The Hain Celestial Group Inc (HAIN) Q1 2025 Earnings Call Highlights: Navigating Challenges ...

In This Article:

  • Organic Net Sales Decline: 5% year-over-year decrease.

  • Adjusted EBITDA: $22 million, compared to $24 million a year ago.

  • Adjusted Gross Margin: 20.8%, a 20 basis point increase year-over-year.

  • SG&A Expenses: Decreased 8% year-over-year to $71 million.

  • Restructuring Charges: $5 million in the quarter, with total program charges expected to be $115 million to $125 million.

  • Interest Costs: Increased 4% year-over-year to $14 million.

  • Adjusted Net Loss: $4 million or $0.04 per diluted share.

  • North America Organic Net Sales Decline: 6% year-over-year.

  • International Organic Net Sales Decline: 3% in the quarter.

  • Free Cash Flow: Outflow of $17 million compared to an inflow of $7 million a year ago.

  • Net Debt: $684 million with a net leverage ratio of 3.9x.

  • Fiscal 2025 Guidance: Organic net sales to be flat or better, adjusted EBITDA to grow by mid-single-digit percentage, gross margin to expand by at least 125 basis points, and free cash flow of at least $60 million.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • The Hain Celestial Group Inc (NASDAQ:HAIN) achieved adjusted gross margin expansion in the first quarter, driven by strong productivity and fuel delivery.

  • The company has made significant progress in its Hain Reimagined strategy, particularly in simplifying its brand portfolio and enhancing its revenue growth management capabilities.

  • The away-from-home and e-commerce channels showed strong growth, with double-digit sales increases in North America and international markets.

  • The company has successfully extended payables and reduced inventory levels, contributing to improved working capital management.

  • Hain Celestial reaffirmed its fiscal 2025 guidance, expecting organic net sales to be flat or better and adjusted EBITDA to grow by a mid-single-digit percentage.

Negative Points

  • The Hain Celestial Group Inc (NASDAQ:HAIN) experienced a 5% decline in organic net sales year-over-year, driven by lower sales in both North America and international segments.

  • Adjusted EBITDA decreased to $22 million from $24 million a year ago, with a margin of 5.7%, indicating challenges in maintaining profitability.

  • The company's North America segment saw a 6% decline in organic net sales, primarily due to lower sales in snacks and meal prep.

  • Free cash flow was an outflow of $17 million in the first quarter, compared to an inflow of $7 million in the prior year period.

  • The company faces ongoing challenges in the personal care category, with a double-digit decline in organic net sales due to SKU reductions and manufacturing consolidation.

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