Second Quarter Fiscal Year 2022 Earnings Call February 3, 2022 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of 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, ...

Financial Data and Key Metrics Changes - The company reported a consolidated net sales decrease of 10% year-over-year to $477 million, with adjusted net sales down 2% compared to the prior year [39] - Adjusted EBITDA decreased 5% year-over-year to $59.3 million, while adjusted EBITDA margin increased by 66 basis points to 12.4% [43] - Adjusted EPS increased to $0.36 from $0.34 in the prior year period, benefiting from a lower adjusted tax rate of 19% compared to 24% [43] Business Line Data and Key Metrics Changes - North American net sales decreased about 3% year-over-year to $275 million, but adjusted for foreign exchange and divestitures, net sales increased about 1% [44] - The snacks category delivered close to 20% net sales growth versus the prior year, while tea and yogurt products grew close to 10% compared to two years ago [46] - International net sales decreased 18% on a reported basis, but adjusted net sales growth increased around 9% compared to two years ago, driven by growth brands [49][50] Market Data and Key Metrics Changes - In the U.S., consumption for all brands in measured channels was up over 10% compared to last year and 16% versus two years ago [14] - Internationally, adjusted net sales were impacted by Brexit-related stocking and increased regulations on baby food imports in China, but overall growth was seen in specific categories like baby and soup [17][18] Company Strategy and Development Direction - The company is focused on its Hain 3.0 strategy, emphasizing distribution expansion and innovation as key drivers for top-line acceleration [29] - Recent acquisition of ParmCrisps is expected to enhance the snacks business and provide significant distribution expansion opportunities [31][93] - The company plans to invest in marketing to drive awareness and household penetration across growth brands, with a focus on long-term growth despite short-term cost pressures [29][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain and labor challenges but expressed confidence in achieving significant EBITDA growth in the second half of the year due to productivity improvements and pricing actions [68][69] - The company expects low single-digit net sales growth for the year, with mid- to high single-digit growth anticipated in the second half, driven by North America [25][56] - Management noted that while inflationary pressures are expected to continue, they anticipate a normalization of costs as supply chain issues abate [108] Other Important Information - The company repurchased 2 million shares for approximately $90 million and announced an additional $200 million share repurchase authorization [55] - Operating cash flow for Q2 was $30 million, with capital spending at $10.2 million, reflecting lower spending due to supply chain challenges [52][53] Q&A Session Summary Question: Guidance for EBITDA growth and assumptions - Management indicated confidence in productivity and volume acceleration driving EBITDA growth, with visibility on cost of goods for the second half [68][69] Question: Inventory status and assumptions for the back half - Management reported strong inventories but acknowledged some supply disruptions, expecting improvements in the second half [70][71] Question: EU energy costs and implications - Management clarified that energy costs are locked in and significantly inflationary, impacting EBITDA guidance [77][78] Question: Pricing discussions with customers - In the U.S., pricing discussions are generally positive due to recognition of inflation, while international pricing discussions are more challenging due to contracts [79][80] Question: Outlook for net sales and supply chain risks - Management expressed high confidence in North American sales momentum, while international sales are expected to normalize as the market stabilizes [87][88] Question: ParmCrisps acquisition and future plans - The acquisition is expected to contribute nominally in the second half, with significant growth potential and distribution opportunities identified [91][93] Question: Expectations for inflation and supply chain costs - Management noted ongoing pricing opportunities and efforts to mitigate supply chain challenges, with expectations for costs to normalize in the fourth quarter [104][108]

Q1 2022 Financial Performance - Net sales decreased by 9% compared to Q1 2021[6] - Adjusted net sales growth was approximately 0%[6,9] - Adjusted EBITDA decreased by 14% compared to Q1 2021[6] - Adjusted gross margin decreased by 24 bps compared to Q1 2021[6] - Adjusted EPS was $025 in Q1 2021 and $008 in Q1 2020, but increased to $027 in Q1 2022[20] Segment Performance - North America net sales decreased by 54%[41] - International net sales decreased by 131%[41] - North America adjusted EBITDA was $24102 thousand[47] - International adjusted EBITDA was $32434 thousand[47] Growth and Strategy - US growth brands experienced strong consumption momentum, with growth of +176% compared to two years ago[16] - The company is reaffirming full year FY22 guidance, expecting mid-to-high single digit sales growth[5,21,25] - The company is actively addressing global supply chain challenges, labor shortages, and a highly inflationary environment with strong productivity and pricing[5]

Financial Data and Key Metrics Changes - Adjusted net sales for Q1 2022 were flat year-over-year, better than the guidance of a low- to mid-single-digit decline [7][25] - Adjusted EBITDA decreased by 14% year-over-year to $47 million, slightly better than the guidance of a mid to high-teens decline [28][39] - Adjusted gross margin saw a slight reduction due to industry-wide distribution and warehousing cost pressures, despite an overall gross margin increase of more than 300 basis points in September [26][27] Business Line Data and Key Metrics Changes - North America adjusted net sales decreased by 1% year-over-year, with a reported net sales decrease of 5% due to the lapping of elevated at-home food consumption and strong hand sanitizer sales in the prior year [8][30] - International adjusted net sales increased by 2% year-over-year, with a 14% increase compared to fiscal 2020, driven by strong performance in baby food and refrigerated soup brands [11][33] - Growth brands, which make up about 70% of North American sales, grew 1% year-over-year and 10% compared to two years ago, with strong double-digit consumption growth [9][13] Market Data and Key Metrics Changes - North American sales increased by 8% compared to Q1 2020 after adjusting for foreign exchange movements and divestitures [30] - International sales decreased by 13% on a reported basis but were up 2% when adjusted for currency movement and divestitures [33] - The turbocharged category in North America delivered close to 9% growth versus the prior year, driven by strong performance in the snacks business [31] Company Strategy and Development Direction - The company is focused on its Hain 3.0 strategy, aiming for consistent near double-digit growth in its growth brands [12][22] - Pricing actions have been implemented across virtually every brand in North America, with an average increase of about 6% to 10% [20][76] - The company plans to achieve close to $50 million in productivity savings this fiscal year through numerous active projects [21] Management Comments on Operating Environment and Future Outlook - Management expects to see accelerating sales momentum this fiscal year, supported by significant distribution gains and merchandising events [22][39] - The company anticipates additional inflation costs of $20 million to $25 million this year, with plans to take further pricing actions to offset these costs [15][39] - Management expressed confidence in the company's ability to deliver adjusted top-line and EBITDA growth despite macro challenges [39][40] Other Important Information - The company repurchased 4.5 million shares during the quarter, totaling $175.6 million, with $207 million remaining under the repurchase authorization [37] - Operating cash flow for Q1 was $38 million, a decrease of 8% year-over-year, but an improvement relative to the adjusted EBITDA decrease [35][36] Q&A Session Summary Question: Can you provide clarity on the EBIT margin in international for the second quarter? - Management expects gross margin improvement for international in Q2, but not to the same level as Q1 due to rising ingredient inflation [45][46] Question: How are you managing pricing and volume in light of inflation? - The company is successfully passing on pricing to retailers, with low elasticities observed, but additional inflation has been more than anticipated [54][76] Question: What is the current situation regarding freight costs? - Freight costs are a significant issue, with both inflation and ancillary costs impacting the business, but the company is making progress in filling trucks to reduce costs [66][70] Question: How is the company handling new product launches amid current challenges? - The company is successfully launching new products in North America, although Europe faces more challenges due to labor shortages and Brexit-related issues [78][79] Question: What percentage of sales is coming from new products in Q1? - New products accounted for about 6.5% of sales in Q1, up from 1% in FY'20 and 3.5% in FY'21 [82] Question: How is the labor situation evolving? - The company has filled about two-thirds of open positions and has made significant progress in staffing distribution and manufacturing facilities [86][87]

Financial Performance - Net sales for the three months ended September 30, 2021 were $454.9 million, a decrease of $43.7 million, or 8.8%, compared to $498.6 million in the same period of 2020[143] - Gross profit for the three months ended September 30, 2021 was $105.4 million, a decrease of $13.7 million, or 11.5%, with a gross profit margin of 23.2% compared to 23.9% in the prior year[144] - Operating income for the three months ended September 30, 2021 was $25.5 million, significantly up from $3.3 million in the prior year quarter, reflecting improved operational efficiency[149] - The company reported net income from continuing operations of $19.4 million, compared to a net loss of $10.8 million in the prior year, marking a significant turnaround[142] - Net income from continuing operations for the three months ended September 30, 2021 was $19.4 million, or $0.20 per diluted share, compared to a net loss of $10.8 million, or $0.11 per diluted share, for the same period in 2020[157] - The company reported a net income of $19.4 million for the three months ended September 30, 2021, compared to a net income of $0.5 million in the same period of 2020[185] Expenses and Costs - Selling, general and administrative expenses decreased to $74.0 million, down $5.5 million, or 7.0%, from $79.5 million in the prior year quarter[145] - Productivity and transformation costs increased to $4.0 million, up $2.6 million from $1.4 million in the prior year quarter, primarily due to consulting fees for supply chain optimization[147] - Adjusted EBITDA for the three months ended September 30, 2021 was $47.3 million, a decrease of $7.6 million, or 13.8%, from $54.9 million in the prior year[142] - Adjusted EBITDA decreased to $47.3 million for the three months ended September 30, 2021, down from $54.9 million in the prior year[161] - Operating Free Cash Flow from continuing operations for the three months ended September 30, 2021, was $19.8 million, compared to $28.5 million for the same period in 2020[188] Sales Performance by Region - Net sales in North America for the three months ended September 30, 2021 were $265.5 million, a decrease of $15.1 million, or 5.4%, from $280.7 million in the prior year[163] - International net sales decreased to $189.4 million, down $28.6 million, or 13.1%, from $218.0 million in the prior year, but increased 1.6% on a constant currency basis[164] - The net sales decline in North America was 5.4%, while the decline in international markets was 13.1% for the three months ended September 30, 2021[181] - The impact of foreign currency exchange on net sales was a negative 2.0% for the three months ended September 30, 2021[181] Cash Flow and Investments - Cash flows provided by operating activities from continuing operations were $37.6 million, a decrease of $3.1 million from $40.7 million in the prior year[171] - Cash used in investing activities increased to $18.1 million, up $10.3 million from $7.7 million in the prior year due to increased capital expenditures[172] - Cash used in financing activities was $63.5 million, an increase of $27.6 million compared to $36.0 million in the prior year, primarily due to share repurchases[173] - The company repurchased 4.525 million shares for a total of $175.6 million at an average price of $38.80 per share during the three months ended September 30, 2021[175] Strategic Initiatives - The company is focused on simplifying its brand portfolio and identifying declining brands for potential divestiture as part of its Hain 3.0 strategy[138] - The company plans to actively seek acquisitions to strengthen its position in targeted categories, supported by its borrowing capacity[138] Miscellaneous - The COVID-19 pandemic initially increased demand for the company's products, but net sales have since normalized, impacting overall performance[139] - The impact of divestitures and discontinued brands on net sales was a positive contribution of 10.7% for the three months ended September 30, 2021[181] - The company did not have any off-balance sheet arrangements that could materially affect its consolidated financial statements as of September 30, 2021[189] - There were no changes in internal controls over financial reporting that materially affected the company during the three months ended September 30, 2021[196] - The company believes that capital spending is essential for maintaining operational capabilities, impacting the evaluation of cash available for discretionary investments[186]

The Hain Celestial Group, Inc. (NASDAQ:HAIN) Q4 2021 Earnings Conference Call August 26, 2021 8:30 AM ET Company Participants Anna Kate Heller - Investor Relations Mark Schiller - President & Chief Executive Officer Javier Idrovo - Executive Vice President & Chief Financial Officer Conference Call Participants David Palmer - Evercore ISI Matt Fishbein - Jefferies Anoori Naughton - JPMorgan Jon Andersen - William Blair Eric Larson - Seaport Research Partners Anthony Vendetti - Maxim Group Michael Lavery - Pi ...

Fourth Quarter Fiscal Year 2021 Earnings Call August 26, 2021 0 Safe Harbor Statement 1 Safe Harbor Statement Certain statements contained in this presentation constitute "forward-looking statements" within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements are predictions based on expectations and projections about future events and are not statements of historical fact. You can identify forward-looking statements by the use of ...

Third Quarter Fiscal Year 2021 Earnings Call May 6, 2021 Safe Harbor Statement 1 Safe Harbor Statement Certain statements contained in this presentation constitute "forward-looking statements" within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements are predictions based on expectations and projections about future events and are not statements of historical fact. You can identify forward-looking statements by the use of forwar ...

Financial Data and Key Metrics Changes - Consolidated net sales decreased 11% year-over-year to $493 million, impacted by foreign exchange and divestitures [35][36] - Adjusted gross margin improved by 317 basis points, while adjusted EBITDA increased to $74 million, representing a 22% increase year-over-year [12][38] - Adjusted EBITDA margin reached 15%, a significant improvement of about 400 basis points year-over-year [39] Business Line Data and Key Metrics Changes - North American net sales decreased 10% year-over-year to $287.5 million, with adjusted EBITDA increasing by 13% [40][42] - International net sales decreased 12% on a reported basis, but adjusted EBITDA grew by 19% versus the prior year [48][51] - The "Get Bigger" brands showed a net sales decrease of about 4%, but adjusted EBITDA margins improved close to 300 basis points [43][46] Market Data and Key Metrics Changes - E-commerce sales in North America accounted for about 12% of total sales, with robust growth of approximately 30% in the quarter [90] - Consumption in international markets was up 12% compared to 2019, significantly outpacing shipments [18] Company Strategy and Development Direction - The company is focused on sustainable profitable growth, with a strong emphasis on margin improvement and productivity initiatives [11][20] - Future strategies include pursuing significant margin opportunities and expanding distribution points for key brands [30][27] - The company plans to continue investing in marketing and innovation to drive growth in its core categories [111][115] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future performance, citing strong momentum exiting Q3 and favorable macro trends [23][24] - The company anticipates continued challenges from COVID-19 but expects to offset these with productivity initiatives and pricing strategies [57][84] - Management highlighted the importance of consumer health trends and e-commerce growth as key drivers for future success [24][90] Other Important Information - The company completed the sale of its North American non-dairy beverage business, which represented about $40 million in annualized net sales [47] - Operating cash flow for Q3 was $42 million, with a strong balance sheet allowing for significant capital allocation flexibility [52][54] Q&A Session Summary Question: Thoughts on fourth quarter outlook and guidance - Management acknowledged the uncertainty surrounding COVID-19's impact but expressed confidence in delivering expected results, with a guidance range of -5% to -8% for top line growth [67][70] Question: Status of distribution gains and shelf resets - Management confirmed that more shelf resets are expected, with significant distribution gains anticipated in baby and snack categories [72][74] Question: Clarification on organic sales growth guidance - Management explained that while there are headwinds from COVID-19, underlying growth is expected to be mid-single digits compared to 2019 [82] Question: Non-dairy beverage business sale details - The non-dairy beverage business had about $40 million in sales, with a couple million dollars of EBITDA [89] Question: E-commerce performance and growth - E-commerce sales grew significantly, with the "Get Bigger" brands seeing growth in the 50% range [90] Question: Addressing concerns about baby food safety - Management stated compliance with FDA regulations and ongoing efforts to ensure product safety [91] Question: Overall distribution potential and ACV penetration - Management indicated that ACV penetration ranges from 30% to 75% for key brands, with significant opportunities for growth [97] Question: Pricing strategies in response to cost inflation - Management confirmed ongoing pricing strategies to offset inflation, focusing on selective pricing and productivity initiatives [100][102] Question: Future promotional activities - Management confirmed that a significant club program will return next year, providing a tailwind for fiscal 2022 [105]

The Hain Celestial Group, Inc. (NASDAQ:HAIN) Q2 2021 Earnings Conference Call February 9, 2021 8:30 AM ET Company Participants Anna Kate Heller - Investor Relations Mark Schiller - President & Chief Executive Officer Javier Idrovo - Executive Vice President & Chief Financial Officer Conference Call Participants Ken Goldman - JPMorgan Alexia Howard - Bernstein Andrew Lazar - Barclays David Palmer - Evercore ISI Rob Dickerson - Jefferies Michael Lavery - Piper Sandler Bill Chappell - Truist Securities Operato ...