康寶萊 (HLF) 2024 Q3 法說會逐字稿

Good afternoon and thank you for joining the third Quarter 2024 earnings conference call for Herbalife Limited. (Operator Instructions) As a reminder, today's conference call is being recorded. I would now like to turn the call over to Erin Banyas, Vice President and Head of Investor Relations to begin today's call. You may begin.

下午好，感謝您參加康寶萊有限公司 2024 年第三季財報電話會議。（操作員說明）提醒一下，今天的電話會議正在錄音。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。你可以開始了。

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.

謝謝大家，大家下午好，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，我們的主席；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.

在我們開始今天的電話會議之前，我想引導您閱讀我們演示文稿第2 頁以及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，這些聲明都可以在我們網站的投資者關係部分找到。

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.

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。

As is customary, the content of today's call and presentation will be governed by this language. In addition, during today's call 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.

按照慣例，今天的電話會議和演示的內容將使用這種語言。此外，在今天的電話會議中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層認為會影響所參考期間的可比性的某些異常或非經常性項目。

Please refer to our earnings release and presentation materials for additional information regarding these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measure. And with that, I will now turn the call over to Chairman and CEO, Michael Johnson.

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。現在，我將把電話轉給董事長兼執行長邁克爾·約翰遜。

Greetings, everyone, and thank you for joining us on the call today. We reinforced the strength of our financial foundation in the third quarter with both strong cash flows and adjusted EBITDA performance as we continue our journey to grow our sales. Our constant currency sales are basically flat. However, we are seeing positive trends in recruiting as we rebuild the base of our distributors and customers, which is giving us confidence for growth in the future

大家好，感謝您今天加入我們的電話會議。第三季度，我們透過強勁的現金流和調整後的 EBITDA 業績增強了我們的財務基礎，同時繼續我們的銷售成長之旅。我們以固定匯率計算的銷售額基本持平。然而，隨著我們重建經銷商和客戶基礎，我們在招聘方面看到了積極的趨勢，這讓我們對未來的成長充滿信心

So let's take a look at our financial highlights, which John DeSimone will talk about more depth later on our call. On a reported basis, Q3 net sales were $1.2 billion, which is in line with our guidance range. Quarter three adjusted EBITDA of $167 million exceeded our guidance in our adjusted EBITDA margin is up so 70 basis points versus Q3 of 2023.

那麼，讓我們來看看我們的財務亮點，約翰·德西蒙稍後將在我們的電話會議上更深入地討論這些亮點。根據報告，第三季淨銷售額為 12 億美元，符合我們的指導範圍。第三季調整後 EBITDA 為 1.67 億美元，超出了我們的指導，調整後 EBITDA 利潤率比 2023 年第三季成長了 70 個基點。

We saw strong cash generation in the quarter with operating cash flow of $100 million. We paid on $85 billion of debt and further reduced our total leverage ratio to 3.3 times. This is part of our strategy to reduce total debt by $1 billion in under five years. In today's rapidly changing business environment, we understand the importance of evolving to meet the changing needs of the marketplace.

我們看到本季現金產生強勁，營運現金流達 1 億美元。我們償還了 850 億美元的債務，並將總槓桿率進一步降低至 3.3 倍。這是我們在五年內將總債務減少 10 億美元的策略的一部分。在當今瞬息萬變的商業環境中，我們了解不斷發展以滿足市場不斷變化的需求的重要性。

We've modernized our brand, our business opportunity, and our products we've accomplished a lot and we will continue to establish ourselves as the world's premier health and wellness company, community and platform. Our efforts have resulted in very positive trends, including increased distributor engagement, recruitment, and activity.

我們已經實現了我們的品牌、我們的商業機會和我們的產品的現代化，我們已經取得了許多成就，我們將繼續將自己打造為世界首屈一指的健康和保健公司、社群和平台。我們的努力帶來了非常積極的趨勢，包括經銷商參與度、招募和活動的增加。

New distributors joining our business was up 14% year over year worldwide represented our second consecutive quarter of year over year distributor growth following 12 quarters of recruiting decline. Distributors, as you know are sales growth, consistent increase in recruiting has historically been a sign of future sales growth.

全球範圍內加入我們業務的新經銷商年增 14%，這是繼 12 個季度的招募下降之後，我們連續第二個季度實現經銷商同比增長。經銷商，如您所知，是銷售成長，招募的持續增加歷來是未來銷售成長的標誌。

Simply put, bigger sales organization means bigger sales, and we're investing in distributor success in significant new ways. Under Stephan's leadership, we customize our training programs, mobilize our organization to include key account managers, and taken the best ideas from our most successful distributors and shared them with distributors worldwide.

簡而言之，更大的銷售組織意味著更大的銷售額，我們正在以重要的新方式投資於經銷商的成功。在史蒂芬的領導下，我們客製化了培訓計劃，動員我們的組織納入大客戶經理，並從我們最成功的經銷商那裡汲取最佳想法，並與全球分銷商分享。

We're also localizing our marketing plan, enhancing our selling opportunities, make it easier for new distributors to get into the business, begin earning money quickly and sustainably grow their businesses. It's going to take a little time to replenish our distributor base and get new distributors fully trained, motivated, active and productive.

我們也在地化我們的行銷計劃，增加我們的銷售機會，使新經銷商更容易進入該業務，開始快速賺錢並可持續發展他們的業務。需要一些時間來補充我們的經銷商基礎，並讓新經銷商得到充分培訓、積極主動、積極高效。

But that said, momentum is building, more people attended extravaganzas events worldwide this year versus 2023 and with the support of training programs like the Herbalife Premier League and our new diamond developed Mastermind program were more focused on training than ever before

但話雖如此，勢頭正在增強，與2023 年相比，今年有更多的人參加了全球範圍內的盛大活動，並且在康寶萊超級聯賽和我們新開發的鑽石大師計劃等培訓計劃的支持下，比以往任何時候都更重視培訓

Mastermind program kicked off in the US and was led by Stephan and supported by network marketing industry leader, Eric Worre. We plan to expand the program to our distributor leaders in Asia Pacific in January with additional markets to follow later in the year.

Mastermind 計畫在美國啟動，由 Stephan 領導，並由網路行銷產業領導者 Eric Worre 的支持。我們計劃在一月份將該計劃擴展到亞太地區的經銷商領導者，並在今年稍後擴大到其他市場。

This new approach to training and support reinforces the significance of bringing Stephan with his years of field experience into the company as an executive. You're going to hear more from Stephan about the trends we're seeing in the initiatives we have underway in just a minute.

這種新的培訓和支援方法強化了將擁有多年現場經驗的 Stephan 引入公司擔任高階主管的重要性。您很快就會從 Stephan 那裡聽到更多有關我們在我們正在進行的舉措中看到的趨勢的信息。

Furthering our commitment to our distributors into health and wellness. We've achieved a milestone in our Herbalife lifestyle program for Type 2 diabetes prevention with our first group of distributor leaders becoming certified lifestyle coaches. Herbalife is the only direct seller listed on the CDC national registry of recognized diabetes prevention programs.

進一步履行我們對經銷商健康和保健的承諾。我們的康寶萊預防 2 型糖尿病生活方式計劃取得了一個里程碑，我們的第一批經銷商領導者成為了經過認證的生活方式教練。康寶萊是美國疾病管制與預防中心 (CDC) 認可的糖尿病預防計畫國家登記冊上唯一列出的直銷商。

These newly trained distributor lifestyle coaches will now be able to offer the program to customers directly and through healthcare professionals. This is a huge step towards enhancing our leadership and our credibility. We are also enhancing our customer offerings by launching products that broaden our portfolio, expand our customer reach and meet market specific needs, and preferences.

這些新培訓的經銷商生活方式教練現在將能夠直接或透過醫療保健專業人員向客戶提供該計劃。這是增強我們的領導力和信譽的一大進步。我們也透過推出擴大我們的產品組合、擴大客戶範圍並滿足市場特定需求和偏好的產品來增強我們的客戶服務。

In quarter three, we launched a line of Herbalife gels in EMEA, which meet stringent European Food Safety Authority standards. We also launched Herbalife24 prolonged energy gel in EMEA which was formulated alongside world leading sports scientist and is informed sports certified, meaning that it's tested for banned substances.

第三季度，我們在歐洲、中東和非洲地區推出了一系列康寶萊凝膠，符合嚴格的歐洲食品安全局標準。我們還在歐洲、中東和非洲地區推出了 Herbalife24 長效能量膠，該凝膠是與世界領先的運動科學家共同配製的，並通過了體育認證，這意味著它經過了違禁物質測試。

Just as we believe in investing in the health of people through our products, we strongly believe in investing in the health of our planet through our sustainability initiatives, limiting our impact on the planet is more important to the company, our distributors, and our employees as ever before, it's a principle we all live by.

正如我們相信透過我們的產品投資於人們的健康一樣，我們堅信透過我們的永續發展計畫投資於我們地球的健康，限制我們對地球的影響對公司、我們的經銷商和我們的員工來說更為重要一如既往，這是我們所有人賴以生存的原則。

As an example in quarter three, we transitioned Herbalife24 rebuild strength from a plastic canister to modern packaging design in a pouch format for the EMEA region. The key benefits of this transition include reducing the amount of plastic we use, increasing efficiency due to lighter shipping weight, reducing our overall carbon footprint and promoting some favorability.

以第三季為例，我們將 Herbalife24 重建強度從塑膠罐轉變為針對 EMEA 地區的現代包裝設計（袋裝形式）。這項轉變的主要好處包括減少我們使用的塑膠量、因運輸重量減輕而提高效率、減少我們的整體碳足跡並提高一些好感度。

This is part of our broader repackaging effort, which you'll hear more about in the future. And as you know, Herbalife24 is designed for peak performance and is trusted by many of the world's best athletes, including superstars to like our own Cristiano Ronaldo.

這是我們更廣泛的重新包裝工作的一部分，您將來會聽到更多相關資訊。如你所知，Herbalife24 專為最佳表現而設計，受到許多世界上最優秀運動員的信賴，其中包括喜歡我們自己的克里斯蒂亞諾·羅納爾多的超級巨星。

We just concluded our fueling the best campaign, which culminated with the 2024 Summer Olympics and Paralympics. Individual teams and athletes sponsored Herbalife returned home with 11 medals. The Olympic and Paralympic Committees we sponsored from India, Italy, Greece, Mexico, Israel and Vietnam earned a total of 74 medals.

我們剛剛結束了我們的最佳活動，該活動在 2024 年夏季奧運會和殘奧會上達到了頂峰。康寶萊贊助的個人團隊和運動員帶著 11 面獎牌回國。我們贊助的印度、義大利、希臘、墨西哥、以色列和越南的奧委會和殘奧委會總共獲得了74面獎牌。

We're super proud of our global Herbalife athletes and congratulate all of them on their success. We're also really proud of the LA galaxy and our long-term partnership there. In fact, Herbalife is the first and longest running jersey sponsor in major league soccer. And our products are deeply embedded in the nutrition program of the galaxy players. Their performance is because of our products and their will.

我們為全球康寶萊運動員感到非常自豪，並祝賀他們所有人的成功。我們也為洛杉磯銀河以及我們在那裡的長期合作關係感到非常自豪。事實上，康寶萊是美國職業足球大聯盟第一個也是歷史最悠久的球衣贊助商。我們的產品已深深融入銀河系玩家的營養計畫中。他們的表現是因為我們的產品和他們的意願。

Our worldwide distributor community is excited about the playoffs. They're pulling hard for the galaxy and their quest for the MLS Cup. Herbalife was also among the first to recognize the power of women in sports and we have sponsored female athletes and teams for nearly 20 years.

我們的全球經銷商社群對季後賽感到興奮。他們正在為銀河係而努力，並追求美國職業足球大聯盟杯。康寶萊也是最早認識到女性在運動中的力量的公司之一，近 20 年來我們一直贊助女性運動員和團隊。

We are better leveraging the sports sponsorships who campaigns like our New Her campaign, which highlights our long time commitment campaign kicked off this month and you can check it out in our US social media channels.

我們更好地利用了像我們的“New Her”活動這樣的體育贊助活動，這突出了我們本月啟動的長期承諾活動，您可以在我們的美國社交媒體渠道中查看。

The campaign will launch globally in March of 2025. In conjunction with International Women's Day. Women make up a price roughly 70% of direct selling worldwide, and we want to inspire more women to use our products, join our business and become part of our wonderful community.

該活動將於 2025 年 3 月在全球推出。與國際婦女節同時舉行。女性佔全球直銷價格的約 70%，我們希望激勵更多女性使用我們的產品、加入我們的業務並成為我們美好社群的一部分。

Our community of distributors and customers is one of the most powerful aspects of Herbalife to provides us with a unique opportunity to bring people together in person. The power of this community was evident when more than 49,00 Herbalife independent distributors, fitness enthusiasts, and employees came together on September 21 and set a new Guinness World Record title for the largest high intensity interval training class across multiple veterans.

我們的經銷商和客戶社群是康寶萊最強大的方面之一，為我們提供了將人們面對面聚集在一起的獨特機會。9 月21 日，超過49,00 名康寶萊獨立經銷商、健身愛好者和員工齊聚一堂，為多名退伍軍人舉辦的規模最大的高強度間歇訓練課程創造了新的吉尼斯世界紀錄，這個社區的力量顯而易見。

Also more than 11,000 people from all over the world who joined to work out virtually via Herbalife YouTube live stream. While other companies today are looking for ways to eliminate people from their business that Herbalife, we want to bring more people in where inclusive, we believe in the power of all people, and we're providing them with the opportunity to get healthy, make money and join a community. Once they join us, we're doing more than ever to help them succeed.

還有來自世界各地的 11,000 多人透過康寶萊 YouTube 直播參加虛擬鍛鍊。雖然今天的其他公司正在尋找方法將人員從康寶萊的業務中剔除，但我們希望讓更多的人參與到包容性的工作中，我們相信所有人的力量，我們為他們提供獲得健康、做出貢獻的機會。一旦他們加入我們，我們就會比以往任何時候都更努力地幫助他們取得成功。

So let me turn it over to Stephan who will give you more details about how we're doing it.

因此，讓我將其轉交給史蒂芬，他將為您提供有關我們如何做到這一點的更多詳細資訊。

Thank you, Michael. As Michael highlighted, one of the key areas of our focus since the beginning of the year has been to rebuild and strengthen our base of distributors bigger base, bigger sales. The first step in this process was to successfully reversed the year-over-year declines in new distributor trends we experienced for three years. Today, we are pleased to report our second consecutive quarter of year-over-year growth and a number of new distributors joining Herbalife.

謝謝你，麥可。正如邁克爾所強調的那樣，自今年年初以來，我們重點關注的關鍵領域之一是重建和加強我們的經銷商基礎，更大的基礎，更大的銷售。這個過程的第一步是成功扭轉三年來新經銷商趨勢逐年下降的趨勢。今天，我們很高興地報告我們連續第二個季度同比增長，並且許多新經銷商加入康寶萊。

As we look at slide 8, with multiple tables and data, let me summarize the key takeaways. Number one, new distributor growth in Q3 continued across all markets except China, which I'll cover in a minute. Number two, leadership levels show significant year over year increases in recruiting. And number three, our base of active non-sales leaders is steadily improving quarter by quarter.

當我們查看投影片 8 時，其中包含多個表格和數據，讓我總結一下關鍵要點。第一，第三季新經銷商的成長在除中國以外的所有市場中持續成長，我將在一分鐘內介紹這一點。第二，領導階層的招募數量逐年顯著增加。第三，我們的活躍非銷售領導者基礎正在逐季穩定改善。

Let's jump in. The table on the upper left highlights the percentage growth in the number of new distributors by region on both in the quarter to date and a year-to-date basis. Moving to the right side of the slide, you see by marketing plan level, the quarter-to-date and year-to-date percentage of growth in the number of new distributors each of the marketing plan levels are bringing in.

讓我們跳進去吧。左上角的表格突顯了本季迄今和年初至今各地區新經銷商數量的成長百分比。移至投影片右側，您可以透過行銷計畫層級看到每個行銷計畫層級引入的新經銷商數量的季度至今和年初至今的成長百分比。

This is a positive sign that our top distributors are leading the way as they have the longest tenure, the largest sales organizations, and know how to support new distributors with the best go-to-market strategies. At the bottom of the slide, we present by quarter the year over year percentage change in the total number of active non-sales leaders, which also includes members and markets without separate distributor and preferred customer programs.

這是一個積極的跡象，表明我們的頂級經銷商正在引領潮流，因為他們擁有最長的任期、最大的銷售組織，並且知道如何透過最佳的市場進入策略來支持新經銷商。在幻燈片的底部，我們按季度展示了活躍的非銷售領導者總數的同比百分比變化，其中還包括沒有單獨分銷商和首選客戶計劃的會員和市場。

The summary is based on the regional supplemental metrics posted under the Investor Relations section of our website. As you can see in Q1 of 2023, every region, except for APAC was experiencing year-over-year declines in active non-sales leaders. The declining number of total active non-sales leaders was largely due to the extended negative trend in recruiting.

此摘要基於我們網站投資者關係部分下發布的區域補充指標。正如您在 2023 年第一季所看到的，除亞太地區外，每個地區的活躍非銷售領導者人數都在同比下降。活躍的非銷售領導者總數的下降主要是由於招聘方面的負面趨勢持續存在。

However, as you will see animals, every region there have been quarterly improvements since Q1 of 2023. Overall, the company went from a declining base of active non-sales leaders to a growing base in Q2 and Q3 of 2024.

然而，正如您將看到的動物一樣，自 2023 年第一季以來，每個地區都出現了季度改善。總體而言，該公司的活躍非銷售領導者基數從下降變為 2024 年第二季和第三季的成長。

On this table, I want to draw your attention to North America. For multiple quarters of 26% year over year declines in active non-sales leaders. We have now had two consecutive quarters of near flat declines. While the turnaround is taking longer, the improvements we are seeing in the number of new distributors coming in and the active non-sales leaders trends are highly encouraging. I will talk later about a new initiative we launched in August to further support the North American market.

在這張桌子上，我想提請大家注意北美。多個季度活躍的非銷售領先者年減 26%。我們現在已經連續兩個季度幾乎持平下降。雖然週轉需要更長的時間，但我們看到新經銷商數量的改善以及活躍的非銷售領導者的趨勢非常令人鼓舞。稍後我將討論我們在 8 月推出的一項新舉措，以進一步支持北美市場。

The overall takeaway from this slide is that consistent growth of new distributors leads to a growing base of non-sales leaders who are the foundation of our business. This foundation leads to new sales leader growth drives customer and distributor growth and ultimately grow sales volume.

這張投影片的總體結論是，新經銷商的持續成長導致非銷售領導者群體不斷擴大，他們是我們業務的基礎。這一基礎導致新的銷售領導者的成長，推動客戶和分銷商的成長，並最終增加銷售量。

As I've mentioned before, one quarter of new distributor growth isn't enough to offset 12 quarters of year-over-year declines. Normal two consecutive quarters of new distributor growth as we just experienced. However, we are encouraged to see that our efforts are starting to pay off just as we have reached the inflection point of our distributor base going from declining to growing, we are confident as we continue this positive momentum that the inflection point to sales volume growth is on the horizon.

正如我之前提到的，四分之一的新經銷商成長不足以抵消 12 個季度的年減。正如我們剛剛經歷的那樣，新經銷商連續兩個季度成長是正常的。然而，令人鼓舞的是，我們的努力開始得到回報，正如我們已經達到經銷商基礎從下降到增長的拐點一樣，我們有信心繼續保持這種積極的勢頭，拐點將實現銷量增長即將到來。

Let's talk about China. Over the past year, we recognized the need for a stronger customer focused program to drive sustainable growth. Following the April launch of the Herbal Life Premier League, which was originally focused on acquiring 20 new preferred customers, our China market launched its first ever customer loyalty program in June.

我們來談談中國吧。在過去的一年裡，我們認識到需要更強大的以客戶為中心的計劃來推動永續成長。繼 4 月推出 Herbal Life Premier League（最初專注於獲取 20 個新的優先客戶）之後，我們的中國市場於 6 月推出了首個客戶忠誠度計畫。

These initiatives prioritized new customer acquisition over new sales representatives resulting in a significant a decrease in the number of new sales representatives joining the business in the quarter. We have since modified the qualification for the Herbalife Premier League in China to include both preferred customers and new sales representatives.

這些措施將新客戶獲取優先於新銷售代表，導致本季加入業務的新銷售代表數量大幅減少。此後，我們修改了康寶萊超級聯賽在中國的資格，以包括優先客戶和新的銷售代表。

All the decline in new sales representatives contributed to a decline in quarterly sales. We believe our focus on a customer centric strategy will yield long-term benefits, and it is already showing positive initial results. In Q3, we saw 65% increase in new preferred customers compared to Q3 2023. Additionally, the percentage of these customers making purchases has increased significantly compared to last year.

所有新銷售代表的減少都導致了季度銷售額的下降。我們相信，我們對以客戶為中心的策略的關注將產生長期利益，並且它已經顯示出積極的初步成果。與 2023 年第三季相比，第三季新優先客戶數量增加了 65%。此外，與去年相比，這些客戶的購買比例也顯著增加。

We see China as a major growth opportunity and aim to replicate the results we've had in India where a successful preferred customer program has not only built a solid customer base but also driven high conversion rates of preferred customers to distributors. Pivoting now to training and support programs.

我們將中國視為一個主要的成長機會，並旨在複製我們在印度的成果，在印度，成功的優先客戶計畫不僅建立了堅實的客戶基礎，而且還提高了優先客戶向分銷商的高轉化率。現在轉向培訓和支援計劃。

We recently launched the Diamond Development Mastermind program in North America focused on top level leadership in our company. While training has historically been distributor to distributor, which is vitally important, we've embarked on a new company to distributor training and support program, leveraging my experience in the field and with the support of network marketing industry leader, Eric Worre.

我們最近在北美啟動了鑽石開發策劃者計劃，重點關注我們公司的高層領導。雖然培訓歷來是經銷商對經銷商的培訓，這一點至關重要，但我們利用我在該領域的經驗以及網路行銷行業領導者Eric Worre 的支持，開始了一項新的公司對經銷商的培訓和支援計劃。

This program, which has approximately 800 distributor leaders, participating marks the first ever training of its kind for Herbalife. This is an ongoing program that focuses on mindset, personal and professional growth, business flows, and systems and leadership development.

該計畫約有 800 名經銷商領導人參加，這是康寶萊首次開展此類培訓。這是一個持續進行的項目，重點是心態、個人和職業成長、業務流程以及系統和領導力發展。

Other elements of this program include peer-to-peer accountability groups and account management model. This creates a connection and continuous feedback loop that provides insights to align our commercial strategy and support our distributors needs.

此計劃的其他要素包括點對點問責小組和帳戶管理模型。這創建了一個連結和持續的回饋循環，為調整我們的商業策略和支援我們的經銷商的需求提供了見解。

The feedback in North America has been overwhelmingly positive and we are seeing a significant increase in the energy and engagement of our participants. The enthusiasm for this program from our distributor leaders is spreading globally. For this reason, we are accelerating our rollout and in January, we'll be launching the program to most Asia Pacific markets with additional regions to follow later in the year.

北美的回饋非常積極，我們看到參與者的活力和參與度顯著增加。我們的經銷商領導者對該計劃的熱情正在全球蔓延。出於這個原因，我們正在加速推出，我們將在一月份向大多數亞太市場推出該計劃，並在今年稍後向其他地區推出。

This is only one initiative amongst many that we are focused on to deliver on our commitment to return to sales growth. And with that, I'll turn it over to John.

這只是我們致力於實現恢復銷售成長承諾的眾多舉措中的一項。有了這個，我會把它交給約翰。

Thank you, Stephan. I'll begin with our Q3 financial highlights on slide 10, before getting into more details. Overall Q3 net sales were within our range of expectations, whereas adjusted EBITDA dollars and margins, operating cash flows and debt reduction were all significantly above expectations.

謝謝你，史蒂芬。我將從幻燈片 10 上的第三季財務亮點開始，然後再介紹更多詳細資訊。第三季整體淨銷售額在我們的預期範圍內，而調整後的 EBITDA 美元和利潤率、營運現金流和債務削減均顯著高於預期。

Therefore, given our strong operating performance in the quarter, we are raising our adjusted EBITDA expectations for the year. Looking at some of the details of the third quarter, net sales were $1.2 billion, down 3.2% versus Q3 of last year.

因此，鑑於我們本季強勁的經營業績，我們上調了今年調整後的 EBITDA 預期。從第三季的一些細節來看，淨銷售額為 12 億美元，比去年第三季下降 3.2%。

Reported net sales were negatively impacted by 290 basis points of FX headwinds year-over-year. On a constant currency basis, net sales were nearly flat versus Q3 2023. Our third quarter adjusted EBITDA was $167 million and exceeded our guidance range of $125 million to $155 million. Adjusted EBITDA margin was 13.4%, up 70 basis points versus Q3 of 2023.

報告的淨銷售額較去年同期受到外匯逆風 290 個基點的負面影響。以固定匯率計算，淨銷售額與 2023 年第三季幾乎持平。我們第三季調整後的 EBITDA 為 1.67 億美元，超出了我們 1.25 億至 1.55 億美元的指導範圍。調整後 EBITDA 利潤率為 13.4%，較 2023 年第三季上升 70 個基點。

Q3 marks yet another quarter of strong operating and cost saving initiatives. CapEx in the third quarter was $27 million below the low end of our guidance range of $35 million to $45 million. A portion of the underspend was due to timing of certain projects being shifted to Q4. In addition, we incurred approximately $3 million of capitalized SaaS implementation costs in the quarter.

第三季標誌著又一個季度強勁的營運和成本節約措施。第三季的資本支出比我們指引 3,500 萬至 4,500 萬美元的下限低了 2,700 萬美元。部分支出不足是由於某些項目的時間轉移到了第四季度。此外，本季我們還產生了約 300 萬美元的資本化 SaaS 實施成本。

Q3 gross profit margins improved to 78.3%, up 200 basis points compared to the third quarter of last year. The increase in gross profit margin was primarily due to the pricing actions we have taken over the past year which drove approximately 110 basis points of benefit, along with an additional 110 basis points of favorability from reduced input costs, mainly related to manufacturing efficiencies and lower raw material costs.

第三季毛利率改善至78.3%，較去年第三季提高200個基點。毛利率的增加主要是由於我們在過去一年中採取的定價行動，帶來了約110 個基點的收益，同時由於投入成本降低而帶來了110 個基點的額外收益，主要與製造效率和降低成本有關。

Unfavorable sales mix and an approximately 30 basis points negative impact on margin year-over-year. Q3 diluted EPS of $0.46, with adjusted diluted EPS of $0.57, which included a $0.10 FX headwind versus Q3 of 2023. Q3 diluted EPS was favorably impacted by approximately $4 million pretax gain related to the sales of our office building in Torrance, California, which is excluded from our adjusted results.

不利的銷售組合以及對利潤率同比約 30 個基點的負面影響。第三季稀釋後每股收益為 0.46 美元，調整後稀釋後每股收益為 0.57 美元，其中包括與 2023 年第三季相比 0.10 美元的外匯逆風。第三季稀釋後每股收益受到與我們位於加州托倫斯辦公大樓銷售相關的約 400 萬美元稅前收益的有利影響，該收益不包括在我們的調整後業績中。

Our Q3 adjusted effective tax rate was 22.3%, down from 30.3% for the third quarter of 2023, which drove an approximate $0.06 favorable impact to adjusted diluted EPS. The lower effective tax rate in 2024 was primarily due to changes in geographic mix of income, partially offset by the tax impact of elevated interest expense following our recent debt refinancing. We continue to expect our full year of 2024 adjusted effective tax rate to be approximately 30%.

第三季調整後有效稅率為 22.3%，低於 2023 年第三季的 30.3%，對調整後稀釋每股收益產生了約 0.06 美元的有利影響。2024 年有效稅率較低主要是由於收入地理結構的變化，部分被我們最近的債務再融資後利息支出增加的稅收影響所抵消。我們仍預期 2024 年全年調整後有效稅率約為 30%。

We have strong cash generation in the quarter. Operating cash flows were $100 million, which included approximately $28 million of cash payments related to the restructuring program. In addition, we received net proceeds of approximately $38 million related to the sales of our current office building in July, which are incremental to the operating cash flows.

本季我們的現金產生能力強勁。營運現金流為 1 億美元，其中包括與重組計畫相關的約 2,800 萬美元現金支付。此外，我們還收到了與 7 月出售現有辦公大樓相關的約 3,800 萬美元的淨收益，這是營運現金流的增量。

We have until the end of November of 2025 to move out of that building, which gives us adequate time to read locate our employees as well as our R&D and quality labs to other office locations in Southern California. We expect to incur about $8 million of one-time capital cost next year do so. And as Michael noted earlier, we paid down $85 million of debt in the quarter.

我們必須在 2025 年 11 月底之前搬出大樓，這讓我們有足夠的時間來確定我們的員工以及研發和品質實驗室到南加州其他辦公地點的位置。我們預計明年這樣做將產生約 800 萬美元的一次性資本成本。正如邁克爾早些時候指出的，我們在本季度償還了 8500 萬美元的債務。

Credit Agreement EBITDA for the third quarter was $197 million, and our total leverage ratio is down to 3.3 times as at September 30 from 3.5 times at the end of June. For additional details regarding adjustments between adjusted EBITDA and credit agreement, EBITDA as well as the calculation of our total leverage ratio. Please refer to our presentation appendix and the earnings press release.

第三季信貸協議 EBITDA 為 1.97 億美元，我們的總槓桿率從 6 月底的 3.5 倍降至 9 月 30 日的 3.3 倍。有關調整後 EBITDA 與信貸協議、EBITDA 之間調整以及我們總槓桿率計算的更多詳細資訊。請參閱我們的示範附錄和收益新聞稿。

Turning to slide 11, we see the drivers of our year over year net sales performance. On a reported basis, net sales were down 3.2% year over year and nearly flat on a constant currency basis. Overall volumes declined by 5.4% year over year, leading to an approximately $70 million headwind, which was partially offset by approximately $62 million of pricing benefits.

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 3.2%，以固定匯率計算幾乎持平。總銷量年減 5.4%，導致約 7,000 萬美元的逆風，但部分被約 6,200 萬美元的定價優勢所抵銷。

FX was approximately $37 million headwind year over year or 290 basis points in line with the approximate 300 basis point headwind we anticipated in July. Turning to slide 12, we had the regional net sales results for the third quarter. On a local currency basis, Latin America, India and Asia Pacific all reported net sales growth in the quarter with FX negatively impacting each of these regions on a reported basis.

外匯同比逆風約為 3700 萬美元，即 290 個基點，與我們 7 月預計的約 300 個基點逆風一致。轉向投影片 12，我們看到了第三季的區域淨銷售結果。以當地貨幣計算，拉丁美洲、印度和亞太地區均報告本季淨銷售額成長，據報告，外匯對這些地區均產生了負面影響。

In Latin America, net sales were down 2% on a reported basis, while up 9% on a local currency basis. Favorable year over year pricing was more than offset by unfavorable FX headwinds, primarily due to the Mexican peso and continued devaluation of the Argentinean peso, with overall volumes in the region relatively flat.

在拉丁美洲，按報告計算的淨銷售額下降了 2%，而以當地貨幣計算則增加了 9%。有利的同比定價被不利的外匯逆風所抵消，主要是由於墨西哥比索和阿根廷比索的持續貶值，該地區的總體交易量相對持平。

We continue to take real price increases in Argentina to offset the FX headwinds. On a reported basis, Mexico's net sales were down 4% year over year, whereas on a local currency basis, net sales were up 6% year over year, driven by 5.25% price increase in March 2024 partially offset by slightly lower volumes.

我們繼續採取阿根廷的實際價格上漲來抵消外匯不利因素。根據報告，墨西哥的淨銷售額年減 4%，而以當地貨幣計算，淨銷售額年增 6%，這是由於 2024 年 3 月價格上漲 5.25%，部分被銷量略有下降所抵消。

It's worth noting the overall impact of the 5% price reduction that most markets in the regions implemented in Q2, excluding Mexico, was not material to the Q3 year over year pricing impact as a majority of these markets, we also instituted price increases in Q1 of 2024. However, we believe the Q2 price changes may have positively contributed to the year-over-year volume increases in several of the markets in Q3 of this year.

值得注意的是，第二季度除墨西哥外的大多數市場實施的 5% 降價的總體影響對第三季度的同比定價影響並不重要，因為大多數市場我們還在第一季制定了價格上漲2024年。然而，我們認為第二季的價格變化可能對今年第三季多個市場的銷售量年增率做出了積極貢獻。

EMEA net sales were relatively flat year over year, with local currency net sales up 2% favorable year-over-year Pricing and sales mix impacts were mostly offset by volume declines and unfavorable FX headwinds. Year-over-year results were generally mixed across the markets in the region. In Asia Pacific, net sales were down 1% year over year on a reported basis, while up 1% on a local currency basis.

歐洲、中東和非洲地區的淨銷售額較去年同期相對持平，當地貨幣淨銷售額年增 2%，定價和銷售組合的影響大部分被銷量下降和不利的外匯逆風所抵消。該地區各市場的年比業績普遍好壞參半。在亞太地區，以報告資料計算，淨銷售額年減 1%，而以當地貨幣計算，淨銷售額成長 1%。

In India, net sales were up 1% on a reported basis and 3% in local currency, with pricing benefits more than offsetting a slight decline in volumes year over year. In North America, net sales were down 6% year over year, a slight improvement from the Q2 2024 year over year decline versus the second quarter in a row, we have seen improvement in the year-over-year trends.

在印度，淨銷售額按報告計算增長了 1%，以當地貨幣計算增長了 3%，定價優勢足以抵消銷量同比的小幅下降。在北美，淨銷售額年減 6%，與 2024 年第二季的年減幅相比，連續第二季略有改善，我們看到年比趨勢有所改善。

As Stephan noted in his opening remarks, our new distributor metrics are encouraging and we have several new initiatives in the region that are beginning to gain traction. We believe the gradual improvement is a positive indication of our path back to growth.

正如史蒂芬在開場白中指出的那樣，我們的新經銷商指標令人鼓舞，我們在該地區推出了幾項新舉措，這些舉措已開始受到關注。我們相信逐步改善是我們恢復成長之路的正面跡象。

China net sales decreased 16% year-over-year and were down 17% on a local currency basis. As Stephan noted, we are seeing a significant increase in the number of preferred customers signing up following the launch of the new customer loyalty program and the Herbalife Premier League, which led to less focus on sales representative improvement.

中國淨銷售額年減 16%，以當地貨幣計算下降 17%。正如史蒂芬指出的那樣，在推出新的客戶忠誠度計劃和康寶萊超級聯賽後，我們看到簽約的優先客戶數量顯著增加，這導致對銷售代表改進的關注減少。

The China team has made some changes to the Herbalife Premier League qualification requirements during the third quarter to encourage more recruitment of both customers and sales representatives. We continue to be encouraged by the number of new customers joining. However, we need time to observe the customer lifetime earth performance and the flow from PC to sales representative to assess how it will translate to sustainable growth.

中國團隊在第三季對康寶萊超級聯賽的資格要求進行了一些更改，以鼓勵更多地招募客戶和銷售代表。新客戶的加入數量持續讓我們感到鼓舞。然而，我們需要時間來觀察客戶生命週期的地球表現以及從個人電腦到銷售代表的流程，以評估它將如何轉化為永續成長。

Moving to slide 13, we see the drivers of our year over year increase in our adjusted EBITDA. Q3 adjusted EBITDA was $167 million with a margin at 13.4%, up 70 basis points year over year. Looking at the bridge, the impact of the gross profit margin improvement can be seen in the benefits of price increases and favorable input costs partially offset by lower volumes and sales mix.

轉到投影片 13，我們看到調整後 EBITDA 年成長的驅動因素。第三季調整後 EBITDA 為 1.67 億美元，利潤率為 13.4%，較去年同期成長 70 個基點。從橋樑上看，毛利率改善的影響可以從價格上漲和有利的投入成本的好處中看出，部分被銷售和銷售組合的下降所抵消。

Employee bonus accrual continues to be a headwind of around $16 million year over year and consistent with the expectations we communicated in Q1 of this year. Given the restructuring program and bonus level accrued already as of September, we don't expect additional unfavorable bonus impact in Q4.

員工應計獎金仍然是同比約 1600 萬美元的逆風，這與我們在今年第一季傳達的預期一致。鑑於截至 9 月已經提列的重組計劃和獎金水平，我們預計第四季度不會出現額外的不利獎金影響。

Technology costs were up approximately $5 million year over year, primarily due to increased SaaS hosting fees. Q3 2024 adjusted EBITDA benefited from $5 million of China's government grant income recognized in the quarter with no similar income in Q3 2023. And as I stated last quarter, we had a large distributor event that took place in the third quarter of this year, which was held in the fourth quarter of last year, driving a $7.2 million headwind to adjusted EBITDA in Q3 2024, which is included in the other bucket.

技術成本年增約 500 萬美元，主要是由於 SaaS 託管費用增加。2024 年第三季調整後 EBITDA 受惠於本季確認的 500 萬美元中國政府補助收入，而 2023 年第三季則沒有類似收入。正如我上季度所說，我們在今年第三季舉辦了一場大型經銷商活動，該活動於去年第四季舉行，為2024 年第三季調整後EBITDA 帶來了720 萬美元的逆風，其中包括在另一個桶子裡。

Unfavorable year over year FX movements led to an hour approximately $14 million a year-over-year reduction in adjusted EBITDA. Moving to slide 14, I'll provide an update on our capital structure. During the quarter, we repaid $85 million of debt, $5 million of the term loan fee, scheduled amortization payments and $80 million on our revolving credit facility.

不利的同比匯率變動導致調整後 EBITDA 每小時年減約 1,400 萬美元。轉到投影片 14，我將提供有關我們資本結構的最新資訊。本季度，我們償還了 8,500 萬美元的債務、500 萬美元的定期貸款費用、預定攤銷付款以及 8,000 萬美元的循環信貸額度。

As of September 30, the revolving credit facility was fully undrawn. As I noted earlier, we further reduced our total leverage ratio to 3.3 times as of September 30, and we believe we are on track to reduce our total leverage ratio to 3 times by the end of 2025 following the repayment of the 2025 notes.

截至9月30日，循環信貸額度已全數未提領。正如我之前指出的，截至 9 月 30 日，我們將總槓桿率進一步降低至 3.3 倍，並且我們相信，在償還 2025 年票據後，到 2025 年底，我們預計將總槓桿率降低至 3 倍。

In accordance with the terms of our credit facility, we plan to repay at least $62 million of the 2025 notes by the beginning of March next year with the remainder of the 2025 notes to be paid at or prior to the September 2025 maturity.

根據我們的信貸安排條款，我們計劃在明年 3 月初之前償還至少 6,200 萬美元的 2025 年票據，其餘的 2025 年票據將在 2025 年 9 月到期時或之前支付。

Over the next four plus years, we plan to repay $1 billion of debt, including the $85 million repaid in the quarter. Moving to slide 15, we will review our outlook for the fourth quarter and full year. For the fourth quarter, we expect net sales to be in the range of up 1% to down 3% year over year. We expect adjusted EBITDA to be in the range of $105 million to $135 million.

在未來四年多的時間裡，我們計劃償還 10 億美元的債務，其中包括本季償還的 8,500 萬美元。轉到投影片 15，我們將回顧第四季和全年的展望。對於第四季度，我們預計淨銷售額將年增 1% 至下降 3%。我們預計調整後的 EBITDA 將在 1.05 億美元至 1.35 億美元之間。

And our planned capital expenditures for the fourth quarter are in the range of $25 million to 45 million. In addition, we expect Q4 capitalized SaaS implementation costs to be approximately $7 million, which is incremental to our planned CapEx. Based on our results through the third quarter and the outlook for the remainder of the year, we have updated our guidance for the full year 2024.

我們第四季計畫的資本支出在2500萬至4500萬美元之間。此外，我們預計第四季度資本化 SaaS 實施成本約為 700 萬美元，這是我們計劃的資本支出的增量。根據我們第三季的業績和今年剩餘時間的前景，我們更新了 2024 年全年的指導。

For our full year net sales guidance is now in the range of down 1% to down 2% versus last year. We are raising our expectations for the full year adjusted EBITDA to a range of $590 million to $620 million, and we reduced the top end of our capital expenditure range to now be between $120 million to $140 million. And one last comment before we move to Q&A.

我們的全年淨銷售額指導目前比去年下降 1% 至 2%。我們將全年調整後 EBITDA 的預期提高至 5.9 億至 6.2 億美元，並將資本支出上限降至 1.2 億至 1.4 億美元。在我們進入問答環節之前，還有最後一則評論。

Herbalife, even with our near-term elevated capital expenditures for technology, continues to generate significant cash flows. And we plan to use these cash flows to reduce debt by $1 billion over the next four plus years and believe we can accomplish this goal by the end of 2028.

儘管我們近期增加了技術資本支出，康寶萊仍繼續產生大量現金流。我們計劃在未來四年多的時間內利用這些現金流減少 10 億美元的債務，並相信我們可以在 2028 年底之前實現這一目標。

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 Securities

Jeff Van Sinderen 與 B. Riley 證券公司

Hi everyone, and let me say congratulations on the distributor ads. It's great to see. Wonder if you can provide a little more color on what you're seeing in the underlying drivers related to sales volume in North America. Realize it may be early to get performance out of the new distributors and then maybe speak to what you think needs to happen to turn around the overall sales volumes in the major regions where they're negative. What you think the time frame might be for that to materialize considering the recent distributor has?

大家好，請容許我對經銷商廣告表示祝賀。很高興看到。想知道您是否可以提供更多關於您所看到的與北美銷量相關的潛在驅動因素的資訊。意識到現在了解新經銷商的業績可能還為時過早，然後也許可以談談您認為需要採取什麼措施才能扭轉主要地區的整體銷量，因為這些地區的總體銷量為負。考慮到最近的經銷商，您認為實現這一目標的時間框架是多少？

Yes, Jeff, thank you for that. So now, I think you see on the active non-sales leaders metrics that it's improving quarter over quarter. So that's driven obviously by new distributors growth really that started at the beginning of this year and the last two quarters have been very strong. So this is our first focus, is building the foundation.

是的，傑夫，謝謝你。所以現在，我認為您在活躍的非銷售領導者指標上看到它正在逐季改善。因此，這顯然是由今年年初開始的新經銷商成長推動的，過去兩個季度的成長非常強勁。所以這是我們的第一個重點，就是打基礎。

And we know that the models that people are using and how important nutrition clubs are for us here in the United States, it's really helping the distributors to adjust their models to be able to be more productive and effective at what they're doing. And so the mastermind, which is one of the initiatives that we've taken is the first time that we've ever taken the level of support with the leaders who are really the ones that have the nutrition clubs.

我們知道人們正在使用的模型以及營養俱樂部對我們在美國的重要性，它確實有助於經銷商調整他們的模型，以便能夠提高他們所做的事情的生產力和效率。因此，策劃者，這是我們採取的舉措之一，也是我們第一次獲得真正擁有營養俱樂部的領導者的支持。

It's mostly in our top level leadership and actually working with them directly and helping them. And the Mastermind, the first 90 days is really focused on DMOs and making sure that they've got a business flow that brings in more customers, more distributors that have models that duplicate as effectively as possible.

這主要是在我們的高層領導中，實際上直接與他們合作並幫助他們。策劃者，前 90 天真正關注的是 DMO，並確保他們擁有能夠吸引更多客戶和更多分銷商的業務流程，這些分銷商擁有盡可能有效地複製的模型。

So it's kind of a grassroots with the leadership. There's an overall distributor base that needs to get rebuilt and the focus is on the productivity and making sure that we're supporting them, which is another part of the key account management program is to be in touch with these 800 or so leaders on a weekly, monthly basis and having them have a direct input to the company, sharing what they're experiencing to be able to support them.

所以這是一種有領導的基層。有一個整體分銷商基礎需要重建，重點是生產力並確保我們為他們提供支持，這是大客戶管理計劃的另一部分，就是與這 800 名左右的領導者保持聯繫每週、每月，讓他們直接向公司提出意見，分享他們的經歷，以便能夠為他們提供支持。

So on the general comment, it really is what we presented that we are rebuilding a base and every market, every region has its very specific things that we need to focus on. And we are just going to focus on rebuilding that base, supporting the distributors through all of our programs, implementing new ways, like we're doing with the Herbalife Premier League and with the Mastermind program to support them, just to continue to go out there and grow and be effective at what they're doing.

因此，就一般性評論而言，這確實是我們所提出的，我們正在重建一個基地，每個市場、每個地區都有我們需要關注的非常具體的事情。我們將專注於重建這個基礎，透過我們所有的計畫來支持經銷商，實施新的方式，就像我們對康寶萊超級聯賽所做的那樣，並透過 Mastermind 計畫來支持他們，只是為了繼續走出去在那裡成長並有效地完成他們正在做的事情。

So in terms of timeline, we as mentioned, we've gotten to a point where the base is not decreasing, it's increasing. The speed at which that's going to increase is going to have a direct impact on how quickly we return to volume growth and sales growth. And really, there's no it's a quarter by quarter, we'll know more next quarter when we get together. Thank you.

因此，就時間表而言，正如我們所提到的，我們已經達到了基數沒有減少而是增加的地步。成長的速度將直接影響我們恢復銷售成長和銷售成長的速度。事實上，這不是一個季度一個季度的，下個季度我們聚在一起時我們會知道更多。謝謝。

Okay, thanks. And then if we could turn to the gross margin outlook for a minute, I'm just wondering what your latest plans are for further price increases. What is kind of the latest you're seeing on input costs? And maybe you can remind us when the year-over-year comparisons might get a little bit more challenging on price and input costs?

好的，謝謝。然後，如果我們能談談毛利率前景，我只是想知道你們最新的進一步提價計劃是什麼。您所看到的最新投入成本狀況如何？也許您可以提醒我們，何時同比比較在價格和投入成本方面可能更具挑戰性？

Yes. So just from a general outlook standpoint, gross profit, I don't expect to change the rest of this year from where we are right now nothing meaningful and probably nothing meaningful next year at this point. In terms of price increases, most of the price increases for the year are already done. There's a market or two that's left to do, India's left to do.

是的。因此，僅從整體前景的角度來看，毛利，我預計今年剩餘時間不會改變我們現在沒有任何意義的情況，明年可能也沒有意義。漲價方面，年內大部分漲價已經完成。還有一兩個市場要做，印度要做。

And then we'll deal with next year when we roll out our plans a couple of months. We haven't announced anything specific next year. It'll depend on a lot of different circumstances, including whether we roll out some of the South American changes that we've made to other markets and that's very possible.

然後我們將在幾個月後推出我們的計劃時處理明年的問題。我們還沒有宣布明年的任何具體消息。這將取決於許多不同的情況，包括我們是否將我們對其他市場所做的一些南美改變推出，這是很有可能的。

Okay. And then I'm sorry, anything else to add on import costs?

好的。抱歉，進口成本還有什麼需要補充的嗎？

No, import costs have been under control. And I suspect they'll say that we're not expecting any material hits from increasing import costs going forward, at least in the near-term.

不，進口成本已經受到控制。我懷疑他們會說，我們預計未來進口成本的增加不會造成任何實質影響，至少在短期內是如此。

Okay. Thanks for taking my questions. I'll pick the rest offline.

好的。感謝您回答我的問題。剩下的我會離線挑選。

Chasen Bender, Citi

查森·本德爾，花旗銀行

Great. Good afternoon, everyone. Thanks for taking the question. Stephan, I wanted to come back to distributor trends in North America. I mean, obviously you highlighted the new distributor growth, which obviously is a really good sign that you're going to be the top of the funnel and you're working to grow the base.

偉大的。大家下午好。感謝您提出問題。史蒂芬，我想回到北美的經銷商趨勢。我的意思是，顯然您強調了新經銷商的成長，這顯然是一個非常好的跡象，表明您將成為漏斗的頂部，並且正在努力擴大基礎。

And frankly, when you look at that active non-sales leader distributor number, the trend has improved sequentially, so certainly making progress. But you look at the absolute numbers, they remain below the numbers of new ads that you're bringing in, which seems to suggest that there's still a little bit of an issue with churn or qualification and retention on that side.

坦白說，當您查看活躍的非銷售領先經銷商數量時，您會發現趨勢已連續改善，因此肯定會取得進展。但你看看絕對數字，它們仍然低於你引入的新廣告數量，這似乎表明在這方面的流失或資格和保留方面仍然存在一些問題。

So I'm just curious to get your perspective there. What do you think you can do in terms of addressing the back end of the funnel and kind of closing the gap there besides the reseller at the top? Thanks.

所以我很好奇你的觀點。您認為在解決漏斗後端問題以及縮小頂部經銷商之外的差距方面可以做些什麼？謝謝。

Yes. Thanks, Chasen. So a couple of things. One is, when you're coming off of 12 quarters or three years of decline, what ends up happening is that there's still a bit of attrition in the pipeline, right? So you're playing catch up and you have to kind of filter through that, which I think when you look at, when you're talking about the active non-sales leaders' numbers that's happening, right? You see the sequential quarter over quarter.

是的。謝謝，查森。有幾件事。一是，當你擺脫了 12 個季度或 3 年的下滑之後，最終會發生的情況是，管道中仍然存在一些損耗，對嗎？因此，你正在追趕，你必須對此進行過濾，我認為當你看到時，當你談論正在發生的活躍非銷售領導者的數字時，對吧？您會看到連續季度的情況。

Our focus is really to make sure that, and it's very specific obviously to whatever the DMOs and one of the things that we're focused on and becoming even more focused on is the different models that are out there. You have certain people that from a general market standpoint have nutrition clubs, they look a little bit different than the Latin America nutrition clubs, right?

我們的重點確實是要確保這一點，而且它顯然對於任何 DMO 都是非常具體的，我們關注並變得更多關注的事情之一就是現有的不同模型。從一般市場的角度來看，某些人擁有營養俱樂部，他們看起來與拉丁美洲營養俱樂部有點不同，對吧？

And then you've got people that are working more on challenges or some are working on marathons and there's all these different models. So one of the things that we're doing to really accelerate and support is actually supporting as specific as we can individual market leaders in what they are doing in their market and the models that they're having.

然後，有人更致力於挑戰，或者有些人致力於馬拉松，並且有所有這些不同的模式。因此，我們正在做的真正加速和支持的事情之一實際上是盡可能具體地支持個別市場領導者在他們的市場中所做的事情以及他們所擁有的模型。

So we do have to get through this basic attrition in the pipeline, which I don't want to speak, but you're seeing it's a sequential improvement quarter by quarter and really to support to accelerate that they're more capable in the way that they're working, to go out there and attract more people, more people to the clubs, more people to whatever way that they're working that translates then into customers to distributors.

因此，我們確實必須克服管道中的這種基本消耗，我不想說，但你會看到這是一個季度一個季度的連續改進，並且真正支持加速他們更有能力的方式他們正在努力走出去，吸引更多的人，更多的人加入俱樂部，更多的人以他們正在工作的方式，然後轉化為經銷商的客戶。

And then you see the impact. So the other aspect of that is the distributor base leads to the new supervisor base, right? And supervisors and growing that metric and super more distributors, more supervisors, more customers, incoming more distributors based on the models, right?

然後你就會看到影響。那麼另一方面是經銷商基礎導致了新的主管基礎，對吧？監管者和不斷增長的指標以及更多的分銷商、更多的監管者、更多的客戶、更多基於模型的分銷商，對嗎？

And the effectiveness of the models, which ultimately then will impact sales, okay. So this is the process that we've got to go through, we've got to rebuild and to support better than we've been doing in the past and that's what our focus is, and that's why we have many different areas that we're focused on. So I hope that gives a little bit more clarity.

模型的有效性最終會影響銷售，好吧。所以這是我們必須經歷的過程，我們必須比過去更好地重建和支持，這就是我們的重點，這就是為什麼我們有許多不同的領域都專注於.所以我希望這能讓大家更清楚。

That's helpful color. And just staying on that topic for a minute longer. If I think back to not that long ago, I remember the time when Herbalife had a bunch of new distributors come into the pipe that ended up being a rather unproductive cohort for the company and consequently had do get churned out of the system.

這是有用的顏色。在這個話題上多停留一分鐘。如果我回想不久前，我記得康寶萊有一批新的經銷商進入管道，最終成為公司生產力相當低的群體，因此不得不被淘汰出系統。

So as I think about what you guys are doing now with the new initiatives in Mastermind in Eric Worre a how should I think about the productivity coming to the system now and what's to say that they won't follow, you know some of the -- call it weaker cohorts that we've seen in the past. So just anything that gives you confidence that the people coming in now are going to be productive as opposed to a less productive group. Thanks.

因此，當我想到你們現在在 Eric Worre 的 Mastermind 中採取的新舉措時，我應該如何考慮系統現在的生產力以及他們不會遵循的內容，你知道一些 - - 稱之為我們過去見過的較弱的群體。因此，任何能讓你相信現在進來的人都會有生產力的事情，而不是生產力較低的團隊。謝謝。

Yes. So it's a great question, Chasen. So this is directly correlated with the effectiveness of the models. And I'll just give you an example, right. So one of the most successful the highest productive, one of the most successful and the highest producing per distributor model that we have going right now is really this breakfast budget club model within the United Kingdom, and I think I've spoken about this before.

是的。所以這是一個很好的問題，Chasen。因此，這與模型的有效性直接相關。我就給你舉個例子，對吧。因此，我們現在採用的最成功、最高生產力、最成功、每個經銷商產量最高的模式之一實際上是英國的早餐預算俱樂部模式，我想我之前已經談到過這一點。

Over the last four years, this individual distributor couple honed in on a model documented has it very clear and they've grown [20x] in the United kingdom, in the same market that other distributors with the same products, the same pricing, the same macroeconomic conditions haven't grown to that extent.

在過去的四年裡，這對單獨的分銷商夫婦在一個記錄在案的模型上進行了磨練，該模型非常清晰，並且他們在英國的增長了[20 倍]，在同一市場中，其他分銷商擁有相同的產品、相同的定價、同樣的宏觀經濟條件還沒有發展到這種程度。

And so their model, because of the effectiveness of the model, the distributors that they bring into the company, their level of productivity, the level that they become sales leaders, and their productivity of sales leaders, and the level of recruiting and acquisition of new customers, it's I don't want to say off the charts, but it's comparable to other people in the same market, different models. There's a huge difference.

因此，他們的模型，由於模型的有效性，他們帶入公司的經銷商，他們的生產力水平，他們成為銷售領導者的水平，以及他們銷售領導者的生產力，以及招聘和收購銷售領導者的水平。有很大的不同。

And so as we look at here in the United States, right in North America, all of these leaders who are very committed, who are very hardworking, that they need to be supported to be able to understand what is the most optimized model, what are the elements that people are in other markets and within their own market doing more successfully, potentially, than they're doing to be able to duplicate it, right?

因此，當我們在美國、在北美看到所有這些非常忠誠、非常勤奮的領導人時，他們需要得到支持才能了解什麼是最優化的模型，什麼是最優化的模型，什麼是最優化的模型。人們在其他市場和自己市場中所做的事情是否可能比他們正在做的事情更成功，以便能夠複製它，對嗎？

So and I'll just a little bit of a side note, we actually have from the United States about 25 of our leaders going to the United Kingdom for the master class that's coming up. I believe it's this weekend to participate to be able to get the knowledge come back.

因此，我想順便說一句，實際上，我們有大約 25 名來自美國的領導人前往英國參加即將舉行的大師班。我相信這個週末參加才能把知識帶回來。

So as a company overall, we want to be a platform for delivering the education, the support, so that people, no matter where they are can understand what are the most successful models and why, and then be able to implement those models in their own individual business and that impacts the productivity.

因此，作為一家公司，我們希望成為一個提供教育和支持的平台，以便人們，無論身在何處，都可以了解什麼是最成功的模式及其原因，然後能夠在自己的地方實施這些模式。個人業務，這會影響生產力。

Got it. That's helpful. Thanks so much and I'll pass it on.

知道了。這很有幫助。非常感謝，我會把它轉達。

Thank you.

謝謝。

Hale Holden, Barclays

黑爾霍頓，巴克萊銀行

Hi, good evening. Congrats on the Guinness World Record. I just had two quick questions, or I guess your second Guinness World Record. The first one is, John, the commentary in the deck around creating an internal bank and having no repatriation cash taxes, does that change the amount of cash on the balance sheet that you ultimately have to hold going forward?

嗨，晚上好。恭喜你獲得金氏世界紀錄。我只是有兩個簡單的問題，或者我猜你的第二個金氏世界紀錄。第一個是約翰，關於創建內部銀行並且沒有匯回現金稅的評論，這是否會改變您最終必須持有的資產負債表上的現金數量？

Yes. It's designed to reduce the amount of cash we have to hold. We got it as low as I think $370 million last quarter, we're a little bit longer now. There's a little bit more room to go that we can take it down. I'm not ready to commit to what that number is. Just let you know there's a little bit more room. The internal bank allows us to keep less cash per country by centralizing it least around certain countries.

是的。它的目的是減少我們必須持有的現金數量。上個季度我們的成本低至 3.7 億美元，現在我們的成本有點長了。還有一點空間可以讓我們把它拿下來。我還沒準備好承諾這個數字。只是讓您知道還有一點空間。內部銀行允許我們透過將現金最少集中在某些國家/地區來減少每個國家/地區的現金數量。

And the other key point is, there's not a lot of friction with repatriation, a lot of it's just timing. And so we wanted to make sure that as you look at our cash balance, no matter where it is, that's about the value we will ultimately get from that cash at this point.

另一個關鍵點是，遣返方面並沒有太多摩擦，很多只是時間問題。因此，我們希望確保，當您查看我們的現金餘額時，無論它在哪裡，這就是我們此時最終從現金中獲得的價值。

Okay. And the second question was, can you guys just talk through the decision to not report India as a standalone geography anymore?

好的。第二個問題是，你們能談談不再將印度作為一個獨立地理區域報告的決定嗎？

We've never reported as a standalone geography. It's always been part of the APAC. Talk about the bigger countries in each region as we go through the regions just like North America's biggest country is the US. So we'll talk about the US. And that's just standard, but we've never had at least that I'm aware of in my 17 years here as a region.

我們從未作為一個獨立的地理區域進行報導。它一直是亞太地區的一部分。在我們遍歷各個地區時談論每個地區的較大國家，就像北美最大的國家是美國一樣。那我們就來談談美國。這只是標準，但至少在我作為一個地區的 17 年裡，我們從未意識到過這樣的情況。

Got it. Well, maybe if you guys could just talk about some color on how India is doing and any go forward thoughts there?

知道了。好吧，也許你們能談談印度的現況以及未來的想法嗎？

Yes. I mean just to repeat what was in my opening comments, net sales were up 1% and local currency net sales were up 3% in India. I'll pass it to Stephan for the commentary.

是的。我的意思是重複我在開場白中所說的話，印度的淨銷售額增長了 1%，以當地貨幣計算的淨銷售額增長了 3%。我會將其傳遞給史蒂芬以供評論。

Yes, Hale. So seven years of growth, six of those in double-digits, high-double-digits in many of those years. We're not expecting that that type of growth is going to continue. So I will say that the markets, the focus leaders, they are continuing to build Q3. They had a 30% increase in new distributors coming in over last year. So the focus is in the right area. It's just we're not expecting the same type of growth that we've had. The scale of the market is much bigger than it was five or six years ago.

是的，黑爾。七年的成長，其中六年是兩位數的成長，其中許多年都是高兩位數的成長。我們預計這種成長不會持續下去。所以我想說，市場、焦點領導者，他們正在繼續打造第三季。與去年相比，他們的新經銷商數量增加了 30%。所以重點是在正確的區域。只是我們沒有預期會出現同類型的成長。市場規模比五、六年前大得多。

Great. Thank you very much.

偉大的。非常感謝。

John Baumgartner, Mizuho securities.

約翰·鮑姆加特納，瑞穗證券。

Good afternoon. Thanks for the question. Maybe first off, just picking up on that line of questioning and sticking with the focus on developing markets, the distributor growth is encouraging, but how do you think about the downside risk to demand from the macro factors?

午安.謝謝你的提問。也許首先，只要接受這項質疑並堅持關注發展中市場，經銷商的成長就令人鼓舞，但您如何看待宏觀因素對需求的下行風險？

With prices having increased, borrowing costs having settled at higher levels, I think the volume points in India are down a bit here in Q3. A number of the markets in Asia also still seem soft. Are there any specific factors that you're watching that influence demand more than others that you're following into 2025?

隨著價格上漲，借貸成本穩定在較高水平，我認為印度的交易量在第三季略有下降。亞洲的一些市場似乎仍然疲軟。您所關注的哪些特定因素對 2025 年需求的影響比其他因素更大？

Thanks, John. I'll take that. So I'm going to speak from a distributor that had experience for 32 years in the market. There's no question that the macroeconomic situation is important. But from a distributor standpoint, it really is about the value that you're bringing through the products and whatever services that you're giving, right? And it's about how you position, it's about the customer experience, it's about the opportunity and how you've developed your specific model to go out there and show that there's value.

謝謝，約翰。我會接受的。因此，我將由一位擁有 32 年市場經驗的經銷商來發言。毫無疑問，宏觀經濟情勢很重要。但從經銷商的角度來看，這確實與您透過產品和提供的任何服務所帶來的價值有關，對嗎？這關係到你如何定位，關係到客戶體驗，關係到機會以及你如何發展自己的特定模型來展示其價值。

And I'll just give you an example, like just a simple example. If I were to say, look, buy my products, it's a shake and there's some supplements and you can take it twice and you're going to lose weight, do it twice a day, it's really, really great. There's value there.

我只是給你一個例子，就像一個簡單的例子。如果我說，看，買我的產品，它是奶昔，還有一些補充劑，你可以服用兩次，你就會減肥，每天做兩次，這真的非常非常好。那裡有價值。

If I say to you, and when you buy these products, let's say for $150, not only are you going to get the products, but you're going to get my personal coaching we're also going to be evaluating what your daily diet is like and your meal plan.

如果我對你說，當你購買這些產品時，假設花費 150 美元，你不僅會得到這些產品，而且還會得到我的個人指導，我們還將評估你的日常飲食就像你的飲食計劃。

You can also come down to my club three times a week where we do workouts. We're also going to put you on a body composition machine and we're going to be able to analyze directly the impact on you. And we've got a support group, which is taking place. And by the way, in the future, you'll be able to all of your biometrics are going to be directly inputted into a customer platform. You're going to be able to track; your coach is going to be able to support you.

您也可以每週來我的俱樂部三次，我們在那裡進行鍛鍊。我們還將讓您使用身體組成儀，我們將能夠直接分析對您的影響。我們有一個支持小組，正在進行中。順便說一句，將來，您將能夠將所有生物識別資訊直接輸入到客戶平台中。您將能夠追蹤；你的教練將能夠支持你。

All of a sudden, that $150, its becomes much more worth it because there's more value there. So I think as a company, when we look forward, how can we deliver more value and how can we support our distributors to deliver more value? So yes, there's an impact. If people have less money to spend, they're going to look where they're going to spend it. It's our job and the distributor's job to deliver as much value as possible embedded in the marketplace.

突然間，那 150 美元變得更有價值了，因為那裡有更多的價值。所以我認為作為一家公司，當我們展望未來時，我們如何提供更多的價值，我們如何支持我們的經銷商提供更多的價值？所以是的，有影響。如果人們可花的錢減少了，他們就會考慮把錢花在哪裡。我們的工作和經銷商的工作就是在市場中提供盡可能多的價值。

So we're looking at this from all angles. And again, I'll just go back to the example of the United Kingdom. You've got the distributor, couple that developed a model that delivers extreme value to people, and they've taken a business from 50,000 volume points a month to over 1.1 million over the last five years. Same macroeconomic situation, same product, same pricing. The differences in the model and the value that they're delivering.

所以我們從各個角度來看這個問題。我再次回到英國的例子。經銷商夫婦開發了一種為人們提供極大價值的模式，在過去五年裡，他們將業務量從每月 50,000 個銷售點增加到超過 110 萬個。相同的宏觀經濟形勢，相同的產品，相同的定價。模型的差異以及它們所提供的價值。

Let me also add, we had this test and had this test in South America or Latin America, where we actually lowered prices, changed volume points did a handful of other things that has been received really wrong. The reason is that much of our global business opportunity economics were identical regardless of which country you were in, and they weren't optimized based on the socioeconomic climate in the marketplace.

我還要補充一點，我們進行了這項測試，並在南美洲或拉丁美洲進行了這項測試，我們實際上降低了價格，改變了銷售點，做了一些其他被認為是非常錯誤的事情。原因是，無論您位於哪個國家/地區，我們的全球商業機會經濟學大部分都是相同的，而且它們沒有根據市場的社會經濟環境進行最佳化。

And what we're learning with this test is we can drive more value to our distributors and distributors therefore sell more volume by having locally adapted elements of the business plan. And some of that may go into Asia, may go into some other countries next year that I think can help offset some of the macro conditions we're seeing.

我們透過這次測試了解到的是，我們可以為我們的經銷商帶來更多價值，從而透過對業務計劃進行在地化調整來銷售更多銷售。其中一些可能會進入亞洲，明年可能會進入其他一些國家，我認為這有助於抵消我們所看到的一些宏觀條件。

Okay. Thanks for that. And then in terms of North America, can you update us a little bit more on the diabetes prevention program? I think you noted in the prepared comments about the first group has become lifestyle coaches. And I'm curious how that certification process went, how you think about converting additional distributors going forward and then with this first cohort, how you're expecting the engagement with the consumer participants in the program.

好的。謝謝你。那麼就北美而言，您能否向我們介紹一下有關糖尿病預防計劃的最新情況？我想你在準備好的評論中註意到第一組已經成為生活方式教練。我很好奇認證過程是如何進行的，您如何看待未來轉換更多經銷商，然後對於第一批經銷商，您如何期望與該計劃中的消費者參與者互動。

So John, we have these top level President team members that have gone through a third party program to get certified. Over the next year, the company will become certified trainers and be able to actually extend that certification through an internal program to literally thousands of people if we want to do that. So there's a scalable aspect here.

約翰，我們的這些頂級總裁團隊成員已經通過第三方計劃獲得認證。明年，該公司將成為認證培訓師，如果我們願意的話，我們可以透過內部計畫將認證擴展到數千人。所以這裡有一個可擴展的方面。

What distributors do with it and how they're going to put it into their businesses, it's really going to be up to them. We're going to support them, obviously, but there's many different types of people that are focusing on different things in their business.

分銷商如何利用它以及如何將其應用到他們的業務中，這實際上取決於他們。顯然，我們會支持他們，但是有許多不同類型的人在他們的業務中關注不同的事情。

So we see this foundationally as something that's very important, from a credibility program, education standpoint, how it gets translated into the DMOs, are you going to have some people at their clubs, they're going to offer the program and they're going to have groups of people coming in, others will do it online. So we'll see how that plays out. It's very early days for us, but we believe this is going to play an important role throughout the next couple of years.

所以我們認為這從根本上來說是非常重要的，從信譽計劃、教育的角度來看，它如何轉化為 DMO，你是否會在他們的俱樂部裡有一些人，他們會提供該計劃，他們會有一群人進來，其他人會在網路上進行。所以我們將看看結果如何。對我們來說還處於早期階段，但我們相信這將在未來幾年中發揮重要作用。

Thanks, Stephan.

謝謝，史蒂芬。

Thanks, John.

謝謝，約翰。

Linda Bolton-Weiser, D.A. Davidson.

琳達·博爾頓·韋瑟，D.A.戴維森。

Yes. Hello, thank you. I was wondering if maybe you could give a little more color on China. I mean, the numbers were quite a bit worse than we had expected. And I know you talked about the different things being done there, but is it just the macro that kind of made it so much worse or I mean, kind of maybe you can just talk a little bit more about that area? Thanks.

是的。你好，謝謝。我想知道你能否對中國多一些介紹。我的意思是，這些數字比我們預期的要差很多。我知道你談到了那裡正在做的不同事情，但是否只是宏觀因素讓情況變得更糟，或者我的意思是，也許你可以多談談這個領域？謝謝。

Yes. Thank you, Linda. I'll talk about this. So as John just mentioned adapting to the markets based on obviously the macro and when we look at China, what we really started to focus on at the beginning of last year was really having a customer centric strategy. Because when we look at some of the most successful companies there in our industry, by the way, some of them 10 times bigger than we were or are. We really saw that they were very strong on a customer program, and so we put our sights on that.

是的。謝謝你，琳達。我來談談這個。因此，正如約翰剛才提到的，顯然要根據宏觀來適應市場，當我們看中國時，我們從去年初真正開始關注的是真正制定以客戶為中心的策略。因為當我們觀察行業中一些最成功的公司時，順便說一下，其中一些公司的規模比我們過去或現在的規模大 10 倍。我們確實看到他們在客戶計劃方面非常強大，因此我們將目光投向了這一點。

It's one of the reasons why when we launched the Herbalife Premier League there we focus on customers instead of distributors. But more importantly, the company has launched a customer loyalty program for the first time in June. So you have to imagine in all the years we've been there, we've never had a customer loyalty program and the way the customers there had, they didn't really have a benefit for becoming a preferred customer.

這就是為什麼當我們在那裡推出康寶萊超級聯賽時，我們專注於客戶而不是經銷商的原因之一。但更重要的是，該公司在六月首次推出了客戶忠誠度計畫。因此，你必須想像一下，我們在那裡的所有這些年裡，我們從未有過客戶忠誠度計劃，而那裡的客戶的方式，他們並沒有真正獲得成為首選客戶的好處。

So we created incentives, a point system and again this is looking at other companies and what they were doing successfully. So the launch of this program really created a behavior in the business that created that 65% increase of new preferred customers that came in Q3 over last year.

因此，我們制定了激勵措施、積分制度，並再次關注其他公司以及他們的成功做法。因此，該計劃的推出確實在行業中創造了一種行為，使得第三季的新首選客戶數量比去年增加了 65%。

And so it also started to impact in the quarter, the number of purchasers, including the sales representatives and the preferred customers and we had a 3%, 4% increase in purchasers. And so as we look to the future, as we look at the continuation of building this business of customers in a 1.4 billion population market and this is just really one quarter that we've been focused on this and we launched the program, we see that there's a lot of upside here for us.

因此，它也開始影響本季的購買者數量，包括銷售代表和首選客戶，我們的購買者數量增加了 3%、4%。因此，當我們展望未來時，當我們著眼於在 14 億人口的市場中繼續建立這項客戶業務時，這實際上只是我們專注於此並推出該計劃的四分之一，我們看到這對我們來說有很多好處。

And so that, yes, did it take some emphasis off the sales representative recruiting, it did. We're not going to deny that there was an impact on volume, but long term from a strategy standpoint, we believe it's the right strategy. So it's just going to take time to over the quarters implement this strategy and there will be some adjustments that we're going to have to do. This is a new area for us.

因此，是的，它是否減輕了對銷售代表招募的重視，確實如此。我們不會否認這對銷售產生了影響，但從策略的角度來看，我們相信這是正確的長期策略。因此，在幾個季度內實施這項策略需要時間，我們將不得不進行一些調整。這對我們來說是一個新領域。

The one thing I just want to point out in what I mentioned is that the bigger the customer base, and this has been part of India's success is that they've created this huge customer base and they've got a very effective way of bringing from customers new distributors or new sales representatives, the equivalent in India and that helps also to build a bigger business. So we think all of these aspects are great for us in the future.

在我提到的內容中，我只想指出的一件事是，客戶群越大，這是印度成功的一部分，他們已經創建了這個龐大的客戶群，並且他們有一種非常有效的方式來吸引客戶。所以我們認為所有這些方面對我們的未來都非常有利。

Thanks. And then can you talk about the cost savings program that you have and I know some of that was being reinvested? Can you just kind of update us on what you realized through the nine months of 2024 and then what's the incremental savings that we're expecting for 2025? Thanks.

謝謝。然後您能談談您的成本節約計劃嗎？您能否向我們介紹一下您在 2024 年 9 個月內實現的最新情況，以及我們預計 2025 年將節省的增量是多少？謝謝。

Hey Linda, so obviously, you've seen our margin performance which has been very strong. A lot of that has come from not just the restructuring, delayer management, but also a general policy position across the Board, across a lot of categories. And there's still a lot more work to do. The commitment we've made publicly to this point we made at the end of the first quarter in our May earnings call, we said, at that point in time that our EBITDA margins for 2024 this year would be above flat last year and that next year would be 100 basis point improvement.

嘿琳達，很明顯，您已經看到我們的利潤率表現非常強勁。其中很大一部分不僅來自重組、延遲管理，也來自跨部門、跨多個類別的一般政策立場。還有很多工作要做。我們在 5 月第一季末的財報電話會議上公開承諾，我們今年 2024 年的 EBITDA 利潤率將高於去年和明年的持平水平年將改善 100 個基點。

We're actually getting most of that 100 basis point improvement this year. So there'll be some incremental next year. We'll talk more about exactly what that means when we give guidance next year in the next call. But as of now, we're obviously accelerating some of those cost savings. And you said it's going to the bottom line, so it's not something where you have to wonder if it's going to happen. You're already seeing it happen.

實際上，今年我們已經實現了 100 個基點的大部分改進。所以明年會有一些增量。當我們在明年的下一次電話會議中提供指導時，我們將詳細討論這到底意味著什麼。但截至目前，我們顯然正在加速其中一些成本節約。你說這會觸及底線，所以你不必懷疑它是否會發生。你已經看到它發生了。

Okay. So is there any possibility that there's finding more savings or introducing an ongoing productivity program such that you can still get kind of meaningful savings in 2025?

好的。那麼是否有可能找到更多的節省或引入持續的生產力計劃，以便您在 2025 年仍然可以獲得有意義的節省？

We are still implementing the cost savings program in a couple of areas that can drive savings in 2025. Until we give guidance, I'm not going to commit to how much that falls to the bottom line versus reinvesting in the business. We'll provide guidance for next year, like we said, in February, as we always do.

我們仍在幾個領域實施成本節約計劃，以在 2025 年實現成本節約。在我們提供指導之前，我不會承諾與對業務進行再投資相比，到底有多少成本會落入底線。正如我們在二月所說的那樣，我們將一如既往地為明年提供指導。

I will tell you that we'll at least hit the commitment we've made publicly already that we made a couple quarters ago about the 100 basis point improvement over what was expected to be margins that were going to be filed last year.

我會告訴你，我們至少會兌現我們在幾個季度前做出的公開承諾，比去年提交的預期利潤率提高 100 個基點。

So that implies we have at least 100 basis point improvement next year over 2023. That's the minimum commitment. That's what we're going to talk about now and we'll give you an update in a few months as to any incremental cost that we find. But there are active cost saving programs we're working on besides the restructuring.

因此，這意味著明年我們的成長速度將比 2023 年提高至少 100 個基點。這是最低限度的承諾。這就是我們現在要討論的內容，我們將在幾個月內向您提供有關我們發現的任何增量成本的最新資訊。但除了重組之外，我們還正在進行積極的成本節約計畫。

Okay. And then my final question just has to do with gross margin. The mix impact, I think you said was negative on gross margin. I guess that's country or region mix or something. But can you just remind us what would be the driver of that? Is that China being down so much and China's a higher margin. If you could remind me like what the mixed factors are? Thanks.

好的。我的最後一個問題與毛利率有關。我想你說的混合影響對毛利率是負面的。我想這是國家或地區的混合之類的。但您能提醒我們這背後的驅動因素是什麼嗎？中國的下降幅度如此之大，而中國的利潤率卻更高？您能否提醒我混合因素是什麼？謝謝。

Well, China's one for sure. All right. China has high gross margin, not so much higher operating profit, but has higher gross margin. So that would be a bigger like driver. Then it's just a matter of which country. So India, of course, has lower gross profit than the company average. So those are probably the two big drivers.

嗯，中國肯定是其中之一。好的。中國毛利率高，與其說營業利潤高，不如說毛利率高。所以這將是一個更大的司機。那麼這只是哪個國家的問題。因此，印度的毛利當然低於公司平均。所以這可能是兩個主​​要驅動因素。

There's other nuances based on where the product's made, if it's dollar manufactured versus sold in currencies that have weakened. But the single biggest driver would be China is, because that is a meaningfully higher gross profit margin.

還有其他細微差別取決於產品的製造地，是否以美元製造，是否以貶值的貨幣出售。但最大的推動因素是中國，因為這意味著毛利率明顯更高。

Okay. Thank you very much.

好的。非常感謝。

Karru Martinson, Jefferies.

卡魯馬丁森，傑弗里斯。

Good afternoon. Is it by imagination or we're seeing a lot more new product launches? It feels like every quarter that's coming in and how are the ones that we rolled out like the vegan and the clean labeling and everything performing to date?

午安.是出於想像還是我們看到了更多新產品的推出？感覺每個季度都會到來，我們推出的產品（例如純素食和清潔標籤以及迄今為止的所有產品）表現如何？

Well, yes, this is John. I'll take that. So I think we've consistently launched a lot of new product. Maybe we're just highlighting it, talking about it more on these calls than we have in the past. It is an important part of our strategy. I think it's important to realize when we launch new product, it's a slow build. And I say that in comparison to some other companies that get this big pipeline when they launch a new product, we don't get the big pipeline.

嗯，是的，這是約翰。我會接受的。所以我認為我們一直在推出很多新產品。也許我們只是強調它，在這些電話會議上比過去更多地談論它。這是我們策略的重要組成部分。我認為，當我們推出新產品時，認識到這一點很重要，這是一個緩慢的建造過程。我想說的是，與其他一些在推出新產品時獲得如此大的管道的公司相比，我們沒有獲得如此大的管道。

And I actually think that's the strength of our model is that it's a slow build. Some of this big pipeline comp every year. And so the vegan line sold out initially. It's not a huge seller for us, but it's great for our brand and it does bring in incremental customers that otherwise would not have participated in our brand, and like the gels we just launched, I think those are going to do well. But it's in the early days.

事實上，我認為我們模型的優點在於它的建造速度很慢。每年都會有一些這樣的大型管線補償。因此，純素系列一開始就賣完了。它對我們來說並不是一個大賣家，但它對我們的品牌來說非常好，它確實帶來了增量客戶，否則這些客戶不會參與我們的品牌，就像我們剛推出的凝膠一樣，我認為它們會做得很好。但現在還處於早期階段。

So when it comes to like modeling our business, you don't have to comp these big pipelines for new product launches, and maybe that's important thing. But just know there will be a steady stream of new products coming out every quarter for years that's an important part of our growth strategy.

因此，當談到對我們的業務進行建模時，您不必為新產品的發布而整合這些大型管道，也許這很重要。但要知道，多年來每季都會源源不絕地推出新產品，這是我們成長策略的重要組成部分。

Okay. And then with the new products, when we look kind of to the volumes, is the volume turnaround truly just dependent on we need to get the distributors up or is it a productivity of the existing distributor fleet that you have?

好的。然後，對於新產品，當我們關注銷售時，銷售週轉是否真的只取決於我們需要讓經銷商崛起，還是您現有經銷商團隊的生產力？

Well, I mean, it's a little bit of everything, okay? I mean so there are different ways to grow sales, right? You can have more people selling. The people that are selling, you can have higher productivity. Their higher productivity can come from them getting more customers or them having higher productivity from their current customers.

嗯，我的意思是，一切都有點，好嗎？我的意思是，有不同的方法來增加銷售額，對吧？你可以讓更多的人賣。銷售人員可以擁有更高的生產力。他們更高的生產力可能來自於他們獲得更多的客戶，或者他們從當前客戶那裡獲得更高的生產力。

We are focused on each one of those things. But we are more focused in the short term on generating new sellers because that has the greatest reach and it's the quickest way to rebuild the foundation that Stephan is talking about, which is why you've seen a big emphasis put on that. But it's not at the detriment of these other programs. We're looking to do each and every one of those elements.

我們專注於其中的每一件事。但我們在短期內更專注於產生新的賣家，因為這具有最大的影響力，也是重建史蒂芬所說的基礎的最快方式，這就是為什麼你會看到這一點受到高度重視。但這並不損害其他計劃。我們正在努力實現這些要素中的每一個。

And just lastly, on the inputs, the declining inputs was a nice tailwind for your gross margin. Is there any competitive response or something that we should look at in the sense that the pricing that we have is just not sustainable if inputs keep coming down?

最後，在投入方面，投入的下降對你的毛利率來說是一個很好的推動力。如果投入持續下降，我們的定價將不可持續，是否有任何競爭反應或我們應該考慮的問題？

Well, they only came down slightly. So the biggest benefit in gross profit was actually better efficiencies within our own plants. So last year, there was a huge program to reduce inventory because in reaction to the sales performance last year, and so that reduction in inventory shut our factories way down and gave us a lot of unfavorable manufacturing variances last year.

好吧，他們只是稍微下降了一點。因此，毛利的最大好處實際上是我們自己工廠的效率更高。所以去年，我們有一個巨大的計劃來減少庫存，因為這是對去年銷售業績的反應，庫存的減少導致我們的工廠關閉，並給我們帶來了很多不利的製造差異。

This year, that's turned around, right? Sales have stabilized and inventory is getting built back up and the factories have been running, and that was the single biggest impact within the cost side, not talking about price, but in the cost side was more what's happened in our factories.

今年，情況發生了逆轉，對嗎？銷售已經穩定，庫存正在恢復，工廠已經開始運轉，這是成本方面最大的影響，不是談論價格，而是在成本方面更多的是我們工廠發生的事情。

The input costs only came down slightly last quarter, or third quarter of last year was a real high point. So I don't expect big price decreases on input. I also don't expect big price increases or decreases actually on input. So I just think what we have right now is pretty consistent with what we expect to have next year without any meaningful changes.

上季投入成本僅略有下降，或去年第三季才是真正的高點。因此，我預期投入價格不會大幅下降。我也不認為投入的價格實際上會大幅上漲或下降。所以我認為我們現在所擁有的東西與我們明年預期的非常一致，沒有任何有意義的改變。

Thank you very much. Appreciate it.

非常感謝。欣賞它。

William Ruder, Bank of America.

威廉·魯德，美國銀行。

Hi, good evening. Thank you for taking our question. This is Rob on for Bill. So I guess, the first question for us obviously encouraged you to see you guys repaying debt. What are your plans and maybe pacing of this moving forward and maybe any thoughts other than the 25s in terms of what you'd like to address? Thank you.

嗨，晚上好。感謝您提出我們的問題。這是羅布替比爾代言。所以我想，我們的第一個問題顯然鼓勵你們看到你們償還債務。您的計劃是什麼，也許是前進的節奏，也許除了 25 年代之外您想要解決的問題還有什麼想法嗎？謝謝。

Yes, sure. So obviously the 2025s are the first priority, and that takes us through September of next year. And then the question is, as we generate cash, beyond that, how do we further paydown debt. There are some penalties to paying it down early in 2026, but we'll probably look to do that or maybe refinance. I think, given the trajectory of our margins, I know sales on a reported basis were down slightly, but on a constant currency basis it was flat. So I think sales are stabilized. Hopefully, the inflection comes next year and we start growing.

是的，當然。顯然，2025 年是首要任務，這將持續到明年 9 月。然後問題是，當我們產生現金時，除此之外，我們如何進一步償還債務。在 2026 年初還清貸款會受到一些處罰，但我們可能會考慮這樣做，或者可能會進行再融資。我認為，考慮到我們的利潤軌跡，我知道報告的銷售額略有下降，但以固定匯率計算，銷售額持平。所以我認為銷售已經穩定。希望明年轉捩點到來，我們開始成長。

Our margin profile is much stronger than it was. Maybe refinancing 2026 and have a little more flexibility to paydown with our penalty. So that's some broad. Strokes on up thinking. I think our ability to paydown the billing between now and the end of 2028, which is the goal that I announced in the monologue, that doesn't require a lot of changes from where we are today.

我們的利潤狀況比以前強得多。也許在 2026 年進行再融資，並且可以更靈活地償還我們的罰款。所以這有些廣泛。筆畫向上思考。我認為我們有能力從現在到 2028 年底還清帳單，這是我在獨白中宣布的目標，不需要對我們今天的情況進行太多改變。

It's basically about kind of the cash flow we generate today with the exception of the severance cost of the restructuring and then any savings on interest as we go forward also gets used to paydown debt. And I think that we can get to that building just with those kind of key assumptions going forward.

這基本上是關於我們今天產生的現金流，除了重組的遣散費之外，然後隨著我們前進，任何利息節省也將用於償還債務。我認為我們可以透過這些關鍵假設來實現這一目標。

I also think CapEx, even though a reduction in CapEx isn't in the models to paydown debt by 2028, they are going to come down after 2025. So I actually think our ability to pay it down from a cash flow generation standpoint is reasonable between now and 2028.

我還認為資本支出，儘管到 2028 年償還債務的模型中並未出現資本支出的減少，但它們將在 2025 年後下降。因此，我實際上認為，從現在到 2028 年，從現金流產生的角度來看，我們償還債務的能力是合理的。

The mechanism for which we do it will depend on the circumstances in 2026 based on whether we can refinance something, a penalty to paydown early, or whatever the economics are, we'll do whatever the best economics are for us at the time based on the circumstances.

我們這樣做的機制將取決於 2026 年的情況，基於我們是否可以再融資、提前還款的懲罰，或者無論經濟情況如何，我們都會根據當時的情況採取對我們來說最好的經濟措施。

Understood. Thank you. That's very helpful. And in that response, it kind of sounded like you were thinking about reducing CapEx after 2025, is that correct? And I guess maybe if you could discuss maybe any plans kind of going forward in terms of CapEx that would be super helpful.

明白了。謝謝。這非常有幫助。在該回應中，聽起來好像您正在考慮在 2025 年後減少資本支出，對嗎？我想，如果您可以討論在資本支出方面的任何未來計劃，那將會非常有幫助。

Yes. So next year, we still have some more tech spend to invest in that will come down significantly in 2026 and we have some manufacturing projects that are coming online for some packaging changes and things and that will come down after next year too. So I think, next year we haven't guided for next year, but I think it's been previous communications where we said 2026 will be below 2025. And I just want to reiterate that that is consistent with what I'm right thinking we think 2026 will be below 2025 and below 2024.

是的。因此，明年，我們仍有更多的技術支出可供投資，到2026 年，這些支出將大幅下降，我們有一些製造項目即將上線，以進行一些包裝更改等，這些支出也會在明年之後下降。所以我認為，明年我們還沒有對明年進行指導，但我認為根據先前的溝通，我們說 2026 年將低於 2025 年。我只是想重申，這與我的正確想法一致，我們認為 2026 年將低於 2025 年和 2024 年。

Understood. Thank you very much. I'll pass it on.

明白了。非常感謝。我會把它傳遞下去。

Thank you. Ladies and gentlemen, at this time, I would now like to turn the call back over to Michael for closing remarks.

謝謝。女士們、先生們，此時此刻，我想將電話轉回給邁克爾，讓他致閉幕詞。

Thank you, and thanks everybody for your questions. Thanks for being with us in this quarter. John gives me a set of notes. Stephan and I sit down and go through them, Just talking points for the quarter three we just had our Board Meeting. I'm looking at these and I'm thinking about your questions and I'm looking at quarter three 2024 net sales in line with expectations, the decline of the decline in the sales is narrowing and we're pretty excited about that because we see positivity coming into this, net sales yearly flat year on year.

謝謝大家，也謝謝大家的提問。感謝您在本季與我們在一起。約翰給了我一套筆記。史蒂芬和我坐下來仔細研究一下，只是討論我們剛剛召開的董事會會議的第三季的要點。我正在研究這些，我正在考慮您的問題，我正在研究 2024 年第三季的淨銷售額符合預期，銷售額下降的幅度正在收窄，我們對此感到非常興奮，因為我們看到積極的一面，淨銷售額較去年同期持平。

Quarter tree adjusted EBITDA exceeded guidance. Adjusted EBITDA margins up 13.4%. All good news. We've raised our 2024 adjusted EBITDA expectations. Great news, strong cash generation. Solidifying the company's position net cash provided by operating activity is $100 million. We've repaid $85 million in debt revolving credit facility fully undrawn as of September 30, excellent, this total leverage ratio reduces in my wheel house I love this 3.3 the end of September, we're going to lower it even more.

季度樹調整後的 EBITDA 超過指導值。調整後 EBITDA 利潤率成長 13.4%。都是好消息。我們上調了 2024 年調整後 EBITDA 預期。好消息，強勁的現金產生。鞏固公司地位，經營活動提供的淨現金為 1 億美元。截至9 月30 日，我們已經償還了8500 萬美元的債務循環信貸額度，尚未完全提取，太棒了，我的駕駛室中的總槓桿率降低了，我喜歡9 月底的3.3，我們將進一步降低它。

New distributors this is key. This is the key, we've got 14% increase year-on-year worldwide. It's the second consecutive quarter of year on year improvement. We're building our and rebuilding our distributor base stronger.

新經銷商這是關鍵。這是關鍵，我們在全球範圍內同比增長了 14%。這是連續第二季年比改善。我們正在建造和重建更強大的經銷商基礎。

Stephan and Eric and the team are out there training and working with these distributors. We have cited in distributors who are growing their business who are interested to come into high level training in this company to further their business, pulling the best ideas from distributors worldwide. Adding Stephan and Eric into this mix and motivating and generating opportunity for more distributors than ever before.

史蒂芬和埃里克及其團隊正在與這些經銷商進行培訓和合作。我們引用了正在發展業務的分銷商，他們有興趣在該公司接受高水平培訓，以進一步發展他們的業務，從全球分銷商那裡汲取最佳創意。將史蒂芬和埃里克加入這個組合中，可以激勵和創造比以往更多的經銷商機會。

We've got something really special in Herbalife. I've always believed that we've been through a little bit of a downturn. We see that coming to an end very, very soon. I wish I could give you a number, a moment in time and say, magic will happen. But this is going to take a little bit of time to rebuild this.

康寶萊有一些非常特別的東西。我一直相信我們已經經歷了一點低潮。我們看到這種情況很快就會結束。我希望我能給你一個數字，某個時刻，然後說，奇蹟將會發生。但這需要一點時間來重建。

Our category, yes, it's a tough one, but we believe in it strongly. We watch people. It's funny, I was driving in this morning, and two Waymo cars were next to me driverless. So many companies are trying to figure out how to get people out of their business.

是的，我們的類別是一個艱難的類別，但我們堅信它。我們觀察人。有趣的是，今天早上我開車時，旁邊有兩輛 Waymo 無人駕駛汽車。許多公司都在想辦法讓人們離開他們的業務。

We're trying to figure out how to get more people in, build more opportunity in people's individual lives for health and nutrition, opportunity and wealth and wealth building. Those are never going to go away. I don't care if it's driverless. I don't care if it's an automated warehouse.

我們正在努力弄清楚如何讓更多的人參與進來，為人們的個人生活創造更多的健康和營養、機會和財富以及財富累積的機會。這些永遠不會消失。我不在乎它是不是無人駕駛。我不在乎它是不是自動化倉庫。

At Herbalife, we want more people in our mix, building communities, helping people get healthier. We believe in this model wholeheartedly. It isn't going anywhere. We're going to get stronger and better at it. We got a great management team. We've got a great group of distributors.

在康寶萊，我們希望更多的人加入我們的團隊，建立社區，幫助人們變得更健康。我們全心全意地相信這個模式。它不會去任何地方。我們會變得更強、更好。我們擁有一支優秀的管理團隊。我們擁有優秀的經銷商團隊。

Our customers know who we are, love us. They see their lives transform and get better. We just got to get wider and bigger with our mission. We know what the challenges are. We're here to accomplish this company's strength and build it, better every single day. So wouldn't it be me if I didn't say it, let's grow, let's go Herbalife. Thanks, guys. See you next quarter.

我們的客戶知道我們是誰，喜歡我們。他們看到自己的生活發生了變化並變得更好。我們的使命必須變得更廣泛、更大。我們知道挑戰是什麼。我們來這裡是為了增強公司的實力，並將其建立得一天比一天更好。所以如果我不說那不就是我了，我們就成長吧，就走康寶萊吧。謝謝，夥計們。下季見。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。