Sales: $180 million for personal care products. Corporate sales: $5.0 billion.
Key Personnel: Michael O. Johnson, chairman and chief executive officer; Desmond Walsh, president; John G DeSimone, chief financial officer; Richard P. Goudis, chief operating officer; Brett R. Chapman, chief legal officer and secretary.
Major Products: Personal care products that fall under the brand names such as Skin Activator, SKIN and Herbal Aloe.
Comments: Despite Bill Ackman’s attempts to wipe Herbalife off the face of the earth, the company is doing pretty well for itself. In 2014, corporate sales rose 3% to $5.0 billion. Net income fell 7% to $538.5 million. The company’s outer nutrition business—a.k.a. personal care—accounted for less than 4% of sales.
While its personal care products shrank slightly from last year, Herbalife posted record corporate results, as sales rose 18% on a 20% increase in volume. Of its corporate sales, the Asia-Pacific region continued to represent the highest percentage of its sales at 25.4%. North America represented 24.5%, South and Central America was 15.7%, Mexico was 17.3%, EMEA represented 12.8% and China was 4.4%.
Michael Johnson, chairman and CEO stated, “2014 was a record year in terms of net sales, volume and sales leader retention. It was also a year of transition, as we continue to implement changes that we believe will create a stronger company with the ideal combination of growth and sustainability. We have seen the success of these changes in early adopter markets and remain confident that our other markets will follow a similar pattern through 2015 and beyond.”
Johnson continued, “Our revised guidance reflects the currency landscape faced by all global companies and the short-term volume impact of the enhancements we are making. We believe we are executing the right long-term strategy and are confident in our ability to create sustainable value for our shareholders and the millions of Herbalife members and their customers worldwide.”
Herbalife expanded the company’s global corporate affairs team based in Los Angeles. The global nutrition marketer welcomed three experienced individuals: Ric Hobby, who will serve as the company’s senior vice president for global government relations; Megan Jordan, who will serve as the company’s senior vice president for global corporate communications; and Randall Popelka, who will serve as vice president, government and industry affairs. Two present members of the team, Julian Cacchioli and Elaine Pacheco, will take on new responsibilities within the global corporate affairs team as the office undergoes a significant expansion and reorganization.
The company also appointed Pamela Jones Harbour to the newly-created role of senior vice president, global member compliance and privacy.
Herbalife’s first quarter net sales rose 12% to $1.3 billion.