Herbalife appoints John DeSimone as new CFO

Herbalife Ltd. (NYSE: HLF) has announced a significant change in its leadership, with John DeSimone appointed as the new Chief Financial Officer, succeeding Alex Amezquita. DeSimone brings a wealth of experience to the role, having served as an executive at Herbalife for the past 17 years, including more than 8 years as CFO from 2010 to 2018, and 4 years as President and Co-President from 2018 to 2022. Most recently, he served as a special advisor to the CEO.

The company expressed confidence in the new leadership structure, with Michael Johnson, Chairman and CEO, stating that DeSimone's appointment, along with Stephan Gratziani as President, positions Herbalife well to return to growth and maximize shareholder value in both the near and long term.

Moreover, Herbalife has initiated guidance for the first quarter and full-year 2024, indicating a positive shift in the business's stability. The guidance for the first quarter of 2024 includes:

  • Net sales growth of 1% to 3% year-over-year, with the first-quarter 2023 results reported at $1,252.1 million.
  • Adjusted EBITDA of $115 million to $130 million, compared to $128.9 million in the first quarter of 2023.
  • Capital expenditures of $30 million to $40 million, with first-quarter 2023 results at $30.3 million.

Additionally, the full-year 2024 guidance encompasses approximately $40 million of savings from a new organizational redesign project initiated in January 2024. This project aims to bring leadership closer to the markets, streamline the organization, and accelerate productivity, with an expected run rate savings of at least $80 million beginning in 2025.

John DeSimone expressed his honor in returning to the role of CFO and his excitement in leveraging his experience and knowledge to improve Herbalife's financial and operating performance, reduce the gross leverage ratio to 3.0x by the end of 2025, and deliver long-term value to shareholders.

The company also acknowledged the contributions of outgoing CFO Alex Amezquita and outlined its commitment to delivering science-backed products to consumers in more than 90 markets through entrepreneurial distributors.

Herbalife's proactive steps in leadership transition, financial guidance, and cost-saving initiatives indicate a strategic focus on enhancing financial performance and delivering long-term value to its stakeholders. Following these announcements, the company's shares moved 1.0%, and are now trading at a price of $8.79. For the full picture, make sure to review Herbalife's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.