Los Angeles—Herbalife Nutrition Ltd. (NYSE: HLF) reported net sales of $1.2 billion for the first quarter ended March 31, 2019.
The sales included growth in four of six regions—Asia Pacific, North America, EMEA and Mexico—and was approximately flat compared to first quarter 2018. Excluding China, net sales increased 6 percent compared to the first quarter 2018.
“In the first quarter of 2019, the momentum of our geographically diverse business continued with net sales growth in four of our six regions,” said Michael O. Johnson, chairman and CEO of Herbalife Nutrition. “We are confident that our strategies will drive volume growth in 2019.”
According to the report, the company’s volume points of 1.5 billion increased 6% compared to the prior year period1, the highest first quarter in Company history. Excluding China, volume points increased 10% compared to the prior year period.
First quarter reported diluted EPS of $0.66 and adjusted2 earnings of $0.66 per adjusted3 diluted share, both of which were negatively impacted by expenses of approximately $0.7 million or $0.00 per diluted share and adjusted3 diluted share, respectively, related to the China Growth and Impact Investment Program.
In mid-April, the Chinese government concluded a 100-day review of the health products industry, which led to a significant decrease in company and service provider meetings during the first quarter. Due to this recent slowdown in China, the Company is revising full year 2019 volume point guidance to a range of 0.5% - 6.5% growth, net sales guidance to a range of (1.0%) - 5.0%, as well as reported and adjusted 1,3 diluted EPS guidance to a range of $2.19-$2.64 and $2.50-$2.95, respectively.