Net Sales
|
Number of
| |||||||||||||||||||
Year Ended December 31,
|
Percent of
|
Countries
| ||||||||||||||||||
Geographic Region
|
2015
|
2014
|
2013
|
Total Net Sales
2015
|
December 31
2015
| |||||||||||||||
(In millions)
| ||||||||||||||||||||
North America
|
$
|
879.5
|
$
|
926.8
|
$
|
908.0
|
19.7
|
%
|
5
| |||||||||||
Mexico
|
479.9
|
567.9
|
562.4
|
10.7
|
%
|
1
| ||||||||||||||
South & Central America
|
569.7
|
826.4
|
973.5
|
12.8
|
%
|
17
| ||||||||||||||
EMEA
|
755.1
|
843.1
|
735.2
|
16.9
|
%
|
54
| ||||||||||||||
Asia Pacific
|
938.6
|
1,130.1
|
1,174.6
|
21.0
|
%
|
15
| ||||||||||||||
China
|
846.2
|
664.3
|
471.6
|
18.9
|
%
|
1
| ||||||||||||||
Worldwide
|
$
|
4,469.0
|
$
|
4,958.6
|
$
|
4,825.3
|
100.0
|
%
|
93
| |||||||||||
全球業績4469/4958.6 = 90%，衰退10%。
Net sales in Taiwan decreased $10.1 million, or 7.4%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales decreased 3.0% for the year ended December 31, 2015, as compared to the same period in 2014. The fluctuation of foreign currency rates had an unfavorable impact of $5.9 million on net sales for the year ended December 31, 2015. Taiwan was negatively impacted by the shift in focus to our longer-term sales leader qualification method.
保險界的類賀寶芙傳銷制可參考請點此
保險界的類賀寶芙傳銷制可參考請點此
原文：
Sales by Geographic Region
The following chart reconciles retail sales to net sales:
Sales by Geographic Region
Year Ended December 31,
| ||||||||||||||||||||||||||||||||||||||||||||
2015
|
2014
| |||||||||||||||||||||||||||||||||||||||||||
Retail
Sales(1)
|
Distributor
Allowance
|
Product
Sales
|
Shipping &
Handling
Revenues
|
Net
Sales
|
Retail
Sales(1)
|
Distributor
Allowance
|
Product
Sales
|
Shipping &
Handling
Revenues
|
Net
Sales
|
Change
in Net
Sales
| ||||||||||||||||||||||||||||||||||
(Dollars in millions)
| ||||||||||||||||||||||||||||||||||||||||||||
North America
|
$
|
1,455.0
|
$
|
(658.2
|
)
|
$
|
796.8
|
$
|
82.7
|
$
|
879.5
|
$
|
1,541.0
|
$
|
(701.6
|
)
|
$
|
839.4
|
$
|
87.4
|
$
|
926.8
|
(5.1
|
)%
| ||||||||||||||||||||
Mexico
|
822.5
|
(370.6
|
)
|
451.9
|
28.0
|
479.9
|
979.9
|
(446.9
|
)
|
533.0
|
34.9
|
567.9
|
(15.5
|
)%
| ||||||||||||||||||||||||||||||
South & Central America
|
954.4
|
(438.2
|
)
|
516.2
|
53.5
|
569.7
|
1,329.4
|
(616.9
|
)
|
712.5
|
113.9
|
826.4
|
(31.1
|
)%
| ||||||||||||||||||||||||||||||
EMEA
|
1,296.6
|
(588.3
|
)
|
708.3
|
46.8
|
755.1
|
1,450.8
|
(657.3
|
)
|
793.5
|
49.6
|
843.1
|
(10.4
|
)%
| ||||||||||||||||||||||||||||||
Asia Pacific
|
1,508.3
|
(637.0
|
)
|
871.3
|
67.3
|
938.6
|
1,785.8
|
(758.7
|
)
|
1,027.1
|
103.0
|
1,130.1
|
(16.9
|
)%
| ||||||||||||||||||||||||||||||
China
|
957.6
|
(115.6
|
)
|
842.0
|
4.2
|
846.2
|
756.1
|
(94.4
|
)
|
661.7
|
2.6
|
664.3
|
27.4
|
%
| ||||||||||||||||||||||||||||||
Worldwide
|
$
|
6,994.4
|
$
|
(2,807.9
|
)
|
$
|
4,186.5
|
$
|
282.5
|
$
|
4,469.0
|
$
|
7,843.0
|
$
|
(3,275.8
|
)
|
$
|
4,567.2
|
$
|
391.4
|
$
|
4,958.6
|
(9.9
|
)%
| ||||||||||||||||||||
(1)
|
Retail sales is a Non-GAAP measure which may not be comparable to similarly-titled measures used by other companies.
|
North America
The North America region reported net sales of $879.5 million for the year ended December 31, 2015. Net sales decreased $47.3 million, or 5.1%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales decreased 4.8% for the year ended December 31, 2015, as compared to the same period in 2014. The decrease in net sales for the year ended December 31, 2015, as compared to the same period in 2014, was a result of a net sales decrease in the U.S. of $45.1 million or 5.0%. The 5.1% decrease in net sales for the North America region for the year ended December 31, 2015 was primarily the result of a decline in sales volume, as measured by a decrease in Volume Points, which reduced net sales by approximately 7.1%, partially offset by price increases which contributed approximately 1.8% to net sales.
46
We believe the net sales decline for 2015, after decreasing rates of net sales increase for recent years, is a result of Members adapting to certain revisions to our operations and Marketing Plan, described above, designed to improve the training and retention of sales leaders. Net sales for the fourth quarter of 2015 showed a reduced year-over-year rate of decline compared to the other quarters of 2015 reflecting, we believe, Member adaption to the changes.
Mexico
The Mexico region reported net sales of $479.9 million for the year ended December 31, 2015. Net sales for the year ended December 31, 2015 decreased $88.0 million, or 15.5%, as compared to the same period in 2014. In local currency, net sales for the year ended December 31, 2015 increased 0.6%, as compared to the same period in 2014. The 15.5% decrease in net sales for the year ended December 31, 2015 was primarily the result of the effect of the strong U.S. dollar and the resulting impact of fluctuations in foreign currency rates and a decline in sales volume, as measured by a decrease in Volume Points, which reduced net sales by approximately 16.1% and 3.7%, respectively. These reductions to net sales were partially offset by price increases which contributed approximately 3.5% to net sales.
Mexico net sales have decreased, after lowering rates of increase over the prior several years, reflecting volume declines and unfavorable foreign exchange impact that more than offset the impact of price increases. Volumes declined primarily as a result of Members adjusting to certain revisions to our operations and Marketing Plan designed to improve the training and retention of sales leaders, such as a shift in emphasis to the longer-term qualification method described above, which was also implemented in Mexico in 2009, and which we believe has had a similar effect on the long-term net sales trend in Mexico. We also implemented rules in February 2015 that require Members attempting to qualify for sales leader status to purchase directly from Herbalife rather than from their sponsor Member (these transactions with the sponsor Member are known as “field sales”). With our investment in product access points in Mexico over the past few years, field sales are no longer necessary for geographic reach within the region. Field sales were particularly common in Mexico and this change has had a significant and adverse impact on sales in Mexico as Members revise their operations and purchasing habits accordingly.
The Government of Mexico issued a decree on March 26, 2015 that confirmed the imposition of value added tax (VAT) on the sale of nutritional supplements. Thereafter, certain Herbalife products were restricted from importation under their current customs classification code which did not subject them to VAT at the border. Since it is important that we have an ample supply of these products available for sale in Mexico, we have reformulated most of these products to fit into a different customs code that will subject them to VAT and thereby facilitate their importation into Mexico. We believe our net sales for 2015 were negatively impacted due to recent importation delays and the imposition of VAT on these products commencing during the third quarter of the year. We expect some continuing year over year unfavorable sales trends in the first half of 2016 resulting from the imposition of VAT on these products.
South and Central America
The South and Central America region reported net sales of $569.7 million for the year ended December 31, 2015. Net sales decreased $256.7 million, or 31.1%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, including the re-measurement impact of Venezuela’s Bolivar denominated net sales, net sales increased 11.3% for the year ended December 31, 2015, as compared to the same period in 2014. The 31.1% decrease in net sales for the year ended December 31, 2015 was primarily the result of fluctuations in foreign currency rates, inclusive of Venezuela foreign exchange devaluations, and a decline in sales volume, as measured by a decrease in Volume Points, which reduced net sales by approximately 42.4% and 9.6%, respectively. These reductions to net sales were partially offset by price increases, most significantly in Venezuela which contributed approximately 22.3% to net sales.
Although the region has continued to see the adoption and expansion of daily consumption DMOs, we believe the decline in net sales for 2015, continuing a trend of declines begun in 2014 after growth in prior years, was a result of Members adjusting to certain revisions to our operations and Marketing Plan designed to improve the training and retention of sales leaders, such as the shift in focus to our longer-term sales leader qualification method described above, which was also implemented in the South and Central American region in 2009, and which we believe has had a similar effect on the long-term net sales trend in the region. Results for the region were also significantly impacted by conditions in Venezuela, as described below.
47
In Brazil, the region’s largest market, net sales decreased $102.1 million, or 28.5%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales decreased 0.2% for the year ended December 31, 2015, as compared to the same period in 2014. The fluctuation of foreign currency rates had an unfavorable impact of $101.5 million on net sales in Brazil for the year ended December 31, 2015. Brazil had a 5% price increase in March 2014 and price increases of 6% and 4% in March and October 2015, respectively. Brazil’s net sales decrease was attributable largely to the foreign currency erosion, as well as sales volume decreases, as measured by a decrease in Volume Points, as sales leaders continue to adapt to Marketing Plan changes to encourage Members to take advantage of the longer-term sales leader qualification methods. This volume decrease was largely offset by the price increases mentioned above. The Company is analyzing changes in ICMS tax legislation effective for 2016 that may increase the cost of our products for our Members and/or increase tax filing requirements, potentially having an adverse impact on our sales in the market.
Net sales in Venezuela decreased $123.1 million, or 87.7%, for the year ended December 31, 2015, as compared to the same period in 2014. Significant Bolivar-to-dollar exchange rate deterioration and significant sales volume declines, as measured by a decrease in Volume Points, were partially offset by the impact of price increases in the market. In July 2014, Herbalife Venezuela increased its prices on certain products in response to an announcement by the Venezuelan government with respect to the calculation of Bolivar-denominated duties on U.S. dollar shipments using a default SICAD II rate if shipments are not settled using the SICAD I or CENCOEX exchange rates. These price increases, other subsequent price increases on certain products over the remainder of 2014, 100% price increases in each of March and April 2015, and approximately 40% cumulative price increases in the second half of 2015 were implemented to better align product prices with the economic conditions of the market. During the second and third quarters of 2014, we remeasured our net sales in Venezuela using the SICAD I rate instead of the previous CADIVI rate of 6.3 Venezuelan Bolivars per U.S. dollar. During the fourth quarter of 2014, we remeasured our net sales in Venezuela using the SICAD II rate. During February 2015, we began remeasuring our net sales in Venezuela using the SIMADI rate. The economic environment in Venezuela has been difficult. We have reduced the product offering portfolio as we begin transition to local production for a few key products in response to market conditions. We continue to monitor our product pricing in Venezuela as increases in product pricing can adversely affect the demand for our products. See Liquidity and Capital Resources — Venezuela below for further discussion of currency exchange rate issues in Venezuela.
EMEA
The EMEA region reported net sales of $755.1 million for the year ended December 31, 2015. Net sales decreased $88.0 million, or 10.4%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales increased 12.2% for the year ended December 31, 2015, as compared to the same period in 2014. The 10.4% decrease in net sales for the year ended December 31, 2015 was primarily the result of the effect of the strong U.S. dollar and the resulting impact of fluctuations in foreign currency rates, which reduced net sales by approximately 22.7%. This reduction to net sales was partially offset by an increase in sales volume, as measured by an increase in Volume Points, and price increases which contributed approximately 10.4% and 3.1%, respectively, to net sales. The decrease in net sales for 2015, after increases for the prior several years, was greatest in Russia, the United Kingdom, and Italy but was also widespread across countries in the region due to the adverse impact of foreign currency fluctuations. Local currency sales growth was achieved in a number of countries across the region.
Net sales in Russia decreased $38.3 million, or 27.6%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales increased 15.8% for the year ended December 31, 2015, as compared to the same period in 2014. The fluctuation of foreign currency rates had an unfavorable impact of $60.2 million on net sales in Russia for the year ended December 31, 2015. Product prices in Russia were increased 14% in March 2015 and 7% in June 2014; sales volume, as measured by changes in Volume Points, increased only slightly for the year. Russia’s success in recent years was primarily a result of the early adoption of many of the concepts captured in our recent Marketing Plan changes; mainly the more gradual development of certain new members to sales leader. We also invested in infrastructure and branding to help develop the market including the opening of sales pick-up centers and athletic sponsorships and endorsements. Growth slowed for 2015 as the country saw a weakening of the economy.
Net sales in Italy decreased $12.4 million, or 8.9%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales increased 9.1% for the year ended December 31, 2015, as compared to the same period in 2014. The fluctuation of foreign currency rates had an unfavorable impact of $25.1 million on net sales in Italy for the year ended December 31, 2015. We believe Italy’s local currency net sales growth reflects the effectiveness of longer-term sales leader qualification methods augmented with the use of a regular organized training approach and events such as city-by-city tours.
48
Net sales in Spain decreased $2.0 million, or 2.3%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales in Spain increased 16.8% for the year ended December 31, 2015, as compared to the same period in 2014. The fluctuation of foreign currency rates had an unfavorable impact of $17.0 million on net sales in Spain for the year ended December 31, 2015. Spain has continued to increase the number of access points as well as focus on strategies including the daily consumption DMO and regionalization.
Net sales in the United Kingdom decreased $15.2 million, or 21.8%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales in the United Kingdom decreased 15.7% for the year ended December 31, 2015, as compared to the same period in 2014. The fluctuation of foreign currency rates had an unfavorable impact of $4.3 million on net sales in the United Kingdom for the year ended December 31, 2015. Following significant growth the United Kingdom market in 2013 and 2014, we have seen a decline in 2015. This decline is attributed to the impact of recent changes to the Marketing Plan, including the shift in focus to our longer-term sales leader qualification method to which Members continue to adapt. The underlying business metrics remain solid and Volume Points increased during the fourth quarter of 2015 as compared to the prior year period.
Asia Pacific
The Asia Pacific region, which excludes China, reported net sales of $938.6 million for the year ended December 31, 2015. Net sales decreased $191.5 million, or 16.9%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales decreased 10.6% for the year ended December 31, 2015, as compared to the same period in 2014. The 16.9% decrease in net sales for the year ended December 31, 2015 was primarily the result of a decline in sales volume, as measured by a decrease in Volume Points, and the impact of fluctuations in foreign currency rates, which reduced net sales by approximately 10.5% and 6.4%, respectively. The decrease in net sales for the year 2015 as compared to 2014, continuing a declining net sales growth trend of several years, was led by a decline in South Korea. We believe sales declines in South Korea and elsewhere were the result of Members adjusting to certain revisions to our operations and Marketing Plan designed to improve the training and retention of sales leaders, such as the shift in focus to our longer-term sales leader qualification method described above, which was also implemented in the Asia Pacific region in 2009, and which we believe has had a similar effect on the long-term net sales trend in the region.
Net sales in South Korea decreased $149.1 million, or 35.8%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales decreased 31.1% for the year ended December 31, 2015, as compared to the same period in 2014. The fluctuation of foreign currency rates had an unfavorable impact of $19.5 million on net sales for the year ended December 31, 2015. Since the second half of 2014 South Korea has been negatively impacted by the shift in focus to our longer-term sales leader qualification method, as well as sales leader acclimation to other South Korea-specific Marketing Plan enhancements. The Company is implementing strategies that have been successful in other markets such as a Trial Pack product and customer loyalty programs.
Net sales in India increased $12.6 million, or 8.0%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales increased 13.6% for the year ended December 31, 2015, as compared to the same period in 2014. The fluctuation of foreign currency rates had an unfavorable impact of $8.6 million on net sales for the year ended December 31, 2015. India had a price increase of 12% in October 2015; Member purchases ahead of the price increase strengthened sales for the fourth quarter and potentially brought some sales forward from the first quarter of 2016. We have increased product access within the India market and supported the adoption of daily consumption DMOs, especially the Nutrition Club.
Net sales in Taiwan decreased $10.1 million, or 7.4%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales decreased 3.0% for the year ended December 31, 2015, as compared to the same period in 2014. The fluctuation of foreign currency rates had an unfavorable impact of $5.9 million on net sales for the year ended December 31, 2015. Taiwan was negatively impacted by the shift in focus to our longer-term sales leader qualification method.
Net sales in Indonesia decreased $21.7 million, or 20.1%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales decreased 10.1% for the year ended December 31, 2015, as compared to the same period in 2014. The fluctuation of foreign currency rates had an unfavorable impact of $10.8 million on net sales for the year ended December 31, 2015. Indonesia has been negatively impacted by the shift in focus to our longer-term sales leader qualification method. Indonesia had a price increase of 6% in October 2015; Member purchases ahead of the price increase contributed to sales for the fourth quarter and potentially brought some sales forward from the first quarter of 2016.
Net sales in Malaysia decreased $20.8 million, or 33.5%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales decreased 21.5% for the year ended December 31, 2015, as compared to the same period in 2014. The fluctuation of foreign currency rates had an unfavorable impact of $7.5 million on net sales for the year ended December 31, 2015. Malaysia was negatively impacted by first order limitations implemented during 2015. The market has also seen consumer spending dampened by the implementation of a goods and services tax during 2015.
49
Net sales in China were $846.2 million for the year ended December 31, 2015. Net sales increased $181.9 million, or 27.4%, for the year ended December 31, 2015, as compared to the same period in 2014. In local currency, net sales increased 29.8% for the year ended December 31, 2015, as compared to the same period in 2014. The net sales increases for the year ended December 31, 2015 was primarily the result of an increases in sales volume, as measured by an increase in Volume Points, of approximately 29.7%, partially offset by the unfavorable impact of fluctuations in foreign currency rates, which reduced net sales by approximately 2.4%.
We have seen continued adoption and acculturation of daily consumption DMOs in the China market, including Nutrition Clubs, aided by a Customer Loyalty program, a Healthy Active Lifestyle program and supported by ongoing investments in advertising, corporate social responsibility and brand awareness. We continue to enhance product access in China through online and mobile platforms, supported by an expanding product access and distribution network.
Sales by Product Category
Year Ended December 31,
| ||||||||||||||||||||||||||||||||||||||||||||
2015
|
2014
| |||||||||||||||||||||||||||||||||||||||||||
Retail
Sales(2)
|
Distributor
Allowance
|
Product
Sales
|
Shipping &
Handling
Revenues
|
Net
Sales
|
Retail
Sales(2)
|
Distributor
Allowance
|
Product
Sales
|
Shipping &
Handling
Revenues
|
Net
Sales
|
% Change
in Net
Sales
| ||||||||||||||||||||||||||||||||||
(Dollars in millions)
| ||||||||||||||||||||||||||||||||||||||||||||
Weight Management
|
$
|
4,567.1
|
$
|
(1,888.7
|
)
|
$
|
2,678.4
|
$
|
184.4
|
$
|
2,862.8
|
$
|
5,128.1
|
$
|
(2,207.0
|
)
|
$
|
2,921.1
|
$
|
255.9
|
$
|
3,177.0
|
(9.9
|
)%
| ||||||||||||||||||||
Targeted Nutrition
|
1,620.0
|
(670.0
|
)
|
950.0
|
65.4
|
1,015.4
|
1,789.2
|
(770.0
|
)
|
1,019.2
|
89.3
|
1,108.5
|
(8.4
|
)%
| ||||||||||||||||||||||||||||||
Energy, Sports and Fitness
|
400.2
|
(165.5
|
)
|
234.7
|
16.2
|
250.9
|
420.6
|
(181.0
|
)
|
239.6
|
21.0
|
260.6
|
(3.7
|
)%
| ||||||||||||||||||||||||||||||
Outer Nutrition
|
212.1
|
(87.7
|
)
|
124.4
|
8.6
|
133.0
|
288.7
|
(124.2
|
)
|
164.5
|
14.4
|
178.9
|
(25.7
|
)%
| ||||||||||||||||||||||||||||||
Literature, Promotional and
Other(1)
|
195.0
|
4.0
|
199.0
|
7.9
|
206.9
|
216.4
|
6.4
|
222.8
|
10.8
|
233.6
|
(11.4
|
)%
| ||||||||||||||||||||||||||||||||
Total
|
$
|
6,994.4
|
$
|
(2,807.9
|
)
|
$
|
4,186.5
|
$
|
282.5
|
$
|
4,469.0
|
$
|
7,843.0
|
$
|
(3,275.8
|
)
|
$
|
4,567.2
|
$
|
391.4
|
$
|
4,958.6
|
(9.9
|
)%
| ||||||||||||||||||||
(1)
|
Product buybacks and returns in all product categories are included in the literature, promotional and other category.
|
(2)
|
Retail sales is a Non-GAAP measure which may not be comparable to similarly-titled measures used by other companies.
|
Net sales for all product categories decreased for the year ended December 31, 2015 as compared to the same period in 2014. The trend and business factors described in the above discussions of the individual geographic regions apply generally to all product categories.
Gross Profit
Gross profit was $3,613.0 million for the year ended December 31, 2015, as compared to $3,975.7 million for the same period in 2014. As a percentage of net sales, gross profit for the year ended December 31, 2015 was 80.9% as compared to 80.2% for the same period in 2014, or a favorable net increase of 70 basis points. The 70 basis point net increase for the year ended December 31, 2015 included the favorable impact of retail price increases of 100 basis points primarily related to Venezuela, country mix of 28 basis points, cost savings through sourcing optimization and self-manufacturing of 24 basis points, favorable impact of lower inventory write-downs of 9 basis points, and other cost changes of 4 basis points, partially offset by the unfavorable impact of foreign currency fluctuations of 95 basis points primarily related to the currency devaluation in Venezuela. Generally, the gross profit as percentage of net sales may vary from period to period due to the impact from foreign currency fluctuations, changes in country mix as volume changes among countries with varying margins, retail price increases, cost savings through sourcing optimization and self-manufacturing, and inventory write-downs.
Royalty Overrides
Royalty Overrides were $1,251.4 million for the year ended December 31, 2015, as compared to $1,471.1 million for the same period in 2014. Royalty Overrides as a percentage of net sales were 28.0% for the year ended December 31, 2015 as compared to 29.7% for the same period in 2014. The decrease of royalty overrides as a percentage of net sales was primarily due to the higher growth of our China business relative to that of our worldwide business. Compensation to our independent service providers in China is included in selling, general and administrative expenses as opposed to royalty overrides where it is included for all other Members. Generally, royalty overrides as a percentage of net sales may vary from period to period due to changes in the mix of products and countries because full royalty overrides are not paid on certain products and in certain countries.
50
