Hain Celestial Second Quarter Fiscal Year 2026 Financial Results Forward-Looking Statements 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, amon ...

Financial Performance - Net sales for the three months ended December 31, 2025 were $384.1 million, a decrease of $27.4 million, or 6.7%, compared to the prior year quarter [175]. - Gross profit for the same period was $74.4 million, a decrease of $19.0 million, or 20.3%, with a gross profit margin of 19.4% compared to 22.7% in the prior year [177]. - Operating loss for the three months ended December 31, 2025 was $98.8 million, compared to $91.9 million in the prior year quarter [185]. - Net loss for the three months ended December 31, 2025 was $116.0 million, or $1.28 per diluted share, compared to a net loss of $104.0 million, or $1.15 per diluted share in the prior year quarter [193]. - Adjusted EBITDA for the three months ended December 31, 2025 was $24.3 million, a decrease of $13.6 million, or 35.9%, from $37.9 million in the prior year quarter [194]. - Net sales for the six months ended December 31, 2025 were $752.0 million, a decrease of $54.1 million, or 6.7%, including an unfavorable impact of $23.2 million related to held for sale businesses [207]. - Adjusted EBITDA for the six months ended December 31, 2025 was $44.0 million, a decrease of $16.3 million, or 27.0%, from $60.3 million in the prior year period [205]. - Net loss for the six months ended December 31, 2025 was $136.6 million, or $1.51 per diluted share, compared to $123.6 million, or $1.37 per diluted share, in the prior year period [224]. Expenses and Charges - The Company recognized non-cash goodwill impairment charges of $119.9 million during the three months ended December 31, 2025, compared to $91.3 million in the prior year [180]. - Selling, general and administrative expenses decreased by $9.3 million, or 13.2%, to $60.9 million for the three months ended December 31, 2025 [179]. - The Company incurred pretax charges of $3.8 million and $17.3 million for the three and six months ended December 31, 2025, respectively, related to the Restructuring Program [172]. - Goodwill impairment charges for the six months ended December 31, 2025 totaled $119.9 million, compared to $91.3 million in the prior year period [211]. - Selling, general and administrative expenses for the six months ended December 31, 2025 were $126.4 million, a decrease of $15.1 million, or 10.7%, from $141.5 million in the prior year period [210]. Sales Performance - Organic net sales decreased by $26.2 million, or 6.7%, from the prior year quarter, driven by a 9.0% decrease in volume/mix [176]. - North America net sales for the three months ended December 31, 2025 were $197.8 million, a decrease of $31.5 million, or 13.7%, compared to the prior year quarter [197]. - International net sales for the three months ended December 31, 2025 were $186.3 million, an increase of $4.1 million, or 2.3%, including a favorable impact of $8.9 million from foreign exchange [201]. - North America net sales for the six months ended December 31, 2025 were $401.7 million, a decrease of $58.7 million, or 12.7%, compared to the prior year period [227]. - International net sales for the six months ended December 31, 2025 were $350.3 million, an increase of $4.6 million, or 1.3%, compared to the prior year period [230]. Debt and Liquidity - As of December 31, 2025, the company had $705.8 million of debt obligations maturing on December 22, 2026 [235]. - The company announced a strategic review to evaluate options to improve liquidity and reduce leverage, including the sale of its North American Snacks Business for $115 million [236]. - There is substantial doubt about the company's ability to continue as a going concern for at least one year following the issuance of these financial statements due to uncertainty regarding debt repayment [238]. - As of September 30, 2025, the Company's consolidated secured leverage ratio was 4.81:1.00, and the consolidated interest coverage ratio was 2.92:1.00, in compliance with all associated covenants [242]. - The maximum consolidated secured leverage ratio was amended to 5.00:1.00 for the quarter ending June 30, 2025, and 5.50:1.00 for the quarter ending September 30, 2025 [246]. Cash Flow - Cash and cash equivalents increased by $13.6 million to $68.0 million as of December 31, 2025, compared to $54.4 million at June 30, 2025 [249]. - Cash provided by operating activities was $28.5 million for the six months ended December 31, 2025, an increase of $8.4 million from the prior year [251]. - Free cash flow was $16.3 million for the six months ended December 31, 2025, an increase of $8.3 million from $8.0 million in the prior year [255]. - Cash used in investing activities was $10.4 million for the six months ended December 31, 2025, a change of $14.6 million from cash provided by investing activities in the prior year [252]. Impairment and Asset Valuation - The U.S. reporting unit's carrying amount exceeded its estimated fair value of $459,000, resulting in a non-cash impairment charge of $38,495, reducing goodwill to $273,826 [269]. - The U.K. reporting unit's carrying amount exceeded its estimated fair value of $270,525, leading to a non-cash impairment charge of $81,413, reducing goodwill to $32,331 [269]. - The impairment charge for the Hartley's® jelly indefinite-lived tradename was $11,917, recorded within intangibles and long-lived asset impairment [276]. - The Ella's Kitchen® baby and kids foods indefinite-lived tradename's estimated fair value exceeded its carrying amount by 12.8%, with a carrying value of $35,801 as of December 31, 2025 [275]. - The company performed a qualitative assessment of indefinite-lived intangible assets and determined that further quantitative testing was necessary for specific tradenames [274]. Share Repurchase and Stock Information - The Company did not repurchase any shares under the share repurchase program during the six months ended December 31, 2025, leaving $173.5 million of remaining authorization [256]. - The weighted average interest rate on outstanding borrowings was 8.26% at December 31, 2025, and 7.71% when including the impact of hedges [248]. Seasonal Impact - The company noted that certain product lines experience seasonal fluctuations, impacting quarterly results and cash flows [279].

Financial Performance - Net sales for the fiscal second quarter were $384 million, a decrease of 7% year-over-year, with organic net sales also down 7%[4] - The gross profit margin was 19.4%, reflecting a 330-basis point decrease from the prior year period[4] - The net loss for the quarter was $116 million, compared to a net loss of $104 million in the prior year, including pre-tax non-cash impairment charges of $132 million[4] - Adjusted EBITDA was $24 million, down from $38 million in the prior year period, representing a decrease of 37%[4] - The company reported a net loss of $116.0 million in Q2 2026, compared to a net loss of $104.0 million in Q2 2025, reflecting an increase in losses of 10.1%[31] - Adjusted EBITDA for Q2 2026 was not explicitly stated but is calculated as net loss before various adjustments, indicating ongoing financial challenges[31] - The company reported a GAAP operating loss of $98,822 thousand in Q2 FY26, compared to a loss of $91,899 thousand in Q2 FY25[42] - The company reported a GAAP net loss of $116,006 in Q2 FY26, compared to a net loss of $103,975 in Q2 FY25, reflecting a year-over-year increase of 10.4%[45] - Adjusted net loss for Q2 FY26 was $(2,735), a significant decline from an adjusted net income of $7,506 in Q2 FY25, indicating a shift in financial performance[45] Sales Performance - North America segment organic net sales decreased by 10% year-over-year, primarily driven by declines in snacks and baby formula[8] - International segment organic net sales decreased by 3% year-over-year, showing sequential improvement from a 4% decrease in the previous quarter[11] - Organic net sales for Q2 2026 were $384.1 million, a decrease of 6.6% compared to $411.5 million in Q2 2025[31] - Q2 FY26 consolidated net sales decreased by 6.7% to $384,120 thousand compared to Q2 FY25, which was $411,485 thousand[37] - North America net sales in Q2 FY26 were $197,821 thousand, down 13.7% from $229,289 thousand in Q2 FY25[37] - The company experienced a net sales decline of 12.7% in North America for the year-to-date period compared to the previous year[47] - The impact of divestitures and discontinued brands accounted for a reduction of $22,932 in net sales for Q2 FY25, highlighting the effect of strategic business decisions[47] - The company reported a negative impact of $13.484 million from divestitures and exited product categories on net sales in Q2 FY26[49] - The impact of foreign currency exchange on net sales was $9.036 million in Q2 FY26[49] Cash Flow and Debt - Net cash provided by operating activities was $37 million, an increase from $31 million in the prior year period[12] - Free cash flow for the quarter was $30 million, compared to $25 million in the prior year[12] - Total debt remained stable at $705 million, with net debt decreasing to $637 million from $650 million at the beginning of the fiscal year[12] - Free cash flow for Q2 2026 was $36.97 million, an increase from $30.91 million in Q2 2025, showing improved cash generation from operations[35] - Net debt as of December 31, 2025, was $636.686 million, a decrease from $650.466 million as of June 30, 2025[55] Impairment and Goodwill - Goodwill impairment for Q2 2026 was $119.9 million, significantly higher than $91.3 million in Q2 2025, impacting overall financial performance[31] - The company incurred goodwill impairment charges of $119.908 million in Q2 FY26[51] Strategic Initiatives - The company is advancing its turnaround strategy, including the divestiture of its North American snack business to improve financial flexibility and margins[2] - The company continues to focus on organic net sales growth, excluding the impact of acquisitions and divestitures, to provide clearer insights into operational performance[29] - The company is focusing on productivity and transformation costs, which amounted to $5,234 thousand in Q2 FY26[42]

Net cash provided by operations in the quarter +20% year-over-year, demonstrating strong cash deliveryHOBOKEN, N.J., Feb. 09, 2026 (GLOBE NEWSWIRE) -- The Hain Celestial Group, Inc. (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, 2025. “We demonstrated meaningful strategic and operational progress in the second quarter and are advancing ou ...

Key Takeaways Hain agreed to sell brands including Garden Veggie, Terra and Garden of Eatin', for $115M cash.Hain's snacks delivered 22% of FY25 sales but minimal EBITDA, as Q1 FY26 net sales fell 12%.Hain plans to refocus on higher-margin tea, yogurt, baby and meal prep brands after divestiture.The Hain Celestial Group, Inc. (HAIN) has taken a decisive step to refine its business strategy by entering into a definitive agreement to sell its North American Snacks business, including the Garden Veggie Snack, ...

Core Viewpoint - Hain Celestial Group has agreed to sell its North American Snacks business to Snackruptors Inc. for $115 million in cash, aiming to strengthen its financial position and focus on core categories with better growth potential [1][2][5]. Financial Impact - The North American Snacks portfolio accounted for 22% of Hain Celestial's net sales in fiscal 2025 and 38% of the North America segment's net sales, but contributed negligibly to EBITDA over the past year [3]. - The remaining North American portfolio is expected to deliver EBITDA margins in the low double digits, supported by gross margins exceeding 30% [3]. Strategic Focus - Post-transaction, Hain Celestial will concentrate on flagship categories such as tea, yogurt, and baby/kids products, along with meal preparation platforms [4]. - Key brands in North America include Celestial Seasonings teas, The Greek Gods yogurt, Earth's Best Organic baby foods, and Spectrum Organic culinary oils [4]. Leadership Commentary - Alison Lewis, President and CEO of Hain Celestial, emphasized that the sale is a strategic move to sharpen focus on key markets and categories, with proceeds aimed at debt reduction to enhance financial flexibility and support sustainable growth [5]. - Rick Taborda, President of Snackruptors, expressed enthusiasm about acquiring the snack brands, highlighting their growth potential and fit with Snackruptors' existing business [5]. Transaction Details - The transaction is expected to close by February 28, 2026, pending customary closing conditions, with further details to be discussed in the upcoming Q2 Fiscal Year 2026 earnings call [5]. - Goldman Sachs & Co. LLC is acting as the financial advisor for Hain Celestial, while Cravath, Swaine & Moore LLP is providing legal counsel [6].

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]