We announced our 2008 financial results this week, and while our fourth quarter results were soft, our full year results established many new records. Together, we have had five years of double-digit net sales growth and have more than doubled the company in the past five years (from net sales of $1.1 billion in 2003 to $2.4 billion in 2008). Our record financial performance during 2008 was the result of the work and achievements of Team Herbalife – our incredible Distributors and employees.
New records we set in 2008 include:
Net sales of $2.4 billion, an increase of 10 percent.
Retail sales of 3.8 billion for the year.
Adjusted net income of $232 million, an increase of 18 percent.
At the end of the year, we had 1.9 million Distributors, an increase of 15 percent.
505,000 supervisors, an increase of 7 percent.
111 new Presidents Team members were added, an increase of 10 percent.
Our first brand ambassador in China, the highest level in the China marketing plan, joined us.
We also added four new Chairman’s Club members, an increase of 13 percent.
We also made a tremendous investment in capital, over $100 million in technology, facilities and new countries to provide expanded support globally to our Distributors.
We hosted a record eight Extravaganzas during 2008 and continued the rollout of our science-based nutrition products worldwide. Two clinical studies showing the effectiveness of Formula 1 were completed, one in the U.S., the other in Germany. We also launched our digestive health line in the U.S. with two new products – Herbal Aloe Powder and Active Fiber Complex, and we launched H3O Pro, our isotonic sports drink, in Europe and two new flavors of Liftoff in the U.S.
We are committed in our pursuit of shareholder value and will continue to invest wisely to ensure a prosperous future for our company; however, we will not be distracted by the day-to-day whims of the stock market. We are financially strong and have a pristine balance sheet – a great attribute, especially during these times. We’re positioned at the intersection of health and wealth. Herbalife has two great offerings: healthy nutrition and an opportunity for part-time or full-time income.
We’re in a good place and this is the right time to be part of this company. We know you will encourage your organizations to focus on our 3Rs (recruiting, retailing and retention) and operate with the highest integrity, while taking advantage of these tough economic times and the global obesity epidemic to share the gift of Herbalife with people around the world.
Be a ‘product of the products’ and talk to everyone about our proven business opportunity: Use, Wear, Talk. It’s up to all of us to make 2009 another record year. Together, we can do it.