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    Robert Rigby • Bank of America

    Robert Rigby's questions to Herbalife Ltd (HLF) leadership

    Robert Rigby's questions to Herbalife Ltd (HLF) leadership • Q1 2025

    Question

    Robert Rigby of Bank of America questioned whether the current economic environment could be a tailwind for recruitment, the extent of sourcing from China and the impact of tariffs, and the rationale for lowering CapEx guidance despite recent acquisitions.

    Answer

    CFO John DeSimone acknowledged that historically, direct sellers perform well in countercyclical environments but refrained from making a specific prediction. He clarified that the tariff impact is not material (estimated $10-15M annually after duty drawbacks) as most ingredients are sourced from the U.S. He also explained that the CapEx guidance was lowered due to underspending and reprioritization in Q1, and the new guidance fully incorporates all necessary spending for the acquisitions.

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    Robert Rigby's questions to Herbalife Ltd (HLF) leadership • Q4 2024

    Question

    Robert Rigby inquired about the necessary steps and expected timeline to reverse the decline in North American volume trends and asked for clarification on the debt repayment plan for the 2025 maturity.

    Answer

    Incoming CEO Stephan Gratziani and CFO John DeSimone addressed the questions. Gratziani noted that after 14 quarters of decline, the active supervisor base is rebuilding, following three quarters of new distributor growth. DeSimone added that North American net sales trends have improved sequentially each quarter in 2024, from down 11% in Q1 to down 3% in Q4, indicating the turnaround is on track. Regarding debt, DeSimone confirmed the plan to repay the sub-$200 million 2025 notes at maturity, potentially using the currently undrawn revolver, which would then create an opportunity for further debt paydown.

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    Robert Rigby's questions to Herbalife Ltd (HLF) leadership • Q3 2024

    Question

    Robert Rigby, on for William Reuter, asked about the company's plans and pacing for debt repayment beyond the 2025 notes and whether capital expenditures are expected to decrease after 2025.

    Answer

    CFO John DeSimone confirmed the 2025 notes are the top priority, with future debt reduction potentially involving a refinancing in 2026 to gain flexibility. He reiterated the goal to repay $1 billion by the end of 2028, supported by current cash flow and future CapEx reductions. He also affirmed that CapEx is expected to decline significantly in 2026 after the current technology and manufacturing investment cycle concludes.

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    Robert Rigby's questions to B&G Foods Inc (BGS) leadership

    Robert Rigby's questions to B&G Foods Inc (BGS) leadership • Q3 2024

    Question

    Robert Rigby of Bank of America asked about B&G Foods' performance relative to private label brands and inquired about the outlook for commodity price impacts on margins into 2025.

    Answer

    CEO Casey Keller stated that private label pressure is category-specific, noting its strength in core frozen vegetables but highlighting that aggressive pricing from competitor Wesson was a bigger issue for Crisco. CFO Bruce Wacha and CEO Casey Keller anticipate modest 1-2% input cost inflation continuing into 2025, with pressure in specific ingredients like pepper and garlic.

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