HLF · Herbalife Nutrition Ltd.

Herbalife Ltd. reported preliminary first quarter 2026 results indicating net sales growth of 7.5% to 8.0% year-over-year, exceeding the high end of its previously issued guidance. On a constant currency basis, net sales growth is expected to be 5.0% to 5.5%, also above the high end of guidance. Adjusted EBITDA is anticipated to be at or above the high end of the prior guidance range. The outperformance was primarily driven by the Asia Pacific region, led by estimated record quarterly net sales in India. Asia Pacific, Latin America, and Mexico each delivered year-over-year net sales growth on both reported and constant currency bases. EMEA is expected to report a slight year-over-year increase on a reported basis due to foreign exchange tailwinds, but a decline on a constant currency basis. North America and China are each expected to report year-over-year declines on both bases. In North America, net sales were negatively impacted by unusually severe weather conditions in January and February and elevated levels of shipments in transit at quarter-end, with revenue recognition deferred to the subsequent quarter; excluding these factors, North America net sales would have been slightly up year-over-year. Concurrently, the company announced a proposed $800 million senior secured notes offering by its subsidiaries, HLF Financing SaRL, LLC and Herbalife International, Inc., with the net proceeds intended to repay existing indebtedness, including the company's senior secured credit facility and the 12.250% Senior Secured Notes due 2029. A conditional full optional redemption notice was issued for the $800 million 2029 Secured Notes, contingent upon the completion of one or more debt financing transactions and receipt of at least $800 million in gross proceeds by April 29, 2026. If redeemed, the 2029 notes are expected to be redeemed at $1,061.25 per $1,000 principal amount plus accrued interest. The company is targeting $1,450 million of secured financing, which includes a $425 million revolving credit facility, a $225 million Term Loan A, and $800 million of other secured debt, aiming to extend the maturity profile of its senior secured debt. Chief Financial Officer John DeSimone stated the company remains committed to completing a successful refinancing that aligns with its pricing objectives. The final Q1 2026 results will be released on May 6, 2026.