Feb 18 Herbalife Ltd, the nutrition
products company accused by investor William Ackman of being a
pyramid scheme, raised its current-quarter adjusted profit
forecast as demand for its weight-loss products held up.
The company, whose shares rose about 3 percent in extended
trading, said it expected an adjusted profit of $1.25 to $1.29
per share in the first quarter. It had earlier forecast $1.24 to
$1.28 per share.
Herbalife, which sells products through a network of
independent distributors, also reported an adjusted profit of
$1.28 per share for the fourth quarter ended Dec. 31.
Analysts on average had expected $1.25 per share, according
to Thomson Reuters I/B/E/S.
Revenue rose 20 percent to $1.3 billion, in line with the
Ackman, who has long said he was sticking by his $1 billion
bet against Herbalife, has charged that the company found new
distributors through a business that had been convicted of
running a pyramid scheme in Canada 10 years ago.
Herbalife has vehemently denied that it was operating a
pyramid scheme - an unsustainable business that typically makes
most of its money by recruiting distributors rather than selling
products to real customers.