Latest news with #HainCelestialGroupInc
Yahoo
07-05-2025
- Business
- Yahoo
Terra Chips Maker Hain Celestial Seeks Strategic Options For Business, Announces CEO Transition, Stock Tanks
Shares of food and personal-care company Hain Celestial Group Inc. (NASDAQ:HAIN) are trading lower on Wednesday following the third-quarter earnings result. The company reported a third-quarter FY25 revenue decline of 11% year-on-year to $390.35 million, missing the analyst consensus estimate of $4411.62 million. Adjusted EPS of $0.07 missed the consensus estimate of $0.13. Organic net sales from North America decreased 10% Y/Y, primarily driven by lower sales in snacks and baby & kids. Also Read: McDonald's Stumbles On Weak Traffic, Despite Margin Gains And Analyst Optimism International organic sales gained 0.5%, driven by growth in meal prep and baby & kids and the supply chain recovery from the service issues discussed last quarter. The Terra Chips maker adjusted gross margin for the quarter contracted 50 basis points Y/Y to 21.8%. The operating loss for the quarter was $121.1 million versus a loss of $27.9 million last year. Adjusted EBITDA was $34 million compared to $44 million in the prior year period. The adjusted EBITDA margin was 8.6%, compared to 10% in the prior year. The company held $44.4 million in cash and equivalents as of March 31, 2025. Operating cash flow for the quarter was $5 million, with a free cash flow of $(2) million. Net debt at the end of the fiscal second quarter was $665 million compared to $690 million at the beginning of the fiscal year. CEO Transition Hain announced that Wendy Davidson will depart as President, Chief Executive Officer and member of the Board of Directors, effective Wednesday. "We are disappointed with our third quarter results, which fell far short of our expectations primarily due to worse-than-expected performance in North America," stated Interim President and CEO Alison Lewis. Business Strategic Review Hain also said that the Board is conducting a comprehensive review of the company's portfolio with the assistance of its independent financial advisor, Goldman Sachs & Co. "Going forward, we are focused on five key drivers for improving value: simplifying our business and reducing overhead spending, accelerating renovation and innovation in our brands, implementing strategic revenue growth management and pricing actions, driving operational productivity and working capital reduction, and strengthening our digital capabilities." Outlook For FY25 Hain Celestial expects FY25 organic net sales to decline 5% – 6%. Adjusted EBITDA is expected to be approximately $125 million. Gross margin is expected to be approximately 21.5%.
Washington Post
07-05-2025
- Business
- Washington Post
Hain Celestial: Fiscal Q3 Earnings Snapshot
HOBOKEN, N.J. — HOBOKEN, N.J. — The Hain Celestial Group Inc. (HAIN) on Wednesday reported a loss of $134.6 million in its fiscal third quarter. On a per-share basis, the Hoboken, New Jersey-based company said it had a loss of $1.49. Earnings, adjusted for one-time gains and costs, came to 7 cents per share. The results fell short of Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 12 cents per share. The organic and natural products company posted revenue of $390.4 million in the period, also missing Street forecasts. Seven analysts surveyed by Zacks expected $411.3 million. _____
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.
