Herbalife
Herbalife continued its momentum in the fourth quarter of 2024, achieving constant currency sales growth and announcing key leadership changes set to shape the company’s future trajectory. The direct selling giant reported net sales of $1.2 billion for the quarter, slightly below the prior year but up 2.7% on a constant currency basis.
In a significant leadership transition, the company announced President Stephan Gratziani will succeed Michael Johnson as CEO effective May 1, marking only the second time a former distributor will lead the company. Additionally, 30-year veteran Rob Levy will assume the role of president of worldwide markets, completing a leadership team firmly rooted in the company’s direct selling heritage.
The company delivered strong adjusted EBITDA of $150 million, exceeding guidance and increasing 38% compared to the prior year. Adjusted EBITDA margin improved significantly to 12.4%, up 340 basis points year over year. Throughout 2024, Herbalife reduced debt by nearly $250 million and lowered its leverage ratio to 3.2x from 3.9x at the end of 2023.
Distributor metrics showed continued improvement, with new distributor recruitment up 22% in the fourth quarter, marking the third consecutive quarter of growth. The company also reported year-over-year growth in the number of worldwide average active sales leaders for the first time following 10 quarters of decline. Sales leader retention improved from 68.3% to 70.3%.
Regional performance varied with Latin America leading growth at 15% in local currency (2% reported); EMEA up 6% in local currency (3% reported); and Asia Pacific increasing 3% in local currency (1% reported). North America continued to show sequential improvement but was down 3% overall, while China sales declined 20%.
Stating that currency movements significantly impacted results, Chief Financial Officer John DeSimone said, “Had FX rates in November and December remained consistent with the rates inherent in our Q4 guidance, net sales for the fourth quarter would have been approximately $1.23 billion or a 1% increase over Q4 of 2023.”
Q4 Numbers
- Net Sales: $1.2 billion, down 0.6% reported, up 2.7% constant currency
- Adjusted EBITDA: $150 million, up 38%
- Adjusted EBITDA Margin: 12.4%, up 340 basis points
- Gross Profit Margin: 77.8%, up 150 basis points
- Volume Points: Down 0.7%
- Operating Cash Flow: $70 million
- New Distributors: Up 22% globally
- Debt Reduction: $250 million for full-year 2024
Future Growth Plans
Incoming CEO Gratziani outlined his vision to transform Herbalife into “one of the world’s most important health and wellness platforms,” building on the company’s global scale and approximately 65,000 physical locations worldwide.
“We’ve never been more focused on how to leverage industry disruptors from how and where consumers want to purchase products in today’s world to an ever evolving digital and gig economy, to emerging health and wellness products, trends and services,” Gratziani said.
For 2025, Herbalife expects net sales to range from a 3% decline to 3% growth on a reported basis, while projecting 1% to 7% growth on a constant currency basis. The company anticipates adjusted EBITDA between $600 million and $640 million, with continued progress toward its goal of reducing total debt by $1 billion by 2028. Herbalife also expects to reduce its leverage ratio to approximately 3.0x by the end of 2025.
DeSimone emphasized the company’s resilience. “Our distributors’ culture is to adapt to an ever-changing global environment unlike most other direct selling companies. The number of new distributors are growing, unlike most other direct sellers. Our constant currency net sales are growing, unlike most other direct sellers.”
USANA
USANA Health Sciences closed out 2024 with solid fourth-quarter results and highlighted significant organizational changes designed to position the company for long-term growth. The direct selling nutrition company reported fourth-quarter sales growth of 7% sequentially, with adjusted diluted EPS increasing 14%.
A major strategic development came at the end of the quarter with USANA’s acquisition of a 78.8% ownership stake in Hiya Health for $205 million. Hiya, a fast-growing direct-to-consumer company focused on children’s health and wellness, generated $112 million in revenue in 2024 with an adjusted EBITDA margin exceeding 20%. The acquisition positions USANA as a leader in the children’s health and wellness market and supports the company’s vision of “creating the healthiest family on Earth.”
Regional performance showed notable strength in several markets. The United States experienced 16% sequential growth, while Australia and New Zealand delivered 9% year-over-year growth. This improvement was attributed to creative promotional activities and market-specific incentives developed by regional leadership teams.
The company’s commercial team reorganization included a complete restructuring of both R&D and sales departments, now operating as one comprehensive commercial team. According to Brown, this new structure will allow USANA to “bring innovation and relevant products to market faster with a focused brand message that differentiates our products in the marketplace.”
Noting the company’s strong financial position, CFO Doug Hekking said, “We’re still sitting in a really solid position, about $182 million in cash at the end of the year. We’ll probably add $50 million to $60 million to that line, ballpark.” The acquisition of Hiya included assuming $23 million in debt, which the company plans to retire by mid-2025.
Q4 Numbers
- Sequential Net Sales Growth: 7%
- Adjusted Diluted EPS Growth: 14%
- U.S. Market Growth: 16% sequentially
- Australia/New Zealand Growth: 9% year-over-year
- Cash Position: $182 million
- Hiya 2024 Revenue: $112 million
- Hiya EBITDA Margin: Over 20%
Future Growth Plans
USANA outlined several strategic initiatives for 2025, anchored by four primary focus areas. First, the company plans to accelerate its product innovation cycle with over 20 new product launches and reformulations scheduled throughout the year.
Second, USANA will implement strategic enhancements to its associate incentive structure in the second half of the year, designed to “modernize our sales incentives and incent customer growth and improve pay for performance,” according to Brown.
Third, the company will refresh its brand messaging to deliver a stronger, more cohesive brand presence. Finally, USANA plans to increase associate engagement through training and recognition events across key markets throughout the year.
For the recently acquired Hiya Health, growth projections remain strong for 2025, with revenue expected to range between $145 million and $160 million, representing 29% to 42% growth. Key priorities include capitalizing on recent product launches, expanding strategic partnerships, and laying groundwork for channel expansion.
Addressing questions about potential changes to USANA’s business model, Brown emphasized the company’s commitment to direct selling. “We’re committed to the direct selling channel… That’s not our intent at all. We’re just trying to make our model more appealing to people coming into the business.”
Nu Skin Enterprises
Nu Skin Enterprises finished 2024 with fourth quarter results exceeding guidance, demonstrating momentum in its ongoing business transformation. The beauty and wellness company reported Q4 revenue of $445.6 million, surpassing its previous guidance range despite a 4% negative foreign currency impact of $20.1 million.
“Our fourth quarter revenue came in above our guidance range with encouraging sequential growth from Q3 to Q4 in our core Nu Skin business,” CEO Ryan Napierski said during the company’s earnings call. Adjusted earnings per share reached 38 cents, exceeding both guidance and the prior year’s 37 cents.
The company highlighted several positive developments, including constant currency growth in the Americas, particularly strong performance in Latin America, and 28% year-over-year growth in its Rhyz segment. Nu Skin also improved profitability and reduced debt by $40 million during
the quarter.
In January 2025, Nu Skin announced the sale of Mavely, a Rhyz portfolio business, to Later and Summit Partners for $250 million—generating a five-time return on its 2021 investment. The transaction strengthened the company’s balance sheet while maintaining access to Mavely’s technology through an ongoing commercial relationship.
Adjusted operating margin for the quarter improved to 7.7%, up 130 basis points from 6.4% in the prior year, reflecting the company’s commitment to operational efficiency and disciplined cost management. General and administrative expenses declined to 27.1% of revenue from 29.7%, driven by reductions in labor, physical facilities, and more efficient promotional spend.
CFO James Thomas noted significant progress in strengthening the company’s financial position. “We reduced our debt by $110 million, funded entirely through our cash from operations, highlighting our disciplined approach to capital management. We delivered $70 million in free cash flow, an increase of $10 million over the prior year.”
Q4 Numbers
- Revenue: $445.6 million
- Adjusted EPS: 38 cents, up from 37 cents year over year
- Adjusted Operating Margin: 7.7%, up 130 basis points
- Rhyz Segment Growth: 28% year over year
- Debt Reduction: $40 million during Q4; $110 million for full year
- Free Cash Flow: $70 million for full year, up $10 million
- Foreign Currency Impact: -4% ($20.1 million) for Q4
Future Growth Plans
For 2025, Nu Skin outlined three strategic priorities to advance its transformation toward becoming “the world’s leading beauty, wellness and lifestyle ecosystem.” First, the company will strengthen its core business by enhancing its entrepreneurial business model to better reward affiliates for building social-first businesses while refining its product portfolio to meet emerging consumer needs. All of this “while continuing to reward leaders for training and motivating their sales teams,” Napierski explained.
Second, Nu Skin plans to accelerate innovation of its iO intelligent beauty and wellness platform. The company will integrate insights from its connected devices with data from its biophotonic scanner to build a robust beauty and wellness database powering AI-driven innovations. The company announced plans for Prysm iO, a noninvasive device that measures micronutrient absorption in the skin, scheduled for limited release in late 2025.
Third, Nu Skin will focus on improving operational performance and efficiency. The company is implementing a multi-year plan to optimize its global product portfolio by more than 50% by the end of 2025, aiming to improve inventory holdings, gross margin, and fulfillment costs.
Looking ahead, Nu Skin projects 2025 revenue between $1.48 billion and $1.62 billion, including an estimated foreign currency exchange headwind of 3%. Adjusted earnings per share are expected to range from 90 cents to $1.30, representing growth of 7% to 55%, driven by operational efficiency initiatives.
