HOBOKEN, N.J., Dec. 15, 2025 (GLOBE NEWSWIRE) -- The Hain Celestial Group, Inc. (“Hain Celestial” or the “Company”) (Nasdaq: HAIN), today announced that Alison E. Lewis has been appointed President and Chief Executive Officer, effective immediately. Ms. Lewis had been serving as Hain Celestial’s Interim President and Chief Executive Officer since May 2025. Ms. Lewis will also continue in her role as a member of the Board of Directors (the “Board”).Dawn Zier, Chair of the Board, said, “The Board has had the ...

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]

Financial Data and Key Metrics Changes - The first quarter net sales were $368 million, with an adjusted EBITDA of $20 million, consistent with expectations [20][21] - Organic net sales declined by 6% year-over-year, showing sequential improvement from an 11% decline in Q4 [22] - Adjusted gross margin was 19.5%, a decrease of approximately 120 basis points year-over-year, driven by lower volume mix and cost inflation [22] - SG&A expenses decreased by 8% year-over-year to $66 million, representing 17.8% of net sales [22][23] - Adjusted net loss was $7 million, or $0.08 per diluted share, compared to an adjusted net loss of $4 million or $0.04 per diluted share in the prior year [24] Business Line Data and Key Metrics Changes - In North America, organic net sales declined by 7%, primarily due to lower volume in snacks, but growth was seen in beverages, baby and kids, and meal prep [25] - Adjusted EBITDA in North America increased by 37% to $17 million, with an adjusted EBITDA margin of 8.3% [25] - International organic net sales declined by 4%, driven by lower sales in baby and kids, partially offset by growth in meal prep [26] - International adjusted gross margin was 15.7%, approximately 530 basis points below the prior year, with adjusted EBITDA of $13 million [26] Market Data and Key Metrics Changes - Organic net sales growth in snacks was down 17% year-over-year, while baby and kids saw a decline of 10% [27] - Beverages category experienced a 2% growth year-over-year, driven by tea in North America [28] - Meal preparation organic net sales growth was flat year-over-year, with strength in yogurt offset by softness in meat-free products [28] Company Strategy and Development Direction - The company is focused on stabilizing sales, improving profitability, optimizing cash, and deleveraging the balance sheet [5][19] - 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 [8][34] - The company plans to eliminate approximately 30% of its SKUs in North America by fiscal 2027 to improve supply chain efficiency [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the fiscal year, expecting stronger top and bottom-line performance compared to the first half [31] - The company is stepping up marketing investments and anticipates benefits from SG&A work and pricing actions to build throughout the year [32] - Management acknowledged challenges in the consumer environment but emphasized the value proposition of their health and wellness products [41][42] Other Important Information - Free cash flow for the quarter was an outflow of $14 million, an improvement from an outflow of $17 million in the prior year [29] - The company closed the quarter with cash on hand of $48 million and net debt of $668 million, an increase driven by seasonal funding of working capital [30] Q&A Session Summary Question: Anticipation of organic sales in Q2 - Management expects some moderation in the year-over-year rate of decline in organic sales in Q2, with a focus on improvement in the second half [37] Question: Elasticity of pricing actions in North America - Early data indicates that pricing on tea is in line with expectations, while baby category pricing has been slower to roll out [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 [41][42]