Herbalife has recently announced both its quarter year reports and the fact that it will be changing its long-time CEO, as he will be stepping down from the position.
Herbalife announced together with its reports that Michael Johnson will be foregoing his chief executive position starting with June 1, 2017, and will instead be taking on the role of executive chairman.
The company’s reports registered for the third quarter saw a net income decline of about 6.3 percent, bringing their third quarter total numbers to $87.7 million.
Although the numbers registered a drop, the company decided to adjust the yearly earnings guidance and also raise their 2016 fiscal earnings.
The company’s diluted earnings were raised to a $2.77 to $2.97 maximum range as opposed to the initial $2.30 – $2.60 values.
The 2017 fiscal guidance was also modified as the initial values were changed from a diluted earnings range of $3.95 to about $4.35. The adjusted earnings level was also moved from $4.60 to a value of $5.
The Herbalife third quarter results reports were especially awaited as they marked the first fiscal reporting after the company’s July 15 statement.
The company announced then that it will be paying the $230 millions sum needed in order to settle two of its regulatory investigations.
Herbalife has issued a number of new regulatory restrictions related to the way in which it advertises its products, more exactly, its nutritional supplements.
Following the new measures both investors, analysists and critics consider that the company following four quarter periods will be very important in Herbalife’s mission of keeping, if not raising its sales numbers.
Although the net income registered a drop, the sales numbers registered a rise as they saw a 2 percent increase on a worldwide level and a $1.12 billion sales number.
The increase was led by a 10 percent rise registered in North America, which registered almost $241 million worth of sales. After taking into consideration the currency exchanges, the total number of sales marked a 5 percent rise.
Herbalife declared that management changes were already planned, and are not related to any recent events. Michael Johnson has been the company’s chairman ever since 2007, after having previously held the chief executive position.
As the Federal Trade Commission settlement was not mentioned, company officials continued to praise Johnson for his leadership and good management.
Johnson declared that he will continue his mission of promoting the importance of nutrition in the general wellbeing state as this should also be one of the main points of his new future position as executive chairman.
Following the succession management move, Herbalife will be just the latest amongst a number of other companies who have separated the roles of chief executive and chairman. The list already includes companies the likes of Wells Fargo & Co., Caterpillar Inc., and Hanesbrands Inc.
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