Herbalife Ltd. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Segment Information (Tables)

Segment Information (Tables)

9 Months Ended

Sep. 30, 2025

Reconciliation of Revenue from Segments to Consolidated

Operating information for the two reportable segments is as follows:


	Three Months Ended					Nine Months Ended
	September 30, 2025		September 30, 2024			September 30, 2025			September 30, 2024
	(in millions)
Net sales:
Primary Reporting Segment	$	1,202.4	$	1,165.5		$	3,538.4		$	3,554.0
China		71.3		74.8			216.1			231.7
Total net sales	$	1,273.7	$	1,240.3		$	3,754.5		$	3,785.7
Significant segment expenses
Cost of Sales (3)(4):
Primary Reporting Segment	$	276.1	$	258.6		$	797.5		$	802.9
China		8.1		10.1			28.8			33.9
Total cost of sales	$	284.2	$	268.7		$	826.3		$	836.8
Royalty Overrides and service fees to China independent service providers(1)(3)(4):
Primary Reporting Segment	$	415.7	$	404.7		$	1,222.8		$	1,234.0
China		35.0		39.1			107.2			118.2
Total royalty overrides and service fees to China independent service providers	$	450.7	$	443.8		$	1,330.0		$	1,352.2
Contribution margin(1):
Primary Reporting Segment	$	510.6	$	502.2		$	1,518.1		$	1,517.1
China		28.2		25.6			80.1			79.6
Total contribution margin	$	538.8	$	527.8		$	1,598.2		$	1,596.7
Selling, general, and administrative expenses excluding service fees to China independent service providers(1)(2)		413.0		405.7			1,221.8			1,322.3
Other operating income		—		(5.0	)		(4.8	)		(5.0	)
Interest expense, net		51.0		56.5			156.6			152.1
Other expense, net		—		—			—			10.5
Income before income taxes		74.8		70.6			224.6			116.8
Income taxes		31.7		23.2			81.9			40.4
Net income	$	43.1	$	47.4		$	142.7		$	76.4

(1)

Contribution margin consists of net sales less cost of sales, Royalty overrides, and service fees to our independent service providers in China. For the China segment, contribution margin includes the portion of service fees to China independent service providers that are currently recorded in selling, general, and administrative expenses within the Company’s accompanying condensed consolidated statements of income, which totaled $34.6 million and $38.3 million for the three months ended September 30, 2025 and 2024, respectively, and $105.6 million and $116.2 million for the nine months ended September 30, 2025 and 2024, respectively.

(2)

Selling, general, and administrative expenses exclude the portion of service fees to China independent service providers that are included in selling, general, and administrative expenses within the Company’s accompanying condensed consolidated statements of income as described in footnote (1) above.

(3)

The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(4)

As a result of adopting ASU 2023-07 during the fourth quarter of 2024, the Company has expanded and updated its disclosures for the current year and prior year periods as described in Note 2, Basis of Presentation, to the Consolidated Financial Statements included in the 2024 10-K.

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area

The following table sets forth net sales by geographic area:


	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
	(in millions)
Net sales:
United States	$	256.4	$	253.5	$	769.4	$	787.5
India		226.4		218.3		639.3		626.4
Mexico		146.8		131.5		410.5		415.1
China		71.3		74.8		216.1		231.7
Vietnam		71.5		69.7		207.1		208.2
Others		501.3		492.5		1,512.1		1,516.8
Total net sales	$	1,273.7	$	1,240.3	$	3,754.5	$	3,785.7