Herbalife Ltd.

Good afternoon, and thank you for joining the third quarter 2021 earnings conference call for Herbalife Nutrition Limited. On the call today is Dr. John Aguinobi, the company's chairman and CEO, John DeSimone, the company's president, Alex Amosquito, the company's chief financial officer, and Eric Monroe, the company's senior director and investor relations. I would now like to turn the call over to Eric Monroe to read the company's Safe Harbor language.

Before we begin, as a reminder, during this conference call, we may make forward-looking statements within the meaning of the federal securities laws. These statements involve assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated. For a complete discussion of risks associated with these forward-looking statements in our business, we encourage you to refer to today's earnings release and our SEC filings, including our most recent quarterly report on Form 10-Q. Our forward-looking statements are based upon information currently available to us. we do not undertake any obligation to update or release any revisions to any forward-looking statement, or to report any future events or circumstances, or to reflect the occurrence of unanticipated events. In addition, during this call, certain financial performance measures may be discussed that differ from comparable measures contained in our financial statements prepared in accordance with U.S. generally accepted accounting principles referred to by the Securities and Exchange Commission as non-GAAP financial measures. We believe that these non-GAAP financial measures assist management and investors in evaluating our performance and preparing period-to-period results of operations in a more meaningful and consistent manner, as discussed in greater detail in the supplemental schedules to our earnings release. A reconciliation of these non-GAAP measures to the most comparable GAAP financial measures is included in our earnings press release submitted to the SEC. These reconciliations, together with additional supplemental information, are available at the Investor Relations section of our website, Herbalife.com. Additionally, when management makes reference to volumes during this conference call, they are referring to volume points. I will now turn the call over to our Chairman and CEO, John Aguinobi.

Good afternoon, everyone. Thank you for joining the call today. Over the course of the global pandemic, we have delivered unprecedented business performance and growth. Despite challenging comparisons in the third and fourth quarter, we remain on track for another record sales year. The fundamental tailwinds driving the global nutrition industry, along with demand for our science-based nutrition products, continue to benefit the company. In Q3, we reported worldwide net sales of $1.4 billion, a decline of 6% compared to the prior year period. These results were in line with the updated guidance that we issued in September. It's important to acknowledge that the third quarter was impacted by a challenging year-over-year comparison period. On a two-year stack basis, net sales grew 15% compared to the third quarter of 2019. For the third quarter, we reported earnings per share of $1.09 per diluted share and net income of $117.4 million. Adjusted diluted earnings per share of $1.21 was above the top end of our revised Q3 guidance. Adjusted EBITDA of $222.4 million also exceeded the high end of our guidance range. Uncertainty in global markets fueled by the ongoing pandemic and the Delta variant, has presented challenges in predicting behavior in our channel. As we discussed at our recent Investor Day, we observed lower than expected activity rates during the month of August, which led to our revised Q3 and full year 2021 guidance. The decrease in activity rates was primarily driven by fewer new distributors and preferred customers entering our channel. This lower level of contribution from new entrants remained relatively consistent in the month of September and is reflected in our guidance for the remainder of the year. For the quarter, the number of new distributors and preferred customers joining the business was down 19% compared to record numbers of new entrants in Q3 2020, but it was still up 28% compared to Q3 of 2019, excluding China. Despite the slowdown in new entrants, we remain confident the foundation of our business is strong and our long-term strategy is solid. In Q3, the number of sales leaders actively selling in the channel was up 10% compared to the prior year period, excluding China. Turning to our regional performance. The Asia-Pacific region had another quarter of double-digit net sales growth, up 11% compared to the prior year. The region was led by continued strength in India, which grew 46%. India set its fifth straight quarterly net sales record, as well as a monthly net sales record in September. Over 220,000 new preferred customers joined the business in India, a record number and a reflection of the momentum that we are seeing in that market. In Vietnam, government COVID restrictions forced our nutrition clubs to close for the quarter, which contributed to growth of 13%, which was lower than the growth rates we had recently experienced in that market. Additionally, a third wave of COVID-19 throughout Indonesia resulted in community restrictions in all provinces and impacted our nutrition club utilization, resulting in a sales decline of 10%. Looking at North America, we saw a decline in net sales of 11%. This decline is up against an extraordinarily high prior year comparison period. The two-year stacked growth rate in the region increased 38% compared to Q3 of 2019. We continue to see strength in our U.S. nutrition club business as many parts of the country return to more in-person activities. While we continue to closely monitor pandemic conditions, we kicked off a series of in-person distributor events in October and are encouraged by the initial attendance and the excitement in the channel as we begin to once again meet face-to-face. Similar to the North America region, EMEA experienced a challenging year-over-year comparison, resulting in a 4% decline. However, in the region, we have seen a 16% year-over-year increase in the number of active supervisors, which reflects the continued strength and solid foundation of the EMEA business. Looking at the two-year stack in the region, EMEA grew 33% compared to the third quarter of 2019. Although the combined new distributor and preferred customer numbers are lower than Q3 2020, we saw growth of 24% compared to the more normalized 2019 comparison period. In China, net sales declined 30% compared to the third quarter of 2020. During the second quarter earnings call, we outlined the actions that we're taking in the markets. Overall, we believe our strategic initiatives, which include a focus on our digital transformation and daily consumption at nutrition clubs, will improve the number of new entrants joining the business and create a more active base of service providers in the long term. Although the impact of these initiatives is yet to be seen in our top-line results, we remain confident and expect these strategies will benefit our sales performance over time. Turning to guidance. For the full year 2021, we are reiterating the outlook that we provided in September for the top and bottom line. Alex will take you through our guidance in a bit more detail shortly. In line with many of our peers in the direct selling industry, as well as mid-cap food and nutrition companies, we expect to provide guidance for full year 2022 in February as part of the Q4 2021 earnings release. We anticipate this to be our go-forward cadence, which will allow time for additional data to flow through our forecasting models. Although the unpredictable and unprecedented nature of the pandemic and its economic impacts have resulted in near-term variability in our business, we remain firmly confident in the long-term growth strategy that we outlined in detail at our Investor Day. One of the initiatives that we outlined at Investor Day to accomplish this growth was new product innovation. And over the past several years, we have strategically built out our Herbalife 24 sports nutrition brand through new products and global expansion. And this has contributed to impressive growth in the energy, sports, and fitness category, which has increased at an 18% three-year CAGR from 2017 through 2020. and growth of 31% year-to-date. We anticipate new products will be a long-term growth driver in our business and accelerating new product development will be critical. Currently, products introduced in the prior three years represent only 14.5% of volume points in 2020. Our strategic objective is to increase sales attributable to new product development within the last three years to 25% over the next five years by localizing product development and improving speed to market. We hope that you were able to attend our investor day where we outlined additional aspects of our growth strategy and shared our vision on the future of the company. For any of you that were unable to join, a full replay of the event is currently live on our investor relations website. I will now turn the call over to Alex to review the financials in more detail.