In This Article:
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Organic Net Sales Decline: 5% year-over-year decrease.
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Adjusted EBITDA: $22 million, compared to $24 million a year ago.
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Adjusted Gross Margin: 20.8%, a 20 basis point increase year-over-year.
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SG&A Expenses: Decreased 8% year-over-year to $71 million.
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Restructuring Charges: $5 million in the quarter, with total program charges expected to be $115 million to $125 million.
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Interest Costs: Increased 4% year-over-year to $14 million.
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Adjusted Net Loss: $4 million or $0.04 per diluted share.
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North America Organic Net Sales Decline: 6% year-over-year.
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International Organic Net Sales Decline: 3% in the quarter.
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Free Cash Flow: Outflow of $17 million compared to an inflow of $7 million a year ago.
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Net Debt: $684 million with a net leverage ratio of 3.9x.
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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
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The Hain Celestial Group Inc (NASDAQ:HAIN) achieved adjusted gross margin expansion in the first quarter, driven by strong productivity and fuel delivery.
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The company has made significant progress in its Hain Reimagined strategy, particularly in simplifying its brand portfolio and enhancing its revenue growth management capabilities.
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The away-from-home and e-commerce channels showed strong growth, with double-digit sales increases in North America and international markets.
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The company has successfully extended payables and reduced inventory levels, contributing to improved working capital management.
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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
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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.
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Adjusted EBITDA decreased to $22 million from $24 million a year ago, with a margin of 5.7%, indicating challenges in maintaining profitability.
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The company's North America segment saw a 6% decline in organic net sales, primarily due to lower sales in snacks and meal prep.
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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.
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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.