Financial Data and Key Metrics Changes - The company reported an organic net sales decline of 11% year over year for Q4 2025, driven by lower sales in both North America and international segments [24][27] - Adjusted gross margin decreased to 20.5%, down approximately 290 basis points year over year, attributed to lower volume mix, cost inflation, and higher trade spend [24][26] - Adjusted net loss was $2 million, or $0.02 per diluted share, compared to adjusted net income of $11 million, or $0.13 per diluted share in the prior year [26] - Adjusted EBITDA was $20 million, down from $40 million a year ago, with an adjusted EBITDA margin of 5.5% [26] Business Line Data and Key Metrics Changes - In North America, organic net sales declined 14% year over year, primarily due to lower sales in snacks and meal preparation products [27] - Adjusted gross margin in North America was 19.2%, a decrease of 340 basis points, with adjusted EBITDA of $10 million compared to $21 million in the prior year [27] - International organic net sales declined 6%, primarily driven by lower sales in meal preparation products and beverages, with adjusted gross margin at 22.1% [28] Market Data and Key Metrics Changes - The snacks category saw organic net sales growth down 19% year over year, attributed to velocity challenges and distribution losses [29] - The beverages category experienced a 3% decline in organic net sales, driven by softness in tea in North America and private label non-dairy beverages in Europe [30] - The company gained market share in the UK, particularly in the total UK business, despite challenges in other areas [5] Company Strategy and Development Direction - The company is focused on a turnaround strategy that includes optimizing cash, deleveraging the balance sheet, stabilizing sales, and improving profitability [6][21] - Key actions include streamlining the portfolio, accelerating brand renovation and innovation, and enhancing digital capabilities to grow e-commerce [10][21] - The company is exiting unprofitable or low-margin SKUs and businesses where it is structurally disadvantaged, such as the meat-free category in North America [12][11] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q4 performance, citing challenges in both North America and international segments [4][5] - The company is committed to decisive actions to improve its trajectory and financial health, with a focus on driving innovation and revenue growth management [10][17] - Future expectations include aggressive cost-cutting and improved performance in the second half of fiscal 2026 compared to the first half [33] Other Important Information - The company has implemented a restructuring program with expected charges of $100 million to $110 million by fiscal 2027 [25] - Free cash flow in Q4 was an outflow of $9 million, compared to an inflow of $31 million in the prior year [31] - The company closed the quarter with cash on hand of $54 million and net debt of $650 million, having reduced net debt by $14 million in the quarter [32] Q&A Session Summary Question: How does the company manage reinvestment in the context of a strained balance sheet? - Management emphasized the need for financial flexibility and tough decisions to focus investments on high-return areas [37][38] Question: What are the differences in the current strategy compared to the previous Hain Reimagined program? - Management highlighted a shift towards decisive actions, increased innovation, and local empowerment in the operating model [46][49] Question: What is the expected timeline for restructuring and CEO appointment? - The restructuring process is ongoing, with most changes effective between October 1 and November 1, while the CEO search is progressing in parallel with the strategic review [71][79]

Core Insights - Hain Celestial Group reported weaker-than-expected results for fiscal Q4 and the year ended June 30, 2025, primarily due to impairment charges and soft demand [1][2] Financial Performance - Q4 net sales were $363.348 million, down 13% year-over-year, missing analyst estimates of $371.46 million; organic net sales decreased 11% due to volume and mix declines [1] - The company incurred $252 million in pre-tax non-cash impairment charges, resulting in an adjusted net loss of $2 million, or 2 cents per share, compared to adjusted earnings of $11 million, or 13 cents per share, in the same quarter last year [2] - Adjusted EBITDA fell to $20 million from $40 million year-over-year [2] Segment Analysis - North American sales dropped 21% to $206 million, with organic sales down 14% due to declines in snacks and meal prep; gross margin contracted to 19.2% from 22.6% [3] - International sales remained nearly flat at $158 million, but organic sales decreased 6% due to weakness in meal prep and beverages; gross margin slipped to 22.1% from 24.8% [4] - By category, snacks dropped 23%, baby and kids declined 7%, beverages were flat, meal prep fell 6%, and personal care plunged 49% [4] Annual Overview - For fiscal 2025, net sales fell 10% year-over-year to $1.56 billion, with organic sales down 7% due to lower volume/mix and pricing pressure; net loss widened to $531 million, or $5.89 per share, compared to a loss of $75 million, or $0.84 per share, in fiscal 2024 [5] - Adjusted net income totaled $8 million, or $0.09 per share, down from $30 million, or $0.33 per share, a year ago; adjusted EBITDA decreased to $114 million from $155 million [5] Cash Flow and Debt - Operations provided net cash of $22 million for the year, down from $116 million a year earlier; free cash flow was negative $9 million for the quarter and negative $3 million for the year [6] - Total debt ended the year at $705 million, down from $744 million, with net debt at $650 million [6] Strategic Response - The Interim President and CEO outlined a turnaround strategy focused on optimizing cash, deleveraging the balance sheet, stabilizing sales, and improving profitability through portfolio streamlining, innovation, pricing, revenue growth management, productivity improvements, and digital capability enhancements [7]

Financial Performance - Net sales for Q4 2025 were $363 million, a decrease of 13% compared to the previous year[41] - Organic net sales for Q4 2025 were $332 million, an 11% decrease year-over-year[41] - Adjusted gross margin for Q4 2025 was 205%, a decrease of 290 basis points[41] - Adjusted EBITDA for Q4 2025 was $20 million, a 50% decrease year-over-year[41] - Adjusted net income for Q4 2025 was -$2 million[41] - Adjusted EPS for Q4 2025 was -$002[41] - Net debt decreased by $14 million in Q4 to $650 million[57, 59] Segment Performance - North America organic net sales for Q4 2025 were $184 million, a 14% decrease[46] - North America adjusted gross margin for Q4 2025 was 192%, a decrease of 340 basis points[46] - International organic net sales for Q4 2025 were $148 million, a 6% decrease[49] - International adjusted gross margin for Q4 2025 was 221%, a decrease of 270 basis points[49] Strategic Actions - The company is taking action to optimize cash, deleverage the balance sheet, stabilize sales, and improve profitability[12, 38] - The company is streamlining the business and reducing complexity through portfolio optimization[19, 22] - The company is focused on a turnaround strategy anchored on 5 actions to win in the marketplace[12, 13, 38]

Group 1 - As of September 15, 2025, two stocks in the consumer staples sector are signaling potential warnings for momentum-focused investors [1] - The Relative Strength Index (RSI) is a key momentum indicator, with values above 70 indicating that a stock may be overbought [2] - Hain Celestial Group is expected to report quarterly earnings of 3 cents per share on revenue of $371.46 million, with a recent stock gain of approximately 19% [6] - Hain Celestial's RSI value is 75.7, and its stock closed at $2.15 after a 1.4% increase [6] - Vita Coco Company has been upgraded from Neutral to Overweight by Piper Sandler, maintaining a price target of $39, with a stock gain of around 20% over the past month [6] - Vita Coco's RSI value is 71.9, and its stock closed at $39.57 after a 1.5% decrease [6]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Summarizes the CEO's strategic actions, Q4 and FY25 financial performance, and key cash flow and balance sheet metrics [CEO's Strategic Actions](index=1&type=section&id=CEO%27s%20Strategic%20Actions) Interim CEO Alison Lewis outlined a turnaround strategy focusing on cash optimization, deleveraging, sales stabilization, and profitability improvement - The company is taking decisive action to **optimize cash**, **delever the balance sheet**, **stabilize sales**, and **improve profitability**, acknowledging performance has not met expectations[2](index=2&type=chunk) - A leaner, more nimble regional operating model is being implemented, prioritizing speed, simplicity, and impact over global infrastructure[2](index=2&type=chunk) - The turnaround strategy is anchored on five actions: aggressively streamlining the portfolio, accelerating innovation, implementing pricing and revenue growth management, driving productivity and working capital efficiency, and enhancing digital capabilities[2](index=2&type=chunk) [Summary of Fiscal Fourth Quarter Results](index=1&type=section&id=Summary%20of%20Fiscal%20Fourth%20Quarter%20Results) Q4 FY25 saw significant declines in net sales and profitability, with a substantial net loss primarily due to impairment charges Fiscal Fourth Quarter 2025 Key Financial Highlights (YoY) | Metric | Q4 FY25 | Q4 FY24 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Net Sales (Millions USD) | $363 | $418.8 | -13% | | Organic Net Sales | - | - | -11% | | Gross Profit Margin | 20.5% | 23.4% | -290 bps | | Adjusted Gross Profit Margin | 20.5% | 23.4% | -290 bps | | Net Loss (Millions USD) | $(273) | $(3) | Significant increase | | Adjusted Net Loss (Millions USD) | $(2) | $11 (income) | Shift to loss | | Adjusted EBITDA (Millions USD) | $20 | $40 | -50% | | Loss per Diluted Share (USD) | $(3.06) | $(0.03) | Significant increase | | Adjusted Loss per Diluted Share (USD) | $(0.02) | $0.13 (EPS) | Shift to loss | - Net loss included pre-tax non-cash impairment charges of **$252 million** (**$248 million** after-tax) related to goodwill, certain intangible assets, and assets held for sale[5](index=5&type=chunk) [Summary of Fiscal Year 2025 Results](index=1&type=section&id=Summary%20of%20Fiscal%20Year%202025%20Results) Full fiscal year 2025 saw a **10% decline in net sales** and a substantial net loss, largely due to significant impairment charges Fiscal Year 2025 Key Financial Highlights (YoY) | Metric | FY25 | FY24 | Change (YoY) | | :----- | :--- | :--- | :----------- | | Net Sales (Millions USD) | $1,560 | $1,736.3 | -10% | | Organic Net Sales | - | - | -7% | | Gross Profit Margin | 21.4% | 21.9% | -50 bps | | Adjusted Gross Profit Margin | 21.5% | 22.4% | -90 bps | | Net Loss (Millions USD) | $(531) | $(75) | Significant increase | | Adjusted Net Income (Millions USD) | $8 | $30 | -73.3% | | Adjusted EBITDA (Millions USD) | $114 | $155 | -26.4% | | Loss per Diluted Share (USD) | $(5.89) | $(0.84) | Significant increase | | Adjusted EPS (USD) | $0.09 | $0.33 | -72.7% | - Net loss included pre-tax non-cash impairment charges of **$496 million** (**$486 million** after-tax) related to goodwill, certain intangible assets, and assets held for sale[9](index=9&type=chunk) [Cash Flow and Balance Sheet Highlights](index=2&type=section&id=Cash%20Flow%20and%20Balance%20Sheet%20Highlights) The company saw a shift to negative operating cash flow and free cash flow, while total debt and net debt decreased Cash Flow and Debt Metrics | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :----- | :------ | :------ | :--- | :--- | | Net cash (used in) provided by operating activities (Millions USD) | $(3) | $39 | $22 | $116 | | Free cash flow (Millions USD) | $(9) | $31 | $(3) | $83 | | Total debt (end of Q4, Millions USD) | $705 | $744 (beginning of FY) | - | - | | Net debt (end of Q4, Millions USD) | $650 | $690 (beginning of FY) | - | - | | Net secured leverage ratio (end of Q4) | 4.7x | - | - | - | [Segment Performance](index=2&type=section&id=SEGMENT%20HIGHLIGHTS) This section details the financial performance of the North America and International segments for Q4 and full fiscal year 2025 [North America Segment](index=2&type=section&id=North%20America) North America segment experienced significant organic net sales declines in Q4 and FY25, impacting gross profit and Adjusted EBITDA [Q4 FY25 Performance](index=2&type=section&id=North%20America%20Q4%20FY25%20Performance) Details the North America segment's financial performance for the fourth quarter of fiscal year 2025 North America Segment Q4 FY25 Performance (YoY) | Metric | Q4 FY25 | Q4 FY24 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Organic Net Sales Growth | -14% | - | - | | Segment Gross Profit (Millions USD) | $40 | $58.6 | -33% | | Adjusted Gross Profit (Millions USD) | $40 | $58.6 | -32.6% | | Gross Margin | 19.2% | 22.6% | -340 bps | | Adjusted Gross Margin | 19.2% | 22.6% | -340 bps | | Adjusted EBITDA (Millions USD) | $10 | $21 | -50.2% | | Adjusted EBITDA Margin | 5.1% | 8.0% | -290 bps | - The decrease in organic net sales was primarily driven by lower sales in **snacks** and, to a lesser extent, **meal prep**[9](index=9&type=chunk) - Decreases in margin and Adjusted EBITDA were primarily driven by lower volume/mix and higher trade spend, partially offset by productivity and reduced SG&A expenses[10](index=10&type=chunk) [FY25 Performance](index=3&type=section&id=North%20America%20FY25%20Performance) Details the North America segment's financial performance for the full fiscal year 2025 North America Segment FY25 Performance (YoY) | Metric | FY25 | FY24 | Change (YoY) | | :----- | :--- | :--- | :----------- | | Organic Net Sales Growth | -9% | - | - | | Segment Gross Profit (Millions USD) | $193 | $230.7 | -16% | | Adjusted Gross Profit (Millions USD) | $195 | $238.8 | -18.5% | | Gross Margin | 21.7% | 21.9% | -20 bps | | Adjusted Gross Margin | 21.9% | 22.6% | -70 bps | | Adjusted EBITDA (Millions USD) | $65 | $99 | -33.7% | | Adjusted EBITDA Margin | 7.4% | 9.4% | -200 bps | - Fiscal 2025 organic net sales decreased by **9%** year-over-year, primarily driven by lower sales in **snacks** and, to a lesser extent, **meal prep**[11](index=11&type=chunk) - Decreases in margin and Adjusted EBITDA were primarily driven by lower volume/mix, higher trade spend, and cost inflation, partially offset by productivity and reduced SG&A[12](index=12&type=chunk)[13](index=13&type=chunk) [International Segment](index=3&type=section&id=International) International segment experienced organic net sales declines in Q4 and FY25, impacting gross profit and Adjusted EBITDA [Q4 FY25 Performance](index=3&type=section&id=International%20Q4%20FY25%20Performance) Details the International segment's financial performance for the fourth quarter of fiscal year 2025 International Segment Q4 FY25 Performance (YoY) | Metric | Q4 FY25 | Q4 FY24 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Organic Net Sales Growth | -6% | - | - | | Segment Gross Profit (Millions USD) | $35 | $39.4 | -12% | | Adjusted Gross Profit (Millions USD) | $35 | $39.4 | -11.7% | | Gross Margin | 22.1% | 24.8% | -270 bps | | Adjusted Gross Margin | 22.1% | 24.8% | -270 bps | | Adjusted EBITDA (Millions USD) | $21 | $27 | -22.5% | | Adjusted EBITDA Margin | 13.3% | 17.0% | -370 bps | - Fiscal fourth quarter organic net sales decreased by **6%** year-over-year, primarily driven by lower sales in **meal prep** and **beverages**[14](index=14&type=chunk) - Decreases in margin and Adjusted EBITDA were primarily driven by cost inflation and lower volume/mix, partially offset by productivity and net pricing[15](index=15&type=chunk)[16](index=16&type=chunk) [FY25 Performance](index=3&type=section&id=International%20FY25%20Performance) Details the International segment's financial performance for the full fiscal year 2025 International Segment FY25 Performance (YoY) | Metric | FY25 | FY24 | Change (YoY) | | :----- | :--- | :--- | :----------- | | Organic Net Sales Growth | -3% | - | - | | Segment Gross Profit (Millions USD) | $141 | $150.1 | -6% | | Adjusted Gross Profit (Millions USD) | $141 | $150.9 | -6.5% | | Gross Margin | 21.0% | 22.1% | -110 bps | | Adjusted Gross Margin | 21.0% | 22.2% | -110 bps | | Adjusted EBITDA (Millions USD) | $86 | $95 | -9.4% | | Adjusted EBITDA Margin | 12.8% | 14.0% | -120 bps | - Fiscal 2025 organic net sales decreased by **3%** year-over-year, primarily driven by lower sales in **meal prep** and **beverages**[16](index=16&type=chunk) - Decreases in margin and Adjusted EBITDA were primarily driven by cost inflation and volume/mix softness, partially offset by productivity and pricing[17](index=17&type=chunk)[18](index=18&type=chunk) [Category Performance](index=3&type=section&id=CATEGORY%20HIGHLIGHTS) This section highlights the organic net sales performance across key product categories for Q4 and full fiscal year 2025 [Snacks Category](index=4&type=section&id=Snacks) Snacks category experienced significant organic net sales declines in Q4 and FY25 due to velocity challenges and distribution losses Snacks Category Organic Net Sales Decline | Period | Organic Net Sales Decline (YoY) | | :----- | :------------------------------ | | Q4 FY25 | -19% | | FY25 | -14% | - Declines were driven by **velocity challenges** and **distribution losses**[21](index=21&type=chunk) [Baby & Kids Category](index=4&type=section&id=Baby%20%26%20Kids) Baby & Kids category saw organic net sales declines in Q4 and FY25, mainly due to puree softness, partially offset by snack growth Baby & Kids Category Organic Net Sales Decline | Period | Organic Net Sales Decline (YoY) | | :----- | :------------------------------ | | Q4 FY25 | -9% | | FY25 | -5% | - Declines were driven by softness in **purees** in both North America (partially due to strategic SKU reductions) and International segments[22](index=22&type=chunk)[23](index=23&type=chunk) - The FY25 decline was partially offset by growth in **snacks** in both Earth's Best and Ella's Kitchen[23](index=23&type=chunk) [Beverages Category](index=4&type=section&id=Beverages) Beverages category experienced a **3% organic net sales decline** in Q4 and FY25, driven by softness in tea and non-dairy beverages Beverages Category Organic Net Sales Decline | Period | Organic Net Sales Decline (YoY) | | :----- | :------------------------------ | | Q4 FY25 | -3% | | FY25 | -3% | - Declines were driven by softness in **tea** in North America and **private label non-dairy beverages** in Europe[24](index=24&type=chunk) [Meal Prep Category](index=4&type=section&id=Meal%20Prep) Meal Prep category saw organic net sales declines in Q4 and FY25, mainly due to softness in oils, nut butters, and meat-free products Meal Prep Category Organic Net Sales Decline | Period | Organic Net Sales Decline (YoY) | | :----- | :------------------------------ | | Q4 FY25 | -8% | | FY25 | -4% | - Q4 decline was primarily driven by softness in **oils and nut butters** in North America and **meat-free products** in the UK, partially offset by continued growth in **yogurt** in North America[25](index=25&type=chunk) - FY25 decline was primarily driven by softness in **meat-free** and **private label spreads and drizzles** in the UK and **oils and nut butters** in North America, partially offset by growth in **soups** in the UK and **yogurt** in North America[26](index=26&type=chunk) [Personal Care Category](index=4&type=section&id=Personal%20Care) Personal Care category experienced significant reported net sales declines in Q4 and FY25, as it is held for sale Personal Care Category Reported Net Sales Decline | Period | Reported Net Sales Decline (YoY) | | :----- | :------------------------------- | | Q4 FY25 | -49% | | FY25 | -41% | - Personal Care is a **held for sale business**, and organic net sales data is not applicable[8](index=8&type=chunk)[20](index=20&type=chunk)[57](index=57&type=chunk) [Credit Agreement Amendment](index=4&type=section&id=CREDIT%20AGREEMENT%20AMENDMENT) This section outlines the recent amendment to the company's credit agreement, enhancing operational flexibility [Credit Agreement Amendment Details](index=4&type=section&id=Credit%20Agreement%20Amendment%20Details) The company amended its credit agreement to increase operational flexibility, setting a maximum net secured leverage ratio of **5.50x** - The company amended its credit agreement to provide for increased operational flexibility[27](index=27&type=chunk) - The amended credit agreement sets a maximum net secured leverage ratio of **5.50x** for the quarter ending September 30, 2025, and thereafter[27](index=27&type=chunk) [Company Information](index=5&type=section&id=Company%20Information) This section provides details on the conference call and an overview of The Hain Celestial Group [Conference Call and Webcast Information](index=5&type=section&id=Conference%20Call%20and%20Webcast%20Information) Hain Celestial hosted a conference call and webcast on September 15, 2025, to discuss financial results and business outlook - Hain Celestial hosted a conference call and webcast on **September 15, 2025**, at **8:00 AM ET** to discuss results and business outlook[28](index=28&type=chunk) - A replay of the call was available shortly after the conclusion of the live call through **Monday, September 22nd, 2025**[28](index=28&type=chunk) [About The Hain Celestial Group](index=5&type=section&id=About%20The%20Hain%20Celestial%20Group) The Hain Celestial Group is a global health and wellness company headquartered in Hoboken, N.J., marketing products in over 70 countries - Hain Celestial Group is a leading health and wellness company inspiring healthier living through better-for-you brands[29](index=29&type=chunk) - Headquartered in **Hoboken, N.J.**, Hain Celestial's products across snacks, baby/kids, beverages, and meal preparation are marketed and sold in over **70 countries** globally[29](index=29&type=chunk) - Leading brands include Garden Veggie Snacks™, Terra® chips, Earth's Best® Organic and Ella's Kitchen® baby and kids foods, Celestial Seasonings® teas, Joya® and Natumi® plant-based beverages, The Greek Gods® yogurt, Cully & Sully®, Yorkshire Provender®, New Covent Garden® and Imagine® soups, among others[29](index=29&type=chunk) [Legal and Non-GAAP Disclosures](index=5&type=section&id=Legal%20and%20Non-GAAP%20Disclosures) This section provides important disclosures regarding forward-looking statements and the company's use of non-GAAP financial measures [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section discusses forward-looking statements, highlighting risks such as competition, consumer preferences, and supply chain issues - This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, involving risks, uncertainties, and assumptions[30](index=30&type=chunk) - Risks and uncertainties that may cause actual results to differ materially include challenges from **competition**, changes to **consumer preferences**, ability to execute business strategy, **supply chain effectiveness**, **input cost inflation**, and compliance with the credit agreement[31](index=31&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes various non-GAAP financial measures to supplement GAAP reporting, providing additional insights into operations and financial condition [Definitions of Non-GAAP Measures](index=6&type=section&id=Definitions%20of%20Non-GAAP%20Measures) This section provides clear definitions for the various non-GAAP financial measures used by the company - **Organic net sales** exclude the impact of acquisitions, divestitures, held for sale businesses, discontinued brands, exited product categories, and foreign exchange[34](index=34&type=chunk) - **Adjusted gross profit** and its related margin exclude plant closure related costs, net, warehouse and manufacturing consolidation and other costs, net, and other costs[34](index=34&type=chunk) - **Adjusted EBITDA** and its related margin exclude net interest expense, income taxes, depreciation and amortization, equity in net loss of equity-method investees, stock-based compensation, and various other non-recurring or non-operational items[34](index=34&type=chunk)[35](index=35&type=chunk) - **Free cash flow** is defined as net cash (used in) provided by operating activities less purchases of property, plant, and equipment[37](index=37&type=chunk) - **Net debt** is defined as total debt less cash and cash equivalents[37](index=37&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated statements of operations, balance sheets, and cash flows [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated statements of operations show significant net loss increases for Q4 and FY25, driven by impairment charges Consolidated Statements of Operations Summary (in thousands) | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :----- | :------ | :------ | :--- | :--- | | Net sales (Thousands USD) | $363,348 | $418,799 | $1,559,780 | $1,736,286 | | Cost of sales (Thousands USD) | 289,002 | 320,796 | 1,225,722 | 1,355,454 | | Gross profit (Thousands USD) | 74,346 | 98,003 | 334,058 | 380,832 | | Operating (loss) income (Thousands USD) | (251,678) | 12,012 | (461,603) | (18,948) | | Net loss (Thousands USD) | $(272,615) | $(2,937) | $(530,841) | $(75,042) | | Loss per diluted share (USD) | $(3.06) | $(0.03) | $(5.89) | $(0.84) | | Goodwill impairment (Thousands USD) | $227,364 | - | $428,882 | - | | Intangibles and long-lived asset impairment (Thousands USD) | $24,911 | $5,357 | $66,940 | $76,143 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Consolidated balance sheets show decreased total assets, primarily from reduced goodwill, and a substantial reduction in stockholders' equity Consolidated Balance Sheets Summary (in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :----- | :------------ | :------------ | | Total assets (Thousands USD) | $1,603,278 | $2,117,548 | | Goodwill (Thousands USD) | $500,961 | $929,304 | | Trademarks and other intangible assets, net (Thousands USD) | $210,905 | $244,799 | | Total liabilities (Thousands USD) | $1,128,273 | $1,174,635 | | Total stockholders' equity (Thousands USD) | $475,005 | $942,913 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated cash flows show a shift to net cash used in operating activities for Q4 FY25 and lower cash provided for FY25 Consolidated Statements of Cash Flows Summary (in thousands) | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :----- | :------ | :------ | :--- | :--- | | Net cash (used in) provided by operating activities (Thousands USD) | $(2,648) | $39,396 | $22,115 | $116,355 | | Net cash provided by (used in) investing activities (Thousands USD) | $3,973 | $(673) | $3,619 | $(23,922) | | Net cash used in financing activities (Thousands USD) | $(7,411) | $(33,629) | $(43,886) | $(89,729) | | Net increase in cash and cash equivalents (Thousands USD) | $9,930 | $4,758 | $48 | $943 | [Segment and Category Financial Details (Non-GAAP)](index=11&type=section&id=Segment%20and%20Category%20Financial%20Details%20%28Non-GAAP%29) This section provides detailed non-GAAP financial metrics for segments and categories, including reconciliations and organic net sales [Net Sales, Gross Profit and Adjusted EBITDA by Segment (Q4 FY25)](index=11&type=section&id=Net%20Sales%2C%20Gross%20Profit%20and%20Adjusted%20EBITDA%20by%20Segment%20Q4%20FY25) Detailed Q4 FY25 net sales, gross profit, and Adjusted EBITDA by segment, showing significant declines, especially in North America Net Sales, Gross Profit and Adjusted EBITDA by Segment (Q4 FY25, in thousands) | Metric | North America (Q4 FY25) | International (Q4 FY25) | Consolidated (Q4 FY25) | | :----- | :---------------------- | :---------------------- | :--------------------- | | Net Sales (Thousands USD) | $205,790 | $157,558 | $363,348 | | % change Y/Y | (20.8)% | (1.0)% | (13.2)% | | Gross profit (Thousands USD) | $39,522 | $34,824 | $74,346 | | Adjusted gross profit (Thousands USD) | $39,507 | $34,824 | $74,331 | | Gross margin | 19.2% | 22.1% | 20.5% | | Adjusted gross margin | 19.2% | 22.1% | 20.5% | | Adjusted EBITDA (Thousands USD) | $10,398 | $20,938 | $19,906 | | % change Y/Y | (50.2)% | (22.5)% | (49.7)% | | Adjusted EBITDA margin | 5.1% | 13.3% | 5.5% | [Net Sales, Gross Profit and Adjusted EBITDA by Segment (FY25 YTD)](index=12&type=section&id=Net%20Sales%2C%20Gross%20Profit%20and%20Adjusted%20EBITDA%20by%20Segment%20FY25%20YTD) Detailed FY25 year-to-date net sales, gross profit, and Adjusted EBITDA by segment, showing overall declines, especially in North America Net Sales, Gross Profit and Adjusted EBITDA by Segment (FY25 YTD, in thousands) | Metric | North America (FY25 YTD) | International (FY25 YTD) | Consolidated (FY25 YTD) | | :----- | :----------------------- | :----------------------- | :---------------------- | | Net Sales (Thousands USD) | $888,626 | $671,154 | $1,559,780 | | % change Y/Y | (15.8)% | (1.4)% | (10.2)% | | Gross profit (Thousands USD) | $192,910 | $141,148 | $334,058 | | Adjusted gross profit (Thousands USD) | $194,674 | $141,148 | $335,822 | | Gross margin | 21.7% | 21.0% | 21.4% | | Adjusted gross margin | 21.9% | 21.0% | 21.5% | | Adjusted EBITDA (Thousands USD) | $65,470 | $86,000 | $113,789 | | % change Y/Y | (33.7)% | (9.4)% | (26.4)% | | Adjusted EBITDA margin | 7.4% | 12.8% | 7.3% | [Adjusted Gross Profit and Adjusted Operating Income Reconciliations](index=13&type=section&id=Adjusted%20Gross%20Profit%20and%20Adjusted%20Operating%20Income) Reconciles GAAP gross profit and operating income to adjusted non-GAAP figures, detailing adjustments for various costs and charges Reconciliation of Gross Profit (in thousands) | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :----- | :------ | :------ | :--- | :--- | | Gross profit, GAAP (Thousands USD) | $74,346 | $98,003 | $334,058 | $380,832 | | Adjustments to Cost of sales (Thousands USD) | (15) | (12) | 1,764 | 8,961 | | Gross profit, as adjusted (Thousands USD) | $74,331 | $97,991 | $335,822 | $389,793 | Reconciliation of Operating (Loss) Income (in thousands) | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :----- | :------ | :------ | :--- | :--- | | Operating (loss) income, GAAP (Thousands USD) | $(251,678) | $12,012 | $(461,603) | $(18,948) | | Total Adjustments (Thousands USD) | $263,373 | $15,487 | $526,710 | $120,227 | | Operating income, as adjusted (Thousands USD) | $11,695 | $27,499 | $65,107 | $101,279 | [Adjusted Net (Loss) Income and Adjusted Net (Loss) Income per Diluted Share Reconciliations](index=14&type=section&id=Adjusted%20Net%20%28Loss%29%20Income%20and%20Adjusted%20Net%20%28Loss%29%20Income%20per%20Diluted%20Share) Reconciles GAAP net loss to adjusted net (loss) income and diluted EPS, detailing the impact of non-GAAP adjustments Reconciliation of Net Loss to Adjusted Net (Loss) Income (in thousands) | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :----- | :------ | :------ | :--- | :--- | | Net loss, GAAP (Thousands USD) | $(272,615) | $(2,937) | $(530,841) | $(75,042) | | Total Adjustments (Thousands USD) | $270,931 | $14,269 | $538,910 | $105,015 | | Net (loss) income, as adjusted (Thousands USD) | $(1,684) | $11,332 | $8,069 | $29,973 | Diluted Net (Loss) Income per Common Share (Adjusted) | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :----- | :------ | :------ | :--- | :--- | | Diluted net loss per common share, GAAP (USD) | $(3.06) | $(0.03) | $(5.89) | $(0.84) | | Diluted net (loss) income per common share, as adjusted (USD) | $(0.02) | $0.13 | $0.09 | $0.33 | [Organic Net Sales Growth by Segment](index=15&type=section&id=Organic%20Net%20Sales%20Growth%20by%20Segment) Detailed organic net sales growth by segment for Q4 FY25 and FY25 YTD, showing impacts of divestitures and FX Organic Net Sales Growth by Segment (Q4 FY25, in thousands) | Metric | North America | International | Hain Consolidated | | :----- | :------------ | :------------ | :---------------- | | Net sales (Thousands USD) | $205,790 | $157,558 | $363,348 | | Less: Impact of divestitures, held for sale businesses, discontinued brands and exited product categories (Thousands USD) | 21,976 | 935 | 22,911 | | Less: Impact of foreign currency exchange (Thousands USD) | (224) | 8,353 | 8,129 | | Organic net sales (Thousands USD) | $184,038 | $148,270 | $332,308 | | Organic net sales decline | (14.4)% | (5.9)% | (10.8)% | Organic Net Sales Growth by Segment (FY25 YTD, in thousands) | Metric | North America | International | Hain Consolidated | | :----- | :------------ | :------------ | :---------------- | | Net sales (Thousands USD) | $888,626 | $671,154 | $1,559,780 | | Less: Impact of divestitures, held for sale businesses, discontinued brands and exited product categories (Thousands USD) | 101,789 | 2,771 | 104,560 | | Less: Impact of foreign currency exchange (Thousands USD) | (2,074) | 13,691 | 11,617 | | Organic net sales (Thousands USD) | $788,911 | $654,692 | $1,443,603 | | Organic net sales decline | (9.2)% | (3.2)% | (6.5)% | [Organic Net Sales Growth by Category](index=16&type=section&id=Organic%20Net%20Sales%20Growth%20by%20Category) Detailed organic net sales growth by product category for Q4 FY25 and FY25 YTD, illustrating adjusted performance Organic Net Sales Growth by Category (Q4 FY25, in thousands) | Category | Net sales (Thousands USD) | Organic net sales (Thousands USD) | Organic net sales decline | | :------- | :------------------------ | :-------------------------------- | :------------------------ | | Snacks | $93,324 | $92,881 | (19.1)% | | Baby & Kids | $59,327 | $57,852 | (9.3)% | | Beverages | $55,783 | $54,135 | (3.1)% | | Meal Prep | $140,196 | $127,440 | (7.6)% | | Personal Care | $14,718 | $- | n/a | | Consolidated | $363,348 | $332,308 | (10.8)% | Organic Net Sales Growth by Category (FY25 YTD, in thousands) | Category | Net sales (Thousands USD) | Organic net sales (Thousands USD) | Organic net sales decline | | :------- | :------------------------ | :-------------------------------- | :------------------------ | | Snacks | $371,012 | $367,460 | (13.6)% | | Baby & Kids | $241,552 | $238,742 | (4.8)% | | Beverages | $245,147 | $244,438 | (3.4)% | | Meal Prep | $639,507 | $592,963 | (3.7)% | | Personal Care | $62,562 | $- | n/a | | Consolidated | $1,559,780 | $1,443,603 | (6.5)% | [Adjusted EBITDA Reconciliation](index=17&type=section&id=Adjusted%20EBITDA) Detailed reconciliation of GAAP net loss to Adjusted EBITDA for Q4 FY25 and FY25 YTD, outlining specific adjustments Adjusted EBITDA Reconciliation (in thousands) | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :----- | :------ | :------ | :--- | :--- | | Net loss (Thousands USD) | $(272,615) | $(2,937) | $(530,841) | $(75,042) | | Depreciation and amortization (Thousands USD) | 11,357 | 10,305 | 44,259 | 44,665 | | Interest expense, net (Thousands USD) | 11,689 | 12,954 | 47,773 | 54,232 | | Provision (benefit) for income taxes (Thousands USD) | 9,551 | (3,292) | 15,297 | (7,820) | | Goodwill impairment (Thousands USD) | 227,364 | - | 428,882 | - | | Intangibles and long-lived asset impairment (Thousands USD) | 24,911 | 5,357 | 66,940 | 76,143 | | Other adjustments (net) (Thousands USD) | 7,649 | 16,857 | 40,279 | 52,344 | | Adjusted EBITDA (Thousands USD) | $19,906 | $39,544 | $113,789 | $154,522 | [Free Cash Flow](index=18&type=section&id=Free%20Cash%20Flow) Free cash flow was negative for Q4 FY25 and full fiscal year 2025, a significant decrease from prior periods Free Cash Flow (in thousands) | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :----- | :------ | :------ | :--- | :--- | | Net cash (used in) provided by operating activities (Thousands USD) | $(2,648) | $39,396 | $22,115 | $116,355 | | Purchases of property, plant and equipment (Thousands USD) | (6,224) | (8,692) | (25,284) | (33,461) | | Free cash flow (Thousands USD) | $(8,872) | $30,704 | $(3,169) | $82,894 | [Net Debt](index=20&type=section&id=Net%20Debt) Total debt and net debt decreased from June 30, 2024, to June 30, 2025, reflecting deleveraging efforts Net Debt (in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :----- | :------------ | :------------ | | Total debt (Thousands USD) | $704,821 | $744,092 | | Less: Cash and cash equivalents (Thousands USD) | 54,355 | 54,307 | | Net debt (Thousands USD) | $650,466 | $689,785 |

Core Insights - The Hain Celestial Group reported disappointing financial results for the fiscal fourth quarter and fiscal year ended June 30, 2025, with significant declines in net sales and increased net losses [1][6][12]. Financial Highlights - Net sales for Q4 FY25 were $363 million, a decrease of 13% year-over-year, while net sales for the full fiscal year were $1,560 million, down 10% from the previous year [6][12]. - The company experienced a net loss of $273 million in Q4 FY25 compared to a net loss of $3 million in the prior year, and a net loss of $531 million for the full fiscal year compared to a net loss of $75 million in the previous year [6][12]. - Adjusted EBITDA for Q4 FY25 was $20 million, down from $40 million in the prior year, and for the full fiscal year, it was $114 million compared to $155 million in the previous year [6][12][14]. Segment Performance - North America segment net sales in Q4 FY25 were $206 million, down 21% year-over-year, while the International segment reported $158 million, a decrease of 1% [8][10]. - Organic net sales in North America decreased by 14% in Q4 FY25, primarily due to lower sales in snacks and meal prep [10][12]. - The International segment saw a 6% decline in organic net sales in Q4 FY25, driven by lower sales in meal prep and beverages [15][17]. Cash Flow and Balance Sheet - Net cash used in operating activities in Q4 FY25 was $3 million, a significant drop from $39 million provided in the prior year [5][12]. - Total debt at the end of Q4 FY25 was $705 million, down from $744 million at the beginning of the fiscal year, with a net secured leverage ratio of 4.7x [13][12]. Strategic Actions - The company is implementing a turnaround strategy focused on five key actions: streamlining the portfolio, accelerating innovation, implementing pricing strategies, enhancing productivity, and improving digital capabilities [2][12]. - A recent amendment to the credit agreement allows for increased operational flexibility, setting a maximum net secured leverage ratio of 5.50x for the quarter ending September 30, 2025 [29].

Group 1 - U.S. stock futures are trading slightly higher, indicating a positive market sentiment [1] - Hain Celestial Group Inc. is expected to report quarterly earnings of 3 cents per share on revenue of $371.46 million, with shares gaining 1.9% to $2.19 in after-hours trading [2] - MBody AI and Check Cap Ltd. have entered into a definitive merger agreement, resulting in Check-Cap shares jumping 206.3% to $2.27 in after-hours trading [2] - High Tide Inc. is anticipated to post a quarterly loss of 1 cent per share on revenue of $107.31 million, with shares gaining 2% to $3.50 in after-hours trading [2] - Multi Ways Holdings Ltd. reported a registered direct offering of $1.49 million for 9 million shares and warrants, leading to a 17.8% dip in shares to $0.28 in after-hours trading [2] - Dave & Buster's Entertainment Inc. is expected to report quarterly earnings of 92 cents per share on revenue of $562.78 million, with shares gaining 0.3% to $23.70 in after-hours trading [2]

Core Insights - Hain Celestial Group, Inc. is facing intensified competition in the organic and natural products sector, with a significant decline in expected earnings and revenue for Q4 fiscal 2025 [1][2][3] Financial Performance - Wall Street estimates Hain's earnings per share (EPS) to be $0.04, representing a 69.2% drop from the previous year's quarter [2][3][6] - Projected revenue for Q4 is approximately $371.6 million, indicating a 10.4% decrease year-over-year [2][6] - For the entire fiscal year 2025, the revenue estimate stands at $1.57 billion, reflecting a 9.5% decline [4] Market Position - Hain Celestial has a history of negative earnings surprises, averaging 28.1% over the past four quarters [4] - Despite challenges, the company is experiencing growth in its international categories, which may help mitigate domestic struggles [3] Valuation Metrics - The company has a negative price-to-earnings (P/E) ratio of approximately -0.73, indicating current losses [5][6] - The price-to-sales ratio is 0.12, suggesting the stock is undervalued compared to its sales [5] - The debt-to-equity ratio is 1.11, indicating a moderate level of debt, while the current ratio of 1.81 suggests good liquidity [5]

Core Insights - Hain Celestial Group, Inc. is expected to report a decline in both revenue and earnings for the fourth quarter of fiscal 2025, with revenue estimates at $375.4 million, reflecting a 10.4% decrease from the previous year [1][10] - The earnings consensus for the quarter remains at 4 cents per share, indicating a significant 69.2% drop compared to the same quarter last year [2][10] - For the full fiscal year 2025, revenue estimates are projected at $1.57 billion, a 9.5% decline year-over-year, with earnings expected to be 15 cents per share, down 54.6% from the prior year [3] Operational Challenges - Hain Celestial faces execution challenges in its North American portfolio, particularly in the Snacks, Baby and Kids, and Celestial Seasonings tea segments, attributed to ineffective promotions and intense competition [4] - The company anticipates organic net sales to decline by 5% to 6% for fiscal 2025, with adjusted EBITDA projected around $125 million, indicating slower volume recovery and weaker performance in North America [5] Positive Developments - Despite challenges in North America, international operations have shown growth, particularly in branded soup, non-dairy beverages, and yogurt categories [6] - The company's focus on simplifying its structure, improving supply-chain efficiency, and enhancing digital and e-commerce capabilities is seen as a positive step forward [6] Earnings Prediction - Current analysis does not predict an earnings beat for Hain Celestial, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [7]

Group 1 - Hain Celestial Group, Inc. is set to release its fourth-quarter earnings results on September 15, with analysts expecting earnings of 3 cents per share, a decrease from 13 cents per share in the same period last year [1] - The projected quarterly revenue for Hain Celestial is $371.58 million, down from $418.8 million a year earlier [1] - The company reported worse-than-expected third-quarter results on May 7 and announced the departure of its CEO [2] Group 2 - Mizuho analyst John Baumgartner maintained a Neutral rating and reduced the price target from $3 to $2.5 [4] - Piper Sandler analyst Michael Lavery also maintained a Neutral rating, lowering the price target from $2 to $1.8 [4] - JP Morgan analyst Ken Goldman kept a Neutral rating and cut the price target from $6 to $5 [4]