Christina Tan's questions to HERBALIFE (HLF) leadership • Q2 2025
Question
Christina Tan of Mizuho Financial Group questioned why the midpoint of the full-year constant currency sales guidance was slightly reduced despite expected benefits from the Protocol launch. She also asked for clarification on why the EBITDA guidance raise wasn't more significant, given the Q2 beat and favorable currency tailwinds.
Answer
CFO John DeSimone explained that the full-year constant currency guidance was adjusted primarily because Q2 results were below the midpoint of the guidance for that quarter, though he reiterated that growth is still projected for Q3 and Q4. Regarding EBITDA, DeSimone detailed that currency tailwinds on the top line do not immediately benefit the bottom line due to a lag in inventory accounting. The positive impact on cost of goods sold is expected to materialize in subsequent quarters, primarily in early 2026.