Herbalife Nutrition Ltd. (NYSE:HLF) Q2 2019 Earnings Conference Call Transcript

Aug 01, 2019 • 05:30 pm ET

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Herbalife Nutrition Ltd. (NYSE:HLF) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, and thank you for joining the Second Quarter 2019 Earnings Conference Call for Herbalife Nutrition Ltd.

On the call today is Michael Johnson, the company's Chairman and CEO; John DeSimone, the company's Co-President and Chief Strategic Officer; Dr. John Agwunobi, the company's Co-President and Chief Health and Nutrition Officer; Alex Amezquita, the company's Senior Vice President of Finance, Strategy and Investor Relations; and Eric Monroe, the company's Director, Investor Relations. I would now like to turn the call over to Eric Monroe to read the company's safe harbor language.

Executive
Eric Monroe

Before we begin, as a reminder, during this conference call, we may make forward-looking statements within the meaning of the federal securities laws. These statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated. For a complete discussion of risks associated with these forward-looking statements in our business, we encourage you to refer to today's earnings release and our SEC filings, including our most recent annual report on Form 10-K and quarterly report on Form 10-Q.

Our forward-looking statements are based upon information currently available to us. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any future events or circumstances or to reflect the occurrence of unanticipated events except as required by law. In addition, during this call, certain financial performance measures may be discussed that differ from comparable measures contained in our financial statements prepared in accordance with US generally accepted accounting principles, referred to by the Securities and Exchange Commission as non-GAAP financial measures.

We believe that these non-GAAP financial measures assist management and investors in evaluating our performance and preparing period-to-period results of operations in a more meaningful and consistent manner, as discussed in greater detail in the supplemental schedules to our earnings release. A reconciliation of these non-GAAP measures to the most comparable GAAP financial measures is included in our earnings press release submitted to the SEC. These reconciliations, together with additional supplemental information, are also available at the Investor Relations section of our website, herbalife.com. Additionally, when management makes reference to volumes during this conference call, they are referring to volume points.

I will now turn the call over to our Chairman and CEO, Michael Johnson.

Executive
Michael O. Johnson

Good afternoon, everyone. Thank you for joining us for our second quarter 2019 conference call. I'd like to start by stating the obvious, that the fundamental of our business are strong, and we are confident in the direction of Herbalife Nutrition. Our performance demonstrates the strength of our geographic diversity as we reported the second highest world-wide quarterly volume points in company history and this is in light of our challenges in China. Our second quarter results were within our guidance range on both the top and bottom line. We delivered year-over-year net sales growth in four of our six regions.

We reported year-over-year net sales growth in eight of our top 10 countries. Three