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]

Group 1 - The article does not provide any specific content or key points related to a company or industry [1]

Financial Performance - Net sales decreased by 7% to $368 million in Q1 FY26 compared to the previous year[33] - Organic net sales decreased by 6% to $341 million in Q1 FY26[33] - Adjusted gross margin was 195% in Q1 FY26, a decrease of 120 bps[33] - Adjusted EBITDA decreased by 12% to $20 million in Q1 FY26[33] - Adjusted EBITDA margin was 54% in Q1 FY26, a decrease of 30 bps[33] - Adjusted net loss was -$7 million, and adjusted EPS was -$008[33] Segment Performance - North America organic net sales decreased by 7%[39] Adjusted EBITDA increased by 37%[39] - International organic net sales decreased by 4%[42] Adjusted EBITDA decreased by 38%[42] Strategic Initiatives - The company is targeting the elimination of approximately 30% of SKUs in North America through FY2027[18] - Productivity savings of approximately $67 million were delivered in FY2025, with a target of $60 million for FY2026[24] - Net debt was reduced by $15 million compared to the previous year[52]

Financial Performance - Net sales for the fiscal first quarter were $368 million, a decrease of 7% year-over-year, with organic net sales down 6%[6] - The net loss for the quarter was $21 million, compared to a net loss of $20 million in the prior year, with an adjusted net loss of $7 million versus $4 million in the prior year[6] - Net sales for Q1 FY26 were $367,883, a decrease of 6.8% compared to $394,596 in Q1 FY25[35] - The company reported a net loss of $20,625 in Q1 FY26, compared to a net loss of $19,663 in Q1 FY25[39] - The adjusted net loss for Q1 FY26 was $7,242, compared to an adjusted net loss of $3,808 in Q1 FY25[45] - North America net sales decreased by 11.8% to $203,920 in Q1 FY26, while international sales increased slightly by 0.3% to $163,963[48] Profitability Metrics - The gross profit margin was 18.5%, reflecting a 220-basis point decrease from the prior year, while adjusted gross profit margin was 19.5%, a 120-basis point decrease[6] - Adjusted EBITDA was $20 million, down from $22 million in the prior year, with an adjusted EBITDA margin of 8.3% compared to 5.4% in the prior year[11] - Adjusted EBITDA for Q1 FY26 was $19,732, reflecting an 11.8% decrease compared to $22,375 in Q1 FY25[41] - The company experienced a decrease in gross margin to 18.5% in Q1 FY26 from 20.7% in Q1 FY25[41] - Adjusted EBITDA in the North America segment increased by 37% to $17 million, driven by productivity savings and reduced SG&A expenses[11] Cash Flow and Debt - Free cash flow was negative $14 million, an improvement from negative $17 million in the prior year[13] - Cash and cash equivalents at the end of Q1 FY26 were $47,886, down from $56,853 at the end of Q1 FY25[39] - Free cash flow for Q1 FY26 was $(13,707), an improvement from $(16,544) in Q1 FY25[54] - Total debt at the end of the quarter was $716 million, up from $705 million at the beginning of the fiscal year[13] - Total debt as of September 30, 2025, was $716,210, with net debt at $668,324[56] - Long-term debt, less current portion, increased to $708,563 as of September 30, 2025, from $697,168 as of June 30, 2025[37] Sales Performance by Segment - North America segment net sales were $204 million, down 12% year-over-year, while International segment net sales were $164 million, flat year-over-year[8] - Organic net sales in North America decreased by 7%, primarily due to volume softness in snacks, while International organic net sales decreased by 4% driven by lower sales in baby & kids[9][12] - Organic net sales for Q1 FY26 were $341,495, down 5.8% from $362,517 in Q1 FY25[50] - The company reported a decline in organic net sales across all categories, with snacks down 17.2% and baby & kids down 9.5% in Q1 FY26[50] Other Key Metrics - The impact of divestitures and discontinued brands reduced consolidated net sales by $19,828 in Q1 FY26[48] - The impact of foreign currency exchange on consolidated net sales was a gain of $6,560 in Q1 FY26[48] - Total assets decreased to $1,582,899 as of September 30, 2025, from $1,603,278 as of June 30, 2025[37]