Herbalife’s quarterly sales hit $1.5 billion; manufacturing expansion planned

By Hank Schultz

- Last updated on GMT

©Getty Images - oatawa
©Getty Images - oatawa

Related tags Dietary supplement companies Dietary supplement industry

Herbalife Nutrition saw sales rise 22.3% in its third quarter. The company said it plans to expand its manufacturing capability to meet increased demand.

Herbalife’s overall sales in its third quarter of 2020 hit $1.5 billion, buoyed by an especially strong showing in North America.  Sales were up more than 50% in the region.

Company swells distributor rolls

This is in contrast to recent years, where multi level marketing companies (MLMs) like Herbalife have seen sales decline and interest in becoming distributors wane in the region.

Company officials said the pandemic crisis may have had a big impact on how potential new distributors now view the business opportunity.  The company added 57% more new distributors and preferred members and many of these new participants are younger, which the company said bodes well for the future.

‘Preferred members’ is a category the company added after its high profile settlement of a lawsuit filed by the US Federal Trade Commission​ to put to rest claims the company was operating an illegal pyramid scheme.  A preferred member is a customer who has signed on to the company’s membership rolls solely to get product discounts.

“Approximately, 65% of these new distributors and preferred members are millennials or Gen Z, part of an increasingly health conscious and younger demographic,”​ said John Agwunobi, Herbalife chairman and CEO.

“There is also the fact that there are many potential distributors sitting at home looking for new ways to fill their day to generate income for their families to perhaps start new businesses,”​ he added. Agwunobi made his remarks as part of an earnings call with stock analysts.  A transcript of the call was posted on the site seekingalpha.com.

Sports nutrition line leads way

Agwunobi said the company’s H24 sports nutrition line has performed especially well with younger consumers.

"Clearly our H24 sports line, attracts the younger demographic and active, healthy active lifestyle demographic that seems to resonate with all demographics, but particularly with that younger demographics. So we know it’s a huge opportunity,”​ he said.

Herbalife said its real performance was even better than the top line numbers indicate.  The company does business in Venezuela, which continues to be in the throes of an economic meltdown. And foreign currency headwinds put a damper on results, too. Sans those impediments, sales would have been up more than 25%, the company said.

Agwunobi said new investments into digital technology platforms, such as individual WeChat store fronts, was helping to shore up sales in China even as in person meetings are still mostly not allowed.  And president John DeSimone said the company is investing in new manufacturing capability to fuel future growth.

Related news

Show more

Related products

show more

Pycnogenol® for Sport: eNOS and Beyond

Pycnogenol® for Sport: eNOS and Beyond

Content provided by Horphag Research | 21-Mar-2024 | White Paper

Engaging in physical activities immediately triggers a number of physiological responses from our body (1). First, our liver glucose output and adipose...

A Groundbreaking Prebiotic

A Groundbreaking Prebiotic

Content provided by ADM | 12-Mar-2024 | Infographic

PreforPro® is a clinically studied prebiotic that supports the growth of select beneficial bacteria in the gut by utilizing phage technology.

LocVita® D3: Tailored Formulas & Beadlet Solutions

LocVita® D3: Tailored Formulas & Beadlet Solutions

Content provided by INNOBIO Corporation Limited | 11-Mar-2024 | White Paper

LocVita® Vegan Vitamin D3 delivers specially formulated options that are sugar-free and organic, designed to accommodate various dietary preferences and...

MOROSIL:INGREDIENT OF THE YEAR

MOROSIL:INGREDIENT OF THE YEAR

Content provided by BIONAP BIOACTIVE NATURAL PRODUCTS | 07-Mar-2024 | Product Brochure

MOROSIL™ has won as Ingredient of the Year in the category Weight Management at 2023 Nutraingredient USA. MOROSIL ™ is a standardized extract derived from...

Related suppliers

Follow us

Products

View more

Webinars