HAIN Hain Celestial Group Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 10, 2025

 

 

 

 

THE HAIN CELESTIAL GROUP, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

 

 

Delaware			0-22818	22-3240619
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
221 River Street,
Hoboken, New Jersey				07030
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (516) 587-5000

 

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $.01 per share		HAIN		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On February 10, 2025, The Hain Celestial Group, Inc. issued a press release announcing financial results for its second quarter ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 hereto.

 

The information contained in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

Exhibit No.					Description
99.1					Press Release of The Hain Celestial Group, Inc. dated February 10, 2025
104					Cover Page Interactive Data File (embedded within the inline XBRL document)

 

 

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			THE HAIN CELESTIAL GROUP, INC.
Date:	February 10, 2025	By:	/s/ Lee A. Boyce
			Lee A. Boyce Chief Financial Officer

 

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Exhibit 99.1

 

Hain Celestial Reports Fiscal Second Quarter 2025 Financial Results

 

Strong Operating Cash Flow and Reduction in Debt; Positioned to Pivot to Growth in Back Half

Exploring Strategic Options for Personal Care Category

 

HOBOKEN, N.J., February 10, 2025 — 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

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Cash Flow and Balance Sheet Highlights

 

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.

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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.

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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:

 

* 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 www.hain.com. 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

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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 hain.com 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

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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:

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:

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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 Tessier

Investor.Relations@hain.com

 

Media Contact:

Jen Davis

Jen.Davis@hain.com

 

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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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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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

 

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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

 

 

 

 

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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"

 

 

 

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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"

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Adjusted Gross Profit and Adjusted Operating Income
(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
(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.

 

 

 

 

 

 

 

 

 

 

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Adjusted Net Income and Adjusted Net Income per Diluted Share
(unaudited and in thousands, except per share amounts)
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, net.

 

 

 

 

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THE 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)%

 

 

 

 

 

 

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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)%

 

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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 investigation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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THE 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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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

 

 

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v3.25.0.1

Document And Entity Information	Feb. 10, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 10, 2025
Entity Registrant Name	The Hain Celestial Group, Inc.
Entity Central Index Key	0000910406
Entity Emerging Growth Company	false
Entity File Number	0-22818
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	22-3240619
Entity Address, Address Line One	221 River Street,
Entity Address, City or Town	Hoboken
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07030
City Area Code	(516)
Local Phone Number	587-5000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	HAIN
Security Exchange Name	NASDAQ

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