Herbalife (HLF) Q2 FY2022 earnings: revenue $1.4 billion, down 10.3% on the year

Herbalife Ltd. (HLF) reported revenue of $1.4 billion for Q2 FY2022, the quarter ended 30 June 2022, down 10.3% on the same quarter a year earlier as this quarter's filing gives it. Net income was $86 million, down 40.0% on the year as this quarter's filing gives it, and diluted earnings per share $0.88. The figures are the company's own, from the 10-Q it filed with the SEC on 2 August 2022.

Revenue$1.4 billiondown 10.3% on the year

Net income$86 milliondown 40.0% on the year

Diluted EPS$0.88

QuarterQ2 FY2022ended 30 June 2022

The quarter, against the one before and a year earlier

Line	Q2 FY2022	Q1 FY2022	A year earlier	Change on the year
Revenue	1,393	1,336	n/a	n/a
Cost of revenue	316	307	n/a	n/a
Gross profit	1,077	1,029	n/a	n/a
Gross margin	77.3%	77.0%	n/a
Selling, general and administrative	470	455	n/a	n/a
Operating income	156	153	n/a	n/a
Operating margin	11.2%	11.5%	n/a
Interest expense	31.7	29.7	n/a	n/a
Pre-tax income	124	123	n/a	n/a
Income tax	37.6	25.2	n/a	n/a
Effective tax rate	30.3%	20.4%	n/a
Net income	86.5	98.2	n/a	n/a
Net margin	6.2%	7.4%	n/a
Diluted EPS	$0.88	$0.96	n/a	n/a

$ million except per share.

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	Q2 FY2022	Q1 FY2022	A year earlier	Change on the year
Operating cash flow	98.8	130	n/a	n/a
Capital expenditure	34.6	41.3	n/a	n/a
Free cash flow	64.2	89.2	n/a	n/a
Free cash flow margin	4.6%	6.7%	n/a
Cash from investing	-34.6	-41.2	n/a	n/a
Cash from financing	-36.6	-122	n/a	n/a
Depreciation and amortisation	29.4	29.2	n/a	n/a
Share-based compensation	13.7	12.4	n/a	n/a
Buybacks	30.3	116	n/a	n/a
Diluted shares, weighted	99m	102m	n/a	n/a
Shares outstanding at period end	98m	99m	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	Q2 FY2022	Q1 FY2022	A year earlier	Change on the year
Shareholders' equity	-1,415	-1,453	n/a	n/a
Debt	2,810	2,816	n/a	n/a
Operating lease liabilities	196	196	n/a	n/a
Other liabilities	1,212	1,266	n/a	n/a
Total liabilities and equity	2,802	2,825	n/a	n/a
Fixed assets	466	454	n/a	n/a
Goodwill	91.9	96.0	n/a	n/a
Intangible assets	316	317	n/a	n/a
Cash and equivalents	581	570	n/a	n/a
Receivables	83.4	84.0	n/a	n/a
Inventory	554	570	n/a	n/a
Other assets	709	734	n/a	n/a
Total assets	2,802	2,825	n/a	n/a

Questions

What was Herbalife's revenue in Q2 FY2022?

Herbalife (HLF) reported revenue of $1.4 billion for Q2 FY2022, the quarter ended 30 June 2022, down 10.3% on the same quarter a year earlier as the company restated it.

How much did Herbalife earn in Q2 FY2022?

Net income for Q2 FY2022 was $86 million, down 40.0% on the year, and diluted earnings per share $0.88.

When did Herbalife report Q2 FY2022 results?

Herbalife filed its 10-Q for the quarter ended 30 June 2022 with the SEC on 2 August 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 30 June 2022, filed 2 August 2022: the filing.