Herbalife Appoints Stephan Gratziani as New CEO
Herbalife Nutrition has announced the appointment of Stephan Gratziani as its new Chief Executive Officer, effective May 1, 2023. Gratziani has served as President of the direct-selling company since January 2024 and Chief Strategy Officer for five months prior.
Michael O. Johnson, the current CEO and Chairman of the Board since 2022, will transition to the role of Executive Chairman.
Gratziani's Background and Vision
Gratziani joined Herbalife as an independent distributor nearly 34 years ago and has held various leadership positions within the company. He plans to leverage his extensive experience to drive Herbalife's continued growth and innovation.
"We're making progress, but we're not stopping here. We understand there's a broader question about the relevance of our business model and its future," Gratziani said.
Herbalife's Controversial Past
Herbalife has faced controversies over the last decade. In 2016, the Federal Trade Commission sued the company for allegedly misleading consumers about the potential earnings from selling its products. Herbalife reached a settlement in 2017, agreeing to pay $200 million and restructure its business.
In 2020, Herbalife admitted to criminal conduct and paid over $123 million in penalties for bribing Chinese officials.
Financial Performance and Outlook
Herbalife reported its fourth-quarter and full-year earnings on Wednesday. Revenue declined slightly by 1.4% to just under $5 billion for 2024. However, profits increased by 78.8% to $254.3 million, or $2.53 a share.
Chief Financial Officer John DeSimone emphasized the company's commitment to educating investors about its business model and building a foundation for future growth.
Stock Performance
Shares of Herbalife rose approximately 18% in after-hours trading following the announcement of Gratziani's appointment. However, the stock has declined nearly 16% year-to-date, closing at $5.62 a share on Wednesday.