Herbalife Nutrition Ltd (NYSE:HLF) Q2 2022 Earnings Conference Call August 2, 2022 5:00 PM ET

Company Participants

Eric Monroe - Senior Director, IR

John Agwunobi - Chairman & CEO

Alexander Amezquita - CFO

John DeSimone - President

Conference Call Participants

Christopher Neamonitis - Jefferies

Jeff Van Sinderen - B. Riley Securities

William Reuter - Bank of America Merrill Lynch

Hale Holden - Barclays Bank

Operator

Good afternoon, and thank you for joining the Second Quarter 2022 Earnings Conference Call for Herbalife Nutrition Ltd. On the call today is Dr. John Agwunobi, the company's Chairman and CEO; John DeSimone, the company's President; Alex Amezquita, the company's Chief Financial Officer; and Eric Monroe, the company's Senior Director, Investor Relations.

I would now like to turn the call over to Eric Monroe to read the company's safe harbor language.

Eric Monroe

Good afternoon. On today's call, we will be making some forward-looking statements. And while we are making those statements in good faith, we do not have any guarantee about the results we will achieve. Descriptions of our risk factors are included in the documents we filed with the SEC.

We will also be discussing some non-GAAP financial measures. These non-GAAP and adjusted numbers refer to measures that exclude items management believes impact the comparability for the period referenced. Please see the earnings release for additional information on our comparability items. These GAAP to non-GAAP reconciliations can be found in the earnings press release and the slides we will be reviewing on today's call, both of which can be found in the Investor Relations section of our website.

I'll now turn the call over to Chairman and CEO, John Agwunobi.

John Agwunobi

Thanks, Eric, and good afternoon, everyone. Thank you for joining our second quarter 2022 earnings call. You might have noticed that we've enhanced the format of our call by adding a slide presentation to accompany our verbal remarks. We hope the enhancement not only makes it easier to absorb our quarterly update, but also provides for a richer understanding of our business performance.

I'll start with the highlights of what we'd like you to take away from our call today. First, I'm pleased to announce our second quarter financial performance exceeded the top end of our guidance range for net sales, volume, adjusted EBITDA and adjusted EPS. As you might recall, last quarter, we saw a slowing of business trends and certain underlying KPIs at the end of the first quarter, which continued in April. With that backdrop, we're also pleased to update you that, compared to April, our business trends and metrics appear to have stabilized in the months of May and June. That said, we acknowledge that there's still a significant amount of work to accomplish, particularly around improving our new distributor and new preferred customer metrics. I'll go deeper into our KPI trends in a moment.