Hain Celestial Reports Fiscal First Quarter 2025 Financial Results
Hain Celestial Group (Nasdaq: HAIN) reported its fiscal first quarter 2025 financial results, ending September 30, 2024. Net sales were $395 million, down 7% year-over-year, with organic net sales decreasing by 5%. Gross profit margin increased by 90 basis points to 20.7%. The net loss was $20 million, a rise from the $10 million loss in the prior year. Adjusted EBITDA was $22 million, slightly lower than $24 million from the previous year. Cash flow from operations was negative $11 million, and free cash flow was negative $17 million. Total debt decreased to $740 million, with a net secured leverage ratio of 3.9x.
North America saw a 6% decline in organic net sales, driven by lower snack sales due to a promotional timing shift. International sales fell by 3%, mainly in meal prep and baby & kids categories. Despite these declines, the company reaffirmed its fiscal 2025 guidance, expecting flat or better organic net sales growth, mid-single-digit adjusted EBITDA growth, and at least $60 million in free cash flow.
Hain Celestial Group (Nasdaq: HAIN) ha riportato i risultati finanziari per il primo trimestre fiscale del 2025, che si è concluso il 30 settembre 2024. Le vendite nette sono state di 395 milioni di dollari, in calo del 7% rispetto all'anno precedente, con una diminuzione delle vendite nette organiche del 5%. Il margine di profitto lordo è aumentato di 90 punti base raggiungendo il 20,7%. La perdita netta è stata di 20 milioni di dollari, un aumento rispetto alla perdita di 10 milioni dell'anno precedente. L'EBITDA rettificato è stato di 22 milioni di dollari, leggermente inferiore ai 24 milioni dell'anno precedente. Il flusso di cassa operativo è stato negativo per 11 milioni di dollari, mentre il flusso di cassa libero è stato negativo per 17 milioni di dollari. Il debito totale è diminuito a 740 milioni di dollari, con un rapporto di leva netta garantita di 3,9x.
In Nord America si è registrato un calo del 6% nelle vendite nette organiche, dovuto a un abbassamento delle vendite di snack a causa di un cambio nel periodo promozionale. Le vendite internazionali sono scese del 3%, principalmente nelle categorie pasti e bambini. Nonostante questi cali, l'azienda ha confermato le previsioni fiscali per il 2025, prevedendo una crescita delle vendite nette organiche in pareggio o migliore, una crescita dell'EBITDA rettificato a cifra singola media, e almeno 60 milioni di dollari in flusso di cassa libero.
Hain Celestial Group (Nasdaq: HAIN) reportó sus resultados financieros para el primer trimestre fiscal de 2025, finalizado el 30 de septiembre de 2024. Las ventas netas fueron de 395 millones de dólares, una disminución del 7% en comparación con el año anterior, con ventas netas orgánicas en caída del 5%. El margen de ganancia bruta aumentó 90 puntos básicos hasta el 20,7%. La pérdida neta fue de 20 millones de dólares, un incremento respecto a la pérdida de 10 millones del año anterior. El EBITDA ajustado fue de 22 millones de dólares, ligeramente por debajo de los 24 millones del año anterior. El flujo de caja por operaciones fue negativo en 11 millones de dólares, y el flujo de caja libre fue negativo en 17 millones de dólares. La deuda total disminuyó a 740 millones de dólares, con un ratio de apalancamiento asegurado neto de 3.9x.
América del Norte vio una caída del 6% en las ventas netas orgánicas, impulsadas por menores ventas de botanas debido a un cambio en el timing promocional. Las ventas internacionales cayeron un 3%, principalmente en las categorías de preparación de comidas y de bebés y niños. A pesar de estos descensos, la empresa reafirmó su orientación fiscal para 2025, esperando un crecimiento de ventas netas orgánicas plano o mejor, un crecimiento del EBITDA ajustado de dígitos simples en el medio, y al menos 60 millones de dólares en flujo de caja libre.
하인 셀레스티얼 그룹(Hain Celestial Group, Nasdaq: HAIN)은 2024년 9월 30일 종료된 2025 회계연도 첫 분기의 재무 결과를 발표했습니다. 순매출은 3억 9500만 달러로, 작년 대비 7% 감소했으며, 유기농 순매출은 5% 감소했습니다. 총 이익률은 90bp 상승하여 20.7%에 도달했습니다. 순손실은 2000만 달러로, 전년의 1000만 달러 손실에서 증가했습니다. 조정된 EBITDA는 2200만 달러로, 전년의 2400만 달러보다 다소 낮았습니다. 운영으로부터의 현금 흐름은 -1100만 달러였으며, 자유 현금 흐름은 -1700만 달러였습니다. 총 부채는 7억 4000만 달러로 감소하였으며, 순 담보 레버리지 비율은 3.9배입니다.
북미에서는 스낵 매출 감소로 인해 유기농 순매출이 6% 감소했습니다. 국제 매출은 식사 준비 및 아기 및 어린이 카테고리에서 주로 3% 감소했습니다. 이러한 감소에도 불구하고, 회사는 2025 회계연도 가이던스를 재확인하며, 유기농 순매출 성장률이 평거나 그 이상의 수준, 중간 단일 자릿수의 조정된 EBITDA 성장, 그리고 최소 6000만 달러의 자유 현금 흐름을 예상하고 있습니다.
Hain Celestial Group (Nasdaq: HAIN) a publié ses résultats financiers pour le premier trimestre fiscal 2025, se terminant le 30 septembre 2024. Les ventes nettes s'élevaient à 395 millions de dollars, en baisse de 7 % par rapport à l'année précédente, avec une baisse des ventes nettes organiques de 5 %. La marge de bénéfice brut a augmenté de 90 points de base pour atteindre 20,7 %. La perte nette s'élevait à 20 millions de dollars, contre une perte de 10 millions de dollars l'année précédente. L'EBITDA ajusté était de 22 millions de dollars, légèrement en dessous des 24 millions de dollars de l'année dernière. Le flux de trésorerie d'exploitation était négatif à 11 millions de dollars, et le flux de trésorerie libre était négatif à 17 millions de dollars. La dette totale a diminué à 740 millions de dollars, avec un ratio d'endettement net garanti de 3,9x.
L'Amérique du Nord a connu une baisse de 6 % des ventes nettes organiques, due à une diminution des ventes de collations en raison d'un changement de calendrier promotionnel. Les ventes internationales ont chuté de 3 %, principalement dans les catégories de préparation de repas et de bébés et enfants. Malgré ces baisses, l'entreprise a réaffirmé ses prévisions fiscales pour 2025, s'attendant à une croissance des ventes nettes organiques stable ou meilleure, une croissance de l'EBITDA ajusté à un chiffre moyen et au moins 60 millions de dollars de flux de trésorerie libre.
Die Hain Celestial Group (Nasdaq: HAIN) hat ihre finanziellen Ergebnisse für das erste fiskalische Quartal 2025, das am 30. September 2024 endet, veröffentlicht. Der Nettoumsatz betrug 395 Millionen Dollar, was einem Rückgang von 7% im Vergleich zum Vorjahr entspricht, während die organischen Nettoumsätze um 5% sanken. Die Bruttogewinnmarge stieg um 90 Basispunkte auf 20,7%. Der Nettoverlust betrug 20 Millionen Dollar, ein Anstieg von den 10 Millionen Dollar Verlust im Vorjahr. Das bereinigte EBITDA lag bei 22 Millionen Dollar, geringfügig unter den 24 Millionen Dollar des Vorjahres. Der Cashflow aus der Betriebstätigkeit war negativ mit -11 Millionen Dollar, und der freie Cashflow war negativ mit -17 Millionen Dollar. Die Gesamtschulden sanken auf 740 Millionen Dollar, mit einem Nettosicherheitshebelverhältnis von 3,9x.
Nordamerika verzeichnete einen Rückgang von 6% bei den organischen Nettoumsätzen, bedingt durch sinkende Snackverkäufe aufgrund eines Verschiebung des Werbezeitpunkts. Internationale Verkäufe fielen um 3%, hauptsächlich in den Kategorien Mahlzeitenzubereitung sowie Baby und Kinder. Trotz dieser Rückgänge bekräftigte das Unternehmen seine Prognose für das Geschäftsjahr 2025 und erwartet ein stagnierendes oder besseres Wachstum bei den organischen Nettoumsätzen, ein mittleres einstelliges Wachstum des bereinigten EBITDA und mindestens 60 Millionen Dollar freien Cashflow.
- Gross profit margin increased by 90 basis points to 20.7%.
- Total debt decreased to $740 million.
- Reaffirmed fiscal 2025 guidance with expectations of flat or better organic net sales growth and mid-single-digit adjusted EBITDA growth.
- Net sales decreased by 7% year-over-year.
- Net loss increased to $20 million from $10 million in the prior year.
- Adjusted EBITDA decreased to $22 million from $24 million.
- North America organic net sales declined by 6%.
- International organic net sales declined by 3%.
- Free cash flow was negative $17 million.
Insights
The Q1 FY25 results reveal concerning trends with
While gross margin improved by
The planned promotional timing shift and expected recovery in infant formula supply provide some potential upside, but execution risks remain high given the company's current financial position and competitive pressures.
Category performance shows broad-based weakness across key segments, with particularly concerning declines in Snacks (
The company's better-for-you positioning faces increased competition from both branded and private label alternatives. The planned growth initiatives around distribution gains and marketing investments will need to overcome challenging market dynamics and shifting consumer preferences. The improvement in Baby & Kids segment trajectory from
Company Positioned for Growth, Reaffirms Fiscal 2025 Guidance
HOBOKEN, N.J., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Hain Celestial Group (Nasdaq: HAIN), a leading global health and wellness company whose purpose is to inspire healthier living through better-for-you brands, today reported financial results for its fiscal first quarter ended September 30, 2024.
“Our performance in the first quarter built upon the momentum from our foundational year by further streamlining our portfolio and operational footprint, enabling us to deliver gross margin expansion,” said Wendy Davidson, Hain Celestial President and CEO. “The capabilities we have put in place along with efficiencies stemming from our global operating model have positioned us well for growth in the back half of FY25, as expected. Accelerating growth in the back half will be driven by the promotion timing shift in snacks, the full recovery of our infant formula supply, distribution gains and brand building. Growth will be underpinned by targeted marketing investments in several key brands and by our focus on commercial execution and channel expansion to improve availability and awareness. We will continue to leverage revenue growth management, working capital optimization, and productivity to generate fuel to invest in the business and create long-term shareholder value.”
FINANCIAL HIGHLIGHTS*
Summary of Fiscal First Quarter Results Compared to the Prior Year Period
- Net sales were
$395 million , down7% year-over-year.- Organic net sales, defined as net sales adjusted to exclude the impact of foreign exchange, acquisitions, divestitures, discontinued brands and exited product categories, decreased
5% compared to the prior year period.- The decrease in organic net sales was comprised of a 4-point decrease in volume/mix and a 1-point decrease in price.
- Organic net sales, defined as net sales adjusted to exclude the impact of foreign exchange, acquisitions, divestitures, discontinued brands and exited product categories, decreased
- Gross profit margin was
20.7% , a 90-basis point increase from the prior year period.- Adjusted gross profit margin was
20.8% , a 20-basis point increase from the prior year period.
- Adjusted gross profit margin was
- Net loss was
$20 million compared to net loss of$10 million in the prior year period.- Adjusted net loss was
$4 million , flat compared to the prior year period.
- Adjusted net loss was
- Net loss margin was (
5.0% ), as compared to net loss margin of (2.4% ) in the prior year period.- Adjusted net loss margin was (
1.0% ), as compared to adjusted net loss margin of (0.8% ) in the prior year period.
- Adjusted net loss margin was (
- Adjusted EBITDA was
$22 million compared to$24 million in the prior year period; Adjusted EBITDA margin was5.7% , in line with the prior year period. - Loss per diluted share was
$0.22 compared to$0.12 in the prior year period.- Adjusted loss per share was
$0.04 compared to$0.04 in the prior year period.
- Adjusted loss per share was
Cash Flow and Balance Sheet Highlights
- Net cash used in operating activities in the fiscal first quarter was (
$11) million compared to net cash provided by operating activities of$14 million in the prior year period. - Free cash flow was negative (
$17) million in the fiscal first quarter compared to free cash flow of$7 million in the prior year period. - Total debt at the end of the fiscal first quarter was
$740 million down from$744 million at the beginning of the fiscal year. - Net debt at the end of the fiscal first quarter was
$684 million compared to$690 million at the beginning of the fiscal year. - The company ended the first quarter with a net secured leverage ratio of 3.9x as calculated under our amended credit agreement.
SEGMENT HIGHLIGHTS
The company operates under two reportable segments: North America and International.
| Net Sales | |||||||||
| Quarter Ended September 30, 2024 | |||||||||
| $ Millions | Reported Growth Y/Y | M&A/Exit Impact1 | FX Impact | Organic Growth Y/Y | |||||
| North America | 231 | -11 | % | -4 | % | 0 | % | -6 | % |
| International | 163 | -1 | % | 0 | % | 2 | % | -3 | % |
| Total | 395 | -7 | % | -3 | % | 1 | % | -5 | % |
| * May not add due to rounding 1 Reflects the impact within reported net sales growth of the following items that are excluded from organic net sales growth: net sales from divested brands (ParmCrisps® and Thinsters® snacks brands and Queen Helene® personal care brand), discontinued brands, and exited product categories. | |||||||||
North America
The fiscal first quarter organic net sales decrease was
Segment gross profit in the fiscal first quarter was
Adjusted EBITDA in the fiscal first quarter was
International
The fiscal first quarter organic net sales decline was
Segment gross profit in the fiscal first quarter was
Adjusted EBITDA in the fiscal first quarter was
CATEGORY HIGHLIGHTS
| Net Sales | |||||||||
| Quarter Ended September 30, 2024 | |||||||||
| $ Millions | Reported Growth Y/Y | M&A/Exit Impact1 | FX Impact | Organic Growth Y/Y | |||||
| Snacks | 99 | -15 | % | -6 | % | 0 | % | -9 | % |
| Baby & Kids | 61 | -3 | % | -1 | % | 1 | % | -3 | % |
| Beverages | 57 | 1 | % | 0 | % | 1 | % | 0 | % |
| Meal Prep | 159 | -4 | % | 0 | % | 1 | % | -5 | % |
| Personal Care | 18 | -24 | % | -13 | % | -1 | % | -11 | % |
| Total | 395 | -7 | % | -3 | % | 1 | % | -5 | % |
| * May not add due to rounding 1 Reflects the impact within reported net sales growth of the following items that are excluded from organic net sales growth: net sales from divested brands (ParmCrisps® and Thinsters® snacks brands and Queen Helene® personal care brand), discontinued brands, and exited product categories. | |||||||||
Snacks
The fiscal first quarter organic net sales decline of
Baby & Kids
The fiscal first quarter organic net sales decline of
Beverages
Fiscal first quarter organic net sales were flat year-over-year, as growth in tea and private label non-dairy beverage were offset by branded non-dairy beverage.
Meal Prep
The fiscal first quarter organic net sales decline of
Personal Care
The fiscal first quarter organic net sales decline was
FISCAL 2025 GUIDANCE*
“We have a number of known tailwinds in the back half of the fiscal year which give us confidence in our plan to pivot to growth in fiscal 2025. We expect productivity to accelerate in the back half and we have the right initiatives in place to drive both margin expansion and net working capital improvements which will enable us to continue to reduce net debt and improve our leverage. We are pleased to reaffirm our fiscal 2025 guidance,” stated Lee Boyce, CFO.
The company is reaffirming guidance for fiscal 2025:
- Organic net sales growth is expected to be flat or better.
- Adjusted EBITDA is expected to grow by mid-single digits.
- Gross margin is expected to increase by at least 125 basis points.
- Free cash flow is expected to be at least
$60 million .
* The forward-looking non-GAAP financial measures included in this section are not reconciled to the comparable forward-looking GAAP financial measures. The company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include certain litigation and related expenses, transaction costs associated with acquisitions and divestitures, productivity and transformation costs, impairments, gains or losses on sales of assets and businesses, foreign exchange movements and other items. The unavailable information could have a significant impact on the company’s GAAP financial results.
Conference Call and Webcast Information
Hain Celestial will host a conference call and webcast today at 8:00 AM ET to discuss its results and business outlook. The live webcast and accompanying presentation are available under the Investors section of the company’s corporate website at www.hain.com. Investors and analysts can access the live call by dialing 800-717-1738 or 646-307-1865. Participation by the press and public in the Q&A session will be in listen-only mode. A replay of the call will be available approximately shortly after the conclusion of the live call through Thursday, November 14, 2024, and can be accessed by dialing 844-512-2921 or 1-412-317-6671 and referencing the conference access ID: 1144700.
About The Hain Celestial Group
Hain Celestial Group is a leading health and wellness company whose purpose is to inspire healthier living for people, communities and the planet through better-for-you brands. For more than 30 years, Hain has intentionally focused on delivering nutrition and well-being that positively impacts today and tomorrow. Headquartered in Hoboken, N.J., Hain Celestial's products across snacks, baby/kids, beverages, meal preparation, and personal care, are marketed and sold in over 70 countries around the world. Our leading brands include Garden Veggie Snacks™, Terra® chips, Garden of Eatin'® snacks, Hartley’s® Jelly, Earth's Best® and Ella's Kitchen® baby and kids foods, Celestial Seasonings® teas, Joya® and Natumi® plant-based beverages, Greek Gods® yogurt, Cully & Sully®, Yorkshire Provender®, New Covent Garden® and Imagine® soups, Yves® and Linda McCartney's® (under license) meat-free, and Avalon Organics® personal care, among others. For more information, visit hain.com and LinkedIn.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. The words “believe,” “expect,” “anticipate,” “may,” “should,” “plan,” “intend,” “potential,” “will” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include, among other things: our beliefs or expectations relating to our future performance, results of operations and financial condition, including statements related to our ability to expand margins, improve net working capital, reduce debt and improve leverage; our strategic initiatives and business strategy, including statements related to Hain Reimagined and our Hain Reimagined goals; our supply of products contracted for with our contract manufacturers, including infant formula; our supply chain, including the availability and pricing of raw materials; our productivity pipeline; our brand portfolio; and pricing actions and product performance.
Risks and uncertainties that may cause actual results to differ materially from forward-looking statements include: challenges and uncertainty resulting from the impact of competition; our ability to manage our supply chain effectively; input cost inflation, including with respect to freight and other distribution costs; disruption of operations at our manufacturing facilities; reliance on independent contract manufacturers; changes to consumer preferences; customer concentration; our ability to execute our cost reduction initiatives and related strategic initiatives; reliance on independent distributors; risks associated with operating internationally; the availability of organic ingredients; risks associated with outsourcing arrangements; risks associated with geopolitical conflicts or events; our ability to identify and complete acquisitions or divestitures and our level of success in integrating acquisitions; our reliance on independent certification for a number of our products; our ability to attract and retain highly skilled people; risks related to tax matters; impairments in the carrying value of goodwill or other intangible assets; the reputation of our company and our brands; our ability to use and protect trademarks; foreign currency exchange risk; general economic conditions; compliance with our credit agreement; cybersecurity incidents; disruptions to information technology systems; the impact of climate change and related disclosure regulations; liabilities, claims or regulatory change with respect to environmental matters; pending and future litigation, including litigation relating to Earth’s Best® baby food products; potential liability if our products cause illness or physical harm; the highly regulated environment in which we operate; compliance with data privacy laws; the adequacy of our insurance coverage; and other risks and matters described in our most recent Annual Report on Form 10-K and our other filings from time to time with the U.S. Securities and Exchange Commission.
We undertake no obligation to update forward-looking statements to reflect actual results or changes in assumptions or circumstances, except as required by applicable law.
Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including, among others, organic net sales, adjusted operating income and its related margin, adjusted gross profit and its related margin, adjusted net loss and its related margin, adjusted loss per diluted share, adjusted EBITDA and its related margin, free cash flow and net debt. The reconciliations of historic non-GAAP financial measures to the comparable GAAP financial measures are provided in the tables below. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the company’s consolidated financial statements presented in accordance with GAAP.
We define our non-GAAP financial measures as follows:
- Organic net sales: net sales excluding the impact of acquisitions, divestitures, discontinued brands and exited product categories and foreign exchange. To adjust organic net sales for the impact of acquisitions, the net sales of an acquired business are excluded from fiscal quarters constituting or falling within the current period and prior period where the applicable fiscal quarter in the prior period did not include the acquired business for the entire quarter. To adjust organic net sales for the impact of divestitures, discontinued brands and exited product categories, the net sales of a divested business, discontinued brand or exited product category are excluded from all periods. To adjust organic net sales for the impact of foreign exchange, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year.
- Adjusted gross profit and its related margin: gross profit, before plant closure related costs, net.
- Adjusted operating income and its related margin: operating income (loss) before certain litigation expenses, net, plant closure related costs, net, productivity and transformation costs, costs associated with acquisitions, divestitures and other transactions, and long-lived asset impairment.
- Adjusted net loss and its related margin and diluted net loss per common share, as adjusted: net loss, adjusted to exclude the impact of certain litigation expenses, net, plant closure related costs, net, productivity and transformation costs, costs associated with acquisitions, divestitures and other transactions, losses on sales of assets, long-lived asset impairment, unrealized currency losses (gains) and the related tax effects of such adjustments, and other costs.
- Adjusted EBITDA: net loss before net interest expense, income taxes, depreciation and amortization, equity in net loss of equity-method investees, stock-based compensation, net, unrealized currency losses, certain litigation and related costs, plant closure related costs, net, productivity and transformation costs, costs associated with acquisitions, divestitures and other transactions, losses on sales of assets, transaction and integration costs, net, long-lived asset impairment and other adjustments.
- Free cash flow: net cash (used in) provided by operating activities less purchases of property, plant and equipment.
- Net debt: total debt less cash and cash equivalents.
We believe that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the company’s operations and are useful for period-over-period comparisons of operations. We provide:
- Organic net sales to demonstrate the growth rate of net sales excluding the impact of acquisitions, divestitures, discontinued brands, and exited product categories and foreign exchange, and believe organic net sales is useful to investors because it enables them to better understand the growth of our business from period to period.
- Adjusted results as important supplemental measures of our performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of our Company and companies in our industry.
- Free cash flow as one factor in evaluating the amount of cash available for discretionary investments.
- Net debt as a useful measure to monitor leverage and evaluate the balance sheet.
We discuss the Company’s net secured leverage ratio as calculated under our credit agreement as a measure of our financial condition, liquidity and compliance with our credit agreement. For a description of the material terms of our credit agreement and risks of non-compliance with our credit agreement, see “Liquidity and Capital Resources” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in our most recent Annual Report on Form 10-K and our subsequent quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission.
Investor Relations Contact:
Alexis Tessier
Investor.Relations@hain.com
Media Contact:
Jen Davis
Jen.Davis@hain.com
| THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | |||||||
| Consolidated Statements of Operations | |||||||
| (unaudited and in thousands, except per share amounts) | |||||||
| First Quarter | |||||||
| 2025 | 2024 | ||||||
| Net sales | $ | 394,596 | $ | 425,029 | |||
| Cost of sales | 312,986 | 341,086 | |||||
| Gross profit | 81,610 | 83,943 | |||||
| Selling, general and administrative expenses | 71,328 | 77,169 | |||||
| Productivity and transformation costs | 5,018 | 6,403 | |||||
| Amortization of acquired intangible assets | 2,180 | 1,955 | |||||
| Long-lived asset impairment | 31 | 694 | |||||
| Operating income (loss) | 3,053 | (2,278 | ) | ||||
| Interest and other financing expense, net | 13,746 | 13,244 | |||||
| Other expense (income), net | 5,292 | (265 | ) | ||||
| Loss before income taxes and equity in net loss of equity-method investees | (15,985 | ) | (15,257 | ) | |||
| Provision (benefit) for income taxes | 3,523 | (5,379 | ) | ||||
| Equity in net loss of equity-method investees | 155 | 498 | |||||
| Net loss | $ | (19,663 | ) | $ | (10,376 | ) | |
| Net loss per common share: | |||||||
| Basic | $ | (0.22 | ) | $ | (0.12 | ) | |
| Diluted | $ | (0.22 | ) | $ | (0.12 | ) | |
| Shares used in the calculation of net loss per common share: | |||||||
| Basic | 89,861 | 89,512 | |||||
| Diluted | 89,861 | 89,512 | |||||
| THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | |||||||
| Consolidated Balance Sheets | |||||||
| (unaudited and in thousands) | |||||||
| September 30, 2024 | June 30, 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 56,853 | $ | 54,307 | |||
| Accounts receivable, net | 188,190 | 179,190 | |||||
| Inventories | 270,418 | 274,128 | |||||
| Prepaid expenses and other current assets | 48,570 | 49,434 | |||||
| Total current assets | 564,031 | 557,059 | |||||
| Property, plant and equipment, net | 266,947 | 261,730 | |||||
| Goodwill | 936,341 | 929,304 | |||||
| Trademarks and other intangible assets, net | 250,179 | 244,799 | |||||
| Investments and joint ventures | 10,080 | 10,228 | |||||
| Operating lease right-of-use assets, net | 85,029 | 86,634 | |||||
| Other assets | 22,202 | 27,794 | |||||
| Total assets | $ | 2,134,809 | $ | 2,117,548 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 184,969 | $ | 188,220 | |||
| Accrued expenses and other current liabilities | 88,160 | 85,714 | |||||
| Current portion of long-term debt | 7,567 | 7,569 | |||||
| Total current liabilities | 280,696 | 281,503 | |||||
| Long-term debt, less current portion | 732,799 | 736,523 | |||||
| Deferred income taxes | 45,397 | 47,826 | |||||
| Operating lease liabilities, noncurrent portion | 78,905 | 80,863 | |||||
| Other noncurrent liabilities | 33,351 | 27,920 | |||||
| Total liabilities | 1,171,148 | 1,174,635 | |||||
| Stockholders' equity: | |||||||
| Common stock | 1,120 | 1,119 | |||||
| Additional paid-in capital | 1,233,129 | 1,230,253 | |||||
| Retained earnings | 557,856 | 577,519 | |||||
| Accumulated other comprehensive loss | (99,409 | ) | (137,245 | ) | |||
| 1,692,696 | 1,671,646 | ||||||
| Less: Treasury stock | (729,035 | ) | (728,733 | ) | |||
| Total stockholders' equity | 963,661 | 942,913 | |||||
| Total liabilities and stockholders' equity | $ | 2,134,809 | $ | 2,117,548 | |||
| THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | |||||||
| Consolidated Statements of Cash Flows | |||||||
| (unaudited and in thousands) | |||||||
| First Quarter | |||||||
| 2025 | 2024 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
| Net loss | $ | (19,663 | ) | $ | (10,376 | ) | |
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities | |||||||
| Depreciation and amortization | 11,427 | 12,305 | |||||
| Deferred income taxes | (671 | ) | (11,269 | ) | |||
| Equity in net loss of equity-method investees | 155 | 498 | |||||
| Stock-based compensation, net | 2,876 | 3,742 | |||||
| Long-lived asset impairment | 31 | 694 | |||||
| Loss on sale of assets | 3,934 | 62 | |||||
| Other non-cash items, net | 1,085 | (556 | ) | ||||
| (Decrease) increase in cash attributable to changes in operating assets and liabilities: | |||||||
| Accounts receivable | (3,926 | ) | (1,150 | ) | |||
| Inventories | 2,282 | (7,423 | ) | ||||
| Other current assets | (2,471 | ) | 8,761 | ||||
| Other assets and liabilities | 579 | (3,198 | ) | ||||
| Accounts payable and accrued expenses | (6,425 | ) | 21,940 | ||||
| Net cash (used in) provided by operating activities | (10,787 | ) | 14,030 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
| Purchases of property, plant and equipment | (5,757 | ) | (6,906 | ) | |||
| Proceeds from sale of assets | 12,066 | 1,257 | |||||
| Net cash provided by (used in) investing activities | 6,309 | (5,649 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
| Borrowings under bank revolving credit facility | 59,000 | 46,000 | |||||
| Repayments under bank revolving credit facility | (61,000 | ) | (57,000 | ) | |||
| Repayments under term loan | (1,875 | ) | (1,875 | ) | |||
| Payments of other debt, net | (21 | ) | (3,834 | ) | |||
| Employee shares withheld for taxes | (302 | ) | (875 | ) | |||
| Net cash used in financing activities | (4,198 | ) | (17,584 | ) | |||
| Effect of exchange rate changes on cash | 11,222 | (5,881 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 2,546 | (15,084 | ) | ||||
| Cash and cash equivalents at beginning of period | 54,307 | 53,364 | |||||
| Cash and cash equivalents at end of period | $ | 56,853 | $ | 38,280 | |||
| THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | |||||||||||||||
| Net Sales, Gross Profit and Adjusted EBITDA by Segment | |||||||||||||||
| (unaudited and in thousands) | |||||||||||||||
| North America | International | Corporate/Other | Hain Consolidated | ||||||||||||
| Net Sales | |||||||||||||||
| Net sales - Q1 FY25 | $ | 231,140 | $ | 163,456 | $ | - | $ | 394,596 | |||||||
| Net sales - Q1 FY24 | $ | 260,054 | $ | 164,975 | $ | - | $ | 425,029 | |||||||
| % change - FY25 net sales vs. FY24 net sales | (11.1)% | (0.9)% | (7.2)% | ||||||||||||
| Gross Profit | |||||||||||||||
| Q1 FY25 | |||||||||||||||
| Gross profit | $ | 47,284 | $ | 34,326 | $ | - | $ | 81,610 | |||||||
| Non-GAAP adjustments(1) | 329 | - | - | 329 | |||||||||||
| Adjusted gross profit | $ | 47,613 | $ | 34,326 | $ | - | $ | 81,939 | |||||||
| % change - FY25 gross profit vs. FY24 gross profit | (7.1)% | (2.8)% | |||||||||||||
| % change - FY25 adjusted gross profit vs. FY24 adjusted gross profit | (12.2)% | (6.1)% | |||||||||||||
| Gross margin | |||||||||||||||
| Adjusted gross margin | |||||||||||||||
| Q1 FY24 | |||||||||||||||
| Gross profit | $ | 50,896 | $ | 33,047 | $ | - | $ | 83,943 | |||||||
| Non-GAAP adjustments(1) | 3,320 | - | - | 3,320 | |||||||||||
| Adjusted gross profit | $ | 54,216 | $ | 33,047 | $ | - | $ | 87,263 | |||||||
| Gross margin | |||||||||||||||
| Adjusted gross margin | |||||||||||||||
| Adjusted EBITDA | |||||||||||||||
| Q1 FY25 | |||||||||||||||
| Adjusted EBITDA | $ | 12,459 | $ | 20,370 | $ | (10,454 | ) | $ | 22,375 | ||||||
| % change - FY25 adjusted EBITDA vs. FY24 adjusted EBITDA | (33.5)% | (7.1)% | |||||||||||||
| Adjusted EBITDA margin | |||||||||||||||
| Q1 FY24 | |||||||||||||||
| Adjusted EBITDA | $ | 18,727 | $ | 17,438 | $ | (12,075 | ) | $ | 24,090 | ||||||
| Adjusted EBITDA margin | |||||||||||||||
| (1) See accompanying table "Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Loss and Adjusted Loss per Diluted Share" | |||||||||||||||
| THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | |||||||
| Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Loss and Adjusted Loss per Diluted Share | |||||||
| (unaudited and in thousands, except per share amounts) | |||||||
| Reconciliation of Gross Profit, GAAP to Gross Profit, as Adjusted: | |||||||
| First Quarter | |||||||
| 2025 | 2024 | ||||||
| Gross profit, GAAP | $ | 81,610 | $ | 83,943 | |||
| Adjustments to Cost of sales: | |||||||
| Plant closure related costs, net | 329 | 3,320 | |||||
| Gross profit, as adjusted | $ | 81,939 | $ | 87,263 | |||
| Reconciliation of Operating Income (Loss), GAAP to Operating Income, as Adjusted: | |||||||
| First Quarter | |||||||
| 2025 | 2024 | ||||||
| Operating income (loss), GAAP | $ | 3,053 | $ | (2,278 | ) | ||
| Adjustments to Cost of sales: | |||||||
| Plant closure related costs, net | 329 | 3,320 | |||||
| Adjustments to Operating expenses(a): | |||||||
| Productivity and transformation costs | 5,018 | 6,403 | |||||
| Certain litigation expenses, net(b) | 827 | 1,524 | |||||
| Plant closure related costs, net | 47 | (53 | ) | ||||
| Long-lived asset impairment | 31 | 694 | |||||
| Transaction and integration costs, net | (318 | ) | 118 | ||||
| Operating income, as adjusted | $ | 8,987 | $ | 9,728 | |||
| Reconciliation of Net Loss, GAAP to Net Loss, as Adjusted: | |||||||
| First Quarter | |||||||
| 2025 | 2024 | ||||||
| Net loss, GAAP | $ | (19,663 | ) | $ | (10,376 | ) | |
| Adjustments to Cost of sales: | |||||||
| Plant closure related costs, net | 329 | 3,320 | |||||
| Adjustments to Operating expenses(a): | |||||||
| Productivity and transformation costs | 5,018 | 6,403 | |||||
| Certain litigation expenses, net(b) | 827 | 1,524 | |||||
| Plant closure related costs, net | 47 | (53 | ) | ||||
| Long-lived asset impairment | 31 | 694 | |||||
| Transaction and integration costs, net | (318 | ) | 118 | ||||
| Adjustments to Interest and other expense, net(c): | |||||||
| Loss on sale of assets | 3,934 | 62 | |||||
| Unrealized currency losses (gains) | 1,194 | (796 | ) | ||||
| Adjustments to Provision (benefit) for income taxes: | |||||||
| Net tax impact of non-GAAP adjustments | 4,793 | (4,427 | ) | ||||
| Net loss, as adjusted | $ | (3,808 | ) | $ | (3,531 | ) | |
| Net loss margin | (5.0 | )% | (2.4 | )% | |||
| Adjusted net loss margin | (1.0 | )% | (0.8 | )% | |||
| Diluted shares used in the calculation of net loss per common share: | 89,861 | 89,512 | |||||
| Diluted shares used in the calculation of adjusted net loss per common share: | 89,861 | 89,512 | |||||
| Diluted net loss per common share, GAAP | $ | (0.22 | ) | $ | (0.12 | ) | |
| Diluted net loss per common share, as adjusted | $ | (0.04 | ) | $ | (0.04 | ) | |
| (a) Operating expenses include amortization of acquired intangibles, selling, general and administrative expenses, long-lived asset impairment and productivity and transformation costs. | |||||||
| (b) Expenses and items relating to securities class action, baby food litigation and SEC investigation. | |||||||
| (c) Interest and other expense, net includes interest and other financing expenses, net, unrealized currency losses (gains), loss on sale of assets and other expense, net. | |||||||
| THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | |||||||||||
| Organic Net Sales Growth by Segment | |||||||||||
| (unaudited and in thousands) | |||||||||||
| Q1 FY25 | North America | International | Hain Consolidated | ||||||||
| Net sales | $ | 231,140 | $ | 163,456 | $ | 394,596 | |||||
| Less: Impact of divestitures, discontinued brands and exited product categories | 8,110 | 218 | 8,328 | ||||||||
| Less: Impact of foreign currency exchange | (529 | ) | 3,835 | 3,306 | |||||||
| Organic net sales | $ | 223,559 | $ | 159,403 | $ | 382,962 | |||||
| Q1 FY24 | |||||||||||
| Net sales | $ | 260,054 | $ | 164,975 | $ | 425,029 | |||||
| Less: Impact of divestitures, discontinued brands and exited product categories | 20,973 | 476 | 21,449 | ||||||||
| Organic net sales | $ | 239,081 | $ | 164,499 | $ | 403,580 | |||||
| Net sales decline | (11.1)% | (0.9)% | (7.2)% | ||||||||
| Less: Impact of divestitures, discontinued brands and exited product categories | (4.4)% | (0.1)% | (2.9)% | ||||||||
| Less: Impact of foreign currency exchange | (0.2)% | ||||||||||
| Organic net sales decline | (6.5)% | (3.1)% | (5.1)% | ||||||||
| THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | |||||||||||||||||||||||
| Organic Net Sales Growth by Category | |||||||||||||||||||||||
| (unaudited and in thousands) | |||||||||||||||||||||||
| Q1 FY25 | Snacks | Baby & Kids | Beverages | Meal Prep | Personal Care | Hain Consolidated | |||||||||||||||||
| Net sales | $ | 99,475 | $ | 60,768 | $ | 56,676 | $ | 159,392 | $ | 18,285 | $ | 394,596 | |||||||||||
| Less: Impact of divestitures, discontinued brands and exited product categories | 3,293 | 109 | - | 2,445 | 2,481 | 8,328 | |||||||||||||||||
| Less: Impact of foreign currency exchange | (19 | ) | 710 | 309 | 2,403 | (97 | ) | 3,306 | |||||||||||||||
| Organic net sales | $ | 96,201 | $ | 59,949 | $ | 56,367 | $ | 154,544 | $ | 15,901 | $ | 382,962 | |||||||||||
| Q1 FY24 | |||||||||||||||||||||||
| Net sales | $ | 117,088 | $ | 62,528 | $ | 56,148 | $ | 165,196 | $ | 24,069 | $ | 425,029 | |||||||||||
| Less: Impact of divestitures, discontinued brands and exited product categories | 11,733 | 656 | - | 2,797 | 6,263 | 21,449 | |||||||||||||||||
| Organic net sales | $ | 105,355 | $ | 61,872 | $ | 56,148 | $ | 162,399 | $ | 17,806 | $ | 403,580 | |||||||||||
| Net sales (decline) growth | (15.0)% | (2.8)% | (3.5)% | (24.0)% | (7.2)% | ||||||||||||||||||
| Less: Impact of divestitures, discontinued brands and exited product categories | (6.3)% | (0.8)% | (0.2)% | (12.8)% | (2.9)% | ||||||||||||||||||
| Less: Impact of foreign currency exchange | (0.0)% | (0.5)% | |||||||||||||||||||||
| Organic net sales (decline) growth | (8.7)% | (3.1)% | (4.8)% | (10.7)% | (5.1)% | ||||||||||||||||||
| THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | |||||||
| Adjusted EBITDA | |||||||
| (unaudited and in thousands) | |||||||
| First Quarter | |||||||
| 2025 | 2024 | ||||||
| Net loss | $ | (19,663 | ) | $ | (10,376 | ) | |
| Depreciation and amortization | 11,427 | 12,305 | |||||
| Equity in net loss of equity-method investees | 155 | 498 | |||||
| Interest expense, net | 12,995 | 12,623 | |||||
| Provision (benefit) for income taxes | 3,523 | (5,379 | ) | ||||
| Stock-based compensation, net | 2,876 | 3,742 | |||||
| Unrealized currency losses | 1,194 | 35 | |||||
| Certain litigation expenses, net(a) | 827 | 1,524 | |||||
| Restructuring activities | |||||||
| Productivity and transformation costs | 5,018 | 6,403 | |||||
| Plant closure related costs, net | 376 | 1,841 | |||||
| Acquisitions, divestitures and other | |||||||
| Loss on sale of assets | 3,934 | 62 | |||||
| Transaction and integration costs, net | (318 | ) | 118 | ||||
| Impairment charges | |||||||
| Long-lived asset impairment | 31 | 694 | |||||
| Adjusted EBITDA | $ | 22,375 | $ | 24,090 | |||
| (a) Expenses and items relating to securities class action, baby food litigation and SEC investigation. | |||||||
| THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | |||||||
| Free Cash Flow | |||||||
| (unaudited and in thousands) | |||||||
| First Quarter | |||||||
| 2025 | 2024 | ||||||
| Net cash (used in) provided by operating activities | $ | (10,787 | ) | $ | 14,030 | ||
| Purchases of property, plant and equipment | (5,757 | ) | (6,906 | ) | |||
| Free cash flow | $ | (16,544 | ) | $ | 7,124 | ||
| THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | |||||
| Net Debt | |||||
| (unaudited and in thousands) | |||||
| September 30, 2024 | June 30, 2024 | ||||
| Debt | |||||
| Long-term debt, less current portion | $ | 732,799 | $ | 736,523 | |
| Current portion of long-term debt | 7,567 | 7,569 | |||
| Total debt | 740,366 | 744,092 | |||
| Less: Cash and cash equivalents | 56,853 | 54,307 | |||
| Net debt | $ | 683,513 | $ | 689,785 | |
FAQ
What were Hain Celestial's net sales for fiscal Q1 2025?
What was Hain Celestial's net loss for fiscal Q1 2025?
What is the fiscal 2025 guidance for HAIN?
How did Hain Celestial's North America segment perform in fiscal Q1 2025?
What was Hain Celestial's adjusted EBITDA for fiscal Q1 2025?
