Secondo quarto 2016 da record!

• Second quarter 2016 volume points increased 9% compared to the second quarter 2015, representing the highest volume point quarter in the company's history.
• Second quarter 2016 reported a loss of $0.28 per diluted share, which includes the impact of $203 million related to regulatory settlements, as compared to earnings of $0.97 per diluted share for the prior year quarter. Adjusted¹ earnings of $1.29 per adjusted² diluted share increased 4% compared to $1.24 per diluted share for the comparable prior year quarter.
• Second quarter 2016 reported net sales of $1.2 billion increased 3% and 10% on an as reported and constant currency basis, respectively, compared to the prior year period.

• Establishes full year 2016 GAAP diluted EPS guidance in a range of $2.30 to $2.60. Raises full year 2016 adjusted¹ diluted EPS guidance to a range of$4.50 to $4.80; an increase from the previous range of $4.40 to $4.75.

LOS ANGELES--(BUSINESS WIRE)-- Herbalife Ltd. (NYSE: HLF) reported second quarter net sales of $1.2 billion, reflecting an increase of 3% compared to the prior year period. Second quarter 2016 net sales, excluding the impact of currency, grew by 10%. On a reported basis, second quarter net loss of $22.9 million or ($0.28) per diluted share which includes the impact of $203 million related to regulatory settlements, compared to net income of $82.8 million or $0.97 per diluted share for the comparable quarter in 2015. Adjusted¹ earnings for the quarter grew 4% to $1.29 per adjusted² diluted share, compared to $1.24 per diluted share for the second quarter in 2015. Due to currency fluctuations, second quarter 2016 reported and adjusted¹ net income were negatively impacted by $27.7 million and $26.6 million, respectively, and reported EPS and adjusted¹ earnings per adjusted² diluted share were negatively impacted by $0.32 and $0.31, respectively.

Michael O. Johnson, chairman and CEO of Herbalife, stated "This has been a historic quarter for Herbalife, with worldwide record setting volume points and new volume point highs in four out of our six regions."

Johnson continued, "This momentum reflects the strength of our distributors' businesses and with the FTC settlement announcement, I am more confident than ever in Herbalife's future."

Second Quarter and 2016 Key Metrics^3,4

Regional Volume Point and Average Active Sales Leader Metrics

Regional Net Sales and Foreign Exchange ("FX") Impact

Outlook

Based on current business trends the company's third quarter 2016 and full year 2016 guidance is as follows:

Forward guidance is based on the average daily exchange rates of the first two weeks of July.

Adjusted diluted EPS guidance for the third quarter 2016 includes a projected unfavorable impact from currency exchange rates of approximately $0.14 per diluted share versus the third quarter of 2015.

Full year 2016 adjusted diluted EPS guidance includes a projected currency headwind of approximately $0.90 per diluted share, compared to 2015, which is $0.20 higher than the headwind included in the guidance the company provided a quarter ago.

Second Quarter 2016 Earnings Conference Call

Herbalife senior management will host an investor conference call to discuss its recent financial results and provide an update on current business trends on Wednesday, August 3, 2016, at 2:30 p.m. PT (5:30 p.m. ET).

The dial-in number for this conference call for domestic callers is (877) 317-1296, and (706) 634-5671 for international callers (conference ID 38673773). Live audio of the conference call will be simultaneously webcast in the investor relations section of the company's website at https://ir.herbalife.com.

An audio replay will be available following the completion of the conference call in MP3 format or by dialing (855) 859-2056 for domestic callers or (404) 537-3406 for international callers (conference ID 38673773). The webcast of the teleconference will be archived and available on Herbalife's website.

About Herbalife Ltd.

Herbalife is a global nutrition company that has been changing people's lives with great products since 1980. Our nutrition, weight-management, energy and fitness and personal care products are available exclusively to and through dedicated Herbalife Independent Members in more than 90 countries. We are committed to fighting the worldwide problems of poor nutrition and obesity by offering high-quality products, one-on-one coaching with an Herbalife Member and a community that inspires customers to live a healthy, active life.

We support the Herbalife Family Foundation (HFF) and its Casa Herbalife programs to help bring good nutrition to children in need. We also sponsor more than 190 world-class athletes, teams and events around the globe, including Cristiano Ronaldo, the LA Galaxy and champions in many other sports.

The company has over 8,000 employees worldwide, and its shares are traded on the New York Stock Exchange (NYSE: HLF) with net sales of $4.5 billion in 2015. TheHerbalife website contains a significant amount of financial and other information about the company at https://ir.Herbalife.com. The company encourages investors to visit its website from time to time, as information is updated and new information is posted. To learn more, visit Herbalife.com or IAmHerbalife.com.

FORWARD-LOOKING STATEMENTS

This earnings release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in our filings with the Securities and Exchange Commission. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, among others, the following:

• our relationship with, and our ability to influence the actions of, our Members;
• improper action by our employees or Members in violation of applicable law;
• adverse publicity associated with our products or network marketing organization, including our ability to comfort the marketplace and regulators regarding our compliance with applicable laws;
• changing consumer preferences and demands;
• the competitive nature of our business;
• regulatory matters governing our products, including potential governmental or regulatory actions concerning the safety or efficacy of our products and network marketing program, including the direct selling market in which we operate;
• legal challenges to our network marketing program;
• the consent order entered into with the FTC, the effects thereof and any failure to comply therewith;
• risks associated with operating internationally and the effect of economic factors, including foreign exchange, inflation, disruptions or conflicts with our third party importers, pricing and currency devaluation risks, especially in countries such as Venezuela;
• uncertainties relating to interpretation and enforcement of legislation in China governing direct selling;
• our inability to obtain the necessary licenses to expand our direct selling business in China;
• adverse changes in the Chinese economy;
• our dependence on increased penetration of existing markets;
• contractual limitations on our ability to expand our business;
• our reliance on our information technology infrastructure and outside manufacturers;
• the sufficiency of trademarks and other intellectual property rights;
• product concentration;
• our reliance upon, or the loss or departure of any member of, our senior management team which could negatively impact our Member relations and operating results;
• U.S. and foreign laws and regulations applicable to our international operations;
• restrictions imposed by covenants in our credit facility;
• uncertainties relating to the application of transfer pricing, duties, value added taxes, and other tax regulations, and changes thereto;
• changes in tax laws, treaties or regulations, or their interpretation;
• taxation relating to our Members;
• product liability claims;
• our incorporation under the laws of the Cayman Islands;
• whether we will purchase any of our shares in the open markets or otherwise; and
• share price volatility related to, among other things, speculative trading and certain traders shorting our common shares.

We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

¹ Adjusted diluted EPS is a non-GAAP measure and excludes the impact of charges related to Venezuela, expenses relating to challenges to the company's business model, regulatory inquiries, expenses related to the recovery of re-audit expenses, foreign exchange impact, the impact of non-cash interest costs associated with the company's convertible notes, regulatory settlements and China grant income. Full year adjusted diluted EPS guidance also excludes charges related to regulatory implementation. See Schedule A - "Reconciliation of Non-GAAP Financial Measures" for a detailed reconciliation of adjusted diluted EPS to diluted EPS calculated in accordance with GAAP and a discussion of why we believe this non-GAAP measure is useful.

² See Schedule A - "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of adjusted diluted share count to reported diluted share count and a discussion of why the share count has been adjusted for purposes of calculating adjusted diluted EPS for the second quarter of 2016.

³ Supplemental tables that include additional business metrics can be found at https://www.ir.herbalife.com.

⁴ Worldwide Average Active Sales Leaders may not equal the sum of the Average Active Sales Leaders in each region due to the calculation being an average of Sales Leaders active in a period, not a summation, and the fact that some are active in more than one region but are counted only once in the worldwide amount.

RESULTS OF OPERATIONS:

SUPPLEMENTAL INFORMATION

SCHEDULE A: RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited and unreviewed), (All tables provide Dollars in millions, Except per Share Data)

In addition to its reported results and guidance calculated in accordance with GAAP, the company has included in this release adjusted net income and adjusted diluted EPS, performance measures that the Securities and Exchange Commission defines as "non-GAAP financial measures." Management believes that such non-GAAP financial measures, when read in conjunction with the company's reported or forecasted results, in each case calculated in accordance with GAAP, can provide useful supplemental information for investors because they facilitate a period to period comparative assessment of the company's operating performance relative to its performance based on reported or forecasted results under GAAP, while isolating the effects of some items that vary from period to period without any correlation to core operating performance and eliminate certain charges that management believes do not reflect the company's operations and underlying operational performance. The company's definition of adjusted net income and adjusted diluted earnings per share may not be comparable to similarly titled measures of other companies because other companies may not calculate them in the same manner as the company does and should not be viewed in isolation from nor as alternatives to net income or diluted EPS calculated in accordance with GAAP.

View source version on businesswire.com: https://www.businesswire.com/news/home/20160803006561/en/

Herbalife Ltd.
Media Contact:
Jennifer Butler
VP, Media Relations
213.745.0420
or
Investor Contact:
Alan Quan
VP, Investor Relations
213.745.0541

Source: Herbalife Ltd.

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