Hain Celestial Q1 Loss Wider Than Estimates, Organic Sales Slip Y/Y

Financial Performance - The company reported a year-over-year decline in net sales of 7.2%, with net sales of $394.6 million, slightly beating the consensus estimate of$393 million [1][5] - Organic sales decreased by 5% year-over-year, driven by a 4-point drop in volume/mix and a 1-point reduction in price [5] - Adjusted gross profit fell 6.1% to $81.9 million, but the adjusted gross margin expanded by 30 basis points to 20.8$22.4 million, down from $24.1 million in the year-ago quarter, with the adjusted EBITDA margin remaining flat at 5.7$231.1 million, with organic net sales down 6% due to lower snack sales [7] - The North America segment's adjusted EBITDA dropped to $12.5 million, with the adjusted EBITDA margin decreasing by 180 basis points to 5.4$163.5 million, with organic net sales down 3% due to lower sales in meal prep and baby & kids categories [8] - The International segment's adjusted EBITDA increased to $20.4 million, with the adjusted EBITDA margin expanding by 190 basis points to 12.5$56.9 million in cash and cash equivalents, long-term debt of $732.8 million, and total shareholders' equity of$963.7 million [10] - Net cash used in operating activities was $10.8 million, with a free cash outflow of$17 million during the quarter [10] Outlook - For fiscal 2025, the company expects organic net sales growth to be flat or better, with adjusted EBITDA projected to rise in the mid-single digits and gross margin anticipated to increase by at least 125 basis points [12] - The company anticipates generating at least $60 million in free cash flow for the year [12] - Hain Celestial's shares have gained 8.3% in the past three months, outperforming the industry's 0.7% decline [12]