Herbalife announced that for the 18th consecutive quarter, they have hit double digits numbers in sales growth. Net sales for the second quarter was $639.7 million, which is an increase of a little over 20% percent compared to the same period in 2007.
That was not the only number that was good. The company reported a net income of $67.1 million, almost $20 million more that the same quarter in 2008. This number reflected a lower effective tax rate as well as results from the Herbalife share repurchase program.
“We continue to generate positive cash flow, expand margins and report record earnings per share,” said Chairman and Chief Executive Officer Michael O. Johnson. “Our excellent quarter reflects our distributors’ confidence in our products and business opportunity as well as their hard work and commitment.”
Herbalife credits much of their success during the second quarter to sales in many of their overseas markets. China and Venezuela both saw triple digit net gains compared to last year. Six of the top 10 markets, including the U.S saw double digit net sales gains. Brazil, Taiwan, South Korea, Italy, Taiwan and France all saw a significant increase in their net sales, all companies in the 20% percent range.
While the stock chart looks like a healthy EKG report, the net results that is the stock is up over 15% in the past year.
Herbalife has had many problems over the last few months with lawsuits, and claims of high lead content in products but that didn’t seem to effect them in any way. It is bit surprising not only to see that their numbers went up, but went up significantly. It seems that Herbalife is still going strong, despite those who are trying to bring it down. Full results and numbers for Herbalife and all of their markets are available on the website.
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