Latest news with #Earth'sBest
Yahoo
2 days ago
- Business
- Yahoo
HAIN Q1 Earnings Call: Leadership Changes and Strategic Review Amid Ongoing Challenges
Natural food company Hain Celestial (NASDAQ:HAIN) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 11% year on year to $390.4 million. Its non-GAAP profit of $0.07 per share was 44.5% below analysts' consensus estimates. Is now the time to buy HAIN? Find out in our full research report (it's free). Revenue: $390.4 million vs analyst estimates of $409.4 million (11% year-on-year decline, 4.7% miss) Adjusted EPS: $0.07 vs analyst expectations of $0.13 (44.5% miss) EBITDA guidance for the full year is $125 million at the midpoint, below analyst estimates of $150.1 million Organic Revenue fell 5.3% year on year (-3.7% in the same quarter last year) Market Capitalization: $168.8 million Hain Celestial's first quarter results were shaped by a combination of category-specific headwinds and execution challenges within its North American business. Interim CEO Alison Lewis acknowledged that the quarter's performance was 'disappointing and fell short of our expectations.' The underperformance was attributed mainly to the Snacks and Baby and Kids segments, with Lewis noting that 'our promotional activity on Garden Veggie has shifted... and performed below expectations.' In addition, delayed recovery in Earth's Best formula and supply chain issues in the tea business further weighed on results. CFO Lee Boyce highlighted that price increases did not keep pace with rising costs and trade investments, contributing to margin pressure. Looking forward, Hain Celestial's guidance reflects expectations for a gradual turnaround driven by renewed focus on brand renovation, pricing actions, and operational simplification. Management believes that 'accelerating renovation and innovation in our brands' alongside 'implementing strategic revenue growth management and pricing actions' will be central to recovery efforts. Interim CEO Alison Lewis emphasized the need for 'clarity, focus, and action' as the company undertakes a strategic review of its portfolio, with support from financial advisors. The company's outlook is cautious, with leadership acknowledging the need for further work to rebuild momentum, especially in core North American categories. Management cited North American Snacks and Baby and Kids as the primary drivers of the quarter's shortfall, with executional missteps and category softness compounding existing pressures. The company also highlighted steps taken to simplify its operations and initiate a portfolio review. Leadership transition announced: The board replaced the CEO and appointed Alison Lewis as interim CEO, signaling a shift in leadership to address ongoing performance issues and reposition the company for potential change. Strategic portfolio review initiated: Hain Celestial launched a formal review of its business portfolio with Goldman Sachs as adviser, considering a broad range of options to maximize shareholder value. No timeline was provided for potential outcomes. Operational simplification efforts: The company reduced the number of manufacturing partners and suppliers, consolidated office locations, and continued cost-cutting initiatives. These actions are expected to yield over $25 million in annualized cost savings by the second half of next year. Brand and innovation focus: Management plans to accelerate renovation and new product development across core categories like snacks, tea, and baby products. New flavor innovations and packaging updates are intended to boost shelf presence and consumer engagement. Revenue and pricing management: Hain Celestial is strengthening revenue growth management capabilities and implementing new pricing and trade strategies. Management acknowledged that past pricing actions lagged behind cost inflation, and remedial steps are now underway to improve profitability. For the upcoming quarters, Hain Celestial's outlook is driven by efforts to revitalize core brands, improve pricing execution, and complete its strategic review while monitoring cost pressures and consumer demand. Brand renovation and innovation: The company is prioritizing new product development and brand updates, particularly in Snacks and Baby and Kids, to regain market share and drive top-line growth. Management believes these initiatives will help address category softness and competitive pressures. Pricing and revenue management improvements: Enhanced revenue growth management is a key focus, including centralized pricing decisions and improved trade investment discipline. Leadership expects these changes to support improved margins and better alignment with cost inflation. Strategic review outcomes: The ongoing portfolio review may result in divestitures, acquisitions, or other structural changes. Management stated that all options are being considered to enhance value, with potential implications for the company's scale, category focus, and financial profile. In the coming quarters, the StockStory team will closely monitor (1) progress from new product launches and brand renovation efforts in Snacks and Baby and Kids, (2) the effectiveness of enhanced pricing and revenue management initiatives in offsetting cost pressures, and (3) updates from the ongoing strategic portfolio review. Shifts in consumer demand and category trends will also be key signposts for measuring execution. Hain Celestial currently trades at a forward P/E ratio of 4.4×. Should you double down or take your chips? The answer lies in our full research report (it's free). 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Yahoo
01-05-2025
- Business
- Yahoo
Whole Foods baby food case goes to Supreme Court
You can find original article here Supermarketnews. Subscribe to our free daily Supermarketnews newsletter. The U.S. Supreme Court has agreed to hear a case involving Whole Foods in which plaintiffs in Texas claim that trace amounts of heavy metals in Earth's Best baby food caused their child's autism. The high court is not hearing the case based on those specific claims but instead based on the way the case has moved through the court system. Whole Foods, which is based in Austin, Texas, and owned by Amazon, was initially dismissed as a defendant in the case when it was moved from state court to federal court. The case was moved to federal court because Hain is based in Delaware and New York, and therefore the state court in Texas did not have jurisdiction. After the federal court found that Hain Celestial Group, the maker of Earth's Best, was not liable for causing the autism of the plaintiffs' child, the plaintiffs appealed the case and added new charges against Whole Foods. By accusing Whole Foods of making 'express factual representations' about Hain baby food, the plaintiffs said, the entire case should be retried in Texas state court because the plaintiffs—Sarah and Grant Palmquist—are based in Texas. The Fifth Circuit Court agreed with the plaintiffs and sent the case back to the Texas state courts. Now Hain and Whole Foods have petitioned the Supreme Court to preserve the original finding in favor of Hain and to rule that the plaintiffs should not have been allowed to add new accusations against Whole Foods after the retailer had been removed from the case. Whole Foods, Hain Celestial, and attorneys for the plaintiffs could not be reached for comment. Under Texas law, retailers are generally exempt from liability in legal claims against manufacturers of products that they sell, according to the petition to the Supreme Court filed by Hain and Whole Foods. However, the plaintiffs allege that Whole Foods should be an exception in this case because the retailer made claims about the safety and quality of the baby food that the plaintiffs had relied upon. The original lawsuit is among several that have been filed against baby food manufacturers alleging that heavy metals in their products cause autism or attention deficit hyperactivity disorder (ADHD). In all but one of those cases, no retailers were accused, according to the petition to the Supreme Court filed by Hain and Whole Foods. In the one case in which a retailer was named as a defendant, the courts granted the defendants' motion to dismiss them from the case, the petition states. "The decision of the Fifth Circuit directly conflicts with decisions of other courts of appeals … and egregiously wastes judicial and party resources with no apparent benefit,' Hain and Whole Foods said in their petition for a Supreme Court review. Sign in to access your portfolio
Yahoo
11-02-2025
- Business
- Yahoo
The Hain Celestial Group Inc (HAIN) Q2 2025 Earnings Call Highlights: Navigating Challenges ...
Organic Net Sales: Declined 7% in the second quarter. Free Cash Flow: $25 million generated in the quarter. Net Debt Reduction: Reduced by $12 million in the quarter. Adjusted EBITDA: $38 million for the quarter. Adjusted EBITDA Margin: Increased by 350 basis points from the first quarter. Adjusted Gross Margin: 22.9%, a decrease of approximately 60 basis points year-over-year. SG&A Expenses: Decreased 5% year-over-year to $70 million. Interest Costs: Fell 21% year-over-year to $13 million. Adjusted Net Income: $8 million or $0.08 per diluted share. North America Organic Net Sales: Declined 9% year-over-year. International Organic Net Sales: Declined 4% in the quarter. Free Cash Flow Improvement: $25 million compared to $15 million in the prior year period. Cash on Hand: $56 million at the end of the quarter. Net Debt: $672 million. Net Leverage Ratio: 4.1 times. Fiscal 2025 Outlook: Organic net sales expected to be down 2% to 4%; adjusted EBITDA to be flat year-over-year. Warning! GuruFocus has detected 3 Warning Sign with HAIN. Release Date: February 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. The Hain Celestial Group Inc (NASDAQ:HAIN) reported strong operating cash flow and reduced net debt by $12 million in the quarter. The company saw sequential improvement in the Baby & Kids segment, driven by the recovery in infant formula supply and growth in Earth's Best brand. Hain Celestial's Greek Gods Yogurt showed healthy velocities and increased household penetration, contributing positively to the Meal Prep category. The company is expanding its distribution, particularly in the snacks category, with a 5% increase at its largest retail partner and significant gains in convenience stores. Hain Celestial's focus on better-for-you products, free from artificial colors and flavors, positions it well to meet increasing consumer demand for healthier options. The Hain Celestial Group Inc (NASDAQ:HAIN) experienced a 7% decline in organic net sales in the second quarter, primarily due to poor in-store performance in snacks and short-term supply challenges. Adjusted EBITDA decreased to $38 million from $47 million a year ago, reflecting lower sales and pricing challenges. The company faced short-term service issues in the beverage category, impacting Celestial Seasonings sales due to a shortage of a key raw material. Despite distribution gains, the snacks category struggled with velocity on shelves, affecting overall sales performance. The macroeconomic environment remains volatile, prompting a more cautious outlook for the full fiscal year, with expected organic net sales down 2% to 4%. Q: Wendy, you mentioned in-store performance issues in the snacks segment. Can you elaborate on what you observed and why you believe the promotional shifts to the back half of the year will be more effective? A: Wendy Davidson, CEO: The main issue was driving distribution for our well-known brands. The shift in promotional activity from the first half to the second half impacted consumer awareness and velocities. We've learned that we need to focus on conversion-driven marketing rather than just awareness. We have planned distribution gains and promotional activities for the second half, including increased presence in convenience stores and value channels, which should drive better results. Q: Are you building flexibility into your back half guidance to account for potential unforeseen challenges, given the dynamic packaged food environment? A: Wendy Davidson, CEO: Yes, we've built in some caution due to past execution challenges and the broader market environment. However, we've addressed previous issues with pace, and our international segment has shown positive results from commercial execution changes, giving us confidence in our North American improvements. Q: How do you manage the P&L and margins with the shift in promotional activity in snacks? A: Wendy Davidson, CEO: We are focusing on spending our existing marketing budget more effectively rather than increasing it. This involves shifting from awareness-driven activities to conversion-focused marketing within our current spend envelope. Q: Regarding the Personal Care business, what are the learnings from stabilizing it, and are there similar opportunities across other product categories? A: Wendy Davidson, CEO: We've stabilized the Personal Care business and are exploring strategic options. We continuously evaluate parts of our portfolio that underperform and decide whether to improve them internally or consider divestiture. Currently, about 10% of our portfolio is in the stabilization phase. Q: Can you provide more details on the expected distribution gains in snacks and how they differ from what you already achieved? A: Wendy Davidson, CEO: The second quarter issues were more about velocity on shelves rather than distribution points. The back half will benefit from continued distribution growth, promotional activities, and marketing shifts to drive purchase activity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
