Herbalife Nutrition Reports Record-Breaking Quarterly Net Sales with 22% Growth versus Prior Year; Provides 2020 and 2021 Guidance

LOS ANGELES, November 5th, 2020 – Herbalife Nutrition Ltd. (NYSE: HLF) today reported financial results for the third quarter ended September 30, 2020:

HIGHLIGHTS

▪ Reported net sales of $1.5 billion for the third quarter 2020 increased 

22.3% compared to the third quarter 2019 and represents the largest quarterly result in Company history.

▪ Excluding the impact of foreign exchange rates and Venezuela, net sales increased 25.1% during the third quarter compared to 2019.

▪ Volume points of 1.9 billion, also a quarterly record for the Company,increased 23.2% compared to the third quarter 2019. 

▪ This is the tenth consecutive quarter of year-over-year volume point growth.

▪ Year-over-year volume point growth in all six geographic regions with four of six regions delivering double-digit increases.

▪ Third quarter 2020 reported diluted EPS of $1.04 and adjusted1 diluted 

EPS of $1.15, compared to $0.58 and $0.73, respectively, for the thirdquarter 2019, which were negatively impacted in 2020 by expenses of approximately $3.2 million, or $0.02 per diluted share, and in third

quarter 2019 of $5.8 million, or $0.03 per diluted share, related to the China Growth and Impact Investment Program.

▪ During the third quarter, the Company repurchased approximately 16.4 million of its common shares at an aggregate cost of approximately $800 million, including $750 million from the modified Dutch auction tender offer completed in August 2020.

▪ Providing Q4 and FY 2020 net sales guidance ranges of 10.0% - 20.0% and 12.2% - 14.7% growth,

respectively. 

▪ Initial FY 2021 net sales guidance range of 3.0% - 11.0% growth, as well as reported and adjusted1 diluted 

EPS guidance ranges of $3.50 - $4.00 and $3.65 – $4.15, respectively.

(a) Excludes any future potential Venezuela currency devaluations and associated pricing and inflationary consequences.

(b) Excludes the following items that cannot be accurately predicted: any future potential ongoing tax effects from the exercise of equity awards that could impact the Company's tax rate due to the stock compensation accounting standard, benefits from future potential China grant income, any future potential dilution from the Company’s convertible notes due in 2024, as well as any impact of the China Growth and Impact Investment Program.

(c) Adjusted diluted EPS and adjusted effective tax rate excludes the impact of: non-cash interest expense and amortization associated with the Company’s convertible notes, expenses related to regulatory inquiries and legal accruals, China grant income, debt issuance costs related to the senior secured credit facility amendment, and net expenses related to the COVID-19 pandemic, as detailed in Schedule A. See Schedule A – “Reconciliation of Non-GAAP Financial Measures” for a detailed reconciliation of adjusted diluted EPS to diluted EPS calculated in accordance with GAAP and a discussion of why the Company believes these non-GAAP measures are useful. 

(d) Currency adjusted net sales and adjusted diluted EPS represent projections translated into US dollars at currency rates equal to the average rates used to translate 2019 fourth quarter and full year net sales and diluted EPS and adjusted for items such as hedging gains/losses and Venezuela to be directly comparable to 2019 values.

(e) Currency adjusted net sales and adjusted diluted EPS represent projections translated into US dollars at currency rates equal

to the average rates used to translate 2020 full year net sales and diluted EPS and adjusted for items such as hedging gains/losses and Venezuela to be directly comparable to 2020 values.

▪ With respect to guidance, the Company cannot accurately predict the impact to its share base from any future share repurchases in 2020 or 2021. Accordingly, any impact thereof is excluded from the guidance tables above. 

▪ Guidance is based on the average daily exchange rates during the first two weeks of October 2020.

▪ Adjusted(a)(b)(c) diluted EPS guidance for the fourth quarter 2020 includes a projected currency headwind of approximately $0.10 per diluted share versus the fourth quarter of 2019. 

▪ Full year 2020 adjusted(a)(b)(c) diluted EPS guidance includes a projected currency headwind of approximately $0.30 per diluted share versus the full year of 2019.

▪ Full year 2021 adjusted(a)(b)(c) diluted EPS guidance is currency neutral compared to 2020. 

Warrants

In an effort to return value to shareholders, the Company’s Board of Directors has declared a distribution ofwarrants to holders of its common shares. The record date for the distribution is November 16, 2020, and each 

holder of Herbalife Nutrition common shares will be entitled to receive one warrant for every four Herbalife Nutrition common shares held. Each warrant will entitle the warrant holder to purchase one common share of Herbalife Nutrition for a purchase price of $67.50 and the distribution of the warrants will be made on December 

14, 2020. The warrants will have a term of seven years and will be exercisable only on the expiration date. The 

Company expects to list the warrants on The New York Stock Exchange. 

Earnings Conference Call

Herbalife Nutrition senior management will host an investor conference call to discuss its recent financial results and provide an update on current business trends on Thursday, November 5th, 2020, at 2:30 p.m. PT (5:30 p.m. ET).

The dial-in number for this conference call for domestic callers is (833) 962-1459, and (956) 394-3596 for international callers (conference ID: 9991856). Live audio of the conference call will be simultaneously webcast in the investor relations section of the Company's website at http://ir.Herbalife.com.

An audio replay will be available following the completion of the conference call in MP3 format or by dialing 

(855) 859-2056 for domestic callers or (404) 537-3406 for international callers (conference ID: 9991856). The webcast of the teleconference will be archived and available on Herbalife Nutrition's website.