Herbalife Responds to Pershing Square’s Presentation
11 März 2014 - 9:13PM
Business Wire
Herbalife (NYSE: HLF) today issued the following statement in
response to Pershing Square’s presentation:
Herbalife remains confident in its business
in China, which is built on customers enjoying and benefiting from
our nutrition products each and every day. We will continue to
invest in this important market and collaborate with the Chinese
government to deliver high-quality nutrition to the Chinese
consumer through lawful direct selling practices. The presentation
reflects Mr. Ackman’s continued failure to fundamentally understand
Herbalife’s business model.
Herbalife (China) has designed and
implemented a business model unique to China that is in compliance
with Chinese direct-selling and anti-pyramid regulations, and
includes strict rules of conduct that prohibit, among other things,
illegal recruitment, “pyramid" activities, false product and income
claims, and conduct that is deemed illegal under Chinese laws.
Herbalife (China) is committed to the
protection of the Chinese consumer and protecting the integrity of
the direct-selling channel. The Herbalife Gold Standard Guarantee
offers product returns and other protections for consumers and
direct sellers of Herbalife product in China. To ensure Herbalife
sales representatives and service providers comply with all aspects
of Chinese consumer protection laws, Herbalife (China) has a robust
training program that reinforces its rules, promotes ethical
behavior, and discourages market misconduct.
Since obtaining its first direct-selling
license in 2007, Herbalife (China) has regularly partnered with
local, regional, and national Chinese government officials in
seeking out and penalizing those who violate Chinese laws and
Herbalife (China)’s rules. Most recently, Herbalife (China)
reaffirmed its commitment to work with the Ministry of Commerce
(MOFCOM) and the State Administration for Industry and Commerce
(SAIC) to continue to eliminate illegal direct sales
activities.
To date, Herbalife (China) has obtained
direct-selling licenses in 25 provinces and regional
municipalities, which collectively service 97 percent of the
Chinese consumer population.
Currently, Herbalife (China) has almost
150,000 Preferred Customers, who purchase our products for
self-consumption, not for distribution, and there are nearly 3,000
Nutrition Clubs throughout China. These Nutrition Clubs,
individually licensed by the Chinese government, provide further
proof of Herbalife’s daily consumption model with a visible “brick
and mortar” presence. Additionally, Herbalife (China) has made
significant investments in its production capabilities in China
with manufacturing plants in Suzhou and Changsha.
With a solid base of consumers, the “brick
and mortar” presence of the Nutrition Clubs, and production
facilities in two provinces, Herbalife (China) has established
itself as a leading nutrition brand and legitimate direct-selling
company in China that we believe is compliant with, and supportive
of the letter and spirit of Chinese regulations in promoting social
stability and sustainable economic growth.
About Herbalife Ltd.
Herbalife Ltd. (NYSE:HLF) is a global nutrition company that
sells weight-management, nutrition and personal care products
intended to support a healthy lifestyle. Herbalife products are
sold in more than 90 countries to and through a network of
independent members. The company supports the Herbalife Family
Foundation and its Casa Herbalife program to help bring good
nutrition to children. Herbalife's website contains a significant
amount of financial and other information about the company at
http://ir.Herbalife.com. The company encourages investors to visit
its website from time to time, as information is updated and new
information is posted.
FORWARD-LOOKING STATEMENTS
Although we believe that the expectations reflected in any of
our forward-looking statements are reasonable, actual results could
differ materially from those projected or assumed in any of our
forward-looking statements. Our future financial condition and
results of operations, as well as any forward-looking statements,
are subject to change and to inherent risks and uncertainties, such
as those disclosed or incorporated by reference in our filings with
the Securities and Exchange Commission. Important factors that
could cause our actual results, performance and achievements, or
industry results to differ materially from estimates or projections
contained in our forward-looking statements include, among others,
the following:
- any collateral impact resulting from
the ongoing worldwide financial environment, including the
availability of liquidity to us, our customers and our suppliers or
the willingness of our customers to purchase products in a
difficult economic environment;
- our relationship with, and our ability
to influence the actions of, our Members;
- improper action by our employees or
Members in violation of applicable law;
- adverse publicity associated with our
products or network marketing organization, including our ability
to comfort the marketplace and regulators regarding our compliance
with applicable laws;
- changing consumer preferences and
demands;
- our reliance upon, or the loss or
departure of any member of, our senior management team which could
negatively impact our Member relations and operating results;
- the competitive nature of our
business;
- regulatory matters governing our
products, including potential governmental or regulatory actions
concerning the safety or efficacy of our products and network
marketing program, including the direct selling market in which we
operate;
- legal challenges to our network
marketing program;
- risks associated with operating
internationally and the effect of economic factors, including
foreign exchange, inflation, disruptions or conflicts with our
third party importers, pricing and currency devaluation risks,
especially in countries such as Venezuela;
- uncertainties relating to the
application of transfer pricing, duties, value added taxes, and
other tax regulations, and changes thereto;
- uncertainties relating to
interpretation and enforcement of legislation in China governing
direct selling;
- uncertainties relating to the
interpretation, enforcement or amendment of legislation in India
governing direct selling;
- our inability to obtain the necessary
licenses to expand our direct selling business in China;
- adverse changes in the Chinese economy,
Chinese legal system or Chinese governmental policies;
- our dependence on increased penetration
of existing markets;
- contractual limitations on our ability
to expand our business;
- our reliance on our information
technology infrastructure and outside manufacturers;
- the sufficiency of trademarks and other
intellectual property rights;
- product concentration;
- changes in tax laws, treaties or
regulations, or their interpretation;
- taxation relating to our Members;
- product liability claims;
- whether we will purchase any of our
shares in the open markets or otherwise; and
- share price volatility related to,
among other things, speculative trading and certain traders
shorting our common shares.
We do not undertake any obligation to update or release any
revisions to any forward-looking statement or to report any events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events, except as required by law.
Herbalife Ltd.MediaBarbara
Henderson, SVP, Worldwide Corp.
Communications213-745-0517orInvestorsAmy Greene, VP, Investor
Relations213-745-0474
Herbalife (NYSE:HLF)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Herbalife (NYSE:HLF)
Historical Stock Chart
Von Jul 2023 bis Jul 2024