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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 GMT2012-08-01T17:02:12Z

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.


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."