U.S.-based Herbalife reported record fourth-quarter net sales of US$409.0 million, an increase of 19.7% compared to the same period of 2004. The company also reported good growth in China.
The company continued to geographically diversify its portfolio by opening Hungary as its 60th market. Additionally, consistent with the current direct selling regulations, the company opened 14 stores in 7 provinces in China to expand its presence in this potentially important market.
The company also invested in new facilities, expanded existing offices, and increased the capacity of its manufacturing plant in China to support the strong revenue growth in 2005.
In China, the company anticipates that it will expand its presence into more than 20 provinces by the end of 2006, which will be another investment year in this potentially important market.
In addition, the company continues to invest in strengthening the ability of its distributors to recruit, retail, and retain distributors and customers. Investments in employee programs, technology, product sourcing, and global manufacturing are also key elements of our infrastructure strategy.