Core Points - Hain Celestial Group has expanded its partnership with Feeding America to support the Fight Hunger. Spark Change. campaign by donating 10 cents for every specially marked bag of Garden Veggie™ Snacks sold at participating Walmart stores [1][2][3] - The campaign runs from March 1-31, 2025, with a guaranteed minimum donation of $100,000 and a maximum possible donation of $250,000, which equates to at least one meal for each bag sold [2][3] - Feeding America reports that 47 million individuals, including 13.8 million children, face food insecurity, marking the highest rate in a decade [3] Company Initiatives - Hain Celestial Group's participation in the Fight Hunger. Spark Change. campaign began last year with four products in 1,200 Walmart stores, and has now expanded to five products available in nearly all Walmart stores nationwide [6] - The campaign has generated over $206 million and helped secure 2 billion meals for the Feeding America network of local food banks over its 12-year history [4] Product Information - The Garden Veggie™ products involved in the campaign include Garden Veggie™ Straws in Sea Salt and Zesty Ranch, and Flavor Burst™ Tortilla Chips in Nacho Cheese, Zesty Ranch, and Smoky BBQ [8]

Financial Performance - Net sales for the three months ended December 31, 2024, were $411.5 million, a decrease of $42.6 million, or 9.4%, compared to the prior year quarter[141] - Gross profit for the same period was $93.5 million, a decrease of $8.8 million, or 8.6%, with a gross profit margin of 22.7%, slightly up from 22.5% in the prior year[142] - Operating loss for the three months ended December 31, 2024, was $91.9 million, compared to a loss of $0.8 million in the prior year quarter[150] - Net loss for the three months ended December 31, 2024 was $104.0 million, or $1.15 per diluted share, compared to a net loss of $13.5 million, or $0.15 per diluted share in the prior year quarter[157] - Adjusted EBITDA for the three months ended December 31, 2024 was $37.9 million, a decrease of $9.2 million, or 19.6%, from $47.1 million in the prior year quarter[158] - Consolidated net sales for the six months ended December 31, 2024 were $806.1 million, a decrease of $73.0 million, or 8.3%, compared to $879.1 million in the prior year period[168] - Net loss for the six months ended December 31, 2024 was $123.6 million, or $1.37 per diluted share, compared to a net loss of $23.9 million, or $0.27 per diluted share in the prior year period[183] - Adjusted EBITDA decreased to $60.3 million for the six months ended December 31, 2024, down from $71.2 million in the prior year, representing a decline of 15.4%[184] Sales Performance - Organic net sales decreased by $29.4 million, or 6.8%, primarily due to a decline in the North America reportable segment[141] - North America net sales for the three months ended December 31, 2024 were $229.3 million, a decrease of $38.4 million, or 14.3%[160] - International net sales for the three months ended December 31, 2024 were $182.2 million, a decrease of $4.2 million, or 2.3%[163] - Organic net sales for the six months ended December 31, 2024 decreased by $50.0 million, or 6.0%[168] - North America net sales were $460.4 million, a decrease of $67.3 million, or 12.8%, primarily due to lower sales in snacks and personal care categories[187] - International net sales were $345.7 million, a decrease of $5.8 million, or 1.6%, with organic net sales down 3.7% to $337.6 million[190] Expenses and Cost Management - Selling, general and administrative expenses decreased by $3.8 million, or 5.1%, to $70.2 million, primarily due to lower employee-related expenses[144] - Selling, general and administrative expenses for the six months ended December 31, 2024 were $141.5 million, a decrease of $9.6 million, or 6.5%[171] - Interest and other financing expenses decreased by $3.3 million, or 20.7%, to $12.8 million, attributed to a lower outstanding debt balance and reduced borrowing rates[151] - The company incurred approximately $7.3 million in expenses associated with the Hain Reimagined Program for the three months ended December 31, 2024[138] - Cash used in financing activities was $17.1 million for the six months ended December 31, 2024, a decrease of $7.0 million compared to $24.1 million in the prior year[205] Impairment Charges - The company recorded a non-cash goodwill impairment charge of $91.3 million during the three months ended December 31, 2024, due to a decline in market capitalization[145] - Goodwill impairment charge of $91.3 million was recorded during the six months ended December 31, 2024[172] - The company recognized significant intangible asset impairment charges during the three months ended December 31, 2024, leading to an interim quantitative impairment test for goodwill[220] - As of December 31, 2024, the U.S. reporting unit's carrying amount exceeded its estimated fair value of $800,000, resulting in a non-cash impairment charge of $91,267, reducing goodwill from $633,774 to $542,507[221] Tax and Cash Flow - The effective income tax rate for the three months ended December 31, 2024, was an expense of 2.7%, compared to a benefit of 25.2% in the prior year[155] - The effective income tax rate for the six months ended December 31, 2024 was an expense of 5.4%, compared to a benefit of 30.0% in the prior year[181] - Cash provided by operating activities was $20.1 million, a decrease of $14.6 million from $34.7 million in the prior year period[203] - Free cash flow for the six months ended December 31, 2024, was $8.0 million, a decrease of $14.0 million from $22.0 million in the same period of 2023[207] Future Outlook and Risks - Annualized pretax savings from the Hain Reimagined Program are expected to be between $130 million and $150 million[138] - Future cash flow estimates are subjective, and actual results may differ materially from the Company's estimates, potentially leading to additional impairment charges[221] - The Company has not identified any material changes in market risk factors since the last annual report[227] Seasonal Trends - Certain product lines experience seasonal fluctuations, with stronger sales of hot tea and desserts in colder months, while snack foods and personal care products perform better in warmer months[226] - Historical data shows that net sales and diluted earnings per share in the first fiscal quarter are typically the lowest of the four quarters[226]

Core Insights - Hain Celestial Group, Inc. reported a decline in both revenue and earnings for the second quarter of fiscal 2025, missing consensus estimates [1][4][5] - The company has lowered its fiscal 2025 guidance due to challenges in commercial execution and supply chain issues [2][17] Financial Performance - Adjusted earnings were 8 cents per share, below the consensus estimate of 12 cents, down from 12 cents in the same quarter last year [4] - Net sales totaled $411.5 million, missing the consensus estimate of $430 million, representing a 9.4% year-over-year decline [5] - Organic sales fell 7% year over year, driven by a 5-point drop in volume/mix and a 2-point reduction in price [5] - Adjusted gross profit was $94.3 million, down 11.7% from the previous year, with a gross margin contraction of 60 basis points to 22.9% [5] Segment Performance - North America segment net sales decreased 14.3% year over year to $229.3 million, with organic net sales down 9% due to reduced snack sales [7] - International segment net sales fell 2.3% to $182.2 million, with organic net sales declining 4% due to decreased meal prep sales [8] - In the Snacks category, organic net sales declined 13% year over year, while Baby & Kids category saw a smaller decline of 1% [12][13] Cost and Cash Flow - SG&A expenses were $70.2 million, down 5.1% from $74 million in the year-ago quarter [6] - Adjusted EBITDA was $37.9 million, down from $47.1 million in the previous year, with a margin of 9.2% [6] - The company ended the quarter with cash and cash equivalents of $56.2 million and long-term debt of $721.1 million [16] Future Outlook - The updated guidance projects organic net sales growth to decline by 2-4%, down from a previously expected flat or better performance [18] - Adjusted EBITDA is now expected to be flat year over year, a downward revision from prior mid-single-digit growth expectations [18] - Hain anticipates generating at least $60 million in free cash flow for the year [19]

Financial Data and Key Metrics Changes - Organic net sales declined by 7% in Q2 2025, with free cash flow of $25 million and a reduction in net debt by $12 million [10][44][56] - Adjusted EBITDA was $38 million, with an adjusted EBITDA margin of 9.2%, reflecting a 350 basis point increase from the first quarter [10][44] - Adjusted gross margin was 22.9%, a decrease of approximately 60 basis points year over year due to cost inflation and higher trade spend [44] Business Line Data and Key Metrics Changes - Snacks experienced poor in-store performance, leading to a decline in sales, while baby and kids' products saw a recovery in infant formula supply, with a 29% year-over-year increase in consumption [9][22] - Meal prep showed sequential improvement in year-over-year organic net sales growth trends, with branded soup in the UK achieving double-digit dollar sales growth [30][31] - Personal care, the smallest category, is undergoing a strategic review to focus on better-for-you food and beverage [34][56] Market Data and Key Metrics Changes - North American organic net sales declined by 9%, primarily due to lower sales in snacks and personal care [49] - International organic net sales declined by 4%, driven by lower sales in meal prep and short-term service challenges [52] - Away from home net sales grew by 38% in North America and 52% internationally [40] Company Strategy and Development Direction - The company is focused on its Hain Reimagine strategy, aiming to simplify its portfolio and concentrate on better-for-you food and beverage [34][64] - A new North America commercial structure has been implemented to improve customer focus and consumer engagement [36] - The company expects to pivot to growth in the back half of fiscal 2025, driven by improved marketing effectiveness and distribution gains [11][58] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the full-year outlook due to a softer than expected first half and a volatile macro environment, adjusting organic net sales expectations to a decline of 2% to 4% for fiscal 2025 [11][58] - The management remains confident in the building blocks for growth, including improved supply chain reliability and marketing strategies [11][64] - The company anticipates a material step-up in gross margin and adjusted EBITDA in Q4 2025 [60] Other Important Information - The company has taken $7 million in charges associated with restructuring and transformation-related expenses during the quarter [46] - The long-term goal remains to reduce balance sheet leverage to three times adjusted EBITDA or less by 2027 [57] - The company is exploring strategic options for its personal care business to focus on food and beverage [34] Q&A Session Summary Question: Can you provide more detail on the poor in-store performance in snacks? - Management indicated that the main challenge was driving distribution and that a shift in promotional activity impacted overall velocities [70][72] Question: Are you building in flexibility in your back half guidance for unforeseen challenges? - Management acknowledged the caution in guidance due to past execution challenges and the dynamic packaged food environment [82] Question: What is the expected cadence for organic sales growth in the second half? - Management expects organic sales growth to pivot starting in Q3, driven by distribution gains and promotional activity [88][89] Question: How are you managing the P&L and margins with the shift in promotional activity? - Management stated that they are reallocating marketing spend to focus on conversion-driven activities while maintaining overall budget [94] Question: What indications are there that the pivot in promotional spending is working? - Management reported improved consumption trends in the market, indicating positive early results from the new marketing approach [139] Question: How will the new distribution center impact productivity and cost savings? - Management confirmed that the new distribution center will improve speed to shelf and service levels, contributing to overall productivity improvements [141][142] Question: How did category captain issues impact North American snacks sales? - Management confirmed that category captain issues had a material impact on sales due to shelf placement and assortment, which will be resolved in upcoming resets [148]

Hain Celestial Second Quarter Fiscal Year 2025 Financial Results Forward-Looking Statements This presentation 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 "be ...

Company Performance - Hain Celestial reported quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.12 per share, and down from $0.12 per share a year ago, representing an earnings surprise of -33.33% [1] - The company posted revenues of $411.49 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.37%, and down from year-ago revenues of $454.1 million [2] - Over the last four quarters, Hain Celestial has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Hain Celestial shares have lost about 23.7% since the beginning of the year, while the S&P 500 has gained 2.5% [3] - The current status of estimate revisions is unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.16 on revenues of $428.27 million, and $0.43 on revenues of $1.67 billion for the current fiscal year [7] - The outlook for the industry, specifically the Food - Miscellaneous sector, is currently in the bottom 22% of over 250 Zacks industries, which may impact the stock's performance [8]

Financial Performance - Net sales for the fiscal second quarter were $411 million, a decrease of 9% year-over-year, with organic net sales down 7%[6] - The net loss was $104 million, compared to a net loss of $14 million in the prior year period, with adjusted net income at $8 million, down from $11 million[6] - Adjusted EBITDA for the fiscal second quarter was $38 million, down from $47 million in the prior year, with an adjusted EBITDA margin of 9.2%[12] - The company reported a net loss of $103,975,000 in Q2 2025, compared to a net loss of $13,535,000 in Q2 2024, indicating a significant increase in losses[38] - Adjusted EBITDA for Q2 2025 was not explicitly stated but is a key metric for evaluating operational performance[32] - Adjusted EBITDA for Q2 FY25 was $37.893 million, down 19.6% from Q2 FY24's $47.126 million[44] - Adjusted net income for Q2 FY25 was $7.506 million, compared to $10.899 million in Q2 FY24, marking a decline of 31.9%[48] Sales and Revenue Trends - Organic net sales in the snacks category declined by 13% year-over-year, primarily due to in-store marketing activation and promotion effectiveness[17] - The company is revising its fiscal 2025 guidance, expecting organic net sales growth to be down 2% to 4% and adjusted EBITDA to be flat year-over-year[27] - Q2 FY25 consolidated net sales decreased by 9.4% to $411.485 million compared to Q2 FY24's $454.100 million[44] - Organic net sales for Q2 FY25 declined by 6.8% to $403.853 million, compared to $433.230 million in Q2 FY24[50] - Year-to-date net sales for Q2 FY25 were $806.081 million, a decrease of 8.3% from $879.129 million in Q2 FY24[46] - The Baby & Snacks segment saw a net sales decline of 21.2% and 18.1% year-to-date, respectively[52] - The company experienced a significant decline in the Meal Prep segment, with a 46.6% decrease in net sales year-over-year[52] Profitability and Margins - The gross profit margin was 22.7%, a 20-basis point increase from the prior year, while adjusted gross profit margin decreased by 60 basis points to 22.9%[6] - Gross profit for Q2 2025 was $93,452,000, down from $102,215,000 in Q2 2024, reflecting a gross margin decline[38] - Adjusted gross profit for Q2 FY25 was $94.310 million, reflecting an 11.7% decline from Q2 FY24's $106.771 million[44] - The gross margin for Q2 FY25 was 22.7%, down from 22.5% in Q2 FY24[44] - Adjusted EBITDA margin for Q2 FY25 was 9.2%, compared to 10.4% in Q2 FY24[44] Debt and Cash Flow - Total debt decreased to $729 million from $744 million at the beginning of the fiscal year, with net debt at $672 million[12] - Free cash flow is projected to be at least $60 million for the fiscal year[27] - Cash and cash equivalents at the end of Q2 2025 were $56,200,000, slightly up from $54,307,000 at the end of Q2 2024[42] - Free cash flow for Q2 FY25 was $(6.382) million, compared to $(5.829) million in Q2 FY24[56] - Total debt as of June 30, 2024, was $744.092 million, with net debt at $689.785 million[58] Strategic Initiatives - The company is exploring strategic options for its personal care business to focus on better-for-you food and beverages[3] - The company emphasized the importance of organic net sales as a measure of growth, excluding the impact of acquisitions and foreign exchange[36] - The impact of divestitures and discontinued brands contributed to a 3.3% decline in consolidated net sales for Q2 FY25[50] - The impact of divestitures and discontinued brands reduced net sales by $4.557 million in Q2 FY25[52] - Future outlook includes continued focus on organic growth despite recent challenges in various segments[52]

Core Insights - Hain Celestial Group reported a net sales decline of 9% year-over-year, with net sales totaling $411 million for the fiscal second quarter ended December 31, 2024 [6][9][43] - The company generated strong operating cash flow of $31 million, an increase from $21 million in the prior year period, and reduced total debt to $729 million from $744 million at the beginning of the fiscal year [6][5][23] - The company is exploring strategic options for its personal care category to focus on its core better-for-you food and beverage portfolio, aiming to simplify operations and enhance shareholder value [3][23] Financial Performance - Organic net sales decreased by 7% year-over-year, driven by a 5-point decrease in volume/mix and a 2-point decrease in price [6][9] - Gross profit margin improved slightly to 22.7%, a 20-basis point increase from the prior year, while adjusted gross profit margin decreased to 22.9%, a 60-basis point decline [6][9] - The net loss for the quarter was $104 million, compared to a net loss of $14 million in the prior year, primarily due to non-cash goodwill and intangible asset impairment charges of $107 million [6][9] Segment Performance - North America segment net sales decreased by 14% year-over-year, while the International segment saw a smaller decline of 2% [9][10] - The snacks category experienced a significant decline of 21% in net sales, attributed to ineffective in-store marketing and promotional activities [17][18] - The personal care segment faced a drastic decline of 47% in net sales, driven by SKU simplification initiatives [22][23] Guidance and Outlook - The company has revised its fiscal 2025 guidance, expecting organic net sales growth to decline by 2% to 4% [24][23] - Adjusted EBITDA is anticipated to remain flat year-over-year, with gross margin expected to increase by at least 90 basis points [30][23] - Free cash flow is projected to be at least $60 million, reflecting improved cash generation capabilities [30][23]

Global manufacturer's distribution network expansion project part of Hain Reimagined strategy enables increased customer responsiveness, enhanced speed to shelf, and reduced transportation costs HOBOKEN, N.J., Feb. 4, 2025 /PRNewswire/ -- The Hain Celestial Group, Inc. (Nasdaq: HAIN), a leading global health and wellness company whose purpose is to inspire healthier living through better-for-you brands, is slated to bring online a new distribution center this month. This completes a multi-year expansion pro ...

Wall Street expects a year-over-year increase in earnings on lower revenues when Hain Celestial (HAIN) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February ...