Herbalife (HLF) Q1 FY2022 earnings: revenue $1.3 billion, down 11.0% on the year

Herbalife Ltd. (HLF) reported revenue of $1.3 billion for Q1 FY2022, the quarter ended 31 March 2022, down 11.0% on the same quarter a year earlier as this quarter's filing gives it. Net income was $98 million, down 33.4% on the year as this quarter's filing gives it, and diluted earnings per share $0.96. The figures are the company's own, from the 10-Q it filed with the SEC on 3 May 2022.

Revenue$1.3 billiondown 11.0% on the year

Net income$98 milliondown 33.4% on the year

Diluted EPS$0.96

QuarterQ1 FY2022ended 31 March 2022

The quarter, against the one before and a year earlier

Line	Q1 FY2022	Q4 FY2021	A year earlier	Change on the year
Revenue	1,336	1,318	n/a	n/a
Cost of revenue	307	297	n/a	n/a
Gross profit	1,029	1,021	n/a	n/a
Gross margin	77.0%	77.5%	n/a
Selling, general and administrative	455	513	n/a	n/a
Operating income	153	84.3	n/a	n/a
Operating margin	11.5%	6.4%	n/a
Interest expense	29.7	41.1	n/a	n/a
Pre-tax income	123	47.6	n/a	n/a
Income tax	25.2	9.4	n/a	n/a
Effective tax rate	20.4%	19.7%	n/a
Net income	98.2	38.2	n/a	n/a
Net margin	7.4%	2.9%	n/a
Diluted EPS	$0.96	$0.40	n/a	n/a

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q1 FY2022	Q4 FY2021	A year earlier	Change on the year
Operating cash flow	130	85.4	n/a	n/a
Capital expenditure	41.3	46.9	n/a	n/a
Free cash flow	89.2	38.5	n/a	n/a
Free cash flow margin	6.7%	2.9%	n/a
Cash from investing	-41.2	-47.5	n/a	n/a
Cash from financing	-122	-109	n/a	n/a
Depreciation and amortisation	29.2	27.5	n/a	n/a
Share-based compensation	12.4	11.8	n/a	n/a
Buybacks	116	102	n/a	n/a
Diluted shares, weighted	102m	108m	n/a	n/a
Shares outstanding at period end	99m	101m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2022	Q4 FY2021	A year earlier	Change on the year
Shareholders' equity	-1,453	-1,392	n/a	n/a
Debt	2,816	2,763	n/a	n/a
Operating lease liabilities	196	201	n/a	n/a
Finance lease liabilities	n/a	0.7	n/a	n/a
Other liabilities	1,266	1,247	n/a	n/a
Total liabilities and equity	2,825	2,820	n/a	n/a
Fixed assets	454	442	n/a	n/a
Goodwill	96.0	95.4	n/a	n/a
Intangible assets	317	317	n/a	n/a
Cash and equivalents	570	602	n/a	n/a
Receivables	84.0	66.9	n/a	n/a
Inventory	570	576	n/a	n/a
Other assets	734	721	n/a	n/a
Total assets	2,825	2,820	n/a	n/a

Questions

What was Herbalife's revenue in Q1 FY2022?

Herbalife (HLF) reported revenue of $1.3 billion for Q1 FY2022, the quarter ended 31 March 2022, down 11.0% on the same quarter a year earlier as the company restated it.

How much did Herbalife earn in Q1 FY2022?

Net income for Q1 FY2022 was $98 million, down 33.4% on the year, and diluted earnings per share $0.96.

When did Herbalife report Q1 FY2022 results?

Herbalife filed its 10-Q for the quarter ended 31 March 2022 with the SEC on 3 May 2022.

Quarterly results, the last 20 quarters

	Q3 FY2021	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,431	1,318	1,336	1,393	1,295	1,181	1,252	1,314	1,281	1,215	1,264	1,281	1,240	1,207	1,222	1,259	1,274	1,283	1,317	1,327
Cost of revenue	305	297	307	316	285	266	299	302	303	288	285	283	269	268	265	277	284	288	291	296
Gross profit	1,126	1,021	1,029	1,077	1,010	915	954	1,012	978	927	979	998	972	940	956	982	990	995	1,026	1,030
Gross margin	79%	77%	77%	77%	78%	78%	76%	77%	76%	76%	77%	78%	78%	78%	78%	78%	78%	78%	78%	78%
SG&A	486	513	455	470	448	437	476	460	455	474	492	502	444	437	432	448	448	n/a	n/a	n/a
Operating income	189	84.3	153	156	147	88.9	70.5	123	107	55.8	71.9	80.4	127	106	123	133	126	99.8	138	128
Operating margin	13%	6%	11%	11%	11%	8%	6%	9%	8%	5%	6%	6%	10%	9%	10%	11%	10%	8%	11%	10%
Interest expense	37.7	41.1	29.7	31.7	34.5	43.4	39.4	38.4	38.5	49.6	37.9	57.7	56.5	66.2	52.0	53.6	51.0	57.8	46.8	37.4
Pre-tax income	152	47.6	123	124	113	64.4	31.1	85.0	69.2	17.7	34.0	12.2	70.6	52.6	70.8	79.0	74.8	50.5	91.6	-3.7
Tax rate	23%	20%	20%	30%	27%	16%	6%	30%	38%	42%	29%	61%	33%	-238%	29%	38%	42%	-69%	33%	n/a
Net income	117	38.2	98.2	86.5	82.2	54.4	29.3	59.9	42.8	10.2	24.3	4.7	47.4	178	50.4	49.3	43.2	85.4	61.9	-26.3
Net margin	8%	3%	7%	6%	6%	5%	2%	5%	3%	1%	2%	0%	4%	15%	4%	4%	3%	7%	5%	-2%
Diluted EPS	$1.09	$0.40	$0.96	$0.88	$0.83	$0.55	$0.29	$0.60	$0.43	$0.10	$0.24	$0.05	$0.46	$1.74	$0.49	$0.48	$0.42	$0.81	$0.57	-$0.25
Operating cash flow	88.0	85.4	130	98.8	69.6	53.6	46.2	136	79.6	96.1	13.8	102	99.5	69.6	0.2	96.0	139	98.3	114	32.9
Capital expenditure	36.1	46.9	41.3	34.6	37.7	42.8	30.3	38.3	31.1	35.3	32.9	36.3	27.1	25.7	18.3	22.8	20.8	18.5	10.9	11.3
Free cash flow	51.9	38.5	89.2	64.2	31.9	10.8	15.9	97.3	48.5	60.8	-19.1	66.2	72.4	43.9	-18.1	73.2	118	79.8	103	21.6
Buybacks	176	102	116	30.3	0.1	0.1	8.7	0.7	0.3	1.3	2.3	3.4	0.0	2.6	2.2	4.6	1.3	0.1	0.7	9.3
Shares outstanding	103m	101m	99m	98m	98m	98m	99m	99m	99m	99m	100m	101m	101m	101m	102m	103m	103m	103m	103m	105m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 March 2022, filed 3 May 2022: the filing.