Herbalife Nutrition Statement on the War in Ukraine and Business Operations in Russia

Rhea-AI Summary

Herbalife Nutrition (NYSE: HLF) condemns the ongoing war in Ukraine and is suspending operations in Russia, where it has operated since 1995 with around 44,000 active distributors. The company will cease shipping products to Russia and donate any profits from there to organizations supporting Ukrainian refugees. The safety of employees is a priority, and the company plans to provide nutritional products and financial assistance to impacted communities. Herbalife continues its philanthropic efforts, supporting initiatives like Save The Children’s Ukrainian Refugee Initiative.

Positive

• Suspension of operations in Russia aligns with company values and supports humanitarian efforts.
• Commitment to donating profits from Russia to aid Ukrainian refugees bolsters corporate social responsibility image.

Negative

• Complete operational suspension in Russia may lead to loss of revenue from the 44,000 active distributors.
• Ceasing product shipments can create challenges in maintaining distributor relationships in the region.

LOS ANGELES--(BUSINESS WIRE)-- We condemn the war in Ukraine and stand with the international community in calling for peace. Our thoughts are with everyone in the region and around the world who is suffering due to this tragic loss of life and humanitarian crisis.

Herbalife Nutrition has been in Russia since 1995 and as of February, had approximately 44,000 active distributors in the country. The Company does not have any manufacturing operations in Russia—all products sold in the market are imported.

The Company will suspend operations in all 62 sales centers in Russia and will not ship product to the country. Herbalife Nutrition will donate any profit from Russia to organizations supporting Ukrainian refugees.

We’ve made this decision in consultation with our distributor leaders.

The safety of our employees is of utmost importance, and we are actively supporting our employees in the region. Together with our employees and independent distributors, we are providing nutrition products and financial assistance to organizations supporting impacted communities. Additionally, the Herbalife Nutrition Foundation is continuing its philanthropic efforts in the region by raising funds to support Save The Children’s Ukrainian Refugee Initiative.

For more information, please visit IAmHerbalifeNutrition.com.

About Herbalife Nutrition Ltd.

Herbalife Nutrition (NYSE: HLF) is a global company that has been changing people's lives with great nutrition products and a business opportunity for its independent distributors since 1980. The Company offers high-quality, science-backed products, sold in over 90 countries by entrepreneurial distributors who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle. Through the Company’s global campaign to eradicate hunger, Herbalife Nutrition is also committed to bringing nutrition and education to communities around the world.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220311005374/en/

Herbalife Nutrition

Gary Kishner

garyki@herbalife.com

213-745-0456

Source: Herbalife Nutrition Ltd.

FAQ

What is Herbalife Nutrition's response to the Ukraine war?

Herbalife Nutrition condemns the war in Ukraine and is suspending operations in Russia.

How many distributors does Herbalife have in Russia?

As of February, Herbalife had approximately 44,000 active distributors in Russia.

What actions is Herbalife taking regarding profits from Russia?

Herbalife will donate any profits from Russia to organizations supporting Ukrainian refugees.

What support is Herbalife providing to affected employees?

Herbalife prioritizes employee safety and supports them with nutritional products and financial assistance.

What is Herbalife doing to help Ukrainian refugees?

The Herbalife Nutrition Foundation is raising funds to support Save The Children’s Ukrainian Refugee Initiative.