Herbalife’s Vietnam earnings inches up 1.7% to $284 mln in 2024

Herbalife, a global multi-level marketing corporation selling dietary supplements, recorded $283.7 million in net sales in Vietnam in 2024, a 1.7% uptick year-on-year, according to the firm’s report.

The fluctuations of the foreign exchange rate in Vietnam led to an unfavorable impact of $14.4 million on net sales last year. In local currency, the increase in net sales was 6.8% year-on-year, Herbalife added.

The higher net sales were recorded despite a 3.5% price increase starting March 2024, following a 3% rise in March 2023, Herbalife said.

With the performance, Vietnam was among the biggest Asia-Pacific markets for Herbalife. India was the largest with $844.8 million, followed by China with $297.6 million.

Globally, in 2024, Herbalife recorded net sales of $5.06 billion and gross profit of $3.9 billion.

Herbalife products distributed in Vietnam are produced by Herbalife Innovation & Manufacturing (HIM) Lake Forest and Winston-Salem, both based in the U.S. In Vietnam.

Herbalife Vietnam SMLLC was established in 2009 and operates as a multi-level marketing business, with its headquarters in Ho Chi Minh City.

Vietnam is the 71st market where Herbalife has launched operations globally. By earnings, Herbalife is the largest multi-level marketing company in Vietnam.

According to the Ministry of Industry and Trade, Vietnam now has 19 licensed multi-level marketing businesses with about 768,000 participants. The sector records total revenues of VND16.8 trillion ($652.2 million) in 2023, down 20% year-on-year. Notable players are Herbalife, Oriflame, Amway, and New Image.

Early this year, the National Competition Commission fined Herbalife Vietnam VND205 million (over $8,000) for its violations in multi-level marketing.

According to a decision by the commission, Herbalife Vietnam, headquartered at No. 26 Tran Cao Van street, District 3, Ho Chi Minh City, was fined for “not implementing or improperly implementing basic training for multi-level marketing participants according to the law”.

The company also improperly implemented reporting obligations in multi-level marketing activities required by the law.