Herbalife is global nutrition company that is committed to providing solutions to the worldwide problems of poor nutrition and obesity through their supplements, positivity and exercise.
Impressive Financial Year
Herbalife Nutrition Ltd. achieved a 9 percent increase in its last quarter sales according to its latest financial report. The rise in the sales of the nutritional supplement producer is attributed to the impressive sales performance of the Asia Pacific and North America regions. In the last quarter, it gained an 11 percent sales increase in North America and 22 percent sales increase in the Asia Pacific.
The company also reported $ 1.1 billion in revenue and a net income of $48.9 million in the last quarter. In the same financial cycle, the company 4.12 percent profit margin. As for the company’s 2019 net sales growth, it is guided between 4 percent and 8 percent. This is an improvement from the previous guidance between 2.8 percent and 6.8 percent.
For the entire 2018, HLF has net sales of $4.9 billion. Compared to its net sales in 2017, the company achieved a 10 percent increase. According to its new CEO and Chairman Michael Johnson, the company persisted to show the strength of the business by offering the best nutritional products to its consumers and distributors all over the globe.
Ongoing Investigation
Johnson added that they will sustain this kind of momentum this year since the worldwide trends create demands for the company’s products. It can be recalled that in January 2019, CEO Richard Goudis abruptly resigned. The former CEO made several comments that were not in line with the company’s culture. In January 2019, the company said that Johnson’s position is only temporary. Johnson refuses to comment when asked about the subject.
A few days ago, the Wall Street Journal reported that Goudis tendered his resignation after a recording found its way at the Justice Department. The recording contains several comments he made a few years earlier about skirting away from the internal policies. The report further revealed that Goudis instructed a colleague in Hong Kong to disregard the limit set by the company on expenses related to entertainment spending.
A copy of the recorded communication is currently at the Justice Department. They are currently investigating if the company’s business deal with China involved certain actions prohibited by the laws governing foreign bribery. The nutritional supplement maker revealed in January 2017 the ongoing investigation conducted by the Securities and Exchange Commission and the Justice Department.
During the regulatory filing in October 2018, the company shared that the investigation is primarily focused on gift and entertainment expenditures of the company’s external affairs department in China. Aside from providing the US government the necessary documents, the company is also conducting its own investigation. In China, several local employees of the company were removed from their posts and some procedures were changed.
What is Herbalife?
Since 1980, the company has been providing people with health products. Herbalife is very active in over 90 countries around the world. All the company’s products can be exclusively purchased from its Independent Distributors.
The company derives its natural ingredients from first-class agricultural areas all over the world. In addition, it taps on top-notch suppliers for its micronutrients. The company is also the largest buyer of soy protein isolate in the US.
The nutritional supplement maker utilizes cutting-edge technology for its quality control. It also houses experts and professionals to ensure that their products meet the highest level of quality standards. Aside from that, it also has an impressive corporate social responsibility.
It has several programs and foundations that help in providing the right nutrition to children. In addition, the company sponsors more than 190 athletes of world-class caliber. This includes Christiano Ronaldo. It also partners with various teams and events across the globe.
The Los Angeles based company sells snacks, protein shakes, and weight-management products. The products are channeled through a web of independent distributors. These distributors can sign up fresh recruits and receive commissions based on the sales of their recruits.
For more information visit Herbalife Nutrition.
