Herbalife Ltd (NYSE:HLF) - Unfavourable currency impact is likely to impact revenue growth. | ResearchOracle.com
Herbalife’s top operating regions ceased to perform well in 4Q 08, primarily due to unfavorable currency impact and decline in volumes. However, going forward, Management expects to focus on volume growth in top markets. Sales growth in Herbalife’s largest market; the US, is expected to be driven by the continued expansion of the Nutrition Club concept and Weight Loss challenge. The Nutrition Club selling concept proved to be beneficial as the company launched a low calorie meal option, selling at US$2, which proved to be popular with consumers seeking a healthier and lower cost alternative to most fast food options. In Mexico, Value Added Tax (VAT) is expected to negatively impact volume growth, as the Mexican government has implemented 15% VAT during August 2008 on certain products, which is likely to impact the import and resale of some of Herbalife’s products.