Core Viewpoint - Hain Celestial Group, Inc. will release its fiscal second quarter financial results on February 9, 2026, and will host a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The financial results will be released before the market opens on February 9, 2026 [1]. - A conference call will be held at 8:00 AM ET to discuss the results [1]. Group 2: Accessing the Conference Call - The conference call can be accessed by dialing (800) 715-9871 or (646) 307-1963 with conference ID: 5099081 [2]. - A replay of the call will be available until February 16, 2026, accessible by dialing (800) 770-2030 or (609) 800-9909 with the same conference access ID [2]. Group 3: Company Overview - Hain Celestial is a leading health and wellness company focused on inspiring healthier living through better-for-you brands [3]. - The company has been delivering nutrition and well-being for over 30 years and markets products in over 70 countries [3]. - Key brands include Garden Veggie Snacks™, Terra® chips, Earth's Best® Organic, and Celestial Seasonings® teas among others [3].

Core Viewpoint - Hain Celestial Group has appointed Alison E. Lewis as President and Chief Executive Officer, effective immediately, following her role as Interim CEO since May 2025 [1][2]. Group 1: Leadership Changes - Alison E. Lewis has been confirmed as the CEO after demonstrating effective leadership and strategic initiatives during her interim period [1][2]. - The Board of Directors expressed confidence in Lewis's ability to create shareholder value and lead the company through a turnaround agenda focused on cost reduction and growth [2]. Group 2: Strategic Focus - The company is concentrating on stabilizing sales, improving profitability, optimizing cash flow, and deleveraging its balance sheet [2]. - Lewis emphasized the importance of a strategic review in collaboration with Goldman Sachs to reposition the company for future success [2]. Group 3: Background of Alison E. Lewis - Alison E. Lewis has extensive experience in the consumer-packaged goods industry, having held significant roles at Kimberly-Clark, Johnson & Johnson, and Coca-Cola [3]. - Her expertise includes driving growth strategies, market execution, and innovation, particularly in digital-first marketing and e-commerce [3]. Group 4: Company Overview - Hain Celestial is a leading health and wellness company focused on inspiring healthier living through its diverse range of brands [4]. - The company markets products in over 70 countries, including well-known brands such as Garden Veggie Snacks™, Earth's Best® Organic, and Celestial Seasonings® teas [4].

Core Concept - The Garden Veggie™ Snack Suit is introduced as a limited-edition product designed for families to enjoy game day snacks without the mess, featuring practical design elements to enhance the snacking experience [1][4][10] Product Features - The Snack Suit includes removable wipe zones for easy cleanup during snacking, allowing families to stay engaged in the game without interruptions [9] - It is made from cotton and dyed using botanical colors, ensuring a unique and safe product that reflects the brand's commitment to natural ingredients [6][9] - The suit features playful catchphrases and a color palette inspired by the brand's vegetable ingredients, enhancing the fun of game day snacking [9] Brand Commitment - Garden Veggie Snacks™ emphasizes its dedication to providing snacks free from artificial flavors and preservatives, using only natural colors, catering to health-conscious families [2][5] - The brand aims to deliver enjoyable snacking experiences that bring families together during game days, reinforcing its position in the better-for-you snacking category [7] Availability - The Garden Veggie™ Snack Suit will be available for purchase starting November 17 for $50, with a second drop on November 24, highlighting the limited availability and exclusivity of the product [4][5]

Core Insights - Hain Celestial Group, Inc. (HAIN) reported a decline in both top and bottom lines for Q1 fiscal 2026, with net sales of $367.9 million, a 6.8% year-over-year decrease, while adjusted loss per share was 8 cents, wider than the consensus estimate of 4 cents [1][3][4] Financial Performance - Net sales exceeded consensus estimates but declined year over year, with organic net sales down 5.8% due to a 7-point decrease in volume/mix, partially offset by a 1-point increase in pricing [4] - Adjusted gross profit was $71.9 million, down 12.3% from the previous year, with an adjusted gross margin of 19.5%, lagging behind the estimated 20.4% [4] - SG&A expenses decreased by 8.2% to $65.5 million, representing 17.8% of net sales, a reduction of 30 basis points year over year [5] - Adjusted EBITDA was $19.7 million, down 11.8% from the prior year, with an adjusted EBITDA margin of 5.4% [5] Segment Performance - North America segment net sales fell 11.8% to $203.9 million, with organic net sales down 7.4% due to weaker snack volumes [6] - International segment net sales totaled $164 million, a slight increase of 0.3% year over year, but organic net sales declined 3.9% [9] - In the Snacks category, organic net sales dropped 17.2%, while the Baby & Kids category saw a decline of 9.5% [12] Cash and Debt Overview - The company ended the quarter with cash and cash equivalents of $47.9 million and long-term debt of $708.6 million [14] - Free cash flow for the quarter was an outflow of $14 million, an improvement from $17 million in the prior year, driven by better inventory management [15]

Core Insights - Hain Celestial reported Q3 CY2025 results that exceeded revenue expectations but experienced a year-on-year sales decline of 6.8% to $367.9 million [1][5] - The company posted a non-GAAP loss of $0.08 per share, which was 48.1% below analysts' consensus estimates [1][5] Revenue and Financial Performance - Revenue for the quarter was $367.9 million, surpassing analyst estimates of $360.5 million, but reflecting a 6.8% decline year-on-year [5] - Adjusted EPS was -$0.08 compared to analyst expectations of -$0.05, marking a 48.1% miss [5] - Adjusted EBITDA stood at $19.73 million, aligning with analyst estimates, resulting in a 5.4% margin [5] - Operating margin decreased to -1.9%, down from 2.1% in the same quarter last year [5] - Organic revenue fell by 6% year-on-year, compared to analyst estimates of a 5.4% decline, representing a 61.1 basis point miss [5] - Market capitalization is reported at $108.4 million [5] Management Commentary and Strategy - Management noted improvements in organic net sales trends, particularly in North America, with growth in Beverages, Baby and Kids, and Meal Prep segments [3][4] - Cost control measures, a revamped operating model, and targeted brand renovation initiatives are beginning to show positive results [3] - The company plans to accelerate new product launches and implement cost-saving initiatives to enhance margins and stabilize sales [3] - The '5 actions to win' plan includes portfolio simplification, revenue growth management, and digital marketing to drive performance in the second half of the year [3] - Upcoming innovations are expected in Snacks and Baby and Kids categories, focusing on premiumization and pricing strategies to counter inflation [3]

Core Insights - Hain Celestial's shares rose by 13.1% following the release of mixed third-quarter financial results, where a revenue beat and positive outlook outweighed a wider-than-expected loss [1][2] Financial Performance - The company reported an adjusted loss of $0.08 per share, missing analyst expectations of a $0.05 loss [2] - Quarterly sales reached $367.9 million, surpassing Wall Street's forecast of $360.5 million, despite a 6.8% decline compared to the previous year [2] - Management provided an optimistic outlook, citing benefits from cost discipline and pricing actions, and anticipated stronger revenue and profit in the second half of the fiscal year [2] Market Reaction - Hain Celestial's shares closed at $1.22, marking a 14.6% increase from the previous close [3] - The stock has exhibited extreme volatility, with 57 moves greater than 5% over the past year, indicating significant market impact from recent news [4] Historical Context - The stock experienced a significant drop of 49% six months ago due to disappointing first-quarter results, missing revenue, EPS, and EBITDA expectations [5] - Hain Celestial's stock has declined 80% since the beginning of the year and is trading 86.1% below its 52-week high of $8.63 from December 2024 [6] - An investment of $1,000 in Hain Celestial shares five years ago would now be worth approximately $38.97 [6]

Financial Performance - Net sales for the three months ended September 30, 2025, were $367.9 million, a decrease of $26.7 million, or 6.8%, compared to the prior year quarter [154]. - Gross profit for the same period was $68.1 million, a decrease of $13.5 million, or 16.6%, with a gross profit margin of 18.5% compared to 20.7% in the prior year [155]. - Operating loss for the three months ended September 30, 2025, was $6.9 million, compared to operating income of $3.1 million in the prior year quarter [160]. - Net loss for the three months ended September 30, 2025, was $20.6 million, or $0.23 per diluted share, compared to a net loss of $19.7 million, or $0.22 per diluted share, in the prior year [167]. - Adjusted EBITDA was $19.7 million for the three months ended September 30, 2025, down from $22.4 million in the prior year [168]. - Organic net sales for the three months ended September 30, 2025, were $341.5 million, a decline of 5.8% compared to the same period in 2024 [200]. - Adjusted EBITDA for the three months ended September 30, 2025, was $19.7 million, compared to $22.4 million in the same period of 2024 [204]. Expenses and Costs - Selling, general and administrative expenses decreased by $5.8 million, or 8.2%, to $65.5 million due to lower employee-related costs [157]. - Productivity and transformation costs increased by $3.2 million, or 63.8%, to $8.2 million, primarily due to costs associated with the Restructuring Program [158]. - Interest and other financing expense increased by $1.8 million, or 12.8%, to $15.5 million, primarily due to higher financing fees [161]. Restructuring Program - The cumulative pretax charges associated with the Restructuring Program are expected to be between $100 million and $110 million [150]. - Annualized pretax savings from the Restructuring Program are expected to be between $130 million and $150 million [151]. Sales by Region - North America net sales for Q3 2025 were $203.9 million, a decrease of $27.2 million or 11.8% from Q3 2024, with organic net sales down 7.4% to $185.0 million [171]. - International net sales for Q3 2025 were $164.0 million, an increase of $0.5 million or 0.3%, while organic net sales decreased by $6.4 million or 3.9% to $156.5 million [175]. Cash Flow and Debt - Cash used in operating activities was $8.5 million for Q3 2025, a decrease of $2.3 million from $10.8 million in the prior year period, primarily due to improved working capital management [192]. - Total debt increased by $11.4 million to $716.2 million as of September 30, 2025, compared to $704.8 million at June 30, 2025 [190]. - Cash and cash equivalents decreased by $6.5 million to $47.9 million as of September 30, 2025, from $54.4 million at June 30, 2025 [190]. - Free cash flow was negative $13.7 million for the three months ended September 30, 2025, an improvement of $2.8 million from negative free cash flow of $16.5 million in the same period of the prior year [195]. Financial Ratios and Covenants - The Company maintained a consolidated secured leverage ratio of 4.81:1.00 as of September 30, 2025, in compliance with all financial covenants [182]. - The Fourth Amendment to the Credit Agreement requires a minimum Consolidated EBITDA of $17.0 million for the quarter ending September 30, 2025 [186]. - The weighted average interest rate on outstanding borrowings under the Credit Agreement was 7.78% as of September 30, 2025, with a commitment fee of 0.25% per annum on unused amounts [188]. Share Repurchase and Goodwill - The company had $173.5 million of remaining authorization under the share repurchase program as of September 30, 2025 [196]. - The company did not repurchase any shares under the repurchase program during the three months ended September 30, 2025 [196]. - As of September 30, 2025, goodwill associated with the U.S. and U.K. reporting units had a carrying value of $312.3 million and $114.0 million, respectively [210]. Market Capitalization - The company expects that its market capitalization should reconcile within a reasonable range to the sum of the fair values of its individual reporting units [211].

Core Insights - Hain Celestial reported a quarterly loss of $0.08 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, marking an earnings surprise of -100.00% [1] - The company generated revenues of $367.88 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 1.66%, but down from $394.6 million year-over-year [2] - Hain Celestial's stock has declined approximately 82.6% year-to-date, contrasting with the S&P 500's gain of 14.3% [3] Earnings Outlook - The company's earnings outlook is critical for assessing future stock performance, with current consensus EPS estimates at $0.02 for the upcoming quarter and $0.07 for the current fiscal year, with revenues projected at $394.07 million and $1.51 billion respectively [7] - The trend of estimate revisions for Hain Celestial has been unfavorable, resulting in a Zacks Rank of 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Food - Miscellaneous industry, to which Hain Celestial belongs, is currently ranked in the bottom 30% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions, highlighting the importance of tracking these revisions for investment decisions [5]

Financial Data and Key Metrics Changes - The company's Q1 2026 net sales were $368 million, with an adjusted EBITDA of $20 million, consistent with expectations and similar to Q4 2025 [20][21] - Organic net sales declined by 6% year-over-year, showing a sequential improvement from an 11% decline in Q4 [20][21] - Adjusted gross margin decreased to 19.5%, down approximately 120 basis points year-over-year, primarily due to lower volume mix and cost inflation [20][21] - SG&A expenses decreased by 8% year-over-year to $66 million, representing 17.8% of net sales compared to 18.1% in the prior year [20][21] Business Line Data and Key Metrics Changes - In North America, organic net sales declined by 7%, driven by lower volume in snacks, but growth was seen in beverages, baby and kids, and meal prep [23] - International organic net sales declined by 4%, primarily due to lower sales in baby and kids, partially offset by growth in meal prep [24] - Snacks organic net sales were down 17% year-over-year, while baby and kids saw a decline of 10% [25][26] Market Data and Key Metrics Changes - In North America, tea and yogurt grew double digits at key online retailers, while the beverages category saw a 2% organic net sales growth driven by tea [17][26] - Internationally, Hartley's Jelly Pops and Sun Pops showed strong performance, particularly in September [17] Company Strategy and Development Direction - The company is focused on stabilizing sales, improving profitability, optimizing cash, and deleveraging the balance sheet [5][17] - A turnaround strategy is anchored in five key actions: streamlining the portfolio, accelerating brand renovation and innovation, implementing strategic revenue growth management and pricing, driving productivity and working capital efficiency, and strengthening digital capabilities [7][32] - The company plans to eliminate approximately 30% of its SKUs in North America by fiscal 2027 to improve supply chain efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer behavior is shifting towards value-seeking due to tighter budgets, impacting shopping patterns [43] - The company expects to see improvements in organic sales in the second half of the fiscal year, particularly in snacks and baby and kids categories [37][39] - Management is optimistic about the innovation pipeline and marketing investments planned for the second half of the year [30][32] Other Important Information - The company has taken $14 million in charges associated with restructuring, with total charges to date amounting to $103 million [21] - Free cash flow for the quarter was an outflow of $14 million, an improvement from an outflow of $17 million in the prior year [27] - The company closed the quarter with cash on hand of $48 million and net debt of $668 million, an increase from $650 million at the beginning of the fiscal year [28] Q&A Session Summary Question: Expectations for organic sales in Q2 - Management anticipates some moderation in the year-over-year rate of decline in organic sales in Q2, with a focus on improvements in the second half [37] Question: Elasticity of pricing in North America - Early data indicates that pricing on tea is in line with expectations, while baby category pricing is slower to roll through but also appears to be in line [39] Question: Consumer behavior in the current environment - Management noted a shift towards value-seeking behavior among consumers, with a focus on delivering value through better-for-you products [43]

Financial Data and Key Metrics Changes - The company's Q1 2026 net sales were $368 million, with an adjusted EBITDA of $20 million, consistent with expectations and similar to Q4 2025 [20][21] - Organic net sales declined by 6% year-over-year, showing a sequential improvement from an 11% decline in Q4 2025 [20][21] - Adjusted gross margin decreased to 19.5%, down approximately 120 basis points year-over-year, primarily due to lower volume mix and cost inflation [20][21] Business Line Data and Key Metrics Changes - In North America, organic net sales declined by 7%, driven by lower snack sales, but growth was seen in beverages, baby and kids, and meal prep [23] - The snacks category experienced a 17% decline in organic net sales, while baby and kids saw a 10% decline, attributed to industry-wide softness [25][26] - Adjusted EBITDA in North America increased by 37% to $17 million, driven by productivity savings and reduced SG&A expenses [23] Market Data and Key Metrics Changes - International organic net sales declined by 4%, primarily due to lower sales in baby and kids, partially offset by growth in meal prep [24] - International adjusted gross margin was 15.7%, approximately 530 basis points below the prior year, with adjusted EBITDA decreasing by 38% [24] Company Strategy and Development Direction - The company is focused on stabilizing sales, improving profitability, optimizing cash, and deleveraging the balance sheet [5][17] - A turnaround strategy is being executed, emphasizing five key actions: streamlining the portfolio, accelerating brand renovation and innovation, implementing strategic revenue growth management, driving productivity, and strengthening digital capabilities [7][33] - The company plans to eliminate approximately 30% of its SKUs in North America by fiscal 2027 to improve supply chain efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the fiscal year, expecting stronger performance driven by marketing investments and pricing actions [29][30] - The company is addressing consumer behavior shifts towards value-seeking, ensuring that its products provide nutritional value and quality [43][44] - Management noted that while there are challenges, the focus remains on executing the turnaround strategy and improving financial flexibility [32][33] Other Important Information - The company has taken $14 million in charges related to restructuring, with total charges to date amounting to $103 million [21] - Free cash flow for the quarter was an outflow of $14 million, an improvement from an outflow of $17 million in the prior year [27] - The company closed the quarter with cash on hand of $48 million and net debt of $668 million, reflecting seasonal funding needs [28] Q&A Session Summary Question: Expectations for organic sales in Q2 - Management anticipates moderation in the year-over-year rate of decline in organic sales for Q2, with a focus on improvement in the second half [36] Question: Pricing elasticity in North America - Early data indicates that pricing on tea aligns with expectations, while baby category pricing is slower to roll out but also appears in line with expectations [38][39] Question: Consumer behavior in the current environment - Management noted a shift towards value-seeking behavior among consumers, with a focus on delivering value through better-for-you products [43][44]