Herbalife Ltd. (HLF, Financials) shares jumped 44.3% to $8.11 as of 1:19 p.m. GMT-5 on Thursday, following the company's fourth-quarter earnings report and leadership changes.

Reflecting a year-over-year drop but a 2.7% gain in constant currency, Herbalife reported fourth-quarter net sales of $1.2 billion. While the gross profit margin stayed at 77.8% supported by price actions, production efficiency, and reduced inventory write-downs, adjusted profits before interest, taxes, depreciation, and amortization surpassed forecast at $150 million.

The corporation paid back $250 million in debt, therefore lowering its leverage ratio from 3.9 times to 3.2 times. By the end of 2025, Herbalife wants to cut this even further to 3.0 times. The quarter saw distributor growth of 22% year over year, the third straight quarter of expansion.

Herbalife projected that while first-quarter 2025 net sales would drop between 1.5% and 5.5% from the year before, they would stay flat to increase 4% in constant currency. Forecasts for adjusted EBITDA fall between $140 million and $150 million. Net sales for full-year 2025 are projected to range from a 3% drop to a 3% gain, or a 1% to 7% growth in constant currency. In constant currency, adjusted EBITDA ranges from $600 million to $640 million, or from $670 million to $710 million. Forecasts show that changes in currency valuesespecially the Mexican pesocould affect EBITDA by $70 million and sales by $200 million.

Thanks to price and volume increases, Latin America experienced a 15% sales gain in local currency; Asia-Pacific sales climbed 3%. North America had a 3% drop, which reflected continuous distribution model change. China sales dropped 20%, indicating structural problems.

With a $0.07 foreign currency headwind, the business said fourth-quarter adjusted diluted earnings per share of $0.36. Thanks to company reorganization, Herbalife generated a non-cash deferred tax advantage of $147 million. Net sales for full-year 2024 came at $5 billion; adjusted EBITDA climbed from $571 million in 2023 to $635 million.

Announcements of changes in leadership also came through. Rob Levy was named president of international markets and Stephan Gratziani will take over as CEO from May 1, 2025. Michael Johnson will become executive chairman.

Herbalife stated it is still primarily focused on distributor expansion; the fourth quarter shows a 22% rise over the third quarter. Reflecting cost reductions and operational efficiency, adjusted EBITDA margin came out to be 12.4%. Though management expressed hope about 2025 plans, they also pointed out possible hazards including foreign currency volatility, ongoing challenges in China, and initiatives to restore the North American distributor network.