Business Description

Herbalife Nutrition Ltd. sells and designs nutrition solutions across North America, Mexico, and South America. It offers science-based products in weight management, energy, sports-targeted nutrition, fitness, and outer nutrition. It offers products for weight management, including protein shakes,  meal replacements, drinks mixes, weight loss enhancers, and healthy snacks. The company also provides targeted nutrition products, including dietary and nutritional supplement products that contain vitamins, minerals, herbs,  or other natural ingredients.

The company also offers promotional materials, literature,  and other materials such as start-up kits and sales tools. It sells its products in its retail stores and through independent service providers, representatives, and sales staff. In April 2018, Herbalife Nutrition Ltd. was changed to Herbalife Ltd. Herbalife Nutrition Ltd. was established in 1980. It is headquartered in Los Angeles.

Key Financials

Revenue (US$ Mn)

• Herbalife Nutrition Ltd.’s annual revenue for 2021 was US$ 5,803 Mn, a 4.73% increase from the 2020
• The annual revenue generated by Herbalife Nutrition Ltd. in 2020 was US$ 5,541 Mn
• At a -0.31% decrease from, Herbalife Nutrition Ltd.’s annual revenue of US$ 4,877 Mn was indexed in 2019
• Herbalife Nutrition Ltd. generated total revenue of US$ 4,892 Mn in 2018

Operating Income (US$ Mn)

• US$ 734 Mn was the operating income generated by Herbalife Nutrition Ltd. in 2021
• Herbalife Nutrition Ltd.’s operating income for 2020 was US$ 640 Mn, a 12.68% increase from 2019
• From 2018’s operating incomes, Herbalife Nutrition Ltd. registered a -16.84% decrease in 2019, amounting to US$ 568 Mn
• An operating income of US$ 683 Mn was generated in 2018 by Herbalife Nutrition Ltd.

Net Income (US$ Mn)

• Herbalife Nutrition Ltd.’s net income for 2021 was US$ 447 Mn, a 20.16% increase from 2020
• The net income generated by Herbalife Nutrition Ltd. in 2020 was US$ 372 Mn
• At a 4.71% increase, Herbalife Nutrition Ltd.’s net income of US$ 311 Mn was indexed in 2019
• Herbalife Nutrition Ltd. generated a net income of US$ 297 Mn in 2018

Operating Margin %

• Herbalife Nutrition Ltd.’s operating margin for 2021 was 13%, a 46.51% increase from 2020
• The operating margin generated by Herbalife Nutrition Ltd. in 2020 was 9%
• At a -39.29% decrease, Herbalife Nutrition Ltd.’s operating margin of 9% was indexed in 2019
• Herbalife Nutrition Ltd. generated an operating margin of 14% in 2018

Gross Margin %

• 79% was the gross margin generated by Herbalife Nutrition Ltd. in 2021
• Herbalife Nutrition Ltd.’s gross margin for 2020 was 79%, a -1.37% decrease from 2019
• From 2018’s gross margins, Herbalife Nutrition Ltd. registered a -1.11% decrease in 2019, amounting to 80%
• A gross margin of 81% was generated in 2018 by Herbalife Nutrition Ltd.

SWOT Analysis

Strengths

A wide product portfolio allows the company to tap into multiple revenue-generating arenas

Herbalife offers a broad product range. The company markets and develops weight management, healthy foods, snacks, energy, targeted nutrition products, and personal care products. Herbalife sells these products under four categories: weight management, targeted nutrition, energy, sports, and fitness, outer nutrition, literature, and promotional products.

The company sells healthy snack products, meal replacement, protein shakes, and drink mixes under the weight management category. Formula 1 Healthy Meal and Personalized Protein Powder are the company’s major products. It sells nutritional and dietary supplements that contain herbs, vitamins, minerals, and other natural ingredients. It also offers Aloe Concentrate and Niteworks as well as Active Fiber Complex, Herb a lifeline, and Niteworks.

The company’s energy, sports, and fitness categories offer products that promote a healthy, active lifestyle. Herbalife24’s product line and Liftoff energy drinks are the most popular products. Herbalife’s outer nutritional product lines include body care, hair care, and facial skin care. The major products are Skin Activator anti-aging, Herbal Aloe Bath and Body Care, NouriFusion multivitamin skincare line, and Radiant C antioxidants skincare line.

Printing, promotional, and other products for the company include educational materials, start-up tools, and sales tools. Herbalife’s wide range of technology-based, personal care, and nutritional products allows it to meet the diverse needs of its customers. This in turn allows Herbalife access to multiple revenue-generating avenues.

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