康寶萊 (HLF) 2024 Q2 法說會逐字稿

Good afternoon, and thank you for joining the second quarter 2024 earnings conference call for Herbalife Limited. During the company's opening remarks, (Operator Instructions) As a reminder, today's conference is being recorded.

下午好，感謝您參加康寶萊有限公司 2024 年第二季財報電話會議。在公司的開幕致詞中，（操作員指示）謹此提醒，今天的會議正在錄製中。

I would now like to turn the call over to Erin Banyas, Vice President and Head of Investor Relations, to begin today's call.

現在我想將電話轉給副​​總裁兼投資者關係主管 Erin Banyas，開始今天的電話會議。

Thank you and good afternoon. Good evening, everyone. Joining us today are Michael Johnson, our Chairman and Chief Executive Officer; Stephan Gratziani, our president; and John DeSimone, our Chief Financial Officer.

謝謝你，下午好。大家晚上好。今天加入我們的是我們的董事長兼執行長 Michael Johnson；史蒂芬‧格拉齊亞尼 (Stephan Gratziani)，我們的總裁；以及我們的財務長約翰‧德西蒙 (John DeSimone)。

Before we begin today's call, I would like to direct you to the cautionary statement regarding forward-looking statements on page 2 of our presentation and in our earnings release issued earlier today, which are both available under the Investor Relations section of our website. The presentation and earnings release include a discussion of some of the more important factors that could cause results to differ from those expressed in any forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as is customary, the content of today's call and presentation will be governed by this language.

在我們開始今天的電話會議之前，我想引導您閱讀我們簡報第2 頁和今天早些時候發布的收益報告中有關前瞻性陳述的警告聲明，這些聲明均可在我們網站的投資者關係部分找到。簡報和收益發布包括對一些更重要因素的討論，這些因素可能導致結果與1995 年《私人證券訴訟改革法案》含義內的任何前瞻性陳述中表達的結果不同（按慣例），這是今天電話會議的內容和演示將受此語言管轄。

In addition, during today's call, we will be discussing certain non-GAAP financial measures. These non-GAAP financial measures exclude certain unusual or nonrecurring items that management believes impact the comparability of the periods referenced. Please refer to our earnings release and presentation materials for additional information regarding these non-GAAP financial measures and the reconciliations to the most directly comparable GAAP measure.

此外，在今天的電話會議中，我們將討論某些非公認會計準則財務指標。這些非公認會計準則財務指標不包括管理階層認為會影響所參考期間的可比較性的某些異常或非經常性項目。請參閱我們的收益發布和簡報資料，以了解有關這些非公認會計原則財務指標以及與最直接可比較的公認會計原則指標的調節的更多資訊。

And with that, I will now turn the call over to Chairman and CEO, Michael Johnson.

現在，我將把電話轉給董事長兼執行長邁克爾·約翰遜。

Good afternoon and good evening, everyone, and thanks for joining us. Our financial foundation is strong and continues to improve. In the second quarter, we exceeded our adjusted EBITDA expectations. And while we missed our top line guidance, which was impacted by a higher than anticipated FX headwind. We are continuing to execute on our initiatives to drive top line growth.

大家下午好，晚上好，感謝您加入我們。我們的財務基礎雄厚且持續改善。第二季度，我們超出了調整後的 EBITDA 預期。雖然我們錯過了我們的營收指引，但受到高於預期的外匯逆風的影響。我們將繼續執行推動營收成長的措施。

Let's take a look at our financial performance. Net sales were $1.3 billion, up slightly versus quarter two of 2023 on a constant currency basis, while down 2.5% on a reported basis, due to 270 basis points of FX headwinds. Our adjusted EBITDA of $180 million exceeded our guidance, and we are raising our full year expectations. Adjusted EBITDA margin was 14.1%, up 120 basis points year-over-year.

讓我們來看看我們的財務表現。以固定匯率計算，淨銷售額為 13 億美元，較 2023 年第二季略有成長，但由於外匯不利因素 270 個基點，按報告計算下降 2.5%。我們調整後的 EBITDA 為 1.8 億美元，超出了我們的指導，我們正在提高全年預期。調整後 EBITDA 利潤率為 14.1%，較去年同期成長 120 個基點。

Quarter two marks our highest adjusted EBITDA and adjusted EBITDA margin in seven quarters. We further reduced our total leverage ratio to 3.5 times at the end of June and remain committed to reducing our total leverage ratio to three by the end of 2025. John DeSimone will do a deeper dive into the numbers later on the call, but let me highlight some of what we accomplished. In quarter two, we have substantially completed our reorganization.

第二季是我們七個季度以來調整後 EBITDA 和調整後 EBITDA 利潤率的最高水準。6月底，我們進一步將總槓桿率降低至3.5倍，並持續致力於在2025年底前將總槓桿率降低至3倍。約翰·德西蒙 (John DeSimone) 稍後將在電話會議上更深入地探討這些數字，但讓我重點介紹一下我們所取得的一些成就。第二季度，我們基本上完成了重組。

We have the right people in the right roles. And our leaders and employees are incredibly engaged and committed to our vision of becoming the world's premier health and wellness company community and platform. We'll continue to focus on refining our business to drive even more efficiencies and cost savings. We welcome the e-commerce and media technology executive Perkins Miller to our board of directors. Perkins has a proven expertise in leading large-scale digital transformations, and he's done it for some of the biggest brand names, NBC Sports and the NFL.

我們讓合適的人擔任合適的角色。我們的領導者和員工非常積極參與並致力於我們成為全球首屈一指的健康和保健公司社群和平台的願景。我們將繼續專注於完善我們的業務，以提高效率並節省成本。我們歡迎電子商務和媒體技術主管 Perkins Miller 加入我們的董事會。Perkins 在領導大規模數位轉型方面擁有經過驗證的專業知識，他為 NBC Sports 和 NFL 等一些最大的品牌做到了這一點。

Perkins experience is invaluable to us, especially as we continue our digital transformation. Our focus on distributor recruiting through programs like Herbalife Premier League are working. We've advanced and evolved our training programs as part of our strategic alliance with Eric Worre to excite, motivate and provide high-level training and resources to our distributors. As I said, these are the highlights.

Perkins 的經驗對我們來說非常寶貴，尤其是當我們繼續進行數位轉型時。我們對透過康寶萊超級聯賽等計劃招募經銷商的關注正在發揮作用。作為與 Eric Worre 策略聯盟的一部分，我們改進和發展了我們的培訓計劃，以激勵、激勵我們的經銷商並為其提供高水準的培訓和資源。正如我所說，這些是亮點。

Now I want to talk a little bit more detail, but the heart of the company, our distributors and what we're doing to excite engage and empower them to grow their businesses. Under the leadership of our President Stephan Gratziani. We're implementing new and innovative initiatives for our distributors, and we're seeing some very positive trends. Importantly, in quarter two, our worldwide distributor recruiting was up year-over-year reversing 12 consecutive quarters of decline, thanks to programs like the Herbal Life Premier League, which launched earlier this year. As part of our new approach to training and supporting our distributors in August, we will launch our new mentorship leadership development and accountability program for our top leaders in North America, which is unlike any program we've ever had at Herbalife or in the industry for that matter.

現在我想談談更多細節，但公司的核心，我們的經銷商以及我們正在做的事情來激發他們的參與並賦予他們發展業務的能力。在我們總統史蒂芬·格拉齊亞尼 (Stephan Gratziani) 的領導下。我們正在為經銷商實施新的創新舉措，我們看到了一些非常積極的趨勢。重要的是，由於今年稍早推出的 Herbal Life Premier League 等計劃，第二季度我們的全球經銷商招募數量同比增長，扭轉了連續 12 個季度的下降趨勢。作為我們八月份培訓和支持經銷商的新方法的一部分，我們將為北美的高層領導者啟動新的導師領導力發展和問責計劃，這與我們在康寶萊或業內開展的任何計劃都不同就此而言。

This training will be focused on, among other things, supporting the implementation of successful go-to-market strategies and providing one-on-one support to distributors by sharing business metrics and create an accountability structure with their peers, distributor leadership and the company. This is the next phase and continue to upskill our distributors and better support them through a key account management program. Stepfan has engineered this and is leading our Mastermind program, and we'll provide more details on this later in the call. As you know, we have a long-term relationship with their Eric Worre, one of the most trusted and influential thought leaders in network marketing.

除此之外，該培訓的重點將是支持成功實施進入市場策略，並透過共享業務指標為分銷商提供一對一的支持，並與同行、分銷商領導層和公司建立問責結構。這是下一階段，繼續提高我們的經銷商的技能，並透過大客戶管理計劃更好地支持他們。Stepfan 設計了這個並領導我們的 Mastermind 計劃，我們將在稍後的電話會議中提供更多詳細資訊。如你所知，我們與他們的 Eric Worre 保持著長期合作關係，他是網路行銷領域最值得信賴和最有影響力的思想領袖之一。

Eric has been working with us for a little over four months and has already made a positive impact he's provided hours and hours of training and events around the world, including Extravaganzas in APAC, Latin America and North America. Just to name a few And speaking of Extravaganzas over the last three months, we posted events in Thailand, Colombia, India and the US. We had record attendance numbers in APAC were approximately 24,000 people convened in Bangkok and in India, where events in Bangalore and Delhi drew nearly 36,000 people on a combined basis through their first-ever multi-city Extravaganza event.

艾瑞克（Eric）與我們合作已經四個多月了，他已經在世界各地提供了大量的培訓和活動，包括在亞太地區、拉丁美洲和北美舉辦的盛大表演，已經產生了積極的影響。舉幾個例子，說到過去三個月的盛會，我們發布了在泰國、哥倫比亞、印度和美國舉辦的活動。我們在亞太地區的出席人數創歷史新高，在曼谷和印度舉辦的活動約有 24,000 人，班加羅爾和德里的活動透過其首次多城市盛會吸引了近 36,000 人。

These events were the perfect time to get our distributors excited about the broad and diverse range of products. We continue to roll out globally from Nutrition and Performance Products like Herbalife 24 creatine and Herbalife protein chips in North America to beauty products like virtual, like skin care line in India. As I mentioned, Stepfan is going to talk more about composite distributor trends in some exciting new ways. We're upskilling distributors supporting distributor leaders and creating more productive, relevant DMO business flows, including enhanced support for Nutrition Clubs, a key differentiator for Herbalife. This is an exciting time at Herbalife, an exciting time in the world of sport. Herbalife is the ultimate nutrition sport behind some of the most legendary champions and teams in the world.

這些活動是讓我們的經銷商對廣泛而多樣化的產品感到興奮的最佳時機。我們繼續在全球推廣，從北美的康寶萊 24 肌酸和康寶萊蛋白質晶片等營養和功能產品，到印度的虛擬護膚系列等美容產品。正如我所提到的，Stepfan 將以一些令人興奮的新方式更多地討論複合分銷商趨勢。我們正在提高經銷商的技能，支持經銷商領導者，並創建更有效率、更相關的 DMO 業務流程，包括加強對營養俱樂部的支持，這是康寶萊的關鍵差異化因素。這是康寶萊激動人心的時刻，也是體育界激動人心的時刻。康寶萊是世界上一些最具傳奇色彩的冠軍和球隊背後的終極營養運動。

These athletes dedicate their lives to their chosen sports and we dedicate ourselves to fueling their pursuit of greatness by providing the best nutrition products. We are incredibly proud of all of our sponsored athletes, which is why we just launched our fueling the best campaign, highlighting their accomplishments. You'll even see some of them competing this summer in the Olympic and Paralympic games where we are fueling 33 athletes in 17 these athletes are important brand ambassadors and a testament to the Advanced Nutrition delivered by our science-backed products.

這些運動員將一生奉獻給他們選擇的運動，我們致力於透過提供最好的營養產品來推動他們追求偉大。我們為所有贊助的運動員感到無比自豪，這就是為什麼我們剛剛發起了「加油最佳」活動，強調他們的成就。您甚至會看到他們中的一些人參加今年夏天的奧運會和殘奧會，我們為17 名中的33 名運動員提供能量，這些運動員是重要的品牌大使，也是我們以科學為基礎的產品所提供的高級營養的證明。

We believe in them. And we're hoping to bring home some gold to Herbalife and we also believe in our employees, our distributors, our business model and our products, we believe we can and continue to change and empower people's lives. Most of all, we believe the transformative journey we are on and we believe in our vision to becoming the world's premier health and wellness company community and platform that's going to take a little time, but we're well on our way.

我們相信他們。我們希望為康寶萊帶來一些黃金，我們也相信我們的員工、我們的經銷商、我們的商業模式和我們的產品，我們相信我們能夠並繼續改變和增強人們的生活。最重要的是，我們相信我們正在進行的變革之旅，我們相信我們成為世界一流的健康和保健公司社區和平台的願景，這需要一些時間，但我們正在路上。

Now I'm going to turn it over to Stepfan, who will give you more details and why we believe so strongly in Herbalife and in our future. Stepfan, over to you my friend.

現在我將把它交給 Stepfan，他將為您提供更多詳細資訊以及為什麼我們如此堅信康寶萊和我們的未來。Stepfan，交給你了，我的朋友。

Thank you, Michael. On our last earnings call, we shared some early recruiting numbers after the launch of the Herbalife Premier League at Summit in mid-March. Now I'd like to share some details on how the quarter developed. As Michael mentioned in his opening comments, new distributor numbers were up in Q2 following 12 consecutive quarters of year-over-year declines. This is an early positive sign as new distributor recruiting, especially on a consistent and prolonged basis, is a driver for future growth.

謝謝你，麥可。在我們上次的財報電話會議上，我們分享了 3 月中旬在 Summit 推出康寶萊超級聯賽後的一些早期招募數據。現在我想分享一些有關本季發展情況的細節。正如邁克爾在開場白中提到的，繼連續 12 個季度同比下降之後，第二季度新經銷商數量有所增加。這是一個早期的積極跡象，因為新經銷商的招募，尤其是持續和長期的招募，是未來成長的驅動力。

Let's have a look at the numbers as you can see on the left side of slide 8, Q2 had significant sequential improvements over Q1 across all regions at 26% worldwide. More importantly, Q2 year-over-year recruiting was up in every region with the exception of China, which I'll talk about in a minute.

讓我們看一下投影片 8 左側的數字，第二季所有地區的成長率均較第一季顯著提高，全球成長率為 26%。更重要的是，除中國之外，第二季度每個地區的招募量均較去年同期成長，我將在稍後討論。

North America recruiting was up 15% over Q1 and 23% over Q2 of last year. Latin America was up 30% over Q1 and 34% over 2023 and year was up 15% over Q1 and 9% over the same quarter last year. Asia Pacific was up 40% over Q1 and 11% over Q2 last year. And China was up 10% over Q1 and down 3% over the same quarter last year. Those are significant improvements across the board.

北美招募人數比去年第一季成長 15%，比去年第二季成長 23%。拉丁美洲較第一季成長 30%，較 2023 年成長 34%，較第一季成長 15%，較去年同期成長 9%。亞太地區較去年第一季成長 40%，較第二季成長 11%。中國較第一季成長 10%，較去年同期下降 3%。這些都是全面的重大改進。

And now let's talk about China. When the Premier League program was launched in China, we chose to focus on the acquisition of preferred customers instead of sales representatives. This was due to the timing of the launch of a new preferred customer loyalty program. Unlike the rest of the world where the Premier League qualification includes recruiting 10 first-line distributors in China. The program launched with the qualification based on adding 20 first-line preferred customers. This led to significant focus on preferred customers which impacted the level of recruitment of new sales representatives in the quarter. During Q2, we believe we accomplished what we set out to do, which was to create enough inertia to reverse the previous 12 quarters of year-over-year declines.

現在我們來談談中國。當英超聯賽項目在中國啟動時，我們選擇將重點放在獲取首選客戶而不是銷售代表。這是由於推出新的首選客戶忠誠度計劃的時機。與世界其他地區不同，英超資格包括在中國招募10家第一線經銷商。該計劃在新增20家一線優惠客戶的基礎上以資格啟動。這導致人們對優先客戶的高度關注，從而影響了本季新銷售代表的招募水準。在第二季度，我們相信我們完成了我們設定的目標，即創造足夠的慣性來扭轉之前 12 個季度的同比下滑。

By creating a long-term strategic alliance with Eric Worre making his training and expertise available to our distributors in combination with the launch of the Herbalife Premier League, we have successfully refocused and reinvigorated our distributor leaders. This is illustrated not only by the growth in recruiting that we see overall, but by the level of those in the marketing plan who are doing the recruiting.

透過與 Eric Worre 建立長期策略聯盟，結合康寶萊超級聯賽的推出，向我們的經銷商提供他的培訓和專業知識，我們成功地重新集中精力並重振了我們的經銷商領導者的活力。這不僅體現在我們所看到的整體招募成長上，也體現在行銷計畫中負責招募的人員的水平。

If we look at the right-side of the slide, you'll see the recruiting growth by the different levels of distributors within Herbalife no China has been excluded due to its different business model. At the top of the chart, you will see our President team members who have typically built the largest organizations in the company all the way through the distributor, which is the entry level of the marketing plan. As you can see, our President team recruited 66% more distributors in Q2 over Q1 of 2024 and 72% more over Q2 of last year.

如果我們看幻燈片的右側，您會發現康寶萊中國由於其不同的商業模式而被排除在外，不同級別的經銷商的招聘增長。在圖表的頂部，您將看到我們的總裁團隊成員，他們通常透過經銷商（行銷計劃的入門級）一直建立了公司最大的組織。正如您所看到的，我們的總裁團隊在第二季度招募的經銷商比 2024 年第一季增加了 66%，比去年第二季增加了 72%。

Our next level of leadership, our mill team had the second highest percentage increase of recruiting up 62% over Q1 and 54% over last year, followed by the [TAB] team, which was up 48% over Q1 and 40% over Q2 of last year. This is good for the business as these three groups of leaders, which we refer to as TAB Team members typically have the longest tenure in the company with the largest sales organizations and know-how to support new distributors with the best go-to-market strategies.

在我們的下一個領導階層中，我們的工廠團隊的招募增幅位居第二，比第一季度增長62%，比去年增長54%，其次是[TAB] 團隊，比第一季增長48%，比去年第二季成長40%。這對企業來說是件好事，因為這三組領導者（我們稱之為TAB 團隊成員）通常在公司任職時間最長，擁有最大的銷售組織和專業知識，能夠以最佳的方式支持新分銷商進入市場策略。

We consider this a positive sign that our top distributors are engaged in leading the way in new distributor growth. And we are about to launch a program for this group that we believe will help drive new customer and distributor growth, helping them achieve even more success within their organizations.

我們認為這是一個積極的信號，表明我們的頂級經銷商正在引領新經銷商的成長。我們即將針對該群體啟動一項計劃，我們相信該計劃將有助於推動新客戶和分銷商的成長，幫助他們在組織內取得更大的成功。

A final comment on the recruiting metrics before we move on. One quarter of new distributor growth following 12 consecutive quarters of year-over-year declines is only the beginning of our journey of our return to volume growth. We are going to build on this trend step-by-step quarter-by-quarter.

在我們繼續之前，先對招募指標進行最後的評論。在連續 12 個季度同比下降之後，新經銷商的四分之一成長只是我們恢復銷售成長之旅的開始。我們將每季一步一步地鞏固這一趨勢。

Now I'd like to talk about the program I referred to for the TAB Team and that Michael also mentioned, we are about to launch in all new mentoring leadership development and accountability program that we believe will be a game changer. This program, which we refer to as the mastermind program is like nothing we have ever done before and is geared towards creating sustainable growth and increased productivity.

現在我想談談我為 TAB 團隊提到的計劃，邁克爾也提到過，我們即將推出所有新的指導領導力發展和問責計劃，我們相信這將改變遊戲規則。我們將這個計劃稱為“策劃者計劃”，它與我們以前從未做過的計劃不同，旨在創造可持續增長和提高生產力。

We will address two important areas that make the biggest difference and helping distributors succeed long term. The first is supporting them in leveling up their skills and further developing their leadership. And the second is ensuring that their go-to market strategies or DMOs are always evolving and staying effective and relevant in the current marketplace. In late August, we will launch the mastermind program to our top distributor leaders in North America and we will later expand it into other markets.

我們將解決兩個能夠產生最大影響並幫助分銷商長期成功的重要領域。首先是支持他們提陞技能並進一步發展領導力。其次是確保他們的市場進入策略或 DMO 始終不斷發展並在當前市場中保持有效和相關性。八月下旬，我們將向北美的頂級經銷商領導者推出策劃者計劃，稍後我們將把它擴展到其他市場。

Eric Worre and I alongside a team of some of the most successful Herbalife distributors have designed the program which will deliver monthly actionable content and coaching. Participating leaders will be part of a pure accountability group and will have a personal key account manager to support them with metrics and data to help them increase sales further drive recruiting growth and expand their businesses. We're excited about this program, which could potentially reach thousands of our TAB Team members in North America. We're encouraged by this first quarter of new distributor growth. And we see a lot of potential in this new Mastermind program launching in North America in August.

埃里克·沃雷 (Eric Worre) 和我以及由一些最成功的康寶萊經銷商組成的團隊設計了該計劃，該計劃將每月提供可操作的內容和指導。參與的領導者將成為純粹問責小組的一部分，並將有一名個人大客戶經理為他們提供指標和數據支持，幫助他們增加銷售額，進一步推動招募成長並擴大業務。我們對此計劃感到非常興奮，該計劃可能惠及北美數千名 TAB 團隊成員。我們對第一季新經銷商的成長感到鼓舞。我們看到了八月份在北美推出的新 Mastermind 計劃的巨大潛力。

We also have a lot of exciting things happening in other markets this year in Mexico, we've had two new Chairman's Club and 11 new President team members qualify. It's been years since we've seen these types of numbers in Mexico. In Europe, we continue with the DMO master classes and the models are gaining traction in multiple countries. In Latin America, we launched a pilot program aimed at stimulating growth and the markets have responded positively, which John will discuss briefly and India continues to outperform.

今年，我們在墨西哥的其他市場也發生了很多令人興奮的事情，我們有兩名新的主席俱樂部成員和 11 名新的主席團隊成員獲得資格。我們已經很多年沒有在墨西哥看到這類數字了。在歐洲，我們繼續舉辦 DMO 大師班，這些模式在多個國家越來越受歡迎。在拉丁美洲，我們啟動了一項旨在刺激成長的試點計劃，市場做出了積極反應，約翰將簡要討論這一點，而印度的表現繼續優於其他國家。

With that, I'll turn it over to you, John.

這樣，我就把它交給你了，約翰。

Thank you, StePfan. I'll begin with our key financial highlights on slide 10 Before getting into more details, net sales for the second quarter were $1.3 billion. The decline versus last year is driven by 270 basis points of FX headwinds. On a constant currency basis, net sales were up slightly. And as Michael stated, our top line was more significantly impacted by FX headwinds than we had anticipated coming into the quarter, our Q2 adjusted EBITDA was $180 million and exceeded our guidance range of $140 million and $160 million. Adjusted EBITDA margin was 14.1%, a 120 basis point improvement versus the second quarter of 2023. Q2 reflects the significant progress we have made in our initiatives to improve profitability.

謝謝你，史蒂芬。我將首先在投影片 10 上介紹我們的主要財務亮點。與去年相比下降 270 個基點是由外匯逆風推動的。以固定匯率計算，淨銷售額略有上升。正如麥可所說，我們的營收受到外匯逆風的影響比我們預期的更嚴重，第二季調整後的 EBITDA 為 1.8 億美元，超出了我們 1.4 億美元和 1.6 億美元的指導範圍。調整後 EBITDA 利潤率為 14.1%，較 2023 年第二季提高 120 個基點。第二季反映了我們在提高獲利能力方面取得的重大進展。

Capex in the second quarter was $36 million, essentially the midpoint of our guidance range. In addition, we incurred approximately $5 million of capitalized SaaS implementation costs in the quarter. Q2 gross profit margin was 77.9%, up 90 basis points compared to the second quarter of last year. The improvement in gross profit margin was primarily driven by pricing actions we have taken over the past year, which provided approximately 160 basis points of benefit, partially offset by the impact of increased input cost of approximately 60 basis points, mainly relating to increased raw material costs.

第二季的資本支出為 3,600 萬美元，基本上是我們指引範圍的中點。此外，本季我們還產生了約 500 萬美元的資本化 SaaS 實施成本。第二季毛利率為77.9%，較去年第二季上升90個基點。毛利率的改善主要是由於我們在過去一年採取的定價行動，帶來了約 160 個基點的收益，部分被投入成本增加約 60 個基點的影響所抵消，主要與原材料增加有關成本。

Second quarter EPS was $0.05 and included approximately $49 million of pre-tax costs related to the implementation of our restructuring program and $10.5 million of pre-tax costs relating to the extinguishment of our debt that was refinanced during the second quarter. Both of these items are excluded from our adjusted results. Our adjusted EPS for the second quarter was $0.54, which included a $0.07 FX headwind versus second quarter of 2023.

第二季每股收益為 0.05 美元，包括與實施重組計畫相關的約 4,900 萬美元稅前成本，以及與第二季再融資債務清償相關的 1,050 萬美元稅前成本。這兩項均不包括在我們的調整結果中。我們第二季調整後的每股收益為 0.54 美元，其中包括與 2023 年第二季相比 0.07 美元的外匯逆風。

Our second quarter, adjusted effective tax rate was 32.3%, up from 27.5% for the second quarter of 2023, which drove an approximately $0.04 unfavourable impact to adjusted diluted EPS. The higher effective tax rate in 2024 was primarily due to changes in geographic mix of income, elevated interest expense following our recent debt refinancing and an increase in tax expense from discrete events in the period.

第二季調整後有效稅率為 32.3%，高於 2023 年第二季的 27.5%，對調整後稀釋每股盈餘產生約 0.04 美元的不利影響。2024 年有效稅率較高的主要原因是收入地理結構的變化、我們最近的債務再融資後利息支出的增加以及該期間離散事件導致的稅收支出的增加。

We continue to expect our full year 2024 adjusted effective tax rate to be approximately 30% based on our forecasted geographic mix of income and the impact of higher interest expense. Operating cash flows for the quarter were strong at $103 million and included approximately $31 million of cash payments related to the restructuring program credit agreement. EBITDA for the second quarter was $208 million, leading to a further reduction in our overall leverage ratio to 3.5 times as of the end of June. Please refer to the schedules in the back of our presentation and earnings press release for a reconciliation between adjusted EBITDA and credit agreement EBITDA.

根據我們預測的收入地理組合和較高利息支出的影響，我們繼續預期 2024 年全年調整後的有效稅率約為 30%。本季營運現金流強勁，達 1.03 億美元，其中包括與重組計劃信貸協議相關的約 3,100 萬美元現金支付。第二季 EBITDA 為 2.08 億美元，截至 6 月底，我們的整體槓桿率進一步降至 3.5 倍。請參閱我們的簡報和收益新聞稿後面的時間表，以了解調整後 EBITDA 與信貸協議 EBITDA 之間的調節表。

Turning to slide 11, we see the drivers of our year-over-year net sales performance. On a reported basis, net sales were down 2.5% year-over-year with an overall volume decline of 6%, which drove a nearly $80 million headwind. This was more than offset by approximately $86 million of pricing benefits as we continue to implement pricing increases to address regional or market-specific conditions, which are generally in line with local CPI increases. Unfavourable country mix of approximately $7 million was primarily driven by increased sales in Mexico and India, as well as lower sales in the US relative to our overall net sales portfolio. Fx, as I said earlier, was a 270 basis point headwind year-over-year for about $36 million.

轉向投影片 11，我們看到了同比淨銷售業績的驅動因素。根據報告，淨銷售額年減 2.5%，總銷量下降 6%，造成近 8,000 萬美元的損失。這被約 8,600 萬美元的定價優勢所抵消，因為我們繼續實施定價上漲以應對區域或市場特定條件，這些條件通常與當地 CPI 上漲一致。約 700 萬美元的不利國家組合主要是由於墨西哥和印度銷售額的增加以及美國銷售額相對於我們整體淨銷售額組合的下降所致。正如我之前所說，Fx 年減 270 個基點，損失約 3,600 萬美元。

Moving to slide 12, we had the regional net sales results for the second quarter on a local currency basis, three of our five regions reported net sales growth in the quarter. With FX negatively impacting each of these regions. On a reported basis. In Latin America, net sales were up 2% on a reported basis and up 5% on a local currency basis during the second quarter of this year, in most markets in the region, excluding Mexico, we implemented a pilot program that reduced pricing and modified certain distributor compensation and qualification variables. This pilot is designed to localize and optimize the business opportunity based on certain socio economic conditions in a country. We believe these initiatives positively impacted many of the markets in Latin America and could possibly be expanded into other markets.

轉到幻燈片 12，我們獲得了以當地貨幣計算的第二季度的區域淨銷售結果，五個區域中的三個報告了本季度的淨銷售增長。外匯對這些地區都產生了負面影響。根據報道。在拉丁美洲，今年第二季的淨銷售額按報告計算增長了2%，以當地貨幣計算增長了5%，在該地區的大多數市場（墨西哥除外），我們實施了一項試點計劃，降低了定價和修改了某些經銷商薪酬和資格變數。該試點旨在根據一個國家的某些社會經濟條件進行本地化和優化商業機會。我們相信這些舉措對拉丁美洲的許多市場產生了積極影響，並可能擴展到其他市場。

EMEA net sales were down 1% year-over-year with local currency net sales up 4% favourable year-over-year pricing impacts more than offset volume declines. However, unfavourable FX headwinds more than offset the net benefit year-over-year results were generally mixed across the markets in the region. Asia Pacific net sales were down 2% year-over-year on a reported basis, while up 2% on a local currency basis. India continues to outperform in the region with net sales up 8% on a reported basis and 10% in local currency.

歐洲、中東和非洲地區淨銷售額年減 1%，而當地貨幣淨銷售額年增 4%，有利的定價影響超出了銷量下降的影響。然而，不利的外匯逆風足以抵銷淨利潤，該地區各市場的年比業績普遍好壞參半。以報告數據計算，亞太地區淨銷售額年減 2%，但以當地貨幣計算成長 2%。印度在該地區繼續表現出色，報告淨銷售額增長 8%，以當地貨幣計算增長 10%。

China reported net sales decline of 7% year-over-year and were down 4% on a local currency basis. China faced a difficult comp in Q2 this year as a result of a sales surge last year in Q2. The two year stack for Q2 in China is an improvement versus the Q1 two-year stack. Last month, we launched a new customer loyalty program in China, which encourages a more customer-centric approach aimed at driving customer recruitment, activation and continuous repurchase with improved customer benefits. Our business is continuing to evolve in China, and we are encouraged by the positive trends we are seeing with respect to new customers joining.

中國報告淨銷售額年減 7%，以當地貨幣計算下降 4%。由於去年第二季銷售量激增，中國今年第二季面臨困難。中國第二季的兩年堆疊比第一季的兩年堆疊有所改善。上個月，我們在中國推出了一項新的客戶忠誠度計劃，鼓勵採取更以客戶為中心的方法，旨在推動客戶招募、激活和持續回購，從而提高客戶利益。我們在中國的業務不斷發展，新客戶加入的正面趨勢令我們深受鼓舞。

In North America on net sales trend improved from the first quarter of 2024. The 7% year-over-year decline in reported net sales in the second quarter was primarily driven by the US market. As Stepfan noted earlier in his opening remarks, new distributor recruiting is up year-over-year in the region and several initiatives have been launched over the past few months to encourage recruiting and activity from new distributors. While the recovery in North America has taken longer than we would have liked, we are seeing green shoots and are encouraged by the gradual improvement.

北美地區的淨銷售額趨勢較 2024 年第一季有所改善。第二季報告的淨銷售額年減 7%，主要是由美國市場推動的。正如 Stepfan 早些時候在開場白中指出的那樣，該地區新經銷商的招募數量逐年增加，並且在過去幾個月中推出了多項舉措來鼓勵新經銷商的招募和活動。雖然北美的復甦花費的時間比我們預期的要長，但我們看到了復甦的苗頭，並對逐步改善感到鼓舞。

Moving to slide 13, we see drivers of our $10 million or 6% year-over-year increase in adjusted EBITDA. Q2 adjusted EBITDA came in strong at $180 million with margin of 14.1%. We've not seen results like this in seven quarters, which is a testament to the work the team has done to right size and pull costs out of the business.

轉到投影片 13，我們看到調整後 EBITDA 年成長 1000 萬美元或 6% 的驅動因素。第二季調整後 EBITDA 強勁，達到 1.8 億美元，利潤率為 14.1%。我們已經有七個季度沒有看到這樣的結果了，這證明了團隊在調整規模和降低業務成本方面所做的工作。

Looking at the bridge, the impact from favourable gross profit margins I mentioned earlier, can be seen in the benefits of price increases, partially offset by higher input costs. And as I stated last quarter, our employee bonus accrual is a headwind in Q2, and we expect the headwind to continue in the back half of 2024.

看看這座橋，我之前提到的有利毛利率的影響可以從價格上漲的好處中看出，但部分被較高的投入成本所抵消。正如我上季度所說，我們的員工獎金應計在第二季度是一個阻力，我們預計這種阻力將在 2024 年下半年持續。

Technology costs were up approximately $6 million year-over-year, primarily due to increased SaaS hosting fees, unfavourable year-over-year currency movements, primarily related to the Argentinian peso and Turkish lira drove an approximate $11 million year-over-year reduction in adjusted EBITDA.

技術成本年增約 600 萬美元，主要是由於 SaaS 託管費用增加、不利的同比貨幣變動（主要與阿根廷比索和土耳其里拉有關）導致技術成本同比減少約 1,100 萬美元調整後的 EBITDA。

Turning to slide 14, I'll provide an update on our capital structure. Since our last earnings call, we have paid down our revolver by $90 million. As a reminder of what we previously reported in April, we completed a $1.6 billion senior secured refinancing and repaid all amounts outstanding on our 2018 credit facility as well as more than half of the amount outstanding on the 2025 notes the net result of this transaction or these transactions is that we pushed the vast majority of our debt maturities out to 2029 with the only sizable maturity we face prior to 2028 being the $262 million outstanding on the 2025 notes, which we remain on track to repay. And as I noted earlier, we further reduced our total leverage ratio to 3.5 times as of June 30, with the goal to achieve our target of three times by the end of 2025 following the repayment of the 2025 bonds.

轉向投影片 14，我將提供有關我們資本結構的最新資訊。自上次財報電話會議以來，我們已償還了 9,000 萬美元的債務。回顧我們先前在4 月報告的情況，我們完成了16 億美元的高級擔保再融資，並償還了2018 年信貸安排的所有未償還金額以及2025 年票據未償還金額的一半以上（本次交易的最終結果或這些交易的重點是，我們將絕大多數債務的到期日推遲到2029 年，而我們在2028 年之前面臨的唯一相當大的到期日是2025 年票據的2.62 億美元未償債務，我們仍有望償還這些債務。正如我之前指出的，截至 6 月 30 日，我們將總槓桿率進一步降低至 3.5 倍，目標是在償還 2025 年債券後，到 2025 年底實現 3 倍的目標。

Moving to slide 15, we will review our outlook for the third quarter and full year. For the third quarter we expect net sales to be in the range of down 4.5% to flat year-over-year. This is primarily driven by approximately 300 basis points of unfavourable FX headwinds year-over-year, we expect adjusted EBITDA to be in a range of $125 million to $155 million. For comparison purposes, we have a large distributor event that will take place in the third quarter of this year, which was held in the fourth quarter of last year. Year-over-year comparison is also expected to be negatively impacted by currency, partially offset by the favourable impact of the restructuring program. This program was substantially complete as of June 30, approximately $66 million of implementation costs of this program were accrued in the first half of the year with only a small amount remaining.

轉到投影片 15，我們將回顧第三季和全年的前景。我們預計第三季淨銷售額將年減 4.5% 至持平。這主要是由於不利的外匯逆風年增約 300 個基點，我們預計調整後 EBITDA 將在 1.25 億美元至 1.55 億美元之間。為了進行比較，我們將在今年第三季舉辦大型經銷商活動，該活動於去年第四季舉行。預計同比也將受到貨幣的負面影響，但部分被重組計劃的有利影響所抵消。截至 6 月 30 日，該計劃已基本完成，上半年已提列約 6,600 萬美元的實施成本，僅剩少量資金。

From a cash standpoint, about $33 million has been paid so far with about $35 million remaining to be paid in the back half of the year. Our planned capital expenditures for the third quarter are in a range of $35 million to $45 million based on our results for the first half of the year and the outlook for the remainder of the year. We have updated our guidance for full year 2024 net sales to be down 3.5% to up 1.5% versus last year. And we are raising our expectations for full year adjusted EBITDA to a range of $560 million to $600 million as we are reaffirming our CapEx expenditures of $120 million to $150 million. The increase in adjusted EBITDA expectations reflect our outperformance in Q2, partially offset by lower volume expectations and unfavourable currency movements from our initial expectations. As we look to the back half of the year, we expect capitalized SaaS implementation costs to be in a range of $10 million to $15 million, which is incremental to our planned CapEx.

從現金角度來看，迄今已支付約 3,300 萬美元，下半年仍有約 3,500 萬美元需要支付。根據我們上半年的業績和今年剩餘時間的前景，我們第三季的計畫資本支出在 3,500 萬美元至 4,500 萬美元之間。我們已將 2024 年全年淨銷售額指引更新為比去年下降 3.5% 至成長 1.5%。我們將全年調整後 EBITDA 的預期提高至 5.6 億至 6 億美元，同時重申我們的資本支出為 1.2 億至 1.5 億美元。調整後 EBITDA 預期的增加反映了我們第二季度的優異表現，但部分被銷售預期下降和我們最初預期的不利匯率變動所抵消。展望今年下半年，我們預計資本化 SaaS 實施成本將在 1,000 萬至 1,500 萬美元之間，這是我們計劃的資本支出的增量。

A couple of last comments before we open up the call for questions. First, while sales were a bit lower than we had expected, and currency is more of a headwind than we expected, there's a lot of good things happening at Herbalife that are creating a strong foundation for growth. New distributor recruiting continues to grow versus prior year, reversing 12 consecutive quarters of decline, and that growth is coming from experienced distributors that know how to build businesses.

在我們開始提問之前，有幾點最後的評論。首先，雖然銷售額略低於我們的預期，而且匯率比我們預期的更不利，但康寶萊發生了很多好事，為成長奠定了堅實的基礎。與去年相比，新經銷商的招募持續成長，扭轉了連續 12 個季度的下降趨勢，而這種成長來自於知道如何建立業務的經驗豐富的經銷商。

Herbalife Premier League is taking off and the mastermind training program is coming in August, which is unlike anything ever done in the industry. We are taking training and accountability to a higher level than ever before. We're continuing to launch innovative products that resonate in local markets aligned with consumer trends. We have positive results from the pricing and compensation changes. We are piling in most Latin American markets, our sponsored athletes, our important brand ambassadors and a testament to our Advanced Nutrition delivered by our products.

康寶萊超級聯賽即將起飛，策劃者培訓計畫將於八月推出，這與業界以往的任何舉措都不一樣。我們正在將培訓和責任提升到比以往更高的水平。我們將持續推出符合當地市場消費趨勢的創新產品。我們從定價和薪酬變化中取得了積極的成果。我們在大多數拉丁美洲市場不斷湧現，我們贊助的運動員、我們重要的品牌大使以及我們的產品所提供的高級營養的證明。

Our profit is strong Our restructuring program is essentially complete and we are continuing to look at ways to further reduce cost and expand margins. Our leverage ratio is 3.5 times and our goal remains to get to three times at the end of next year following the payoff of the bonds. And while our goal is three times by the end of 2025 we don't plan to stop there. We want to pay off $1 billion in debt over the next four to five years and transfer that value to equity holders and that will be our primary use of our free cash.

我們的利潤強勁 我們的重組計劃已基本完成，我們正在繼續尋找進一步降低成本和擴大利潤的方法。我們的槓桿率為3.5倍，我們的目標仍是在債券償付後於明年年底達到3倍。雖然我們的目標是到 2025 年底達到三倍，但我們並不打算就此止步。我們希望在未來四到五年內償還 10 億美元的債務，並將該價值轉移給股東，這將是我們自由現金的主要用途。

This concludes our opening remarks. Operator, please open the call for questions.\

我們的開場白到此結束。接線員，請打開電話提問。

(Operator Instructions)

（操作員說明）

Jeff Van Sinderen with B. Riley

Jeff Van Sinderen 與 B. Riley

Great. Hi, everyone. On. So just wanted to focus on North America for a minute if we could. I know that's been a little bit of a challenge to turnaround, but you're adding new distributors and are there other green shoots there that you might want to touch on? And I guess, where do you think you stand in that process of turning around the North American sales? And what do you think needs to happen for that to really come to fruition?

偉大的。大家好。在。如果可以的話，我們只想關註一下北美。我知道這對扭轉局面來說是一個挑戰，但您正在增加新的經銷商，還有其他您可能想要觸及的新芽嗎？我想，您認為在扭轉北美銷售的過程中您處於什麼位置？您認為需要做什麼才能真正實現這一目標？

I'll take that, Jeff, thanks for the question, So if we go back to what we've been kind of discussing as a theme is that we have this very powerful model of Nutrition Clubs in the US, more than 10,000 locations. I think in a couple of quarters ago, we talked about 4.4 million customers in 2023, 55 million transactions, $915 million dollars of business into these clubs.

傑夫，我接受這個問題，謝謝你提出的問題，所以如果我們回到我們一直在討論的主題，那就是我們在美國有一個非常強大的營養俱樂部模式，有 10,000 多個地點。我想在幾個季度前，我們談到了 2023 年將有 440 萬客戶、5500 萬筆交易、9.15 億美元的業務進入這些俱樂部。

And yet there's a huge opportunity for us because most of these transactions and most of these customers, they're really coming into buy a healthy shake and energy piece. And a very small percentage of them are actually coming through and becoming, for example, preferred customers that the conversion is, you know, 1% to 2% on average for the clubs and even less in terms of distributors. And so the big opportunity for us is really helping people go and build businesses that are not only going to do great from a transactional kind of more of a food service model, but bring them into really a transformational result and multilevel marketing building organization model. And so when we take these 10,000 clubs.

然而，這對我們來說是一個巨大的機會，因為大多數交易和大多數客戶都真正開始購買健康的奶昔和能量產品。其中一小部分人實際上已經通過並成為，例如，首選客戶，您知道，俱樂部的平均轉換率為 1% 到 2%，而經銷商的轉換率甚至更低。因此，對我們來說，一個巨大的機會是真正幫助人們建立企業，這些企業不僅能夠從交易型（更多的是食品服務模式）中取得巨大成功，而且還能將他們帶入真正的轉型結果和多層次傳銷建構組織模式。當我們選取這 10,000 個俱樂部。

And we look at the conversion and we look worldwide at what's happening, there is really a huge opportunity for us. Now the question is how do we help them these club owners, who many of them are in this TAB Team, President team, our team got team, a group of people. How do we help them through this transition? How do we support them? And so that's where this Mastermind really is the next level of support for all of these leaders.

我們著眼於這種轉變，我們著眼於全世界正在發生的事情，這對我們來說確實是一個巨大的機會。現在的問題是我們如何幫助他們這些俱樂部老闆，他們中的許多人都在這個TAB團隊，主席團隊，我們的團隊有團隊，一群人。我們該如何幫助他們度過這個轉變？我們如何支持他們？因此，這就是這位策劃者真正為所有這些領導者提供下一級支持的地方。

And again, Michael spoke to it, John spoke to we've never done something like this. This is not something that exists in the industry. The model for it actually in terms of a Mastermind, it does exist, as you know, one of the reasons why we felt very strongly that creating a a partnership or a kind of a special relationship with Eric Borys because he was already delivering our Mastermind program to some of our top leaders. And you know, they were paying thousands and thousands of dollars for that type of coaching and information. And so to be able to put a program together with him and our top leaders to be able to deliver to potentially thousands of our leaders here in the United States, a very high level program, which is not a weekend event.

麥可再次談到這一點，約翰談到我們從未做過這樣的事情。這在行業中是不存在的。它的模型實際上就策劃者而言，它確實存在，如您所知，這也是我們強烈認為與埃里克·鮑里斯建立合作夥伴關係或某種特殊關係的原因之一，因為他已經在交付我們的策劃者計劃致我們的一些最高領導人。你知道，他們為這種類型的指導和資訊支付了數千美元。因此，能夠與他和我們的最高領導人一起制定一個計劃，以便能夠向美國這裡潛在的數千名領導人提供一個非常高水平的計劃，這不是周末活動。

It's literally a program that's going to be carried out through the next couple of years to help them along every step in the process of really implementing the most successful models that are going to help with this transition and supporting them all the way through another part to this is a key account management program that we've never had before. We're actually not only are there going to be getting the coaching and the content and the education on the different DMOs and business models and flows.

從字面上看，這是一個將在未來幾年內執行的計劃，以幫助他們真正實施最成功的模型過程中的每一步，這些模型將有助於這一轉變，並通過另一部分一路支持他們這是我們以前從未有過的大客戶管理計劃。實際上，我們不僅會獲得有關不同 DMO、商業模式和流程的指導、內容和教育。

But it's going to be supported through looking at on a monthly basis how everything is actually working. So data and metrics being shared peer group accountability, which is part of pairing them up with other leaders that are doing similar types of businesses. So they're sharing best practices. There's a certain dynamic that's fundamental and it works very, very well. So that's how we're going to get there. Again, we see this opportunity as really very big for us. The customers are there. They're just really more of a transactional customer. And there's a huge opportunity for us to bring them in to be transformational customers, which is the foundation of what we do. So I hope that answers your question.

但它將透過每月查看一切實際運作情況來獲得支持。因此，數據和指標是共享的同儕小組責任，這是將他們與從事類似業務的其他領導者配對的一部分。所以他們正在分享最佳實踐。有一種基本的動力，而且效果非常非常好。這就是我們要達到目標的方式。再次，我們認為這個機會對我們來說確實非常大。顧客就在那裡。他們實際上更像是交易型客戶。我們有一個巨大的機會讓他們成為變革型客戶，這是我們工作的基礎。所以我希望這能回答你的問題。

Okay, great. That's helpful. And then I sort of have a multipart question here, but I guess trying to understand on your Q3 guidance a little bit better on I know, you indicated you booked most of the restructuring charges. You're adding new distributors. Your EBITDA was about 180 in Q2. I realize there's more bonus accrual and 300 bps I think you said of FX headwind you're anticipating for Q3, but maybe you could just walk us through the thought process around the EBITDA guidance range for Q3, which I think implies down year over year.

好的，太好了。這很有幫助。然後我在這裡有一個多部分的問題，但我想試圖更好地理解你的第三季指導，我知道，你表示你預訂了大部分重組費用。您正在新增的經銷商。第二季您的 EBITDA 約為 180。我意識到有更多的應計獎金和300 個基點，我認為您提到了您預計第三季度的外匯逆風，但也許您可以引導我們圍繞第三季度EBITDA 指導範圍進行思考過程，我認為這意味著逐年下降。

May be what are the components kind of baked into the high end of guidance and what might cause you to come into line?

高端指導包含了哪些要素？

Sure. Thanks, Jeff. So you hit on a couple of things. So one is there's an FX component year-over-year on from an EBITDA standpoint, about seven for the back half of the year is $15 million is split pretty equally between Q3 and Q4. Right? So call it $7.5 million, somewhere in that range for the impact to EBITDA from from currency year. We are actually versus what we thought a quarter ago. I'm sorry that [Talisman] versus what we thought a quarter ago. So that's just an impact from currency movements over the last three months.

當然。謝謝，傑夫。所以你想到了幾件事。因此，從 EBITDA 的角度來看，逐年有一個外匯部分，下半年大約有 7 個部分，即 1500 萬美元，在第三季度和第四季度之間平均分配。正確的？因此，我們稱之為 750 萬美元，該範圍內的某個貨幣年度對 EBITDA 的影響。我們實際上與一個季度前的想法相反。我很抱歉 [Talisman] 與我們四分之一前的想法不同。所以這只是過去三個月貨幣變動的影響。

Second, you talked about the higher bonus accrual. We talked about that in the past. Third is there are some unique events in acute, not unique events, but the timing of those events in Q3 is unique. So we have our single biggest distributor event for FCCC happening in Italy in August. That event usually takes place in Q4 and it took place in Q4 last year in Japan, that events a pretty meaningful event.

其次，您談到了更高的應計獎金。我們過去曾討論過這一點。第三，急性期有一些獨特的事件，不是獨特的事件，但這些事件在第三季發生的時間是獨特的。因此，我們在 8 月在義大利舉辦了 FCCC 最大的經銷商活動。該活動通常在第四季度舉行，去年第四季在日本舉行，這是一個非常有意義的活動。

And plus we do have the unique Mastermind event that's happening in August. The term add some expenses. And so lastly, I'll say some advertising and promotion expense that was underspent in Q2 got moved to Q3. So those are the big drivers of in addition to what you saw the sales guidance a little bit less. Sales had an impact, too. So if I had are just recap, certainly lower sales, FX, does it by far the two biggest impacts and then some movement on the on the expense aligned with bonus and events and advertising and promotion.

另外，我們確實在 8 月舉辦了獨特的 Mastermind 活動。該術語增加了一些費用。最後，我要說的是，第二季未支出的一些廣告和促銷費用已轉移到第三季。因此，除了您所看到的銷售指導稍微減少之外，這些都是主要推動因素。銷售也產生了影響。因此，如果我只是回顧一下，肯定會降低銷售額，外匯，這是迄今為止兩個最大的影響，然後是與獎金、活動、廣告和促銷相關的費用方面的一些變化。

Okay, great. Thanks for taking my questions. [And I'll take the rest of the time here].

好的，太好了。感謝您回答我的問題。[剩下的時間我會在這裡度過]。

Chasen Bender, Citi.

查森·本德，花旗銀行。

Good afternoon, everyone and John. Just to stay on the guidance theme for my first question, I was hoping you could elaborate a little bit more on the change in the full year guidance to Q2 net sales came in about $50 million below the midpoint of the guide. And it looks like the implied two H. 24 net sales guidance came down about $125 million. And you clearly you called out FX a little bit worse. But on the other hand, you also have productivity going well, you're launching new productivity initiatives with this Mastermind class. So maybe you can just give us some additional perspective on what's driving that additional $75 million lower sales outlook in the second half?

大家下午好，還有約翰。為了延續我的第一個問題的指導主題，我希望您能詳細說明全年指導中第二季淨銷售額比指導中點低約 5000 萬美元的變化。看起來隱含的兩個 H.24 淨銷售額指引下降了約 1.25 億美元。很明顯，你對外匯的評價有點差。但另一方面，您的生產力也進展順利，您正在透過這個策劃者課程啟動新的生產力計劃。那麼，也許您可以給我們一些額外的看法，以了解是什麼導致下半年銷售前景進一步降低 7500 萬美元？

Yes. I mean, it's two primary drivers. So lower volume expectations that comes from a handful of countries that underperformed in Q2 versus our expectations that we changed the expectations going out rate. And so out of China and we can talk more about China. But China, because of the program they've implemented, the transition as of just them takes a little longer to growth because focus on customers. But it's strong, but we changed the expectations for China, Indonesia, Turkey, to name a few. So just a few countries. So that volume that by far has the biggest impact on the back half of the year, probably a $25 million impact in the back half of the year for profit of home and a bigger impact in net sales.

是的。我的意思是，這是兩個主要驅動因素。因此，少數第二季度表現不佳的國家/地區的銷售預期低於我們的預期，因此我們改變了預期的出貨量。因此，走出中國，我們可以多談論中國。但在中國，由於他們實施的計劃，他們的轉型需要更長的時間才能成長，因為他們專注於客戶。但它很強大，但我們改變了對中國、印尼、土耳其等國家的期望。所以只有幾個國家。因此，到目前為止，這一銷售對今年下半年的影響最大，可能對今年下半年的家庭利潤產生 2,500 萬美元的影響，對淨銷售額的影響更大。

You can you can on determine from the just the midpoint in guidance. And then currency currently has a three point basis point impact in the year over year on guidance. And and that's a meaningful change from where we were a quarter ago.

您可以從指南的中點開始確定。目前，貨幣對指引的年比影響為三個基點。與一個季度前相比，這是一個有意義的變化。

Got it. And then in terms of slicing, obviously, pricing was once again a strong contributor to overall net sales growth in the quarter, but you called out this pilot program in Latin America, whereby you took a reduction in net price across most countries, ex Mexico. I was hoping you could expand a little bit on that.

知道了。然後就切片而言，顯然，定價再次成為本季度整體淨銷售額增長的重要貢獻者，但您提到了拉丁美洲的這一試點計劃，透過該計劃，您降低了大多數國家（墨西哥除外）的淨價格。我希望你能對此進行一些擴展。

What are the benchmarks you're looking for in terms of and success that would then lead you to roll that out more globally and related what sort of time line. Might we see you make those judgments calls on and subsequently roll that out to other markets?

您正在尋找的成功基準是什麼，這些基準將引導您在全球範圍內更廣泛地推出產品，並與什麼樣的時間軸相關。我們是否會看到您做出這些判斷並隨後將其推廣到其他市場？

Yes, that's a great question. So let's start with the strategy behind the changes that were made historically and Herbalife, we've had pretty much the same approach to pricing and the compensation system to our distributors globally. And the reality is the that's not really a level playing field, giving that social economic differences across the 95 markets that we're in.

是的，這是一個很好的問題。因此，讓我們從歷史上發生的變化背後的策略開始，康寶萊對全球經銷商的定價和薪酬制度幾乎相同。現實情況是，這並不是一個真正公平的競爭環境，因為我們所處的 95 個市場存在社會經濟差異。

So what we did in most of Latin America, South America, specifically in Central America was lower the price to reach more consumers. That was one thing. Second, lower the compensation plan earned by distributors and us, by the way, right, lower. It's a little bit lower margin percentage for everybody. And third actually make it easier for the distributor then to qualify going up the marketing plan because the average purchase per customer in some of the poorer countries is pretty low.

因此，我們在拉丁美洲、南美洲的大部分地區，特別是中美洲所做的就是降低價格，以吸引更多消費者。那是一回事。第二，降低經銷商和我們賺取的補償計劃，順便說一句，對，降低。對每個人來說，利潤率都有點低。第三，實際上使經銷商更容易獲得提升行銷計劃的資格，因為在一些較貧窮的國家，每個客戶的平均購買量相當低。

And so to reach the thresholds that had previously been said, they need a lot more customers than a lot of other countries do. And that creates more effort and almost an unlevel playing field. So what we're ultimately trying to do is optimize those variables within a country to maximize the earnings. And that means the earnings for the Company and the earnings, the distributors. So the measure for success is are we generating enough increase in volume, not only offset the price decrease, but that we're all putting more money in the bank at the end of the day by making these changes.

因此，為了達到之前所說的門檻，他們需要比許多其他國家更多的客戶。這會帶來更多的努力和幾乎不公平的競爭環境。因此，我們最終要做的是優化一個國家/地區內的這些變量，以實現收入最大化。這意味著公司的收益和分銷商的收益。因此，成功的衡量標準是我們是否產生了足夠的銷售成長，不僅抵消了價格下降，而且透過做出這些改變，我們最終都在銀行存了更多的錢。

So that's the objective, I think is strategic, I think is an important pillar for the future on the leaders distributor leaders and Sam came a very motivated. They say they've agreed with this. It's been a multiyear initiative, and we're excited about it and we'll look at what the results are to determine if it expands where it expands to. And I think there will be a little bit of pull from distributors in certain markets once they see the results in the same camp. That will say, I think our market fits that to can we have it to which case we'll look at the variables that need to change in those markets. So I think strategically, it's an important element of future growth, but we're just starting out.

這就是目標，我認為是策略性的，我認為是領導者未來的重要支柱，經銷商領導者和山姆非常有動力。他們說他們已經同意這一點。這是一項持續多年的舉措，我們對此感到興奮，我們將看看結果如何，以確定它是否會擴展到它所擴展到的地方。我認為，一旦某些市場的經銷商看到同一陣營的結果，他們將會受到一些拉動。也就是說，我認為我們的市場符合這一點，我們可以在這種情況下考慮這些市場中需要改變的變數。所以我認為從策略上講，這是未來成長的一個重要因素，但我們才剛開始。

Got it. That's that's helpful colour. And then if I can ask just one more for me. The top line growth and how to think about it? You know, you obviously are introducing this new program for the TAB sales leaders, which seems like it should be a benefit but clearly that's focused on sales leaders who already seem like you're probably pretty productive versus you have a bunch of incoming new sales leaders who are probably going to need help quote unquote leveling up. So the question is, how should we think about the stepping up of productivity of new sales leaders versus the existing established ones in terms of the sustainability of growth over, call it the mid two longer term presentation.

知道了。這就是有用的顏色。然後我可以再問一個嗎？營收成長如何思考？您知道，您顯然正在為 TAB 銷售領導者推出這個新計劃，這似乎應該是一個好處，但顯然，它的重點是銷售領導者，他們看起來已經非常高效，而您有一堆即將到來的新銷售可能需要幫助的領導者引用未引用的升級。所以問題是，在成長的可持續性方面，我們應該如何考慮新銷售領導者相對於現有銷售領導者的生產力的提高，稱之為中兩個長期表現。

I'll take this one. So it actually is a top-down and bottom-up approach, right? So you're absolutely right from first of all supporting the top level leaders. They're the ones that are responsible for the go to market strategies, right? And they're the ones that bring in the new distributors and they're the ones ultimately because they're in their organizations that have a level of responsibility to make sure that they have the skills that are necessary. We're looking at right now supporting them to make sure, especially the go to market strategies are relevant and they're most the most effective that they can be.

我要這個。所以它實際上是一種自上而下和自下而上的方法，對嗎？所以你先支持高階領導是絕對正確的。他們是負責進入市場策略的人，對吧？他們是引進新經銷商的人，而且最終是他們，因為他們在自己的組織中負有一定程度的責任，以確保他們擁有必要的技能。我們現在正在考慮為他們提供支持，以確保特別是進入市場策略是相關的，並且它們是最有效的。

And by the way, part of that. And I would say one of the benefits of being as geographically spread as we are, is that we have certain DMOs or models that are that are created or adopted and adapted in certain markets like currently in the United Kingdom right now out of the entire company, we have one of the best performing models, which is a version of a nutrition club. They call it a breakfast budget club. And it is actually out of probably everything that's happening around the world right now, creating the largest amount of recruitment has some of the highest productivity that's taking place that qualified the most amount of TAB Team over the last three or four years.

順便說一句，這是其中的一部分。我想說的是，我們在地理上分佈廣泛的好處之一是，我們擁有某些DMO 或模型，這些DMO 或模型是在整個公司的某些市場（例如目前的英國）中創建或採用和適應的，我們有性能最好的模型之一，它是營養俱樂部的一個版本。他們稱之為早餐預算俱樂部。實際上，從目前世界各地正在發生的所有事情來看，在過去的三、四年裡，創造了最大數量的招聘，並產生了最高的生產力，從而培養了最多數量的 TAB 團隊。

And there's a lot of different countries that could benefit from a model like that because it fits. And so being able to transfer or transfer the details of the model to have people really understand to the extent that they need to be able to implement it and then support them through a process. That's something that unless we as a company are facilitating the communication, the education and supporting it, it doesn't sometimes happen very naturally because you'd have to know someone in the UK to have a connection with the person that's actually doing that, go to the United Kingdom, get the information come back, downloaded all tried to understand and implemented.

許多不同的國家都可以從這樣的模式中受益，因為它適合。因此能夠轉移或轉移模型的細節，讓人們真正理解他們需要能夠實現它的程度，然後透過一個過程來支持他們。除非我們作為一家公司促進溝通、教育和支持，否則有時這種情況不會很自然地發生，因為你必須認識英國的某個人才能與實際這樣做的人建立聯繫，去英國，拿到資料回來，下載了所有試圖理解和實施的。

So we want to do that from the from the top down. And that's what part of this program is going to allow us to do the mastermind And then at the same time, we are having Premier League training, Eric, we are looking at success builders and new distributors and an onboarding process. And so this will be, you know, a holistic integrated approach. And you know, it's not just top down here. We will go bottom up now. It's going to take time in the process. We've been asked this you know for what they're just four or five months now on. And this is a longer term process for us. But your point is very, very well taken and it's something that not only are we considering, but we have plans to roll out.

所以我們希望自上而下地做到這一點。這就是這個計劃的一部分，讓我們成為策劃者。所以，你知道，這將是一種整體的綜合方法。你知道，這裡不僅僅是自上而下。我們現在將自下而上。這個過程需要時間。我們被問到這個問題，你知道他們現在才四、五個月了。這對我們來說是一個長期的過程。但你的觀點非常非常好，我們不僅正在考慮這一點，而且我們還計劃推出。

Got it. Really appreciate all that detail. I'll pass it on to you. Thank you.

知道了。真的很欣賞所有這些細節。我會把它傳給你。謝謝。

Hale Holden, Barclays.

黑爾·霍頓，巴克萊銀行。

Hi, good evening. John, that a $1 billion debt paydown target over the next four to five years felt like it was a new new new to me is the expectation that you guys would sort of pay as you go every quarter over the next couple of years and chip away at it or take it, take it more in chunks?

嗨，晚上好。約翰，未來四到五年內 10 億美元的債務償還目標對我來說感覺像是一個新的新事物，就是期望你們在接下來的幾年裡每個季度都付款並逐漸減少是看它還是接受它，更分段地接受它？

So, well it is new news, okay, is that we're committed to paying down $1 billion over the next four or five years. I think there was that question that's been coming up is once we pay down the 2025, what are we going to do with that free cash are we going to buy back stock? And we just want to make it clear that we continue at this point, given the cost of debt and the tax friction of it that we think under the current circumstances, the best option is to continue to continue to pay down debt. So I think that's an important takeaway from the call.

所以，這是新消息，好吧，我們承諾在未來四到五年內支付 10 億美元。我認為一直以來出現的一個問題是，一旦我們還清了 2025 年的債務，我們將如何使用這些自由現金來回購股票？我們只是想明確表示，考慮到債務成本和稅收摩擦，我們認為在當前情況下，最好的選擇是繼續繼續償還債務。所以我認為這是這次電話會議的重要收穫。

And I think that it just transfers back to equity holders. So I mean, I think that's a good backstop on second, how we do that will be circumstantial. It all depends on the maturities of debt and what the penalties are providing accurately, how much cash we're generating. So we'd like to do it quarter by quarter to the extent that we can and if the economics work out because the interest costs are pretty high.

我認為它只是轉移回股東手中。所以我的意思是，我認為這是第二個很好的後盾，我們如何做到這一點將視情況而定。這一切都取決於債務的到期日、準確的處罰金額以及我們產生的現金量。因此，如果經濟可行，我們希望在力所能及的範圍內逐季進行，因為利息成本相當高。

Great. Thank you very much. I appreciate it.

偉大的。非常感謝。我很感激。

Linda Bolton-Weiser, D.A. Davidson

琳達·博爾頓·韋瑟，D.A.戴維森

Yes, hello. So I was wondering if you could give a little more color on Asia Pacific, I think you explained the weakness in China and you mentioned a few countries in Asia Pacific that you lowered the projections for. But I mean, it was really quite a bit worse than we had projected against an easier prior year comparison than in the first quarter. So I'm just wondering like is it macroeconomic factors or something in the execution there or what can you give give a little more color there?

是的，你好。所以我想知道您是否可以對亞太地區進行更多描述，我認為您解釋了中國的弱點，並提到了您降低了預測的亞太地區的一些國家。但我的意思是，與去年相比，第一季的情況相比，情況確實比我們預期的要糟糕。所以我只是想知道這是宏觀經濟因素還是執行中的某些因素，或者您可以給予什麼更多的色彩？

Sure. Thank you. And I saw a couple of different places. Number one in Taiwan, we had a bit of stock issue with one of the products. Actually, that is a main driver for one of the large organizations there that has a lot of growth.

當然。謝謝。我看到了幾個不同的地方。在台灣排名第一，我們的其中一款產品出現了一些庫存問題。事實上，這是那裡的大型組織之一實現大幅成長的主要推動力。

And so that didn't help us Taiwan had a little bit of an impact, Indonesia, another market that, by the way, very, very, very big markets, but had a lot of clubs did close during COVID. And I hate to talk about COVID because it seems like it's so far in the past now.

所以這對我們沒有幫助，台灣有一點影響，印度尼西亞，另一個市場，順便說一句，非常非常大的市場，但有很多俱樂部在新冠疫情期間關閉了。我討厭談論新冠病毒，因為它似乎已經成為過去。

But the speed at which they've been opening up are reopening and also just the engagement that's been created. It's just taking a little bit longer than we were than we were hoping for. And so Indonesia, Taiwan, those are kind of the main ones. Let me just talk a little bit about China because I think China, it's really very important fit. We made a conscious decision to really for the first time because in China, they never had a preferred customer program that really had a benefit to preferred customers.

但他們開放的速度正在重新開放，而且只是已經建立的參與。只是比我們希望的時間長一點。印尼、台灣是主要的。讓我簡單談談中國，因為我認為中國確實非常重要。我們第一次做出了有意識的決定，因為在中國，他們從來沒有真正為優惠客戶帶來好處的優惠客戶計畫。

In China when they sign up as a preferred customer, unlike anywhere in the entire world, there's no discount. There's really no benefits. And so we knew that that was an area that we needed to really focus on because it's a huge consumer market. I mean, it's the opportunity there in terms of consumers is just very, very big. And so we developed a loyalty program there that for the first time actually benefits preferred customers.

在中國，與世界上任何地方不同，當他們註冊成為優惠客戶時，沒有折扣。實在是沒有什麼好處。所以我們知道這是我們需要真正關注的領域，因為這是一個巨大的消費市場。我的意思是，就消費者而言，那裡的機會非常非常大。因此，我們在那裡開發了一項忠誠度計劃，該計劃第一次真正使優先客戶受益。

And that's why we really created the focus on the preferred customers, even when we launched the Premier League. And it's been, you know, I get a little bit of information on it, but in Q2, over Q1, we had a significant increase in the amount of preferred customers and over last year as well.

這就是為什麼我們真正將重點放在首選客戶上，即使我們推出了英超聯賽。你知道，我得到了一些相關信息，但在第二季度，與第一季度相比，我們的首選客戶數量顯著增加，與去年相比也是如此。

And more importantly, what it did is it really drove the purchasers in China, an increase of over 30%, not only over Q1, but also 30% over Q2 of last year. And so it's a transition for us because obviously, when you're bringing in more customers, maybe they're a little bit less productive in terms of what they're purchasing compared to a sales representative. But as you build that foundation, what it does for us is it allows a lot of people. And by the way, this is in India.

更重要的是，它確實帶動了中國的採購量，不僅比第一季增加了30%以上，而且比去年第二季增加了30%以上。因此，這對我們來說是一個轉變，因為顯然，當您引入更多客戶時，與銷售代表相比，他們在購買商品方面的效率可能會稍微更低。但當你建立這個基礎時，它對我們的作用是讓很多人都能參與其中。順便說一下，這是在印度。

This is one of the success, you know, factors in India that the more customers you have, the longer they're on the products, the better results they have, the more they talk about the brand and become kind of raving fans. It just builds this foundation for them to later become sales representatives and to carry the brand into then become active because they themselves really had a benefit and you know, are tied to the company's products. And so these are some of the things that we are going to take a little bit of time as a transition, but it's an exciting future and direction for us as a company.

你知道，這是印度成功的因素之一，你擁有的客戶越多，他們使用產品的時間越長，他們獲得的效果就越好，他們談論該品牌的次數就越多，並成為狂熱的粉絲。它只是為他們後來成為銷售代表並將品牌帶入然後變得活躍奠定了基礎，因為他們自己確實獲得了利益，而且你知道，與公司的產品息息相關。因此，這些是我們需要花一點時間進行過渡的一些事情，但這對我們公司來說是一個令人興奮的未來和方向。

Okay. Thank you for all that. Can I also ask on so at the North American convention, you I guess, announced the success builder on level or new new initiative, I guess you could call it. So that are designed to speed up the process of getting new distributors up to a higher discount level. And I guess you explained that appeals of some profit from upline distributors in order to pay lower down ones more.

好的。謝謝你所做的一切。我還可以問一下，在北美大會上，我猜你宣布了成功建設者的水平或新的新舉措，我想你可以稱之為它。這樣做的目的是加快新經銷商達到更高折扣水準的過程。我想你解釋了從上游分銷商那裡獲得一些利潤的訴求，以便向下游分銷商支付更多費用。

So I'm just wondering, conceptually if there's more of that that needs to go on in the organization as a mature direct selling company do you need to kind of, I guess, take away from some of the higher level distributors in order to incentivize to drive growth more at the lower levels? Is that something where more needs to be done even in the future?

所以我只是想知道，從概念上講，作為一家成熟的直銷公司，組織中是否需要做更多的事情，我想，您是否需要從一些更高級別的分銷商那裡拿走，以激勵推動較低層面的成長？這是未來還需要做更多工作的事嗎？

Yes, Linda. So I wouldn't say that the factor of taking away from the higher levels to give to the lower levels really what it does because if you think about it, the more people that come into the business and it becomes successful that are financially, you know, is keeping a certain level of success. They stay in the business for it. Right? And then there's this aspect of just compounding because you're keeping a greater percentage, they're more productive. And it's really, I think, as we look at the Company and John spoke to it a little bit.

是的，琳達。所以我不會說從較高層次上拿走給較低層次的因素確實起到了作用，因為如果你仔細想想，進入這個行業的人越多，它在財務上就會取得成功，你知道，就是保持一定程度的成功。他們為此留在了這個行業。正確的？然後就是複利的這個方面，因為你維持了更大的百分比，他們的生產力更高。我認為，當我們審視公司時，約翰也談到了這一點。

Earlier. It's making sure that the opportunity in a company that's as diverse as we are in all the markets that it's attractive that people can join, that they can very quickly get to a point where they're making enough money that they want to stay around and they want to grow to that next level because the opportunity is exciting and interesting for them. So these are some actions we're taking. Now another aspect of it. It's taken a while just as an example, you know, in what town outside of Mexico, it's not like this is a new idea to make some of these adjustments, but it's taken a little bit of time for the leadership to maybe understand the way we've done things in the past needs to change a little bit.

早些時候。確保像我們這樣多元化的公司在所有市場中提供機會，吸引人們加入，確保他們能夠很快賺到足夠的錢，讓他們願意留下來，他們希望成長到一個新的水平，因為這個機會對他們來說是令人興奮和有趣的。這些是我們正在採取的一些行動。現在它的另一個面向。舉個例子，你知道，在墨西哥以外的哪個城鎮，做出這些調整並不是什麼新想法，但領導階層可能需要一點時間才能理解這種方式我們過去所做的事情需要稍微改變一下。

So we're following the distributor lead on this and where the requests are coming for. So to answer your question, I believe there will be more of this at the right time and in the right way to support the markets and overall more people joining more people becoming successful, more people, making money, more people staying around longer and bringing other people. It's good for the business overall. And so this is really the objective and what we're trying to accomplish with this.

因此，我們正在追蹤分銷商的領導情況以及請求的來源。因此，為了回答你的問題，我相信在正確的時間和以正確的方式會有更多這樣的事情來支持市場，總體上會有更多的人加入，更多的人變得成功，更多的人賺錢，更多的人停留更長時間並帶來別人。這對整體業務有好處。這確實是我們的目標，也是我們試圖實現的目標。

Okay. And then I'm curious as to on the Premier League and, you know, I know I guess more about it at the extravaganza and it sounds great and all that, but I'm not sure I understand other than bragging rights, it happens in different merch, they can order. And I guess maybe the air quality training more they get access to that. What else is the Premier League give to somebody who has that?

好的。然後我對英超聯賽很好奇，你知道，我知道我在盛大的比賽中對此有更多的猜測，聽起來很棒等等，但我不確定除了吹牛的權利之外我是否理解，它發生了在不同的商品中，他們可以訂購。我想也許他們能更多地獲得空氣品質培訓。英超聯賽還能給擁有這樣的人甚麼？

Yes. So I would say the training is the most important thing right? They are number one, part of that newly groups that have, you know, if we look at it, they're actually out there. They've brought a significant amount of people in their focused on this on a yearly basis.

是的。所以我想說培訓是最重要的，對嗎？他們是第一，是新團體的一部分，你知道，如果我們看一下，他們實際上就在那裡。他們每年都會吸引大量人員關注這個問題。

So they are really two builders. So having access to and we just had, by the way, the first call and the excitement and the energy and the focus was really amazing from our distributor leaders that are they were qualified. So the training number one is very important. The flag is nice by the way, if there's a differentiator there.

所以他們其實是兩個建設者。因此，順便說一句，我們剛剛接到第一個電話，我們的經銷商領導者感到興奮、充滿活力和專注，這真的令人驚嘆，因為他們是合格的。所以訓練第一名是非常重要的。順便說一下，如果有一個區別的話，這個標誌就很好。

It's also aspirational, everyone that's a business builder wants to be a part of the program. And so we've seen actually we've raised our numbers in terms of how many people have qualified. And if we look at this time last year or what our estimates this year, it's three, four, five folds over what people would have done typically and how many would have qualified last year. So just by having the program and having the focus, it starts to create a certain amount of energy that's put towards building business.

這也是一個充滿抱負的項目，每個業務創建者都希望成為該計劃的一部分。因此，我們實際上已經看到，我們已經提高了符合資格的人數。如果我們看看去年的這個時候或我們今年的估計，就會發現，這比去年人們通常會做的事情以及合格的人數高出三倍、四倍、五倍。因此，只要製定計劃並集中註意力，它就會開始創造一定程度的能量，用於建立業務。

And I think that's why you see in the numbers of recruiting that it actually happened higher with the higher levels of leadership, which just means more engaged, more focused leadership, which is have a lot of positive knock-on effects, actually, um, so yes, it's more than slag training. It's the focus. It's focused on building and scaling businesses for our leaders. So a lot of different areas where this is going to be impactful.

我認為這就是為什麼你會在招聘數量中看到，領導層級別越高，招聘數量實際上越高，這意味著領導層更加投入、更加專注，這實際上會產生很多積極的連鎖反應，嗯，所以是的，這不僅僅是渣訓練。這是焦點。它專注於為我們的領導者建立和擴展業務。因此，這將對許多不同的領域產生影響。

John Baumgartner, Mizuho Securities

約翰‧鮑姆加特納，瑞穗證券

Good afternoon. Thanks for the question. Maybe first off, I wanted to come back to the distributor growth, which remains pretty strong. You're exiting Q1 when the numbers I guess first started to pop. I think it was too soon to really ascertain the drivers of that growth.

午安.謝謝你的提問。也許首先，我想回到經銷商的成長，它仍然相當強勁。當我猜數字開始出現時，你就退出了第一季。我認為現在真正確定這種增長的驅動因素還為時過早。

And yes, at this point, do you have any greater visibility into the catalyst for that? Is it is it simply the Eric or a factor? Or are there any other factors out where you think might explain the growth of the Q3?

是的，在這一點上，您對催化劑有更多的了解嗎？這只是埃里克的原因還是一個因素？或者您認為還有其他因素可以解釋第三季的成長嗎？

Yes. I'll take that, John. So number one, when we talked about it because obviously we were giving kind of initial into April and early, it was very early like you're saying there were some, I would say, novelty, like we talked about, it was a new program, people focused on it.

是的。我會接受的，約翰。所以第一，當我們談論它時，因為顯然我們在四月份和早些時給了某種初始，就像你說有一些，我會說，新奇，就像我們談論的那樣，這是一個新的計劃，人們關注它。

But what's really promising is that we saw that it really settled into increased recruiting, maybe not as much as in the 1st month, but the focus of then qualifying and building for the Premier League definitely has been a driver for that access to Eric also has also been a driver. So we're seeing the focus, which I think is the most important thing. And it's I'm focused on a long-term business building and not just hey, let me qualify for something and it's just a short term because this is a long. This is a long program. This is every single year. It will have a qualification to remain in the program and to have access to the training.

但真正有希望的是，我們看到它確實增加了招募，也許沒有第一個月那麼多，但當時的焦點是獲得英超聯賽資格和建設，這無疑是獲得埃里克的一個驅動因素。當過司機。所以我們看到了焦點，我認為這是最重要的。我專注於長期的業務建設，而不僅僅是嘿，讓我有資格獲得某些東西，這只是一個短期的，因為這是一個長期的。這是一個很長的程式。每年都是如此。它將有資格繼續參與該計劃並接受培訓。

So I would say that part of it is definitely there's a new program. There's access to training and support and one of the things it's a little bit early to talk about because there is a training that everyone that qualifies for Premier League that they have access to the mastermind program, it's eventually going to end up being the same people. That would be a part of it because the productivity of the group in the master mine will be the most productive. And so eventually, we see that these two programs will emerge and really just becomes this long term, higher level HIGHER supported business builder program for the most committed, productive people which we'll drive the leadership in the Company.

所以我想說，其中一部分肯定是有一個新計劃。可以獲得培訓和支持，其中一件事現在談論還為時過早，因為每個有資格參加英超聯賽的人都可以參加策劃者計劃，最終將成為同一個人。這將是其中的一部分，因為主礦井中的團隊的生產力將是最高的。因此，最終，我們看到這兩個計劃將會出現，並且真正成為這個長期的、更高水平的、為最忠誠、最高效的人員提供支持的業務建設者計劃，我們將推動公司的領導層。

So I hope that answers the question, but it's more than just this little thing that we're throwing out. There's a long-term plan for this and a level of support that we've never done as a company before on a lot of levels.

所以我希望這能回答這個問題，但這不僅僅是我們扔掉的這個小東西。為此我們制定了長期計劃，並在許多層面上提供了我們公司以前從未提供過的支援。

Okay, great. And then a follow-up for John. Coming back to the price adjustments in LatAm your follow explanation makes makes sense in terms of the model, but this is a market where I think cumulative pricing is probably up around 30% we have since the beginning of COVID give or take. And I just wanted to better understand the catalyst for this change where you are receiving feedback that prices just became too high, whether for the category or the channel? Or is this initiative something you're sort of jump starting from the inside and then pushing outward?

好的，太好了。然後是約翰的後續行動。回到拉丁美洲的價格調整，您的以下解釋在模型方面是有道理的，但我認為自新冠疫情開始以來，這個市場的累積定價可能上漲了 30% 左右。我只是想更了解這項變化的催化劑，您收到的回饋是價格變得過高，無論是對於類別還是通路？或者說這個計劃是你從內部開始然後向外推動的？

Well, I think it started about five to six maybe even more years ago on actually start from an initiative. Michael pushed over to me at the time regarding pricing of our products in certain markets and because in certain markets. Our products seem to only be able to skim this top surface of consumers, and that was because of the amount of payout we had to make associated with those products. So it started with us and it started with years of communication with our distributor leaders. I'm trying to build confidence and what we're trying to do trying to share in the risk associated with it and recognizing that a lower price with a different payout can actually be more profitable from a dollar standpoint to them and us if we can reach more consumers.

嗯，我認為它始於大約五到六年甚至更多年前，實際上是從一項倡議開始的。當時麥可向我提出了我們產品在某些市場和某些市場的定價問題。我們的產品似乎只能掠過消費者的這一層，這是因為我們必須為這些產品支付大量的費用。所以這一切從我們開始，從與我們的經銷商領導者多年的溝通開始。我正在努力建立信心，以及我們正在努力做的事情，試圖分擔與之相關的風險，並認識到，如果可以的話，從美元的角度來看，較低的價格和不同的支出實際上可以為他們和我們帶來更多的利潤接觸更多消費者。

And so I think it started out maybe from inside out, but what's happening in the recent past, it's been more outside-in now pulling on those ideas

所以我認為這可能是從內到外開始的，但最近發生的事情，現在更多的是從外到內拉動這些想法

Is the thought process, if you do scale is more broadly, I guess now it's not going to have that much of a margin impact on the overall model. But if you roll this out more broadly we're may have and impact on margins. Is the thinking that with the restructuring savings you have the transformation program, you can basically sort of absorb that kind of downward reset margins without having the impact at the bottom line there is that piece of the thought process that gives you the kind of flexibility to be more creative on pricing?

思考過程是否如此，如果你的規模更廣泛，我想現在它不會對整體模型產生太大的邊際影響。但如果你更廣泛地推廣這一點，我們可能會對利潤率產生影響。是這樣的想法：透過重組儲蓄，你有了轉型計劃，你基本上可以吸收那種向下重置的利潤，而不會對底線產生影響，這個思維過程給了你一種靈活性在定價上更有創意？

And so I mean, I think we can more than offset it. So I think there's pluses and minuses in this rate of gross profit actually as more of these types of pilots are pushed out, then you'll see maybe a negative impact to gross profit, but you don't see nearly as negative an impact to contribution margin because the payout structure to distributors also changes and then we can reduce our SG&A.

所以我的意思是，我認為我們可以抵消它。因此，我認為，隨著更多此類試點的推出，這個毛利率實際上有優點和缺點，那麼你可能會看到對毛利的負面影響，但你不會看到對毛利的負面影響。

So that's kind of a plus. I think when you think of the countries we're doing this with the not necessarily these big countries that make up the majority of our sales, but it does offer an opportunity for some of the smaller countries that may in fact be small because the pricing only reaches the top-tier consumer.

所以這是一個優點。我認為，當你想到我們正在做的國家時，不一定是這些占我們銷售額大部分的大國，但它確實為一些實際上可能很小的小國家提供了機會，因為定價只接觸到頂級消費者。

And John, just to add on to this also, one of the things that we're seeing because it does make the opportunity more interesting for people is that it really does help to drive also recruiting growth because the opportunities more interesting. And I think if you look at the Latin American numbers, it's kind of leading the worldwide in terms of the recruiting. And so that's really opportunity driven, right? So people are more excited about the opportunity.

約翰，補充一點，我們看到的一件事是，因為它確實使人們對機會更感興趣，它確實有助於推動招募成長，因為機會更有趣。我認為如果你看看拉丁美洲的數字，你會發現它在招募方面處於全球領先地位。所以這確實是機會驅動的，對嗎？所以人們對這個機會更加興奮。

To go talk to more people. There's more customers that are coming in because the products are more affordable. So what ends up happening is it actually drives that which more people buying more products. That's that's what we're looking for. So there's also that aspect of it that's important.

去和更多的人交談。因為產品比較便宜，所以越來越多的顧客進來。所以最終發生的情況是，它實際上推動了更多的人購買更多的產品。這就是我們要尋找的。所以還有一個面向也很重要。

Great. Thanks for your time.

偉大的。感謝您抽出時間。

Karru Martinson, Jefferies.

卡魯馬丁森，傑弗里斯。

Good afternoon. And just following up on that, I mean, how are we thinking about pricing and the impact of inflation inflation for the second half of the year?

午安.接下來，我的意思是，我們要如何考慮下半年的定價和通膨的影響？

We'll continue to take the price increases with CPI. Look, take LatAm, take Latin America or Central and South America out of this comment. In general, we're continuing to take price at local CPI. That continues to be our strategy until we make a shift like something we did in South and Central America.

我們將繼續隨著CPI上漲來看待價格上漲。看，以拉丁美洲、拉丁美洲或中南美洲為例。總體而言，我們將繼續按照當地 CPI 定價。這仍然是我們的策略，直到我們做出像我們在南美洲和中美洲所做的那樣的轉變。

So that's going to continue in the back half of the year. And so that was in our guidance a quarter ago. Nothing's changed with respect to our net sales guidance relative to price for the second half of the year versus where we were a quarter ago. The things that have changed the primary drivers of the gas and I repeat this because I think it was asked in a couple of different ways, and we started looking at it compared to last year and compared to last quarter and compared to last class guidance.

因此，這種情況將在今年下半年持續下去。這就是我們一個季度前的指引。與一個季度前相比，我們下半年相對於價格的淨銷售指引沒有任何變化。那些改變了天然氣主要驅動因素的事情，我重複這一點，因為我認為這是透過幾種不同的方式提出的，我們開始將其與去年、上季度和上一堂課的指導進行比較。

what's changed in net sales guidance for the back half of the year versus where we were a quarter ago is some lower volume in some of the countries Stepfan talked about, and it's an impact of that and an incremental cost from currency. For example, in the third quarter, it was a 200 basis point negative impact to net sales versus what we thought when we gave guidance accordingly, even though we didn't give specific Q3 guidance at the end of last quarter, inherent in our guidance for q three, we have now currency is now impacted at a negative 200 basis points.

與一個季度前相比，今年下半年的淨銷售指引發生了變化，Stepfan 談到的一些國家的銷量有所下降，這是其影響以及貨幣增量成本的影響。例如，在第三季度，儘管我們在上個季度末沒有給出具體的第三季度指導（這是我們指導中固有的），但與我們在給出相應指導時的預期相比，淨銷售額產生了200 個基點的負面影響對於第三季度，我們現在看到貨幣受到負 200 個基點的影響。

That-- those are the drivers for the change in net sales quarter-over-quarter quarter versus last guidance and last year's it's volume. It's mostly volume and currency.

這些是淨銷售額環比變化的驅動因素，與上次指導和去年的銷售相比。主要是數量和貨幣。

Certainly understood. And just on the the cash generation, the debt paydown here, we're still on track to repay. I think you said last quarter, two thirds of the 20 fives with cash generated this year and then the remainder for next year? Correct?

當然明白了。就現金生成和債務償還而言，我們仍然有望償還。我想你說上個季度，20 個五分之二的現金今年產生，然後明年剩下的？正確的？

Well, it is not exactly the way I said it what I what I said I didn't talk about when we will repay I talked about when we will generate the cash to be able to repay. And as I stated, we expect to generate about two thirds of the cash needed to pay the two 62 down this year, and we're still we're still on track to that. And of course, we did just sell a you can see in our subsequent event we sold an administrative building for $38 million.

嗯，這不完全是我所說的方式，我沒有談論我們何時償還，我談論的是我們何時產生能夠償還的現金。正如我所說，我們預計今年將產生大約三分之二的現金來支付兩輛 62 號車的首付，而且我們仍在朝著這個目標邁進。當然，我們確實只是賣掉了一座行政大樓，您可以在隨後的活動中看到，我們以 3800 萬美元的價格出售了一座行政大樓。

So we get that cash into. So that also it helps, but doesn't mean we're going to pay down this year just the whole purpose of the comment was to get investors comfortable that we're generating enough cash to be able to pay down when to do.

所以我們把現金投入。因此，這也有幫助，但並不意味著我們將在今年還款，只是該評論的全部目的是讓投資者放心，我們正在產生足夠的現金，以便能夠在何時還款。

Understood. And I was actually my follow-up was the $38 million of proceeds eventually will go to debt repayment? Correct.

明白了。我其實我的後續是這3800萬美元的收益最終會用來償還債務嗎？正確的。

It's fungible, right. And we have it goes in our cash flow, our cash flow pool, fungible, it just means we have more cash than we would have had have been out of the building.

它是可替代的，對吧。我們把它放在我們的現金流、我們的現金流池中，是可替代的，這只是意味著我們擁有比大樓外更多的現金。

Thank you very much. Appreciate it.

非常感謝。欣賞它。

William Reuter, Bank of America.

威廉·路透，美國銀行。

Hello. I have two the first on the difference in the distributor trends between on the new distributors that you're getting, which are very positive and then the total numbers, can you lay that out a little bit more?

你好。我有兩個關於您獲得的新經銷商之間經銷商趨勢差異的第一點，這是非常積極的，然後是總數，您能再詳細說明一下嗎？

Clearly, still a little confused on it, and I've gotten a couple of questions about it.

顯然，我對此仍然有點困惑，並且我收到了一些關於它的問題。

So Bill, you're asking about a new versus the total?

那麼比爾，你問的是新的還是總數的？

Yes. I mean, the I don't remember the words you used, but or the adjective you used. But when you were discussing the recruitment on those trends were very good. And but when you look at the total numbers, like the net numbers are not quite as favourable and you can bridge those two, those two different numbers.

是的。我的意思是，我不記得你用過的單詞，但也不記得你用過的形容詞。但當你討論招募時，這些趨勢非常好。但是，當你查看總數時，就像淨數字不太有利一樣，你可以將這兩個、這兩個不同的數字橋接起來。

I don't - think we talked about the total. Maybe I was talking about something else, just to be sure I don't think we discussed total numbers.

我不認為我們討論了總數。也許我在談論其他事情，只是為了確保我不認為我們討論了總數。

Okay. I thought that there were active numbers in your slides that I was looking at on prior to the call that the difference in the trends versus other recurring numbers would be different. Is that not the case?

好的。我認為在電話會議之前我正在查看您的幻燈片中的活躍數字，趨勢與其他經常性數字的差異會有所不同。難道不是這樣嗎？

Well, the recruiting numbers start to add on, right? So it's cumulative over time. So if you're bringing an X amount one month and you're adding another group the next month and next month. And the activity rate actually is those that are stopping being active and those that are joining that are starting to be active. So yes, we didn't specifically talk about that. But what ends up happening is when you've had those 12 quarters of decline in recruiting, there's a tail to it, right? So you actually have less and less people over time. Now we're starting to add in, and that's why we made the comment that one quarter was the beginning of the journey. What ends up happening is that you end up having as you add on consecutive quarters in consecutive months, you'll reach the inflection point, right? Will be the time at which kind of the the consecutive 12 quarters kind of starts to run out. And then all the add on, it's at that point.

嗯，招募人數開始增加，對嗎？所以它是隨著時間的推移而累積的。因此，如果您一個月攜帶 X 數量，並且您將在下個月和下個月添加另一組。活躍率實際上是那些停止活躍的人和那些開始活躍的加入者。所以是的，我們沒有具體談論這一點。但最終會發生的情況是，當招募人數連續 12 個季度下降時，就會有一個尾巴，對嗎？所以隨著時間的推移，你的人數實際上會越來越少。現在我們開始添加，這就是為什麼我們評論說四分之一是旅程的開始。最終發生的情況是，當您在連續幾個月中添加連續季度時，您最終會達到拐點，對嗎？連續12個季度是從什麼時候開始耗盡的。然後所有的添加，就在那時。

And that inflection point and so you're may not be seeing it driving now in the overall total active numbers. But eventually, that point will come.

這個拐點，所以你現在可能不會看到它在總活躍人數中的成長。但最終，這一點將會到來。

Okay. And then I guess my second question is when you talk about 1 billion of debt reduction and then you also have this three times target by 25. It seems to imply that your leverage target post 25 is lower than three times. Is it your goal to ultimately operate with a less less levered balance sheet and 26 and 27 versus your kind of target you've set out there for 25?

好的。然後我想我的第二個問題是，當你談論減少10億債務時，你也有這個到25的三倍目標。這似乎暗示您的槓桿目標在 25 後低於三倍。您的最終目標是否是在資產負債表槓桿率較低的情況下運營，即 26 和 27，而不是您設定的 25？

Well, that's the that's the outcome of what we said. I mean, our goal is situational. It's based on the cost of debt, the tax friction with the debt and what the best use of our cash is. And as we stand here right now, we think is to continue to continue to pay down debt. So the first goal of 3.0 was consistent with where we were historically for gold. And we want investors to know we think we can get there next year, and that's our goal today the new information is, but we don't want to stop there. We actually do want to keep paying down debt not because we want to be below 3.0 because the economics suggest that the best use of our cash is to pay down debt, which will result in us being below three points.

嗯，這就是我們所說的結果。我的意思是，我們的目標是視情況而定的。它是基於債務成本、債務的稅收摩擦以及現金的最佳用途。當我們現在站在這裡時，我們認為是繼續繼續償還債務。所以第一個目標 3.0 與我們歷史上的金牌目標是一致的。我們希望投資者知道我們認為明年可以實現這一目標，這就是我們今天新資訊的目標，但我們不想止步於此。實際上，我們確實希望繼續償還債務，並不是因為我們希望低於 3.0，因為經濟學表明，現金的最佳用途是償還債務，這將導致我們低於 3.0。

Great. I think it's the same way different ways of doing the same place. Okay. Thanks a lot.

偉大的。我認為在同一個地方用不同的方法做事是一樣的。好的。多謝。

Thank you. I'm showing no further questions in queue at this time. I would now like to turn the call over to Mr. Michael Johnson for any closing remarks.

謝謝。目前，我沒有在隊列中顯示任何其他問題。我現在想將電話轉交給邁克爾·約翰遜先生，請他發表結束語。

Hey, thanks, everybody, for your questions. We appreciate you being with us today. Herbalife is a super cool, Super interesting company. I've been here for a long time, and we're all focused and one thing we know we've got to get the top line up in this company where it is, it is goal number one. It is in everybody's DNA inside the company and the ingredients for that growth are with us. We've got the best management team by far in the industry were focused. We're nimble. We're organized.

嘿，謝謝大家的提問。我們感謝您今天與我們同在。康寶萊是一家超酷、超有趣的公司。我在這裡待了很長一段時間，我們都很專注，我們知道有一件事，我們必須在這家公司中佔據一席之地，這是第一目標。它存在於公司內部每個人的 DNA 中，而這種成長的要素就在我們身邊。我們擁有迄今為止業界最優秀的管理團隊。我們很敏捷。我們是有組織的。

We've got a global footprint. Stepfan talked about it. That gives us incredible opportunity. We've got more engagement with distributors today on training, especially with the North American Mastermind program with Eric and Stéphane and many successful distributors joining together to provide higher level of training than ever before. This is going to be something very, very unique and very opportunistic for recruiting it up after 12 quarters of decline. That is a headline for us.

我們的足跡遍及全球。史蒂芬談到了這一點。這給了我們難以置信的機會。今天，我們在培訓方面與經銷商進行了更多的接觸，特別是與 Eric 和 Stéphane 一起開展的北美策劃計劃以及許多成功的經銷商共同提供比以往更高水平的培訓。在經歷了 12 個季度的下滑之後，這將是一個非常、非常獨特、非常有機會的機會。這是我們的頭條新聞。

That's great news. It's a vital lead indicator, these new distributors as they get up to speed the results are going to follow. We're confident in that.

這是個好消息。這是一個重要的領先指標，這些新經銷商一旦加快速度，結果就會隨之而來。我們對此充滿信心。

And as JD mentioned, our financial foundation is strong and improving. Just came in on the question there. If you asked me that question.

正如京東所提到的，我們的財務基礎雄厚且不斷改善。剛剛進來回答這個問題。如果你問我這個問題。

I want to get rid of as much debt as possible. But JD said it incredibly well, which is what's the best use of cash at the moment that we have it in order to make our balance sheet stronger and our investors share even better our new management structure, it's focused on delivering nutrition products and digital tools to work in side, our customer distributors, Eric, our distributor, excuse me, DMOs and our customer preferences. And then I started this way, but I've experienced a lot of Herbalife in 21 years.

我想擺脫盡可能多的債務。但京東說得非常好，這是我們目前擁有現金的最佳用途，為了讓我們的資產負債表更強大，我們的投資者更好地分享我們的新管理結構，它專注於提供營養產品和數字工具與我們的客戶經銷商一起工作，Eric，我們的經銷商，對不起，DMO 和我們的客戶偏好。然後我就這樣開始了，但是21年裡我經歷了許多康寶萊。

And as I said at the beginning, this management team is more focused and more knowledgeable of the field and frankly, almost any management team. We've had some great ones and they know the distributors and they understand the business. That's the benefit of having stuff on inside the Company to make sure every move we make is focused on Distributor Success and building that top line. We're more focused. We're stronger than ever inside the company with the team working closely together the top line growth. I know it's coming, so I want to thank all of our we've got a lot of employees and distributors who listen to this call.

正如我在一開始所說的，這個管理團隊更加專注，對該領域更加了解，坦白說，幾乎任何管理團隊都是如此。我們有一些很棒的人，他們了解經銷商並且了解業務。這就是公司內部有人員的好處，以確保我們所做的每一步都專注於經銷商的成功並建立頂線。我們更專注。我們的團隊比以往任何時候都更強大，團隊緊密合作，實現營收成長。我知道它即將到來，所以我要感謝我們所有傾聽這項呼籲的員工和經銷商。

I want to thank them because this has been a very interesting first part of the year we've laid off some folks. We've reorganized the Company. We've gotten incredibly focused on making sure that every move we make in this Company delivers results. So I want to thank you and of course, our millions of customers for your support. And it wouldn't be me unless I said it at the end. Hey, let's go Herbalife. Thank you, guys. Appreciate it.

我要感謝他們，因為今年的第一部分非常有趣，我們解雇了一些人。我們重組了公司。我們非常專注於確保我們在公司所做的每一步都能取得成果。所以我要感謝您，當然還有我們數百萬客戶的支持。除非我最後說出來，否則那不會是我。嘿，我們去康寶萊吧。謝謝你們，夥計們。欣賞它。

This concludes today's program. Thank you all for participating. You may now disconnect.

今天的節目到此結束。感謝大家的參與。您現在可以斷開連線。