Herbalife Nutrition, global direct seller, has been declared the winner of the Bravo International Growth Award, tie with PM-International, the prize being awarded for the first time by Direct Selling News (DSN). The company is celebrating its best year ever, hitting a milestone after ten straight quarters of growth.
Net sales last year increased 13.6 percent over 2019, resulting in $5.5 billion, the largest annual net sales in this 41-year-old company’s history. 2020 reported net income was $372.6 million compared to $311 million for the full year 2019, is shown in the June digital edition of Direct Selling News Magazine.
Three of Herbalife Nutrition’s six regions—Asia Pacific, Europe/Middle East/Africa (EMEA) and North America—set annual net sales records of their own. Finally, the company’s fourth-quarter net sales increased 15.6 percent compared to the fourth quarter of 2019, resulting in $1.4 billion and the largest fourth-quarter net sales in Herbalife Nutrition history. Net sales performance for Q4 2020 demonstrated the strength of the company’s geographic diversity, said Herbalife Nutrition CFO Alex Amezquita during the Q4 2020 Herbalife Nutrition Ltd. Earnings Call; in the company’s five largest markets, the U.S., India and Vietnam saw double-digit growth in net sales.
Herbalife Nutrition’s record-breaking 2020 may be attributed to several factors: First, a flexible business model that enabled distributors to pivot to a predominantly online business; the relevancy of its products at a time when more consumers are reprioritizing their health; and the entrepreneurial nature of distributors and their ability to adapt their sales approach with customers.
“From a demand perspective, our business is backed by favorable consumer trends in an environment that has never been more responsive to what we bring to the table. We believe that individuals around the world have a heightened focus on consuming healthy, nutrient-dense foods and supplements. Additionally, individuals who are seeking an economic opportunity are finding our business model to be attractive,” said Herbalife Nutrition CEO John Agwunobi during the company’s Q2 earnings call.
Spirit and Growth
That entrepreneurial spirit may be most consequential in the story of Herbalife’s historic success. When lockdowns and social distancing began, consumers had to find ways to stay well from home—without the benefit of gyms, easy access to healthy takeout or even doctors’ offices.
When stay-at-home orders began last year, the company immediately moved its events, training, recognition and field support to a virtual model to help distributors fund their businesses more efficiently. Distributors moved their meetings and supportive communities to virtual platforms.In March, the company held its first completely virtual and interactive international leadership education and training conference. Attendees had access to an interactive all-in-one-event platform from which they could access live broadcasts, exclusive on-demand content, recognition information and videos designed to increase social engagement around Herbalife Nutrition’s history, growth, global corporate social responsibility efforts, new products and sponsored sports teams.
Collectively, all of these modifications made it easier for distributors to continue to support, train and mentor existing team members, attract prospects, and grow their respective customer bases by showing others how to take control of their health from home. Consumers over the last 15-plus months have had the opportunity to consider what good health means to them. “In 2020, many consumers realized the importance of health and the role nutrition plays in good health, a fact that has been part of Herbalife Nutrition’s mission since its founding more than 40 years ago,” says Jennifer Butler, Vice President of Media Relations for Herbalife Nutrition.
A Serving Spirit
Herbalife Nutrition also maintains a deep commitment to serving communities in need, particularly those whose access to good health is limited by poverty and malnutrition. Last year the Herbalife Nutrition Foundation donated $4.47 million globally to help improve local communities. Also, last year, through Herbalife’s Nutrition for Zero Hunger Initiative, the company provided nearly 700,000 meals to children and families, donated more than 800,000 servings of Herbalife Nutrition products to communities in need, and provided more than 87,000 beneficiaries with essential dietary supplements and nutrition education to reduce nutrient deficiency and support healthy child development.