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Herbalife Q2 sales surge in North America, Asia Pac

By Elaine Watson , 01-Aug-2012
Last updated on 01-Aug-2012 at 17:02 GMT

Direct selling supplements giant Herbalife posted a 20% rise in net income to $133.4m in the three months to June 30, while net sales rose 17% to $1bn.

North American sales grew 21%, Asia-Pacific sales grew 25% (34% in local currency) and Chinese sales surged by 50% (46% in local currency). Local currency net sales in South and Central America increased 30%.

Revenue growth in Europe, Middle East and Africa was flat (but local currency net sales increased 11%).

The share price

LA-based Herbalife has been aggressively repurchasing shares during the quarter, but its share price has not yet fully recovered from a slump in April prompted by questions from hedge fund manager David Einhorn about its distributor model.

Manufacturing

Asked about operational developments, chief finance officer John DeSimone said bosses are looking for a additional facility on the East Coast of the US to support growth, while the new extraction facility n China was "ramping up".

He added: "It will continue to ramp up throughout the rest of this year, and I think we should have a good update for you maybe next quarter. 100% of our botanical extraction ingredients will come from that facility."