Hain Celestial Group: Company Positioned for Growth, Reaffirms Fiscal 2025 Guidance

HAIN

HOBOKEN, N.J-- 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 first quarter ended September 30, 2024.

'Our performance in the first quarter built upon the momentum from our foundational year by further streamlining our portfolio and operational footprint, enabling us to deliver gross margin expansion,' said Wendy Davidson, Hain Celestial President and CEO. 'The capabilities we have put in place along with efficiencies stemming from our global operating model have positioned us well for growth in the back half of FY25, as expected. Accelerating growth in the back half will be driven by the promotion timing shift in snacks, the full recovery of our infant formula supply, distribution gains and brand building. Growth will be underpinned by targeted marketing investments in several key brands and by our focus on commercial execution and channel expansion to improve availability and awareness. We will continue to leverage revenue growth management, working capital optimization, and productivity to generate fuel to invest in the business and create long-term shareholder value.'

FINANCIAL HIGHLIGHTS*

Summary of Fiscal First Quarter Results Compared to the Prior Year Period

Net sales were $395 million, down 7% 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 5% compared to the prior year period.

* The decrease in organic net sales was comprised of a 4-point decrease in volume/mix and a 1-point decrease in price.

* Gross profit margin was 20.7%, a 90-basis point increase from the prior year period.

* Adjusted gross profit margin was 20.8%, a 20-basis point increase from the prior year period.

* Net loss was $20 million compared to net loss of $10 million in the prior year period.

* Adjusted net loss was $4 million, flat compared to the prior year period.

* Net loss margin was (5.0%), as compared to net loss margin of (2.4%) in the prior year period.

* Adjusted net loss margin was (1.0%), as compared to adjusted net loss margin of (0.8%) in the prior year period.

* Adjusted EBITDA was $22 million compared to $24 million in the prior year period; Adjusted EBITDA margin was 5.7%, in line with the prior year period.

* Loss per diluted share was $0.22 compared to $0.12 in the prior year period.

* Adjusted loss per share was $0.04 compared to $0.04 in the prior year period.

* Cash Flow and Balance Sheet Highlights

* Net cash used in operating activities in the fiscal first quarter was ($11) million compared to net cash provided by operating activities of $14 million in the prior year period.

* Free cash flow was negative ($17) million in the fiscal first quarter compared to free cash flow of $7 million in the prior year period.

* Total debt at the end of the fiscal first quarter was $740 million down from $744 million at the beginning of the fiscal year.

* Net debt at the end of the fiscal first quarter was $684 million compared to $690 million at the beginning of the fiscal year.

The company ended the first quarter with a net secured leverage ratio of 3.9x as calculated under our amended credit agreement.

SEGMENT HIGHLIGHTS: See full release at:

https://ir.hain.com/news-releases/news-release-details/hain-celestial-reports-fiscal-first-quarter-2025-financial

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