Latest news with #WendyDavidson
Yahoo
08-05-2025
- Business
- Yahoo
Why the skies are grey at Hain Celestial
When a company's share price tumbles more than 50% in the wake of a stock-exchange filing, it's fair to say investor sentiment is less than positive. And there are a lot of questions hanging over US food and drinks group Hain Celestial. The maker of Terra snacks and Celestial Seasonings teas saw its share price slide yesterday (it ended the day down more than 47%) after making a multifaceted announcement that, in some ways, may not have a been too much of a surprise but would have left Wall Street wondering what comes next. Hain Celestial, which has seen sales and profits come under pressure in recent quarters, said it would start a 'comprehensive review' of its portfolio 'in light of recent performance'. The company, which is also home to brands including Earth Best's baby food, Linda McCartney vegetarian foods and Natumi plant-based drinks, is working with Goldman Sachs to 'consider a broad range of strategic options to enhance value'. However, the announcement didn't end there. Hain Celestial said president and CEO Wendy Davidson was leaving the business 'effective this morning'. Davidson took the helm in 2023, setting about to make Hain Celestial a 'bigger player' in the better-for-you category and centre resources on areas including snacks, kids'-focused products, meal prep and beverages. Under Davidson, the company also sought to cut 'lower margin' SKUs and sold brands including ParmCrisps and Thinsters. However, so far, Hain Celestial's efforts to focus its investment on fewer areas haven't paid off. The news of the review and Davidson's departure came alongside the publication of the group's third-quarter and nine-month financial results, a set of numbers that included lower sales and worsening profitability. Third-quarter net sales, covering the period to the end of March, fell 11% to $390m. Organic net sales, excluding M&A, assets held for sale, categories exited and foreign exchange, decreased 5%. Nine-month sales were down 9.2% at $1.20bn. Hain Celestial booked a third-quarter operating loss of $121.1m, versus one of $27.9m a year earlier. Over the first nine months of the financial year, that meant an operating loss of $209.9m, against one of $31m in the corresponding period of the previous financial year. The group posted a third-quarter net loss of $134.6m. A year earlier, it reported a net loss of $48.2m. Nine-month net losses were $258.2m, compared to $72.1m a year ago. Hain Celestial said the third-quarter net loss included pre-tax, non-cash, impairment charges of $133m related to its US and Canada reporting units and assets held for sale. Those figures follow a challenging 12 months up to the end of last June. In Hain Celestial's last full financial year, net sales were down and the company ran up a net loss of $75m, albeit lower than the $116.5m loss filed a year earlier. As well as another set of less-than-impressive results, the company changed its forecasts for its full-year net sales (on an organic basis) and for 'adjusted' EBITDA. Hain Celestial now sees its organic net sales falling 5-6% year-on-year (versus its previous forecast of a 2-4% decline) and an adjusted EBITDA of around $125m (it had projected it would be 'flat' on the $155m booked a year earlier). The company, meanwhile, announced a change to its credit agreement 'to provide for increased operational flexibility'. This embedded content is not available in your region. '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,' interim president and CEO Alison Lewis said yesterday. Lewis, who has been on the Hain Celestial board since September, has been in the FMCG sector for three decades, with roles at Kimberly-Clark, Johnson & Johnson and The Coca-Cola Company. Board chair Dawn Zier said Hain Celestial's directors believed it was 'the right time to transition to new leadership' Zier added Lewis – who she described as 'a seasoned executive with vast industry and leadership experience' – would lead the business 'while we execute our succession plan', although no further details were given. In a statement, Lewis set out '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'. While Lewis and Hain Celestial's management team try to get the company's sales – and profitability – moving in the right direction (no mean task), the group's leadership team and board will be weighing up the future of the various parts of its business. There's plenty on their plate. Under Davidson, product ranges were trimmed and a couple of brands sold but industry watchers say the Hain Celestial business is still complicated – and there are suggestions the company should think about focusing on North America. 'Hain's portfolio remains complex in part due to the diversity of categories and geographies the company operates in and we believe the company would benefit from further portfolio simplification,' Stifel analyst Matthew Smith says. 'The personal care business is likely to be divested, currently accounted for as held for sale. We also believe the International business should be considered for divestiture to reduce complexity and provide greater focus on the core North America business where we believe growth opportunity exists.' Hain Celestial, set up in 1993, has been operating in Europe since 2001 and entered the UK five years later. Outside North America, the company's principal market is the UK, where it sells brands including Ella's Kitchen, New Covent Garden soup and Hartley's jam. On the European continent, Hain Celestial's business centres around three brands: Natumi, dairy-alt brand Joya and Lima, which markets products from soy sauce and pasta to plant-based drinks. The Hain Reimagined strategy set out by Davidson included plans to 'simplify' the company's 'footprint' and maintain a 'direct presence in five key markets' – the US, Canada, the UK, Ireland and western Europe. The company's sales also reach into the Middle East and Africa. The third-quarter numbers Hain Celestial issued yesterday underlined the troubles the company is having in North America but the company did manage to eke out sales growth from its other reporting unit, the International division. This embedded content is not available in your region. Nonetheless, the variety of products in Hain Celestial's basket outside North America – from jam and soup to baby food and veggie burgers – means it's easy to understand why some would call on the company to pull back and try to divert more management time and resources to its home market. The question is how many willing buyers there might be for brands in stagnant categories like meat alternatives and jam. Moreover, challenges abound for Hain Celestial in North America. It's been clear for a while the company has been suffering domestically. Yesterday's cuts to forecasts weren't the first time the group had revised its expectations. It was in February when Hain Celestial first projected its organic net sales this year would decline after a set of second-quarter numbers – which included a 9% fall in sales in North America – that missed expectations. 'We had previously believed that the return of growth in profitable organic baby formula following ingredient shortages, combined with the lapping of SKU rationalisation in personal care, the timing shift of a major promotion, plus better shelf positioning and efforts to improve the effectiveness of marketing and promotions in snacks would lead to a sustained recovery in the top and bottom lines,' Bernstein analyst Alexia Howard says. 'Instead, we are seeing an ongoing low teen level decline in snacks, which seems to be linked to ongoing issues with promotional effectiveness plus perhaps the general weakness in salty snacks as GLP-1 weight loss drug uptake increases. We also wonder whether the health and wellness credentials of the Garden Veggies brand is being questioned by consumers since it is essentially a potato chip with some vegetable extracts.' For now, a cloud of uncertainty hangs over Hain Celestial, with an interim CEO in place, the start of a wide-ranging business review, weak growth outside North America and competitive dynamics in the company's domestic market it seems to be struggling to meet. 'Despite management change and the portfolio review, it is difficult to see a path for organic revenue recovery for Hain,' Mizuho Securities analyst John Baumgartner says. 'Internal expectations are high that regulatory shifts favouring health and wellness are positive but we view any changes as a negative. More stringent ingredients guidelines for non-natural-and-organic peers are only likely to narrow the quality advantages that Hain has held.' Bernstein's Howard adds: 'It will be some time before the company is on a firmer footing.' "Why the skies are grey at Hain Celestial" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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%.
Yahoo
01-04-2025
- Business
- Yahoo
How the health and wellness boom is fueling Hain Celestial's transformation
This story was originally published on Food Dive. To receive daily news and insights, subscribe to our free daily Food Dive newsletter. Hain Celestial could finally begin taking advantage of health and wellness trends popular with consumers after spending several years stabilizing and streamlining its sprawling food and beverage empire. 'When I first joined Hain, we had a lot that we needed to transform in the company,' said Hain CEO Wendy Davidson who took the helm in 2023. 'We weren't really in a position until now to be able to tell that story, both with credibility, but also with a portfolio of products to back it up.' The 32-year-old health and organic products giant was cobbled together through 55 acquisitions during a quarter century. This growth-at-any-cost mentality supercharged sales but left Hain with a disparate group of brands in 37 different categories, creating a portfolio with little coherence. At the same time, surging consumer interest in eating healthier prompted large CPG manufacturers, such as General Mills and Nestlé, to build a bigger presence in the space. Hain was no longer the only game in town. The headaches at Hain were compounded by a scant marketing budget, a lack of innovation and a burgeoning debt load that did little to help the manufacturer of Sensible Portions Garden Veggie snacks, Celestial teas and Greek Gods yogurt. The ability to tap into food and beverage trends would provide a much-needed lift to Hain, which has seen sales slip and its stock price tumble to its lowest level in nearly three decades. Davidson acknowledged in February that Hain reported a 'disappointing revenue quarter,' with net sales falling 7% to $411 million. Davidson noted that the company is taking steps to address supply chain challenges, boost in-store marketing and enhance product distribution. These moves should help drive sales growth in the second half of the year. She also pointed to strength in some of the company's business, such as meal prep, Hain's largest category. 'We've known, certainly for the last two years, that we need to simplify our story and clarify who we are as a company to the marketplace, and I think we've done that,' Davidson said. 'But I would also say that we are a show-me story, and I think the stock price reflects the fact that we have not fully demonstrated our pivot to growth and the full potential of our brands.' Some analysts agree. In a February research note after Hain's second-quarter earnings, John Baumgartner, managing director for equity research in food and healthy living for Mizuho Securities USA, said the company's pivot to growth is taking longer than anticipated. He added that while the New Jersey company's revenue outlook provides reasons for optimism, it is beset by a high degree of uncertainty. 'We remain concerned for HAIN as a sub-scale model challenged for growth via smaller financial resources,' Baumgartner said. Hain's advantages 'vs. conventional food are also likely to narrow with further recipe enhancements by Big Food' to meet the Trump administration's Make America Healthy Again initiative, he added. In January, Bernstein analysts said in a note that Hain is 'not for the faint hearted' but that it is a company 'worth keeping an eye on in the first half of 2025.' Since joining Hain, Davidson has prioritized stabilizing the company's business, divesting non-core brands, boosting margins and paying down debt. This has proven to be no easy task. The overhaul came during a tumultuous time for the food space, with COVID-19, supply chain disruptions, inflation and changing consumer habits weighing on companies. 'We've known, certainly for the last two years, that we need to simplify our story and clarify who we are as a company to the marketplace, and I think we've done that. But I would also say that we are a show-me story.' Wendy Davidson CEO, Hain Celestial Davidson, a former Kellogg and Tyson Foods executive, has divested ParmCrisps to Pop Secret owner Our Home and sold Thinsters cookies to Dippin' Dots maker J&J Snackfoods. Hain recently put its personal care unit, responsible for 3% of its business, up for sale. Hain also has put resources behind innovating its top brands. The company broadened its Sleepytime Celestial tea from a nighttime offering to an all-day beverage associated with health and wellness. It also launched a healthier tortilla chip under its Garden Veggie brand aimed at the $9 billion tortilla chip category. Davidson conceded there is a lot of competition in the better-for-you space. Still, she said unlike other Big Food players who dabble in a few trendy categories, Hain's portfolio covers a wider variety of areas — from gluten-free and keto to dairy-free, high protein and GLP-1 friendly. Hain executives maintain the company's ability to incorporate multiple attributes into its portfolio makes it attractive to consumers, many of whom are incorporating several of them into their diets. 'We know better for you better than anybody and actually play deeply and authentically in the space,' she said. 'Hain was cool before it was cool to be better for you, which is a good place for us to be.' Consumers have increasingly turned to purchasing foods they consider healthier but that don't sacrifice on taste or convenience. Hain's brands are made with recognizable ingredients and it eschews artificial colors — including Red No. 3 recently banned by the FDA — in favor of ones from natural sources like fruits and vegetables. Hain is optimistic its portfolio also is aligned to benefit from the surge in demand for GLP-1 medications. Roughly 14% of U.S. adults have taken GLP-1 drugs to lose weight or manage diseases like diabetes. The medications, which suppress appetites, have led to concerns that they could lead to a sharp drop in food consumption and sales. Still, a decline in consumption hasn't changed the fact that people still need the proper nutrition to maintain muscle mass and overall health, or that they are attracted to portion-controlled products. Hain recently partnered with health experts to understand the needs of GLP-1 users and which of its products would work depending on how consumers are using the medications. Hain's portfolio includes Geek Gods yogurt with protein, calcium and probiotics; and Imagine soups that contain hydration and fiber. In addition, its Terra chips and Garden of Eaten are high in fiber and have blue corn and sweet potatoes, respectively, as their first ingredient. The food manufacturer plans to begin marketing several of its products for GLP-1 users. 'Regardless of what your dietary requirements are, we have something for [the consumer,] and we need to make it easier for the shopper to understand how these products can make it easier for them to meet their diet without sacrifice,' Davidson said. Recommended Reading Hain Celestial sells Thinsters cookie brand to Dippin' Dots owner
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.
Yahoo
10-02-2025
- Business
- Yahoo
Hain Celestial Reports Fiscal Second Quarter 2025 Financial Results
Strong Operating Cash Flow and Reduction in Debt; Positioned to Pivot to Growth in Back HalfExploring 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, down 9% 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. 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. 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 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 of 2.4% in the prior year period. Adjusted EBITDA was $38 million compared to $47 million in the prior year period; Adjusted EBITDA margin was 9.2%, compared to 10.4% 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. 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 -14% -5% -0% -9% 460 -13% -5% -0% -8% International 182 -2% -0% 2% -4% 346 -2% -0% 2% -4% Total 411 -9% -3% 1% -7% 806 -8% -3% 1% -6% * 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 9% year-over-year, driven primarily by lower sales in snacks due to in-store marketing activation and promotion effectiveness as well as by lower sales in personal care. Segment gross profit in the fiscal second quarter was $57 million, a decrease of 8% from the prior year period. Adjusted gross profit was $58 million, a decrease of 13% from the prior year period. Gross margin was 24.8%, a 170-basis point increase from the prior year period. Adjusted gross margin was 25.2%, a 40-basis point increase from the prior year period. The increases were driven by productivity, partially offset by pricing due to higher trade spend on promotional activities and efforts to execute winning portfolio actions. Adjusted EBITDA in the fiscal second quarter was $25 million compared to $31 million in the prior year period. The decrease was driven primarily by pricing and deleverage on lower volume, partially offset by productivity. Adjusted EBITDA margin was 11.0% compared to 11.7% in the prior year period. International The fiscal second quarter organic net sales decline was 4% year-over-year, due primarily to lower sales in meal prep and short-term service challenges. Segment gross profit in the fiscal second quarter was $37 million, a 9% decrease from the prior year period. Adjusted gross profit was also $37 million, a decrease of 9% from the prior year period. Gross margin and adjusted gross margin were both 20.0%, a 150- and 160-basis point decrease from the prior year period, respectively. The decrease in each case was primarily due to inflation, deleverage on lower volumes and mix, partially offset by productivity. Adjusted EBITDA in the fiscal second quarter was $23 million, a decrease of 13% versus the prior year period, as deleverage on lower volume and product mix more than offset productivity. Adjusted EBITDA margin was 12.4%, a 160-basis point decrease from the prior year period. 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 -21% -8% -0% -13% 189 -18% -7% -0% -11% Baby & Kids 62 -0% -1% 1% -1% 122 -1% -1% 1% -2% Beverages 70 -4% 0% -0% -3% 126 -2% 0% 0% -2% Meal Prep 178 -2% -0% 2% -4% 337 -3% -0% 2% -4% Personal Care 13 -47% -8% -0% -38% 31 -35% -10% -0% -24% Total 411 -9% -3% 1% -7% 806 -8% -3% 1% -6% * 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 13% year-over-year was driven by in-store marketing activation and promotion effectiveness. Baby & Kids The fiscal second quarter organic net sales decline of 1% year-over-year represented an improvement from the fiscal first quarter year-over-year decline of 3% as we regained supply of infant formula in all formulations and sizes. This was offset by the impact of SKU simplification driven by the shift to baby food pouches in the U.S. Beverages Fiscal second quarter organic net sales were down 3% year-over-year, on supply chain ingredient challenges in tea, which have since been resolved, as well as channel mix in non-dairy beverage in Europe. Meal Prep The fiscal second quarter organic net sales decline of 4% year-over-year represented an improvement from the fiscal first quarter decline of 5%. The decline was driven primarily by short-term softness in private label spreads & drizzles, partially offset by growth in yogurt and continued strong growth in the soup brands in both regions. Personal Care The fiscal second quarter organic net sales decline was 38% year-over-year, driven primarily by the impact of SKU simplification initiatives as we continue to focus on the execution of our stabilization plan. 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 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 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 Media Contact:Jen 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, 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 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
