Herbalife Ltd. raised its 2025 net sales growth outlook and outlined a debt-reduction strategy during the 17th annual Midwest IDEAS Conference on Wednesday, detailing progress on refinancing and strategic acquisitions.
The company reported Q2 net sales of $1.3 billion, up 5.4% year-over-year, or 5.8% in constant currency, despite a 40-basis-point currency headwind. EBITDA totaled $167 million, while adjusted profit per share reached $0.51. Herbalife recorded an overall net loss in the quarter due to debt extinguishment charges tied to its April 2025 refinancing, which cut senior debt interest rates from 12% to 7.75% and generated annual savings of approximately $45 million.
Full-year 2025 net sales are now projected to grow between 2.5% and 5.5%, an increase from the prior guidance of 1.5% to 5.5%. EBITDA is forecast at roughly $675 million at the midpoint on a reported basis, or $685 million in constant currency. Q3 net sales growth is expected between 0.5% and 4.5% reported, or 1.5% to 5.5% in constant currency. The company targets a tax rate of 30% in 2026, with a 100 to 200 basis-point risk margin.
Herbalife reduced gross debt to $2 billion from $2.8 billion in 2021, a $800 million decrease, and aims to lower it further to $1.4 billion by 2028. Net debt is targeted at $1.0 billion by the same year, with current net leverage at 2.2x. The company plans to bring leverage to 2.0x or lower by year-end and to 1.5x by 2028. Remaining amortizations total $600 million through 2028.
Strategic initiatives include the April 2025 acquisition of personalized nutrition firm Bioniq and the July 2025 launch of Prüvit SKUs in North America. Herbalife also plans to introduce its HL/Skin Korean skincare line in North America in 2027. The company operates in 95 markets, with North America and Latin America contributing 21% and 17% of revenue, respectively. APAC sales grew 15.2% in Q2, led by India, while Latin America sales rose 16%. EMEA remains under reconstruction following geopolitical disruptions since early 2022.
Herbalife directly manufactures 46% of its products across facilities in California, North Carolina, and China, and maintains a global distributor network of 6.4 million, with 2 million active distributors. Nutrition clubs, numbering 63,000 worldwide, account for 49 million transactions annually and 3.7 million unique customers.
