Hain Celestial Reports Fiscal Second Quarter 2025 Financial Results
Hain Celestial (NASDAQ: HAIN) reported fiscal Q2 2025 results with net sales of $411 million, down 9% year-over-year, with organic net sales declining 7%. The company reported a net loss of $104 million, including $107 million in non-cash impairment charges related to U.S. goodwill and personal care assets.
Key financial metrics include:
- Gross profit margin at 22.7%, up 20 basis points
- Adjusted EBITDA of $38 million versus $47 million prior year
- Free cash flow of $25 million, up from $15 million
- Total debt reduced to $729 million
The company is exploring strategic options for its personal care business and revised its fiscal 2025 guidance, now expecting organic net sales to decline 2-4%, with adjusted EBITDA projected to be flat year-over-year. Management cited challenges in snacks performance and supply chain issues but expects growth in the second half of the year.
Hain Celestial (NASDAQ: HAIN) ha riportato i risultati fiscali del secondo trimestre 2025 con vendite nette di 411 milioni di dollari, in calo del 9% rispetto all'anno precedente, con vendite nette organiche in diminuzione del 7%. L'azienda ha riportato una perdita netta di 104 milioni di dollari, inclusi 107 milioni di dollari in oneri di svalutazione non monetari relativi all'avviamento negli Stati Uniti e agli asset per la cura personale.
I principali indicatori finanziari includono:
- Margine di profitto lordo al 22,7%, in aumento di 20 punti base
- EBITDA rettificato di 38 milioni di dollari rispetto ai 47 milioni dell'anno precedente
- Flusso di cassa libero di 25 milioni di dollari, in aumento rispetto ai 15 milioni
- Debito totale ridotto a 729 milioni di dollari
L'azienda sta esplorando opzioni strategiche per il suo business di cura personale e ha rivisto le sue previsioni fiscali per il 2025, ora aspettandosi una diminuzione delle vendite nette organiche del 2-4%, con EBITDA rettificato previsto stabile rispetto all'anno precedente. La direzione ha citato sfide nelle prestazioni degli snack e problemi nella catena di approvvigionamento, ma si aspetta una crescita nella seconda metà dell'anno.
Hain Celestial (NASDAQ: HAIN) informó los resultados fiscales del segundo trimestre de 2025 con ventas netas de 411 millones de dólares, una disminución del 9% interanual, con una caída del 7% en las ventas netas orgánicas. La compañía reportó una pérdida neta de 104 millones de dólares, que incluye 107 millones de dólares en cargos por deterioro no monetarios relacionados con el fondo de comercio en EE. UU. y activos de cuidado personal.
Los principales indicadores financieros son:
- Margen de ganancia bruta del 22.7%, un aumento de 20 puntos básicos
- EBITDA ajustado de 38 millones de dólares comparado con 47 millones del año anterior
- Flujo de efectivo libre de 25 millones de dólares, un aumento desde 15 millones
- Deuda total reducida a 729 millones de dólares
La empresa está explorando opciones estratégicas para su negocio de cuidado personal y ha revisado su guía fiscal para 2025, ahora esperando una disminución en las ventas netas orgánicas del 2-4%, con EBITDA ajustado proyectado estable respecto al año anterior. La dirección citó desafíos en el rendimiento de los snacks y problemas en la cadena de suministro, pero espera crecimiento en la segunda mitad del año.
하인 셀레스티얼 (NASDAQ: HAIN)은 2025 회계년도 2분기 결과를 발표하며 총 매출이 4억 1,100만 달러로 지난해 대비 9% 감소했다고 보고했습니다. 유기농 순매출은 7% 감소했습니다. 이 회사는 1억 4,100만 달러의 순손실을 기록했으며, 여기에는 미국의 영업권 및 개인 관리 자산과 관련된 1억 7백만 달러의 현금 비현금 감가상각 차 손익이 포함됩니다.
주요 재무 지표는 다음과 같습니다:
- 총 이익률 22.7%, 20bp 상승
- 조정된 EBITDA 3,800만 달러, 전년 대비 4,700만 달러
- 자유 현금 흐름 2,500만 달러, 이전 1,500만 달러에서 증가
- 총 부채 7억 2,900만 달러로 감소
회사는 개인 관리 사업에 대한 전략적 옵션을 모색하고 있으며, 2025 회계년도 가이던스를 수정하여 유기농 순매출이 2-4% 감소할 것으로 예상하고 조정된 EBITDA는 지난해와 유사할 것으로 전망하고 있습니다. 경영진은 스낵 제품의 성과와 공급망 문제에서의 어려움을 언급했지만, 연말까지 성장을 기대하고 있습니다.
Hain Celestial (NASDAQ: HAIN) a publié les résultats du deuxième trimestre fiscal 2025, avec des ventes nettes de 411 millions de dollars, en baisse de 9 % par rapport à l'année précédente, les ventes nettes organiques ayant diminué de 7 %. L'entreprise a enregistré une perte nette de 104 millions de dollars, dont 107 millions de dollars de charges de dépréciation non monétaires liées à la goodwill aux États-Unis et aux actifs de soins personnels.
Les principaux indicateurs financiers sont les suivants:
- Marche de profit brut à 22,7 %, en hausse de 20 points de base
- EBITDA ajusté de 38 millions de dollars contre 47 millions l'année précédente
- Flux de trésorerie libre de 25 millions de dollars, en hausse par rapport à 15 millions
- Dette totale réduite à 729 millions de dollars
L'entreprise explore des options stratégiques pour son activité de soins personnels et a révisé ses prévisions fiscales pour 2025, s'attendant désormais à une baisse des ventes nettes organiques de 2 à 4 %, avec un EBITDA ajusté prévu stable par rapport à l'année précédente. La direction a évoqué des défis dans la performance des collations et des problèmes de chaîne d'approvisionnement, mais s'attend à une croissance au cours de la seconde moitié de l'année.
Hain Celestial (NASDAQ: HAIN) berichtete über die Ergebnisse des fiskalischen 2. Quartals 2025 mit Nettoumsätzen von 411 Millionen Dollar, was einem Rückgang von 9% im Vergleich zum Vorjahr entspricht, während die organischen Nettoumsätze um 7% zurückgingen. Das Unternehmen meldete einen Nett Verlust von 104 Millionen Dollar, einschließlich 107 Millionen Dollar an nicht zahlungswirksamen Wertminderungsaufwendungen im Zusammenhang mit US-Wirtschaftsgütern und Vermögenswerten im Bereich Körperpflege.
Wichtige Finanzkennzahlen umfassen:
- Bruttomarge von 22,7%, plus 20 Basispunkte
- Bereinigtes EBITDA von 38 Millionen Dollar im Vergleich zu 47 Millionen Dollar im Vorjahr
- Freier Cashflow von 25 Millionen Dollar, eine Steigerung von 15 Millionen Dollar
- Gesamtverschuldung auf 729 Millionen Dollar reduziert
Das Unternehmen prüft strategische Optionen für sein Geschäft im Bereich Körperpflege und hat seine Prognose für das fiskalische Jahr 2025 angepasst, wobei nun ein Rückgang der organischen Nettoumsätze um 2-4% erwartet wird und das bereinigte EBITDA voraussichtlich stabil bleibt. Das Management verwies auf Herausforderungen im Snackbereich und Probleme in der Lieferkette, erwartet jedoch ein Wachstum in der zweiten Jahreshälfte.
- Strong operating cash flow with $31 million from operations, up from $21 million
- Debt reduction from $744 million to $729 million
- Gross profit margin improved by 20 basis points to 22.7%
- Recovery in infant formula supply and confirmed distribution gains
- Net sales declined 9% to $411 million
- Net loss of $104 million, including $107 million impairment charges
- Organic net sales decreased 7% year-over-year
- Personal care sales declined 38% organically
- Adjusted EBITDA decreased to $38 million from $47 million
- Downward revision of fiscal 2025 guidance
Insights
Hain Celestial's Q2 FY25 results reveal a company in transition, with mixed signals that warrant careful analysis. The headline
The most concerning metrics include:
- Organic sales decline of
7% across both major segments - Significant deterioration in snacks performance (
13% organic decline) - Personal care's dramatic
38% organic sales drop amid strategic review
However, there are notable bright spots:
- Operating cash flow improved
48% to$31 million - Net debt reduced by
$18 million since fiscal year start - Sequential improvements in baby & kids and meal prep categories
The potential divestment of personal care signals a strategic pivot to focus purely on better-for-you food & beverages, which could streamline operations and improve capital allocation. The adjusted gross margin decline of 60 basis points to
The 4.1x leverage ratio remains elevated, making debt reduction crucial. While management's revised guidance indicates near-term challenges, the confirmed distribution gains and resolved supply chain issues in key categories position the company for potential second-half improvement, though execution risks remain significant given the challenging macro environment.
Strong Operating Cash Flow and Reduction in Debt; Positioned to Pivot to Growth in Back Half
Exploring Strategic Options for Personal Care Category
HOBOKEN, N.J., Feb. 10, 2025 (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 second quarter ended December 31, 2024.
“Despite challenges in the quarter, we generated strong operating cash flow and further reduced debt. We drove sequential improvement in baby & kids and in our largest category, meal prep. However, sales growth in the quarter was hindered by poor in-store performance in snacks, driven by marketing and promotion effectiveness, and supply chain challenges, both of which we have already taken steps to address. We are confident that the actions taken, combined with promotional timing shifts, confirmed distribution gains, and full infant formula supply, will drive organic net sales growth in the second half of the year," said Wendy Davidson, Hain Celestial President and CEO.
Davidson continued, “The significant progress we have made towards stabilizing our personal care business is driving sequential improvement in gross margin and in sales trends in our core channels of natural and e-commerce. With the goal of further advancing the Focus pillar of our Hain Reimagined strategy and concentrating our portfolio on better-for-you food & beverages, we are exploring strategic options for our personal care business. We believe this is the best path to focus the organization, simplify our business, and create long-term value for shareholders.”
FINANCIAL HIGHLIGHTS*
Summary of Fiscal Second Quarter Results Compared to the Prior Year Period
- Net sales were
$411 million , down9% 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
7% compared to the prior year period.- The decrease in organic net sales was comprised of a 5-point decrease in volume/mix and a 2-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
22.7% , a 20-basis point increase from the prior year period.- Adjusted gross profit margin was
22.9% , a 60-basis point decrease from the prior year period.
- Adjusted gross profit margin was
- Net loss was
$104 million compared to net loss of$14 million in the prior year period.- Net loss included aggregate non-cash goodwill and intangible asset impairment charges of
$107 million related to U.S. goodwill and personal care intangible assets. - Adjusted net income was
$8 million , compared to adjusted net income of$11 million in the prior year period.
- Net loss included aggregate non-cash goodwill and intangible asset impairment charges of
- Net loss margin was (
25.3% ), as compared to net loss margin of (3.0% ) in the prior year period.- Adjusted net income margin was
1.8% , as compared to adjusted net income margin of2.4% in the prior year period.
- Adjusted net income margin was
- Adjusted EBITDA was
$38 million compared to$47 million in the prior year period; Adjusted EBITDA margin was9.2% , compared to10.4% in the prior year period. - Loss per diluted share was
$1.15 compared to loss per diluted share of$0.15 in the prior year period.- Adjusted earnings per share (“EPS”) was
$0.08 compared to adjusted EPS of$0.12 in the prior year period.
- Adjusted earnings per share (“EPS”) was
Cash Flow and Balance Sheet Highlights
- Net cash provided by operating activities in the fiscal second quarter was
$31 million compared to$21 million in the prior year period. - Free cash flow was
$25 million in the fiscal second quarter compared to$15 million in the prior year period. - Total debt at the end of the fiscal second quarter was
$729 million down from$744 million at the beginning of the fiscal year. - Net debt at the end of the fiscal second quarter was
$672 million compared to$690 million at the beginning of the fiscal year. - The company ended the second quarter with a net secured leverage ratio of 4.1x as calculated under our amended credit agreement.
SEGMENT HIGHLIGHTS
The company operates under two reportable segments: North America and International.
Net Sales | ||||||||||
Q2 FY25 | Q2 FY25 YTD | |||||||||
$ Millions | Reported Growth Y/Y | M&A/Exit Impact¹ | FX Impact | Organic Growth Y/Y | $ Millions | Reported Growth Y/Y | M&A/Exit Impact¹ | FX Impact | Organic Growth Y/Y | |
North America | 229 | - | - | - | - | 460 | - | - | - | - |
International | 182 | - | - | - | 346 | - | - | - | ||
Total | 411 | - | - | 1% | - | 806 | - | - | 1% | - |
* 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 second quarter organic net sales decrease was
Segment gross profit in the fiscal second quarter was
Adjusted EBITDA in the fiscal second quarter was
International
The fiscal second quarter organic net sales decline was
Segment gross profit in the fiscal second quarter was
Adjusted EBITDA in the fiscal second quarter was
CATEGORY HIGHLIGHTS
Net Sales | ||||||||||
Q2 FY25 | Q2 FY25 YTD | |||||||||
$ Millions | Reported Growth Y/Y | M&A/Exit Impact¹ | FX Impact | Organic Growth Y/Y | $ Millions | Reported Growth Y/Y | M&A/Exit Impact¹ | FX Impact | Organic Growth Y/Y | |
Snacks | 90 | - | - | - | - | 189 | - | - | - | - |
Baby & Kids | 62 | - | - | - | 122 | - | - | - | ||
Beverages | 70 | - | - | - | 126 | - | - | |||
Meal Prep | 178 | - | - | - | 337 | - | - | - | ||
Personal Care | 13 | - | - | - | - | 31 | - | - | - | - |
Total | 411 | - | - | 1% | - | 806 | - | - | 1% | - |
* 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 second quarter organic net sales decline of
Baby & Kids
The fiscal second quarter organic net sales decline of
Beverages
Fiscal second quarter organic net sales were down
Meal Prep
The fiscal second quarter organic net sales decline of
Personal Care
The fiscal second quarter organic net sales decline was
FISCAL 2025 GUIDANCE*
“Commercial execution and supply chain challenges drove second quarter results that were below our expectations. We have already taken steps to address these challenges and remain focused on disciplined execution. Recent distribution wins and the recovery of our infant formula supply bolster our belief that we are well positioned to pivot to growth in the back half of the year, however given performance to date and the challenging macroeconomic backdrop we are adjusting our full year outlook,” stated Lee Boyce, CFO.
The company is revising guidance for fiscal 2025 as follows:
- Organic net sales growth is expected to be down 2 to
4% . - Adjusted EBITDA is expected to be flat year-over-year.
- Gross margin is expected to increase by at least 90 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 800-715-9871 or 646-307-1963. The conference ID is 5099081. 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 Monday, February 17, 2025, and can be accessed by dialing 800-770-2030 or 609-800-9909 and referencing the conference access ID: 5099081.
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, our Hain Reimagined goals and our personal care business; 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, including changes in tax policy, tariffs, or import and export controls; 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 gross profit and its related margin; adjusted operating income and its related margin; adjusted net income and its related margin; diluted net income per common share, as adjusted; 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, warehouse and manufacturing consolidation and other costs, net, and other costs.
- Adjusted operating income and its related margin: operating loss before certain litigation expenses, net, plant closure related costs, net, warehouse and manufacturing consolidation and other costs, net, productivity and transformation costs, costs associated with acquisitions, divestitures and other transactions, goodwill impairment, intangibles and long-lived asset impairment and other costs.
- Adjusted net income and its related margin and diluted net income per common share, as adjusted: net loss, adjusted to exclude the impact of certain litigation expenses, net, plant closure related costs, net, warehouse and manufacturing consolidation and other costs, net, productivity and transformation costs, costs associated with acquisitions, divestitures and other transactions, (gains) losses on sales of assets, goodwill impairment, intangibles and long-lived asset impairment, unrealized currency (gains) losses and other costs, and the related tax effects of such adjustments.
- Adjusted EBITDA and its related margin: 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 gains, certain litigation and related costs, plant closure related costs, net, warehouse and manufacturing consolidation and other costs, net, productivity and transformation costs, costs associated with acquisitions, divestitures and other transactions, (gains) losses on sales of assets, transaction and integration costs, net, goodwill impairment, intangibles and long-lived asset impairment and other adjustments.
- Free cash flow: net cash 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) | ||||||||||||||||
Second Quarter | Second Quarter Year to Date | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net sales | $ | 411,485 | $ | 454,100 | $ | 806,081 | $ | 879,129 | ||||||||
Cost of sales | 318,033 | 351,885 | 631,019 | 692,971 | ||||||||||||
Gross profit | 93,452 | 102,215 | 175,062 | 186,158 | ||||||||||||
Selling, general and administrative expenses | 70,155 | 73,952 | 141,483 | 151,121 | ||||||||||||
Goodwill impairment | 91,267 | - | 91,267 | - | ||||||||||||
Intangibles and long-lived asset impairment | 17,986 | 20,666 | 18,017 | 21,360 | ||||||||||||
Productivity and transformation costs | 4,190 | 6,869 | 9,208 | 13,272 | ||||||||||||
Amortization of acquired intangible assets | 1,753 | 1,509 | 3,933 | 3,464 | ||||||||||||
Operating loss | (91,899 | ) | (781 | ) | (88,846 | ) | (3,059 | ) | ||||||||
Interest and other financing expense, net | 12,800 | 16,138 | 26,546 | 29,382 | ||||||||||||
Other (income) expense, net | (4,040 | ) | (42 | ) | 1,252 | (307 | ) | |||||||||
Loss before income taxes and equity in net loss of equity-method investees | (100,659 | ) | (16,877 | ) | (116,644 | ) | (32,134 | ) | ||||||||
Provision (benefit) for income taxes | 2,728 | (4,249 | ) | 6,251 | (9,628 | ) | ||||||||||
Equity in net loss of equity-method investees | 588 | 907 | 743 | 1,405 | ||||||||||||
Net loss | $ | (103,975 | ) | $ | (13,535 | ) | $ | (123,638 | ) | $ | (23,911 | ) | ||||
Net loss per common share: | ||||||||||||||||
Basic | $ | (1.15 | ) | $ | (0.15 | ) | $ | (1.37 | ) | $ | (0.27 | ) | ||||
Diluted | $ | (1.15 | ) | $ | (0.15 | ) | $ | (1.37 | ) | $ | (0.27 | ) | ||||
Shares used in the calculation of net loss per common share: | ||||||||||||||||
Basic | 90,132 | 89,811 | 89,997 | 89,661 | ||||||||||||
Diluted | 90,132 | 89,811 | 89,997 | 89,661 |
THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | ||||||||
Consolidated Balance Sheets | ||||||||
(unaudited and in thousands) | ||||||||
December 31, 2024 | June 30, 2024 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 56,200 | $ | 54,307 | ||||
Accounts receivable, net | 178,312 | 179,190 | ||||||
Inventories | 260,525 | 274,128 | ||||||
Prepaid expenses and other current assets | 53,450 | 49,434 | ||||||
Total current assets | 548,487 | 557,059 | ||||||
Property, plant and equipment, net | 250,735 | 261,730 | ||||||
Goodwill | 825,624 | 929,304 | ||||||
Trademarks and other intangible assets, net | 223,652 | 244,799 | ||||||
Investments and joint ventures | 6,922 | 10,228 | ||||||
Operating lease right-of-use assets, net | 80,726 | 86,634 | ||||||
Other assets | 24,397 | 27,794 | ||||||
Total assets | $ | 1,960,543 | $ | 2,117,548 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 198,541 | $ | 188,220 | ||||
Accrued expenses and other current liabilities | 83,168 | 85,714 | ||||||
Current portion of long-term debt | 7,564 | 7,569 | ||||||
Total current liabilities | 289,273 | 281,503 | ||||||
Long-term debt, less current portion | 721,076 | 736,523 | ||||||
Deferred income taxes | 45,571 | 47,826 | ||||||
Operating lease liabilities, noncurrent portion | 74,817 | 80,863 | ||||||
Other noncurrent liabilities | 25,073 | 27,920 | ||||||
Total liabilities | 1,155,810 | 1,174,635 | ||||||
Stockholders' equity: | ||||||||
Common stock | 1,124 | 1,119 | ||||||
Additional paid-in capital | 1,236,702 | 1,230,253 | ||||||
Retained earnings | 453,881 | 577,519 | ||||||
Accumulated other comprehensive loss | (156,983 | ) | (137,245 | ) | ||||
1,534,724 | 1,671,646 | |||||||
Less: Treasury stock | (729,991 | ) | (728,733 | ) | ||||
Total stockholders' equity | 804,733 | 942,913 | ||||||
Total liabilities and stockholders' equity | $ | 1,960,543 | $ | 2,117,548 |
THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||||
(unaudited and in thousands) | ||||||||||||||||
Second Quarter | Second Quarter Year to Date | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
Net loss | $ | (103,975 | ) | $ | (13,535 | ) | $ | (123,638 | ) | $ | (23,911 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||||||||||
Depreciation and amortization | 11,020 | 11,197 | 22,447 | 23,502 | ||||||||||||
Deferred income taxes | (445 | ) | (5,522 | ) | (1,116 | ) | (16,791 | ) | ||||||||
Equity in net loss of equity-method investees | 588 | 907 | 743 | 1,405 | ||||||||||||
Stock-based compensation, net | 3,573 | 3,376 | 6,449 | 7,118 | ||||||||||||
Goodwill impairment | 91,267 | – | 91,267 | – | ||||||||||||
Intangibles and long-lived asset impairment | 17,986 | 20,666 | 18,017 | 21,360 | ||||||||||||
(Gain) loss on sale of assets | (1,626 | ) | – | 2,308 | 62 | |||||||||||
Other non-cash items, net | (1,583 | ) | 1,521 | (498 | ) | 965 | ||||||||||
Increase (decrease) in cash attributable to changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable | 2,467 | (29,497 | ) | (1,459 | ) | (30,647 | ) | |||||||||
Inventories | 1,691 | 22,589 | 3,973 | 15,166 | ||||||||||||
Other current assets | (5,211 | ) | (3,879 | ) | (7,682 | ) | 4,882 | |||||||||
Other assets and liabilities | (669 | ) | 622 | (90 | ) | (2,576 | ) | |||||||||
Accounts payable and accrued expenses | 15,822 | 12,210 | 9,397 | 34,150 | ||||||||||||
Net cash provided by operating activities | 30,905 | 20,655 | 20,118 | 34,685 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
Purchases of property, plant and equipment | (6,382 | ) | (5,829 | ) | (12,139 | ) | (12,735 | ) | ||||||||
Investments and joint ventures, net | 2,570 | – | 2,570 | – | ||||||||||||
Proceeds from sale of assets | 1,701 | 75 | 13,767 | 1,332 | ||||||||||||
Net cash (used in) provided by investing activities | (2,111 | ) | (5,754 | ) | 4,198 | (11,403 | ) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
Borrowings under bank revolving credit facility | 50,000 | 76,000 | 109,000 | 122,000 | ||||||||||||
Repayments under bank revolving credit facility | (60,000 | ) | (80,000 | ) | (121,000 | ) | (137,000 | ) | ||||||||
Repayments under term loan | (1,875 | ) | (1,875 | ) | (3,750 | ) | (3,750 | ) | ||||||||
Payments of other debt, net | (21 | ) | (20 | ) | (42 | ) | (3,854 | ) | ||||||||
Employee shares withheld for taxes | (956 | ) | (614 | ) | (1,258 | ) | (1,489 | ) | ||||||||
Net cash used in financing activities | (12,852 | ) | (6,509 | ) | (17,050 | ) | (24,093 | ) | ||||||||
Effect of exchange rate changes on cash | (16,595 | ) | 7,000 | (5,373 | ) | 1,119 | ||||||||||
Net (decrease) increase in cash and cash equivalents | (653 | ) | 15,392 | 1,893 | 308 | |||||||||||
Cash and cash equivalents at beginning of period | 56,853 | 38,280 | 54,307 | 53,364 | ||||||||||||
Cash and cash equivalents at end of period | $ | 56,200 | $ | 53,672 | $ | 56,200 | $ | 53,672 |
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 – Q2 FY25 | $ | 229,289 | $ | 182,196 | $ | – | $ | 411,485 | ||||||||
Net sales – Q2 FY24 | $ | 267,671 | $ | 186,429 | $ | – | $ | 454,100 | ||||||||
% change – FY25 net sales vs. FY24 net sales | (14.3 | )% | (2.3 | )% | (9.4 | )% | ||||||||||
Gross Profit | ||||||||||||||||
Q2 FY25 | ||||||||||||||||
Gross profit | $ | 56,926 | $ | 36,526 | $ | – | $ | 93,452 | ||||||||
Non-GAAP adjustments(1) | 858 | - | – | 858 | ||||||||||||
Adjusted gross profit | $ | 57,784 | $ | 36,526 | $ | – | $ | 94,310 | ||||||||
% change – FY25 gross profit vs. FY24 gross profit | (8.2 | )% | (9.2 | )% | (8.6 | )% | ||||||||||
% change – FY25 adjusted gross profit vs. FY24 adjusted gross profit | (13.0 | )% | (9.5 | )% | (11.7 | )% | ||||||||||
Gross margin | 24.8 | % | 20.0 | % | 22.7 | % | ||||||||||
Adjusted gross margin | 25.2 | % | 20.0 | % | 22.9 | % | ||||||||||
Q2 FY24 | ||||||||||||||||
Gross profit | $ | 61,982 | $ | 40,233 | $ | – | $ | 102,215 | ||||||||
Non-GAAP adjustments(1) | 4,431 | 125 | – | 4,556 | ||||||||||||
Adjusted gross profit | $ | 66,413 | $ | 40,358 | $ | – | $ | 106,771 | ||||||||
Gross margin | 23.2 | % | 21.6 | % | 22.5 | % | ||||||||||
Adjusted gross margin | 24.8 | % | 21.6 | % | 23.5 | % | ||||||||||
Adjusted EBITDA | ||||||||||||||||
Q2 FY25 | ||||||||||||||||
Adjusted EBITDA | $ | 25,307 | $ | 22,526 | $ | (9,940 | ) | $ | 37,893 | |||||||
% change – FY25 adjusted EBITDA vs. FY24 adjusted EBITDA | (18.9 | )% | (13.3 | )% | 1.2 | % | (19.6 | )% | ||||||||
Adjusted EBITDA margin | 11.0 | % | 12.4 | % | 9.2 | % | ||||||||||
Q2 FY24 | ||||||||||||||||
Adjusted EBITDA | $ | 31,218 | $ | 25,969 | $ | (10,061 | ) | $ | 47,126 | |||||||
Adjusted EBITDA margin | 11.7 | % | 13.9 | % | 10.4 | % | ||||||||||
(1) See accompanying table "Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income and Adjusted Net Income per Diluted Share" |
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 – Q2 FY25 YTD | $ | 460,429 | $ | 345,652 | $ | – | $ | 806,081 | ||||||||
Net sales – Q2 FY24 YTD | $ | 527,725 | $ | 351,404 | $ | – | $ | 879,129 | ||||||||
% change – FY25 net sales vs. FY24 net sales | (12.8 | )% | (1.6 | )% | (8.3 | )% | ||||||||||
Gross Profit | ||||||||||||||||
Q2 FY25 YTD | ||||||||||||||||
Gross profit | $ | 104,210 | $ | 70,852 | $ | – | $ | 175,062 | ||||||||
Non-GAAP adjustments(1) | 1,187 | – | – | 1,187 | ||||||||||||
Adjusted gross profit | $ | 105,397 | $ | 70,852 | $ | – | $ | 176,249 | ||||||||
% change – FY25 gross profit vs. FY24 gross profit | (7.7 | )% | (3.3 | )% | (6.0 | )% | ||||||||||
% change – FY25 adjusted gross profit vs. FY24 adjusted gross profit | (12.6 | )% | (3.5 | )% | (9.2 | )% | ||||||||||
Gross margin | 22.6 | % | 20.5 | % | 21.7 | % | ||||||||||
Adjusted gross margin | 22.9 | % | 20.5 | % | 21.9 | % | ||||||||||
Q2 FY24 YTD | ||||||||||||||||
Gross profit | $ | 112,878 | $ | 73,280 | $ | – | $ | 186,158 | ||||||||
Non-GAAP adjustments(1) | 7,751 | 125 | – | 7,876 | ||||||||||||
Adjusted gross profit | $ | 120,629 | $ | 73,405 | $ | – | $ | 194,034 | ||||||||
Gross margin | 21.4 | % | 20.9 | % | 21.2 | % | ||||||||||
Adjusted gross margin | 22.9 | % | 20.9 | % | 22.1 | % | ||||||||||
Adjusted EBITDA | ||||||||||||||||
Q2 FY25 YTD | ||||||||||||||||
Adjusted EBITDA | $ | 37,766 | $ | 42,896 | $ | (20,394 | ) | $ | 60,268 | |||||||
% change – FY25 adjusted EBITDA vs. FY24 adjusted EBITDA | (24.4 | )% | (1.2 | )% | 7.9 | % | (15.4 | )% | ||||||||
Adjusted EBITDA margin | 8.2 | % | 12.4 | % | 7.5 | % | ||||||||||
Q2 FY24 YTD | ||||||||||||||||
Adjusted EBITDA | $ | 49,945 | $ | 43,407 | $ | (22,136 | ) | $ | 71,216 | |||||||
Adjusted EBITDA margin | 9.5 | % | 12.4 | % | 8.1 | % | ||||||||||
(1) See accompanying table "Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income and Adjusted Net Income per Diluted Share" |
THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||
Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income and Adjusted Net Income per Diluted Share | ||||||||||||||||
(unaudited and in thousands, except per share amounts) | ||||||||||||||||
Reconciliation of Gross Profit, GAAP to Gross Profit, as Adjusted: | ||||||||||||||||
Second Quarter | Second Quarter Year to Date | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Gross profit, GAAP | $ | 93,452 | $ | 102,215 | $ | 175,062 | $ | 186,158 | ||||||||
Adjustments to Cost of sales: | ||||||||||||||||
Plant closure related costs, net | 858 | 2,302 | 1,187 | 5,622 | ||||||||||||
Warehouse/manufacturing consolidation and other costs, net | - | 811 | - | 811 | ||||||||||||
Other | - | 1,443 | - | 1,443 | ||||||||||||
Gross profit, as adjusted | $ | 94,310 | $ | 106,771 | $ | 176,249 | $ | 194,034 | ||||||||
Reconciliation of Operating Loss, GAAP to Operating Income, as Adjusted: | ||||||||||||||||
Second Quarter | Second Quarter Year to Date | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Operating loss, GAAP | $ | (91,899 | ) | $ | (781 | ) | $ | (88,846 | ) | $ | (3,059 | ) | ||||
Adjustments to Cost of sales: | ||||||||||||||||
Plant closure related costs, net | 858 | 2,302 | 1,187 | 5,622 | ||||||||||||
Warehouse/manufacturing consolidation and other costs, net | - | 811 | - | 811 | ||||||||||||
Other | - | 1,443 | - | 1,443 | ||||||||||||
Adjustments to Operating expenses(a): | ||||||||||||||||
Goodwill impairment | 91,267 | - | 91,267 | - | ||||||||||||
Intangibles and long-lived asset impairment | 17,986 | 20,666 | 18,017 | 21,360 | ||||||||||||
Productivity and transformation costs | 4,190 | 6,869 | 9,208 | 13,272 | ||||||||||||
Certain litigation expenses, net(b) | 1,020 | 2,091 | 1,847 | 3,615 | ||||||||||||
Plant closure related costs, net | - | - | 47 | (53 | ) | |||||||||||
Transaction and integration costs, net | (105 | ) | 109 | (423 | ) | 227 | ||||||||||
Operating income, as adjusted | $ | 23,317 | $ | 33,510 | $ | 32,304 | $ | 43,238 | ||||||||
Reconciliation of Net Loss, GAAP to Net Income, as Adjusted: | ||||||||||||||||
Second Quarter | Second Quarter Year to Date | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net loss, GAAP | $ | (103,975 | ) | $ | (13,535 | ) | $ | (123,638 | ) | $ | (23,911 | ) | ||||
Adjustments to Cost of sales: | ||||||||||||||||
Plant closure related costs, net | 858 | 2,302 | 1,187 | 5,622 | ||||||||||||
Warehouse/manufacturing consolidation and other costs, net | – | 811 | – | 811 | ||||||||||||
Other | – | 1,443 | – | 1,443 | ||||||||||||
Adjustments to Operating expenses(a): | ||||||||||||||||
Goodwill impairment | 91,267 | – | 91,267 | – | ||||||||||||
Intangibles and long-lived asset impairment | 17,986 | 20,666 | 18,017 | 21,360 | ||||||||||||
Productivity and transformation costs | 4,190 | 6,869 | 9,208 | 13,272 | ||||||||||||
Certain litigation expenses, net(b) | 1,020 | 2,091 | 1,847 | 3,615 | ||||||||||||
Plant closure related costs, net | – | – | 47 | (53 | ) | |||||||||||
Transaction and integration costs, net | (105 | ) | 109 | (423 | ) | 227 | ||||||||||
Adjustments to Interest and other expense, net(c): | ||||||||||||||||
(Gain) loss on sale of assets | (1,626 | ) | – | 2,308 | 62 | |||||||||||
Unrealized currency (gains) losses | (1,624 | ) | 950 | (430 | ) | 154 | ||||||||||
Adjustments to Provision (benefit) for income taxes: | ||||||||||||||||
Net tax impact of non-GAAP adjustments | (485 | ) | (10,807 | ) | 4,308 | (15,233 | ) | |||||||||
Net income, as adjusted | $ | 7,506 | $ | 10,899 | $ | 3,698 | $ | 7,369 | ||||||||
Net loss margin | (25.3 | )% | (3.0 | )% | (15.3 | )% | (2.7 | )% | ||||||||
Adjusted net income margin | 1.8 | % | 2.4 | % | 0.5 | % | 0.8 | % | ||||||||
Diluted shares used in the calculation of net loss per common share: | 90,132 | 89,811 | 89,997 | 89,661 | ||||||||||||
Diluted shares used in the calculation of adjusted net income per common share: | 90,392 | 90,453 | 90,233 | 90,103 | ||||||||||||
Diluted net loss per common share, GAAP | $ | (1.15 | ) | $ | (0.15 | ) | $ | (1.37 | ) | $ | (0.27 | ) | ||||
Diluted net income per common share, as adjusted | $ | 0.08 | $ | 0.12 | $ | 0.04 | $ | 0.08 | ||||||||
(a) Operating expenses include amortization of acquired intangibles, selling, general and administrative expenses, goodwill impairment, intangibles and 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 (gains) losses, (gain) 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) | ||||||||||||
Q2 FY25 | North America | International | Hain Consolidated | |||||||||
Net sales | $ | 229,289 | $ | 182,196 | $ | 411,485 | ||||||
Less: Impact of divestitures, discontinued brands and exited product categories | 4,424 | 133 | 4,557 | |||||||||
Less: Impact of foreign currency exchange | (758 | ) | 3,833 | 3,075 | ||||||||
Organic net sales | $ | 225,623 | $ | 178,230 | $ | 403,853 | ||||||
Q2 FY24 | ||||||||||||
Net sales | $ | 267,671 | $ | 186,429 | $ | 454,100 | ||||||
Less: Impact of divestitures, discontinued brands and exited product categories | 20,575 | 295 | 20,870 | |||||||||
Organic net sales | $ | 247,096 | $ | 186,134 | $ | 433,230 | ||||||
Net sales decline | (14.3 | )% | (2.3 | )% | (9.4 | )% | ||||||
Less: Impact of divestitures, discontinued brands and exited product categories | (5.3 | )% | (0.2 | )% | (3.3 | )% | ||||||
Less: Impact of foreign currency exchange | (0.3 | )% | 2.1 | % | 0.7 | % | ||||||
Organic net sales decline | (8.7 | )% | (4.2 | )% | (6.8 | )% | ||||||
Q2 FY25 YTD | North America | International | Hain Consolidated | |||||||||
Net sales | $ | 460,429 | $ | 345,652 | $ | 806,081 | ||||||
Less: Impact of divestitures, discontinued brands and exited product categories | 12,534 | 351 | 12,885 | |||||||||
Less: Impact of foreign currency exchange | (1,287 | ) | 7,668 | 6,381 | ||||||||
Organic net sales | $ | 449,182 | $ | 337,633 | $ | 786,815 | ||||||
Q2 FY24 YTD | ||||||||||||
Net sales | $ | 527,725 | $ | 351,404 | $ | 879,129 | ||||||
Less: Impact of divestitures, discontinued brands and exited product categories | 41,548 | 771 | 42,319 | |||||||||
Organic net sales | $ | 486,177 | $ | 350,633 | $ | 836,810 | ||||||
Net sales decline | (12.8 | )% | (1.6 | )% | (8.3 | )% | ||||||
Less: Impact of divestitures, discontinued brands and exited product categories | (5.0 | )% | (0.1 | )% | (3.0 | )% | ||||||
Less: Impact of foreign currency exchange | (0.2 | )% | 2.2 | % | 0.7 | % | ||||||
Organic net sales decline | (7.6 | )% | (3.7 | )% | (6.0 | )% |
THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||
Organic Net Sales Growth by Category | ||||||||||||||||||||||||
(unaudited and in thousands) | ||||||||||||||||||||||||
Q2 FY25 | Snacks | Baby & Kids | Beverages | Meal Prep | Personal Care | Hain Consolidated | ||||||||||||||||||
Net sales | $ | 89,707 | $ | 61,561 | $ | 69,814 | $ | 177,653 | $ | 12,750 | $ | 411,485 | ||||||||||||
Less: Impact of divestitures, discontinued brands and exited product categories | 485 | 93 | – | 2,388 | 1,591 | 4,557 | ||||||||||||||||||
Less: Impact of foreign currency exchange | (101 | ) | 714 | (243 | ) | 2,818 | (113 | ) | 3,075 | |||||||||||||||
Organic net sales | $ | 89,323 | $ | 60,754 | $ | 70,057 | $ | 172,447 | $ | 11,272 | $ | 403,853 | ||||||||||||
Q2 FY24 | ||||||||||||||||||||||||
Net sales | $ | 113,873 | $ | 61,613 | $ | 72,584 | $ | 182,133 | $ | 23,897 | $ | 454,100 | ||||||||||||
Less: Impact of divestitures, discontinued brands and exited product categories | 11,394 | 476 | – | 3,245 | 5,755 | 20,870 | ||||||||||||||||||
Organic net sales | $ | 102,479 | $ | 61,137 | $ | 72,584 | $ | 178,888 | $ | 18,142 | $ | 433,230 | ||||||||||||
Net sales decline | (21.2 | )% | (0.1 | )% | (3.8 | )% | (2.5 | )% | (46.6 | )% | (9.4 | )% | ||||||||||||
Less: Impact of divestitures, discontinued brands and exited product categories | (8.3 | )% | (0.7 | )% | 0.0 | % | (0.4 | )% | (8.2 | )% | (3.3 | )% | ||||||||||||
Less: Impact of foreign currency exchange | (0.1 | )% | 1.2 | % | (0.3 | )% | 1.5 | % | (0.5 | )% | 0.7 | % | ||||||||||||
Organic net sales decline | (12.8 | )% | (0.6 | )% | (3.5 | )% | (3.6 | )% | (37.9 | )% | (6.8 | )% | ||||||||||||
Q2 FY25 YTD | Snacks | Baby & Kids | Beverages | Meal Prep | Personal Care | Hain Consolidated | ||||||||||||||||||
Net sales | $ | 189,182 | $ | 122,329 | $ | 126,490 | $ | 337,045 | $ | 31,035 | $ | 806,081 | ||||||||||||
Less: Impact of divestitures, discontinued brands and exited product categories | 3,778 | 202 | – | 4,833 | 4,072 | 12,885 | ||||||||||||||||||
Less: Impact of foreign currency exchange | (120 | ) | 1,424 | 66 | 5,221 | (210 | ) | 6,381 | ||||||||||||||||
Organic net sales | $ | 185,524 | $ | 120,703 | $ | 126,424 | $ | 326,991 | $ | 27,173 | $ | 786,815 | ||||||||||||
Q2 FY24 YTD | ||||||||||||||||||||||||
Net sales | $ | 230,961 | $ | 124,141 | $ | 128,732 | $ | 347,329 | $ | 47,966 | $ | 879,129 | ||||||||||||
Less: Impact of divestitures, discontinued brands and exited product categories | 23,127 | 1,132 | – | 6,042 | 12,018 | 42,319 | ||||||||||||||||||
Organic net sales | $ | 207,834 | $ | 123,009 | $ | 128,732 | $ | 341,287 | $ | 35,948 | $ | 836,810 | ||||||||||||
Net sales decline | (18.1 | )% | (1.5 | )% | (1.7 | )% | (3.0 | )% | (35.3 | )% | (8.3 | )% | ||||||||||||
Less: Impact of divestitures, discontinued brands and exited product categories | (7.3 | )% | (0.7 | )% | 0.0 | % | (0.3 | )% | (10.5 | )% | (3.0 | )% | ||||||||||||
Less: Impact of foreign currency exchange | (0.1 | )% | 1.1 | % | 0.1 | % | 1.5 | % | (0.4 | )% | 0.7 | % | ||||||||||||
Organic net sales decline | (10.7 | )% | (1.9 | )% | (1.8 | )% | (4.2 | )% | (24.4 | )% | (6.0 | )% |
THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | ||||||||||||||||
Adjusted EBITDA | ||||||||||||||||
(unaudited and in thousands) | ||||||||||||||||
Second Quarter | Second Quarter Year to Date | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net loss | $ | (103,975 | ) | $ | (13,535 | ) | $ | (123,638 | ) | $ | (23,911 | ) | ||||
Depreciation and amortization | 11,020 | 11,197 | 22,447 | 23,502 | ||||||||||||
Equity in net loss of equity-method investees | 588 | 907 | 743 | 1,405 | ||||||||||||
Interest expense, net | 11,993 | 15,333 | 24,988 | 27,956 | ||||||||||||
Provision (benefit) for income taxes | 2,728 | (4,249 | ) | 6,251 | (9,628 | ) | ||||||||||
Stock-based compensation, net | 3,573 | 3,376 | 6,449 | 7,118 | ||||||||||||
Unrealized currency gains | (1,624 | ) | (194 | ) | (430 | ) | (159 | ) | ||||||||
Certain litigation expenses, net(a) | 1,020 | 2,091 | 1,847 | 3,615 | ||||||||||||
Restructuring activities | ||||||||||||||||
Productivity and transformation costs | 4,190 | 6,869 | 9,208 | 13,272 | ||||||||||||
Plant closure related costs, net | 858 | 2,302 | 1,234 | 4,143 | ||||||||||||
Warehouse/manufacturing consolidation and other costs, net | – | 811 | – | 811 | ||||||||||||
Acquisitions, divestitures and other | ||||||||||||||||
(Gain) loss on sale of assets | (1,626 | ) | – | 2,308 | 62 | |||||||||||
Transaction and integration costs, net | (105 | ) | 109 | (423 | ) | 227 | ||||||||||
Impairment charges | ||||||||||||||||
Goodwill impairment | 91,267 | – | 91,267 | – | ||||||||||||
Intangibles and long-lived asset impairment | 17,986 | 20,666 | 18,017 | 21,360 | ||||||||||||
Other | – | 1,443 | – | 1,443 | ||||||||||||
Adjusted EBITDA | $ | 37,893 | $ | 47,126 | $ | 60,268 | $ | 71,216 | ||||||||
(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) | ||||||||||||||||
Second Quarter | Second Quarter Year to Date | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
Net cash provided by operating activities | $ | 30,905 | $ | 20,655 | $ | 20,118 | $ | 34,685 | ||||||||
Purchases of property, plant and equipment | (6,382 | ) | (5,829 | ) | (12,139 | ) | (12,735 | ) | ||||||||
Free cash flow | $ | 24,523 | $ | 14,826 | $ | 7,979 | $ | 21,950 |
THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES | ||||||||
Net Debt | ||||||||
(unaudited and in thousands) | ||||||||
December 31, 2024 | June 30, 2024 | |||||||
Debt | ||||||||
Long-term debt, less current portion | $ | 721,076 | $ | 736,523 | ||||
Current portion of long-term debt | 7,564 | 7,569 | ||||||
Total debt | 728,640 | 744,092 | ||||||
Less: Cash and cash equivalents | 56,200 | 54,307 | ||||||
Net debt | $ | 672,440 | $ | 689,785 |
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FAQ
What caused HAIN's net loss of $104 million in Q2 2025?
How much did HAIN's organic net sales decline in Q2 2025?
What is HAIN's revised guidance for fiscal 2025?
What strategic changes is HAIN considering for its personal care business?