasizing that underlying demand is healthier than headline growth suggests when foreign exchange is normalized.

EBITDA Growth and Margin Expansion Underscore Profit Recovery

Adjusted EBITDA reached $156 million in Q4 with a 12.2% margin, and $658 million for the full year at a 13.1% margin. This marked the second consecutive year of both adjusted EBITDA and margin expansion, reinforcing the narrative that Herbalife is not only stabilizing sales but also structurally improving profitability.

Robust Cash Flow Fuels Aggressive Debt Reduction

Operating cash flow surged 41% year over year in Q4 to $98 million and 17% for the year to $333 million, providing ample flexibility to reduce leverage. Herbalife repaid $283 million of debt in 2025 and more than $530 million over two years, cutting its leverage ratio to 2.8 times and finishing the quarter with $353 million in cash.

India Delivers Record Quarter on Tax-Driven Demand Boost

India was the standout performer, with Q4 net sales of about $250 million, up nearly 15% year on year and roughly 21% in local currency. Volumes jumped approximately 18%, as a reduction in GST rates made products more attractive and provided a clear catalyst for both demand and distributor activity in this key growth market.

Latin America and EMEA Lead Broad-Based Regional Momentum

Three of Herbalife’s five regions grew in Q4, led by Latin America where sales rose 18% reported and 11% in local currency, with Mexico up 19% reported. EMEA delivered 9% reported growth, Asia Pacific grew 5% reported and 9% in local terms, while North America was essentially flat, signaling solid but uneven global momentum.

Distributor Network Shows Multi-Year Strength Despite Q4 Noise

North America saw a 19% year-over-year increase in new distributors in Q4, and Latin America posted its seventh consecutive quarter of growth in this metric. While worldwide new distributors fell 5% in the quarter, they remained up 16% on a two-year basis, supporting management’s view that the overall recruitment trend is structurally improving.

Innovation Pipeline Expands Across Weight, Beauty and Longevity

Management spotlighted a stepped-up product pipeline, including MultiBurn for weight management, HL/Skin bringing K-beauty and AI facial analysis, and Life I/O Baseline targeting healthy lifespan. Additional launches are planned for 2026, underscoring a strategy to diversify the portfolio and keep distributors armed with fresh, premium offerings.

Pro2col Platform and Ronaldo Partnership Target Digital Edge

Herbalife is rolling out its acquired Pro2col technology, having upgraded its beta to version 2.0 and expanding trials to the U.S., Canada, Puerto Rico and selected EMEA markets. Cristiano Ronaldo purchased a 10% stake in HBL Pro2col and committed to support the platform, aiming to accelerate adoption of personalized nutrition and elevate brand visibility among consumers.

Tight CapEx Management Paired With Targeted Tech Spending

Capital expenditures were $19 million in Q4, at the low end of guidance, and are expected at $10 million to $20 million in Q1 2026 and $50 million to $80 million for the full year. On top of that, Herbalife will capitalize an additional $40 million to $60 million of SaaS implementation costs, signaling a disciplined but meaningful investment in its digital backbone.

China Remains a Drag and a Longer-Dated Recovery Story

China continued to struggle, with Q4 net sales down 4% reported and 6% in local currency and an 11% decline in volumes. Management was explicit that a meaningful turnaround in China is more likely a 2027 event than a 2026 story, making it a lingering overhang on otherwise improving global performance.

FX and Bonus Timing Weigh on EBITDA Margins

Adjusted EBITDA margin in Q4 slipped 20 basis points year over year, pressured by about 100 basis points of FX headwinds and roughly 90 basis points of higher bonus accruals due to timing differences. Pricing actions partially offset these drags, but management acknowledged that these factors created near-term noise in margin trends.

Gross Margin Faces Currency, Mix and Inflation Headwinds

Gross margin came in at 77.5% for the quarter, down 30 basis points versus last year as currency pressure, unfavorable product mix and input cost inflation each chipped away. The company noted that pricing and other efficiencies helped limit the damage, but investors were reminded that margins remain sensitive to FX swings and cost inflation.

India GST Changes and Accounting Shifts Trim Future Margins

Herbalife excluded an $11 million transition charge tied to India’s GST amendments and warned it may not fully recover certain pre-change input credits. Management also flagged about a $16 million net cost shift from G&A to member compensation, a technical move that modestly reduces reported margins heading into 2026.

Guidance Reflects Conservative Growth and Modest Margin Upside

For Q1 2026, Herbalife expects net sales growth of 3% to 7% with a notable currency tailwind and adjusted EBITDA between $155 million and $175 million. Full-year 2026 guidance calls for 1% to 6% reported sales growth, modest EBITDA expansion to $670 million to $710 million, elevated CapEx and SaaS spending, and a long-term goal to cut gross debt to $1.4 billion by 2028.

FX Volatility and Higher Investments Add Near-Term Noise

Foreign exchange remains a swing factor, providing an 80-basis-point boost to Q4 net sales but a roughly 100-basis-point hit to EBITDA and about a $0.07 drag on EPS. At the same time, stepped-up spending on SaaS systems and events is set to lift near-term operating expenses, even as management reallocates some advertising dollars to fund these initiatives.

Herbalife’s earnings call outlined a business that is rebuilding growth, strengthening its balance sheet and investing in digital and product innovation while navigating clear tactical challenges. For investors, the story is one of cautious improvement: accelerating in India and Latin America, pressured in China and FX, but steadily shifting toward a higher-quality, more tech-enabled earnings profile.