Financial Ratio Analysis Herbalife Ltd
1.0 INTRODUCTION
Herbalife Ltd are a global nutrition company founded in 1980 that sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products as well as personal care products. Herbalife distributes and sells its products through a network of independent distributors, using the direct selling channel. As of December 31, 2012, Herbalife sold their products in 88 countries to and through a network of approximately 3.2 million independent distributors. Herbalife believe the enhanced consumer awareness and the demand for their products due to the global obesity epidemic coupled with the effectiveness of their distribution network and actively engaged distributors have been the primary reasons for their success throughout our 33-year operating history.
Herbalife categorize their science-based products into four principal groups: weight management, targeted nutrition, energy, sports & fitness and Outer Nutrition which accounted for 62.7%, 23.2%, 5.2% and 3.6% of their net sales in fiscal year 2012, respectively. Their operating segments are based on geographical operations in six regions: North America, Mexico, South & Central America, EMEA (Europe, Middle East and Africa), Asia Pacific and China.
Herbalife believe that the direct-selling channel is ideally suited to marketing their products because sales of weight management, nutrition and personal care products are strengthened by on-going personal contact, coaching and education between distributors and their customers. This frequent, personal contact can enhance consumers’ nutritional and health education as well as motivate consumers to begin and maintain wellness and weight management programs. In addition, Herbalife distributors consume their products themselves, and therefore can provide first-hand testimonials of the effectiveness of Herbalife products to their customers, which can serve as a powerful sales tool.
Herbalife Ltd corporate office where
Herbalife Ltd are a global nutrition company founded in 1980 that sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products as well as personal care products. Herbalife distributes and sells its products through a network of independent distributors, using the direct selling channel. As of December 31, 2012, Herbalife sold their products in 88 countries to and through a network of approximately 3.2 million independent distributors. Herbalife believe the enhanced consumer awareness and the demand for their products due to the global obesity epidemic coupled with the effectiveness of their distribution network and actively engaged distributors have been the primary reasons for their success throughout our 33-year operating history.
Herbalife categorize their science-based products into four principal groups: weight management, targeted nutrition, energy, sports & fitness and Outer Nutrition which accounted for 62.7%, 23.2%, 5.2% and 3.6% of their net sales in fiscal year 2012, respectively. Their operating segments are based on geographical operations in six regions: North America, Mexico, South & Central America, EMEA (Europe, Middle East and Africa), Asia Pacific and China.
Herbalife believe that the direct-selling channel is ideally suited to marketing their products because sales of weight management, nutrition and personal care products are strengthened by on-going personal contact, coaching and education between distributors and their customers. This frequent, personal contact can enhance consumers’ nutritional and health education as well as motivate consumers to begin and maintain wellness and weight management programs. In addition, Herbalife distributors consume their products themselves, and therefore can provide first-hand testimonials of the effectiveness of Herbalife products to their customers, which can serve as a powerful sales tool.
Herbalife Ltd corporate office where