Herbalife Ltd.

Good afternoon, and thank you for joining the second quarter 2024 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 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 and good afternoon, good evening everyone. Joining us today are Michael Johnson, our Chairman and Chief Executive Officer, Stefan Graziani, our President, and John DeSimone, 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 two 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 the Private Securities Litigation Reform Act of 1995. 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 period's reference. 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.

Good afternoon and good evening, everyone, and thanks for joining us. Our financial foundation is strong and continues to improve. In the second quarter, we exceeded our adjusted EBITDA expectations. And while we missed our top line guidance, which was impacted by a higher than anticipated FX headwind, we are continuing to execute on our initiatives to drive top line growth. Let's take a look at our financial performance. Net sales for $1.3 billion, up slightly versus quarter two of 2023 on a constant currency basis, while down 2.5% on a reported basis due to 270 basis points of FX headwinds. Our adjusted EBITDA of $180 million exceeded our guidance, and we are raising our full year expectations. Adjusted EBITDA margin was 14.1%, up 120 basis points year over year. Quarter two marks our highest adjusted EBITDA and adjusted EBITDA margin in seven quarters. We further reduced our total leverage ratio to 3.5 times at the end of June and remain committed to reducing our total leverage ratio to three by the end of 2025. John DeSimone will do a deeper dive into the numbers later on the call, but let me highlight some of what we accomplished in quarter two. We have substantially completed our reorganization. We have the right people in the right roles, and our leaders and employees are incredibly engaged and committed to our vision of becoming the world's premier health and wellness company, community, and platform. We'll continue to focus on refining our business to drive even more efficiencies and cost savings. We welcome e-commerce and media technology executive Perkins Miller to our board of directors. Perkins has a proven expertise in leading large-scale digital transformations, and he's done it for some of the biggest brand names, NBC Sports and the NFL. Perkins' experience is invaluable to us, especially as we continue our digital transformation. Our focus on distributed recruiting through programs like Herbalife Premier League are working. We've advanced and evolved our training programs as part of our strategic alliance with Eric Worre to excite, motivate, and provide high-level training and resources to our distributors. As I said, these are the highlights. Now I want to talk a little bit more in detail about the heart of the company, our distributors, and what we're doing to excite, engage, and empower them to grow their businesses. Under the leadership of our president, Stefan Graziani, we're implementing new and innovative initiatives for our distributors, and we're seeing some very positive trends. Importantly, in quarter two, our worldwide distributor recruiting was up year over year, reversing 12 consecutive quarters of decline, thanks to programs like the Herbalife Premier League, which launched earlier this year. As part of our new approach to training and supporting our distributors, in August, we will launch our new mentorship leadership development and accountability program for our top leaders in North America, which is unlike any program we've ever had at Herbalife or in the industry for that matter. This training will be focused on, among other things, supporting the implementation of successful go-to-market strategies and providing one-on-one support to distributors by sharing business metrics and creating an accountability structure with their peers, distributor leadership, and the company. This is the next phase in continuing to upscale our distributors and better support them through a key account management program. Stephan has engineered this and is leading our mastermind program, and we'll provide more details on this later in the call. As you know, we have a long-term relationship with Eric Worre, one of the most trusted and influential thought leaders in network marketing. Eric has been working with us for a little over four months and has already made a positive impact. He's provided hours and hours of training and events around the world, including extravaganzas in APAC, Latin America, and North America, just to name a few. And speaking of extravaganzas, over the last three months, we've hosted events in Thailand, Colombia, India, and the U.S. We had record attendance numbers in APAC, where approximately 24,000 people convened in Bangkok, and in India, where events in Bangalore and Delhi drew nearly 36,000 people on a combined basis, to their first-ever multi-city extravaganza events. These events were the perfect time to get our distributors excited about the broad and diverse range of products we continue to roll out globally, from nutrition and performance products like Herbalife 24 Creatine and Herbalife Protein Chips in North America to beauty products like VertiLife Skin Care Line in India. As I mentioned, Stefan is going to talk more about the positive distributor trends and some exciting new ways we're upscaling distributors, supporting distributor leaders, and creating more productive, relevant DMO business flows, including enhanced support for nutrition clubs, a key differentiator for Herbalife. This is an exciting time at Herbalife, an exciting time in the world of sports. Herbalife is the ultimate nutrition sport behind some of the most legendary champions and teams in the world. These athletes dedicate their lives to their chosen sports, and we dedicate ourselves to fueling their pursuit of greatness by providing the best nutrition products. We are incredibly proud of all of our sponsored athletes, which is why we just launched our Fueling the Best campaign, highlighting their accomplishments. You'll even see some of them competing this summer in the Olympic and Paralympic Games, where we are fueling 33 athletes and seven teams. These athletes are important brand ambassadors and a testament to the advanced nutrition delivered by our science-backed products. We believe in them, and we're hoping to bring home some gold to Herbalife. We also believe in our employees, our distributors, our business model, and our products. We believe we can and continue to change and empower people's lives. Most of all, we believe the transformative journey we are on. And we believe in our vision of becoming the world's premier health and wellness company, community, and platform. It's going to take a little time, but we're well on our way. Now I'm going to turn it over to Stefan, who will give you more details on why we believe so strongly in Herbalife and in our future. Stefan, over to you, my friend.