Herbalife Reports 2002 First Quarter Results LOS ANGELES--(BUSINESS WIRE)--April 30, 2002--Herbalife International, Inc. (NASDAQ: HERBA) (NASDAQ: HERBB) today reported that net income for its first quarter ended March 31, 2002, of $19.9 million, or $0.60 per diluted share, compared to $8.6 million, or $0.29 per diluted share in the 2001 comparable quarter. Excluding the unfavorable impact of foreign currency fluctuations, diluted earnings per share for the first quarter of 2002 would have been $0.69 per diluted share.
Retail sales for the 2002 first quarter increased by 8.3 percent to $432.7 million from $399.7 million in the 2001 comparable quarter, and net sales increased to $265.8 million from $245.8 million in the 2001 comparable quarter. Excluding the impact of foreign currency fluctuations, retail and net sales increased 13.2 percent.
Cost of sales as a percent of net sales in the 2002 first quarter improved to 21.5 percent from 24.4 percent in the comparable 2001 quarter. This decrease reflects the realization of product cost savings attributed to new supply contracts.
Marketing, Distribution and Administrative expenses totaled $81.1 million for the 2002 first quarter compared with $85.6 million in the comparable 2001 quarter. The decrease is due to cost-cutting initiatives in corporate functions and international distribution centers.
Herbalife International, Inc. markets nutritional, weight management and personal care products in 54 countries worldwide. Herbalife products are available only through a network of independent distributors who purchase the products directly from the Company.
This document includes forward-looking statements which may involve material risks and uncertainties that could cause actual results and events to differ materially from those set forth in the forward-looking statements, including projections of total sales, the success of sales initiatives, the ability to estimate the timing and amount of future success of sales initiatives, the ability to estimate the timing and amount of future expenses and the other risks and uncertainties discussed in the company's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.