Good afternoon, and thank you for joining the First Quarter 2024 Earnings Conference Call for Herbalife Limited. [Operator Instructions] As a reminder today's conference call is being recorded. I would now like to turn the call over to Erin Banyas, Vice President and Head of Investor Relations, to begin today's call. You may begin.

Thank you, Towanda, and good afternoon, and good evening, everyone. Joining us today are Michael Johnson, our Chairman and Chief Executive Officer; Stephan Gratziani, our President; and John DeSimone, our Chief Financial Officer. Before we begin today's call, I would like to direct you to the cautionary statement regarding forward-looking statements on Page 2 of our presentation and in our earnings release issued earlier today, which are both available under the Investor Relations section of our website. The presentation and earnings release include a discussion of some of the more important factors that could cause results to differ from those expressed in any forward-looking statement within the meaning of the Private Securities Litigation Reform Act. As is customary, the content of today's call and presentation will be governed by this language. In addition, during today's call, we will be discussing certain non-GAAP financial measures. These non-GAAP financial measures exclude certain unusual or nonrecurring items that management believes impact the comparability of the periods referenced. Please refer to our earnings release and presentation materials for additional information regarding these non-GAAP financial measures and the reconciliations to the most directly comparable GAAP measure. And with that, I will now turn the call over to Chairman and CEO, Michael Johnson.

Good afternoon and good evening, everyone. Thank you very much for joining us today. In the last 6 months, we've undertaken a complete transformation at Herbalife. We've built an executive team to take Herbalife to the next level and deep into the future. We are almost complete with our reorganization. We've strengthened our balance sheet. We've improved our margins. We've increased distributor recruiting and entered a strategic alliance with the top business and personal development thought leader in the direct selling industry. As you will see, we are seeing the positive results of our efforts. Those results include the positive trends we saw continue in quarter 1. For the second consecutive quarter, we achieved year-over-year sales growth with a net sales of $1.3 billion, our adjusted EBITDA of $138 million exceeded our guidance, and we are raising our full year adjusted EBITDA expectations. Adjusted EBITDA margin was up 60 basis points year-on-year. In April, we strengthened our balance sheet with a $1.6 billion refinancing. We reduced our total leverage ratio from 3.9x at the end of the year to 3.6x at the end of March and we are committed to reducing our total leverage ratio to 3x by the end of 2025. In relation to our restructuring, I believe we have the best executive team in the direct selling industry. We've developed a new operating model with our major markets reporting directly to our President Stephan Gratziani, who is leveraging his 32 years' experience as a top Herbalife distributor. This restructuring also reduces layers and increases span of control thereby improving efficiency and profitability. Most of the restructuring will be completed by the end of June, and we expect it will deliver approximately $40 million in savings in 2024 and at least $80 million in annual savings beginning in 2025.…

Thank you, Michael. During our previous earnings call, I outlined our strategic initiatives aimed at driving sales, accelerating recruitment, and empowering our distributors through enhanced training and support. Today, I'm excited to report that we are beginning to see positive results from these efforts. As you know, events play a crucial role in our company. About 7 weeks ago, as Michael mentioned, we hosted our global leadership in Lisbon, Portugal for a 5-day Summit. At this landmark event, we ushered in a new era for Herbalife. We introduced Eric Worre Eric to the top 4,300 leaders and the reception was overwhelmingly positive. We launched a foundational business training and recognition program called the Herbalife Premier League. We also introduced a cutting-edge social media marketing tool that leverages AI to create content and help distributors enhance their personal brands and attract more customers and distributors. Following the summit, we launched a 4-week virtual training series with Eric Worre, which saw participation from 140,000 distributors worldwide. It's been a busy 7 weeks since the summit in Portugal, and typically, we would not be sharing results beyond Q1 today. However, given the recruiting activity we have observed since late March and through the end of April, we felt it was important to share. On Page 6 of the presentation, you will see that we have experienced year-over-year growth in new distributor numbers in April across all regions. To be clear, this is as of April 29. The last time this occurred was almost 4 years ago in August 2020. North America was up 9% March over February, 27% April over March, and 41% year-over-year in April. Latin America increased by 5% March over February, 23% April over March, and 49% year-over-year in April. EMEA grew by 5% March over February, 16% April over…

Thank you, Stephan. I'll start with our key financial highlights on Slide 8 before getting into more details. Net sales for the first quarter were $1.3 billion, up 1% from the first quarter of 2023. This is our second consecutive quarter of year-over-year net sales growth. On a constant currency basis, net sales grew 2.4%, essentially the same year-over-year growth experienced a quarter ago. Our Q1 adjusted EBITDA was $138 million and exceeded our guidance. Our adjusted EBITDA margin was 10.9%, a 60 basis point improvement from the same period a year ago. Additionally, last year's first quarter adjusted EBITDA benefited from approximately $9 million of China grant income that did not repeat in the current year. CapEx for the first quarter was $33 million and at the low end of our guidance range. First quarter gross profit margin was 77.5% up 130 basis points compared to the first quarter of last year. Gross profit margin was favorably impacted by pricing actions we have taken provided approximately 150 basis points of benefit and which exceeded the impact of increased input costs of approximately 110 basis points. Lower inventory write-downs also contributed to the improvement in gross margin by approximately 60 basis points. Q1 diluted EPS was $0.24 and with adjusted diluted EPS of $0.49, which included a $0.03 FX headwind versus the first quarter of last year. It also included higher amortization expense as we started amortizing the implementation costs related to Herbalife One during the quarter and the nonrepeat of the China grant income I previously mentioned. For the year, we expect to recognize $30 million to $35 million of amortization expense related to Herbalife One. Our first quarter adjusted effective tax rate was 27.1%, up from 12.9% in for the first quarter 2023, which drove an approximately $0.09…

[Operator Instructions] Our first question comes from the line of Chasen Bender with Citi.

I wanted to ask about North America. Specifically, it seems like the March and April sales trends are improving. But relative to the rest of your geographies, North America continues to be sluggish on a year-over-year basis. So I was curious -- can you unpack why you think that market has been so challenged versus your other geographies? And whether what we're seeing is just a really prolonged COVID hangover? Or is there something more structurally challenged about the U.S. and related. I know you don't guide by region, but based on your internal expectations and what you've seen in the last 2 months, what is a reasonable time line do you expect the U.S. to return to growth.

Yes, I'll take this one. Chasen, thanks for the question. Last quarter, we talked about the U.S. Nutrition Clubs, more of a food service transactional model, right? So if we look at the last period of growth over the last 4 or 5 years, it was really a pivot to that model. By the way, a fantastic model. Last quarter, we talked about the 4.4 million customers, the 55 million transactions the $910 million retail sales into clubs, very, very strong model. But on the back end, because it's so focused on food consumption, healthy shakes, energetic teas, what ends up happening is that we just aren't getting the conversion overall, generally speaking, that we want to have. And that's people that are coming in, they may get the experience of being in the club, take home a healthy meal, healthy shake, but we want them to understand that Herbalife really is a life-changing better health, reach your goals, company, and not just grab a healthy shake on the way home. So the transition to that model and especially if we look at it kind of through COVID, what we're finding is that it's just a little bit slower for us to have these other transformational aspects of the model come back. By the way, when I say come back, the focus hasn't been that long, to be perfectly honest with you, because we got so much growth out of the Nutrition Clubs transactional business that really was kind of not that evident that we were missing out on something until we really started to look at the numbers. And that's where we've been last time telling you about the conversion rates within different clubs. [indiscernible] clubs are converting at 1% of club customers that become preferred customers, some of…

Chasen, let me add to that. So your question at the beginning, talked about North America lagging in new distributors from the rest of the world. If we look at specifically April, and you go to Page 6 on the slide that was presented. North America is up 41% this April over last April, which is the second highest of all the regions. So I think it has lagged. I think what we're seeing now is hopefully a reenergized sales force with a lot more new people coming in. The volume from those new people, it always lags. It will lag a few months but what we expect to see is meaningful improvement in North America in Qs 3 and 4. Whether that translates to growth this year or early next year, we're not sure, but that's a trajectory based on the number of new people we see coming in.

Got it. Appreciate that color. And then, John, just to come back to some of the comments you made at the end related to reprioritization of some of the tech spending on Herbalife One. Just curious if you can flesh out those comments? And then specifically, how are you thinking about that $400 million in total spending on the program? And is that still the right number? And then just again, related, can you remind us how much of that you've spent already?

Yes. So we spent about $250 million already. So a lot of it's already spent. There's another $150 million, $160 million to be spent. That will be -- we'll spend less than that, almost less, I don't know yet. We're going through some work, but it will definitely be less than that. But the majority has been spent. How we look at it going forward is what we've built, what the team has built is an entirely new infrastructure that allows us as a company to layer on meaningful new tools to our distributors in various countries. That started, but there's a lot of work left to do in that area. I think when the project started, we were going to customize everything, all the tools. What's been built actually allows us now to go to the third parties and leverage the tools that they've built and plug and play into our new foundation. That's something we're looking at closely. We're actually pretty close with two different vendors. It may or may not happen. So I'm not going to give you names, and I'll give you an update as we solidify agreements. But we're looking with two specific vendors that can bring a lot of functionality to our distributors and that we can plug into our current foundation, which we couldn't have done 2 years ago because the foundation was entirely homegrown and APIs wouldn't have worked and really would have broken the system. So that's really what we've got now is a new foundation. You'll start to see an acceleration of that turning into tools that can both drive sales and hopefully get us off old tools and save money.

Our next question comes from the line of John Baumgartner with Mizuho Securities.

First off, I wanted to ask in terms of the EBITDA guidance for 2024. It's a range of down $20 million, up $20 million year-on-year. And I guess that includes the $40 million of savings from this new restructuring. How do we think about the reinvestment of these growth savings in terms of getting to a net savings contribution number for this year? And how do we think about the magnitude of the driver? Is that sort of govern where you fall on that range for EBITDA?

Well, look, it's a range. So I'm not going to pick to whether we're going to fall into the low or high end of the range, right? But that's the range. And it's based on the best information we have at the moment. I can tell you that offsetting in the current year anyway, offsetting some of the savings, the $40 million savings. You remember the $40 million is half a year of savings is an incremental close to $60 million of bonus because this last year, bonus was achieved for the most part. And so there's an incremental accrual. It's actually higher than what it would be on this run rate going beyond this year. So they somewhat offset and that creates the reason why, there's lots of ins and outs. But if I'm going to give you the big buckets, those are a couple of the big buckets to consider. When we get into 2025, the bonus gets reduced by 20 and the savings jumps from $40 million to $80 million.

Okay. And then the -- of the 2025, that incremental $35 million, I think it was in reduced tech spending, that's outside the scope of this new $80 million program, correct?

Well, it's outside the scope, but it's not all tech. It was $35 million. So we have a cost savings task for us that we're identifying opportunities to reduce expenses in the company. I think we can all agree they're too high. The restructuring program is just one of them. On top of that, we've already identified $30 million, $35 million of savings for next year. More than half of that is tech. So tech is the majority of it, but there's a bunch of other things in it. And yes, all of that $35 million is incremental to the restructuring.

Okay. And then to follow up last quarter, there was some initial discussion regarding investments in up-selling some skill-specific distributor events and maybe even some marketing spending as well. And I'm kind of curious, as you sort of -- done your sort of world tour and kind of got out there, what's sort of your latest thinking on the opportunities for that reinvestment? Is there an order of operation there in terms of what comes first? Just your latest thinking there would be great.

John, yes, just to clarify, was this around marketing expertise?

It was a combination of just sort of upskilling distributors kind of plugging some white spaces and skill sets and I guess, supporting small business development.

Yes, I think it was around -- so we run a couple of pilots actually. One of them was bringing in a social media marketing experts that actually was going to and did pilots with a group of distributors, different clubs, how to actually go out and drive more traffic to the clubs. And so things like that are happening. We've got a few different pilots. We've got another pilot, which is actually about how to communicate and take the lists and [ mine ] the list and be able to market to the list that clubs have. So there's different things that we're doing. But in general, it really is the training that we're trying to focus on to be able to upskill the distributors. And so that's why I mentioned that we're moving from what typically -- if you look at North America, we would have monthly trainings we would call them STS and distributors would go to the trainings, many of them on a monthly basis. But that agenda was basically the same thing over and over. It was very, very basic. The idea was really more to bring new people to have them experience it. So there wasn't very specific training on different models on how to actually go out and duplicate a Nutrition Clubs, become as effective as possible. And so this is a big shift for us. In terms of the spend, it's not that it's much more than we were spending before, but it's what we're doing with the money. So an example is here in the United States, the STSs are moving more towards distributor model specific trainings we had leadership development weekends, which happened twice a year. They were also quite honestly, kind of a beefed-up version of what would happen…

[Operator Instructions] Our next question comes from the line of Anna Lizzul with Bank of America.

I was just wondering if you can comment on how the rollout of Herbalife One is progressing. You mentioned today that it's now rolled out in the U.K. and Spain. Just wondering if you're seeing any early benefits from that and how are distributors and members kind of interacting on the platform? And then just in terms of the reduced CapEx spend, I was wondering if you could elaborate on just the decision behind that in terms of the applications that you decided to postpone or eliminate?

I'll start, and then I'll hand it off to Stephan. So first, based on the question, I think maybe we should provide some context about what Herbalife One is. Herbalife One is not just a website for which people can transact, which I think it might be what you're asking about because we launched that in a couple of markets. Herbalife One is an entirely new technology platform, it includes websites and transactions that can be -- that can occur online. There's also 10 other things that we're going to launch, and we're going to partner with other people to launch. So the biggest part of Herbalife One was actually this integration layer that allows tools to plug into all of our databases that didn't exist. So that's just some context on Herbalife One. I'll answer how we decided to reduce CapEx and there's two things. It's Herbalife One in manufacturing. So on manufacturing, anything that doesn't have a 2-year payback or quicker. We don't need to do in manufacturing right now. So we cut that off on the list and the second is on tech, if it's not going to drive growth in the near term, we'll save money in the near term, then we're also going to push that out. And so that's how we decided to save on capital expenditures. I'll pass it to Stephan to talk about how -- the -- it's very recent, but the very recent launch of the online transaction tool is doing.

Yes. Thank you, Anna, for the question. So a couple of things. One is that Herbalife One, like John says, it's much more than just a website or an e-commerce tool. What's really important to understand is that actually up until this project, distributors didn't even have an option to have a very simple way to be able to transact. So just to kind of give a bit of background, if someone wanted to have an e-commerce in the past with us, the platform, shopping site, they would actually have to go out, they have to find their payment process or a lot of people just going through that process. It depends on your credit. It depends on releasing different things. They couldn't even get access to be able to actually transact on an e-commerce website. And so part of the Herbalife One project also brought us to this point of becoming a merchant of record so that we could actually facilitate distributors being able to just simply say, "Hey, are you interested? Why don't you check out this." I'm going to send you a product bundle, you can just pay and that would allow them to have their customer easy, take the payments and then the company could process that payment, and we could pay them. And so there's a lot that goes into this. The launch in the U.K. and Spain, has started with a group of about 212 distributors that was like first week of March through mid-April, something 40 days or something like that. Now there's [ 2,200 ] sites that have been actually created, and again, this never would have happened in the past where people could just sign up for a site and actually be able to start having customers go and to have…

[Operator Instructions] Our next question comes from the line of Hale Holden with Barclays.

I had two quick questions for you. The first one is the -- I apologize if I get this wrong, but the Premier Circle or Premier League new program launch. Can you sort of connect the dots on how that helps drive a lot of the distributor gains that you posted for April in the deck?

So the Premier League program, let me just kind of outline it for you. It's a program that's an annual program, and it really is a business builder program. So it's for people that want to be building an organization over time. To qualify for the program, the distributor needs to -- within the calendar year recruit 10 first-line distributors. So in and of itself, the program, if someone wants to be a part of it and qualify and get the perks, they've got to be focused on building new people. That's one element, recruiting new people. The second element is the activation element, meaning that they need to not just sign up that they actually need to go out and then start to get their customers and start building their business. And so there's an activation element that they need to do each 1 of those 10 people, 250 volume points to be able to come active. And then there's a sales leader aspect of building. So it's really around having distributors see value, receive value but be focused on building an organization. And then there's a whole bunch of perks that come along with that. So just high level, that's the program.

Great. And then the second question I had was for whoever wants to answer, but I guess because Michael was just there. The return of growth in China is really impressive, and that used to be a very large part of your business a couple of years ago, pre-COVID. So I was wondering if you could kind of like frame out ambitions there or where you saw it going because it could be a large needle mover.

Yes. Well, ambitions are huge. The market, the opportunity is very big there. And we have been spending a lot of time just in the last 12 months in China, working with the leadership there and working with the company. We put new leadership in place, and we have very big plans in China. We've been -- we'll be adjusting things that need to get adjusted. We looked at the way that we actually have our sales leaders and our service providers there. And with the compensation plan, the model, the direct sales model that we operate there, we made some adjustments that needed to be made. And I will say that it's working very well. We've had an uptick in something that we call LSP, which is basically a Learning Sales Provider that has grown 400% in a very short amount of time, which again is a leading indicator of what's happening there. So big plans from a -- they're about to launch a preferred customer loyalty program which is actually quite advanced. We've never done something like this. So we have a lot of big expectations, big plans. Yes, we're starting to see the results. And again, it's quarter-by-quarter. We'll be giving you more about it, but we're -- expectations and gold are very big there.

Our next question comes from the line of Linda Bolton-Weiser with D.A. Davidson.

So I was wondering at this meeting that you had of the top distributors in Lisbon, Portugal. Other than the GLP-1 drug megatrend, were there any other issues that were discussed broadly that they have their mind on in terms of really long-term ways of thinking about the business or any megatrends that are affecting the business? Or is there just anything else you could mention that came up?

Yes, Linda, I don't know -- so there really wasn't a focus or a mention of the GLP-1 trends. I think in the U.S., it's probably a little bit more in the media. Worldwide, I don't think it's really something that the majority of distributors are hearing about are focused on really. I can't think of anything except that the group based on the vision of the future was absolutely excited. I know maybe many of you talk to distributors, I think you're going to find the same thing when you're reaching out to the distributors that you have. And if you look at the growth that we've had in terms of recruiting since that event, I think it speaks for itself where distributors are at right now because we haven't seen this for almost 4 years.

Okay. And then I didn't study at the table where you show the new distributor growth in April, but I'm just wondering, is there something about like April? Like in other words, why isn't this big jump or this notable growth occur on March 15. I mean, was there some kind of incentive or something that drove the timing of this happening such that you're pointing it out right at that point in time?

Linda, it's John. Let me just jump in and if Stephan wants to add, he can. So we actually did see an increase right after Lisbon, which was in the middle of March. The reason why we're showing April is because if we only showed Q1, you just see 2 weeks' worth of results, and now you really get to see 6 weeks' worth of results. And if you look at Slide 6 in the presentation, Stephan actually does also show March improvements over February. And that's just with 2 weeks. So March is where everything launched in Lisbon. I'm not sure if you were there, but that's -- there was a lot of initiatives put forward and distributors, what they were focused on Lisbon was Herbalife, not anything else, no distractions, and they left Herbalife like motivated and inspired and they came back and they went to work, and that's why we see enhanced engagement, and that's why we're sharing that data with you. We normally wouldn't share April but since the activity started late March, we wanted to share it.

Yes. And if I can just add also, when we left Lisbon with the 4,300 leaders there, obviously, they were very excited. But we also continued on with a 4-weeks training program that happened in April, where we had 140,000 distributors from basically all the markets around the world that participated over 4 weeks of training. And so really -- to the question that was asked earlier, I think it was Hale, it's the leveling up. It's the upskilling. When you have 140,000 distributors, and you've got a Premier League program that they opted in for, they said, "I want to be a part of this, and I want the training", and 140,000 of them were on 4 weeks of training. That's where you get really this movement. And so it's just not talking to 4,300 and they're excited about the future. This is big plans. Now as we move into extravaganza season, this talks to also the way that we're changing things. The value that they saw with Eric, it's having us even change the way that we're doing our extravaganza that we've done for 44 years. A typical extravaganza we'll have 8 speakers over 2 days that will each have a section of 40 minutes or 45 minutes. The decision has been made because of the value of the training for the distributors and upskilling them that actually there's going to be 4, 5 hours of content that Eric is going to be training for all of the participants in extravaganza. So these are not things that are just a promotion. This is not just something to get excited about that's going to create some movements in numbers over a month. This is a long-term plan over the next 3 years to be upskilling and turning our distributors into professional distributors that have the skills necessary to go out and be impactful in their markets. And so long-term program, this is not just a little blip on the radar.

Great. And then just to speak on the distributor point, like the new people that are being added, the new distributors, can you characterize the demographics? Are they different than historically or similar or like -- is there any color you can give on that?

Yes. I don't have in front of me the demographics. I would say just as a distributor that's in 32 years building, I don't think the demographics have changed. I think whoever distributors have been talking to over the last few years, they're talking to the same people. It's their clients that are coming in maybe to a club. It's their friends that are looking for an opportunity I don't think that specifically that demographic would have changed. But it's a good question. And actually, I'm going to look at it because I think it's valuable. Maybe we bring this on the next call.

Our next question comes from the line of Jeff Van Sinderen with B. Riley.

So how should we think about price increases versus volume increases as a driver of your revenue for the remainder of this year? Just wondering how you kind of bake that into your guidance.

Yes. So I think you're familiar with our approach to price increases, which is to take -- we take them at CPI. And we take them throughout the year, and it depends on the marketplace. So you can see the impact of pricing over volume in our roll forward slide that we put on the screen, and that will be similar to what you see the rest of the year. But I think what you'll -- our expectations are certainly for volumes to be improved in the back half of the year versus the first half of the year and you'll see a little bit more net sales coming from that.

Okay. When you say improved, do you mean improve sequentially? Or do you mean volumes up I mean second half year?

I mean, the trend we expect the trend to improve in the second half of the year, which means either up or at least less down.

Okay. Got it. And then I realize you've done a lot around the new GLP product line. Maybe you can speak to your latest plans to further evolve the weight management business and the time frame, I guess, for the next milestones to look for there, kind of amidst the GL drug phenomenon?

Yes, I can speak to that. We're really following Jeff, the lead of our distributors on this one. It's quite interesting, and I don't want to speak any specific companies, but I think that there's a couple of companies out there they're trying to really from the top down dictates in which direction they go in terms of the market, the GLP-1s. We are really listening to our distributors. We want to support them and make sure that we've got the products like the product bundle that you've just seen. Some of them are very excited and are seeing opportunities. Other of them, it's just not something that they personally see because of the way or the way that they are doing their business and how they're going to go out and attract those particular customers that would be on GLP-1. So we are supporting them. We are also making sure we're paying attention where we need to pay attention so that when the time comes, if they want more support or if we think that we need to pivot a little bit faster or stronger into something, we'll be able to do that. But for the time being, we're not seeing the huge demand that I think some companies are feeling that they are seeing or are reading and that they're making these big moves. We're going to make timely moves supporting our distributors, and we feel that's really the best strategy and the best way forward for us. So not denying there's a market for it and not -- and totally watching where that market is going and being prepared, but respecting and working with our distributors to make sure that we are doing the right thing.

[Operator Instructions] Our next question comes from the line of Karru Martinson with Jefferies.

Just to clarify here, you said that much of the $262 million of the [ stub ] piece will be paid off with cash flow, 2/3 of that was free cash flow in 2024. So that would imply kind of a $173 million or so would be paid off with cash flow that is generated in 2024, correct?

Yes. But let me just make sure I'm clear. So your math is right. What we're saying is we're going to pay off the whole $262 million from cash flows generated from the business between now and when it's due in the third quarter of 2025. 2/3 of that is actually inherent in our guidance for this year, which is you did the math. And that means we'd have to generate 1/3 from cash flows next year in the first 3 quarters to be able to pay it off without anything else happening. Now we have -- there's also -- where we've got our administrative building that's up for sale because we don't need the space with the reductions that we're taking. So that's some cushion, that's not in the number. There's obviously tons of availability on the revolver. So there's a lot of cushion in order to pay it off, but I wanted to at least give visibility to investors on how we think we're going to pay it off with cash flows from operations.

Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Michael for closing remarks.

Thank you very much, and thanks, everybody, for being on the call. I think you're seeing a new Herbalife emerge here today. And the really wonderful thing. I'm stealing two lines from Stephan's presentation, with experienced year-over-year growth in the distributor numbers in April across all regions. The last time this occurred was almost 4 years ago in 2020. And that everything we do daily as our distributors in mind and focused on helping them attract and retain more customers, distributors in building bigger businesses. Those are two key elements to where we are today and where we're going. We're bringing more people into the company. We are making sure in bringing Stephan in and building this team with John and [ Levy ] in North America and Rob, the team that's been built around the world to now focus 100% our effort and energy on doing things, whether it's digital, whether it's product, whether it is training, whether it's bringing in Eric Worre to join us on our mission here it is distributor focused to help them build their business, help them build a better customer base with products that respond to the marketplace and the needs to work on transformation of customers and consumers to help them along their healthy and wellness lifestyle activities and their journey that they're there. And this is what makes us very unique. 67,000 Nutrition Clubs. It sets us apart. And Stephan mentioned a couple of companies that have jumped head over heels into the GLP world. We're looking at that very carefully. We negotiated with a lot of people, talk to a lot of folks about the potential of GLP-1 in this company. And so the best way for us to do this is do it organically, let our distributors come back…

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.