Herbalife Ltd.

Good afternoon, and thank you for joining the third quarter 2023 earnings conference call for Herbalife Limited. During the company's opening remarks, all participants will be in a listen-only mode. Following the opening remarks, we will conduct a question-and-answer session. As a reminder, today's conference call is being recorded. I would now like to turn the call over to Aaron Banyas, Vice President and Head of Investor Relations, to begin today's call.

Thank you, Cherie, and good afternoon, good evening, everyone. Joining us today are Michael Johnson, our Chairman and Chief Executive Officer, Stefan Graziani, our Chief Strategy Officer, and Alex Amaskita, our Chief Financial Officer. Before we begin today's call, I would like to direct you to the cautionary statement regarding forward-looking statements on page 2 of our presentation and in our earnings release issued earlier today, which are both available under the investor relations section of our website. The presentation and earnings release include a discussion of some of the more important factors that could cause results to differ from those expressed in any forward-looking statement within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. As is customary, the content of today's call and presentation will be governed by this language. In addition, during today's call, we will be discussing certain non-GAAP financial measures These non-GAAP financial measures exclude certain unusual or non-recurring items that management believes impact the comparability of the periods referenced. Please refer to our earnings release and presentation materials for additional information regarding these non-GAAP financial measures and the reconciliations to the most directly comparable GAAP measure. And with that, I will now turn the call over to Chairman and CEO, Michael Johnson.

Thank you, Erin, and good afternoon and good evening, everyone. You know, it's been a year since I returned to Herbalife, a company I believe in and I am passionate about. Since my return, we've accomplished a lot. We modernized our brand, cast a vision for Herbalife 2.0, met with nearly 125,000 distributors at nine extravaganzas. We reached a key milestone launching our all-new Herbalife.com website, launched innovative products, and our trends, they are improving. We are in a transformational process that touches all parts of our business, and we're seeing progress. Rebuilding sales growth is obviously a key priority. Our net sales for the quarter were $1.3 billion, and this is the third quarter in a row that our year-over-year net sales trends have improved. India continues to outperform, and EMEA has posted two consecutive quarters of year-over-year growth. Our return to growth in the U.S. and China is our primary focus. In addition, we took proactive steps during the quarter to further secure our balance sheet. And the number of our average active sales leader, along with our active preferred customers and non-sales leaders, are also trending up. Alex will present the numbers for the quarter, and we can confidently say we are seeing momentum building. Another key priority with my return was ensuring proper succession management. We've announced some key leadership changes over the last six months that are already beginning to move the needle and support our growth strategy and overall success. We have a strong management team in place, and we are continuing to build on that strength with the addition of key executives, including the recent appointments of former Amway executive Claire Groen as our chief human resources officer, and Susan Brown as our head of global corporate communications. Both Claire and Susan bring a wealth of experience to the company. And as previously announced, Stefan Graziani joined in August as our new chief strategy officer. bringing more than 32 years of experience as a top independent distributor to the company. With Stefan's unique perspective, energy, and understanding of what drives top-line growth, it has helped us improve our understanding and efforts with the B2C portion of our business. So let me explain. Since the company was founded in 1980, we've operated a B2B2C selling model, with the company selling to distributors and those distributors selling to consumers. Over the past 43 years, our core investment strategies and tools have been focused primarily on supporting the B2B component of the business, while distributors focus primarily on developing their own tools and strategies for selling to the consumer, as well as recruiting and building their own organizations. Our strategies and priorities are evolving, and we are developing tools and platforms to help distributors better manage their customers. Stefan is uniquely positioned to lead this charge with our distributor leaders and empower the entrepreneurial spirit that is so critical to our sustainable growth. Stefan hit the ground running in his new corporate role and joins us today to share his areas of focus in his first few months. We continued our world tour this quarter, which included four extravaganzas in September alone. These events provide our distributors with a vision for the future, recognition for important achievements, and the sharing of best practices that motivate and energize our distributor base. We believe these events set in motion new recruiting and retailing activity. Over the course of two and a half weeks, we met with nearly 33,000 distributors in events in Kazakhstan, Poland, Mexico, and Brazil. In addition to the main events, we hosted mega workout sessions in both Krakow and Mexico City to kick off our new year-long global I'm With You campaign. In Krakow, more than 4,000 distributors and their guests gathered together for an outdoor mega workout, truly putting our healthy active lifestyle focus in motion. We continue to deliver our commitment to develop new and innovative products. When we met in August for the Q2 earnings call, we had launched Herbalife V, our first ever vegan product line for the U.S. market. The plant-based product line was met with resounding enthusiasm and opened the door to a new group of customers and distributors. Sales have eclipsed our expectations, and by the end of September, we were sold out of four of the five products. Our distributors and our customers love this product. In September, we continued the momentum and launched three new products. We launched Night Mode, which is scientifically shown to improve sleep quality in just seven days. and is available in select markets in Europe. In Brazil, we rolled out our all-new On Active Drink, a powdered product developed specifically for adults over 40 to support vision, muscle, bone, and immune health. And in Mexico, we introduced for the first time into the market five beverage enhancers, which are powdered drink mixes for use in nutrition clubs, Mexico's largest DMO or daily method of operations. In October, we launched a turmeric-based drink that supports muscle recovery and joint health called Golden Beverage for our Latin American market. With the product now available in Bolivia, Ecuador, and Colombia, all of these great products are backed by science, quality tested, and easy to incorporate into a customer's daily routine. These product launches are a testament to our commitment to quality and innovation. Another area we're gaining momentum and delivering on our commitments is with Herbalife One. We hit a key milestone in August with the launch of our all-new Herbalife.com website in Singapore. The new website has been well-received by distributors and customers, and learnings from the launch are being used for continuous improvement to further evolve and optimize the content. We remain on track to complete the broader rollout of the new website to 40 additional markets that represent approximately 80% of our sales, by the end of this year. This milestone is a critical step in helping us transform our business and propel us toward our next chapter of growth. I want to say thanks to the entire team who've worked endlessly to bring this to fruition. We've also been focused on the involving GLP-1 trend, which we are monitoring very, very closely. There continues to be a lot of conversations regarding the drugs and their potential impact on many industries. We are actively engaged in discussions both internally and externally and evaluating the options that are best suited for Herbalife and our distributors. Regardless of the path we choose, we have an incredible opportunity to help people considering, currently using, or maybe coming off GLP-1s. Core strength of our distributors is helping individuals in their overall health and wellness journeys, whether it's losing weight, building muscle, developing better nutritional and healthy active lifestyle habits, and or supplementing their nutrition through our products in our community. This is core to our brand and positions us as a healthy companion or an alternative to the medical approach. Another area we are showing our commitment to health and well-being is with respect to diabetes prevention. According to the CDC, approximately 96 million Americans are pre-diabetic. This inspired us to develop a program that targets those at risk for developing type 2 diabetes. We're excited to announce that we have recently been approved as a provider of the CDC's Diabetes Prevention Program. We are going through the necessary steps to certify our internal health experts as master trainers, which will give us the ability to train our distributors to become certified lifestyle coaches to administer the diabetes prevention program. As announced in mid-September, we're happy to welcome Herbalife independent distributor and Chairman's Club member, Rodica Macadry, as a new member of the Herbalife Board of Directors. Rodica is filling the seat made vacant when Stefan resigned from the board to become the company's CSO. With Eastern European roots and a strong knowledge of our business, Rodica brings a wealth of diverse experience to the board. She has nearly 30 years with her organization in a global business that expands across markets in Europe, Asia Pacific, North America, and Latin America. We look forward to Rodica's keen insights and contributions. I know she is going to be a valuable addition to our board. We've seen a lot of change over the past few years. These positive changes have us confident about Herbalife. More today than ever before. We have a strong leadership team and a strategic succession plan in place. Our future is bright. We're on a direct, clear path to success. We told you last quarter that our trends indicated we would see year-over-year net sales growths in the fourth quarter, and based on our line of sight today, our key indicators show this will indeed be the case. And with that, I'll turn it over to Stefan, followed by Alex, and then we'll come back for closing remarks following the Q&A. Stefan?