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]

Core Insights - Earth's Best has achieved Clean Label Project Purity Awards for its entire line of infant formulas, marking the first certifications for the brand and its parent company, Hain Celestial [2][3] - The brand has been recognized as the 1 Organic Formula by What to Expect and BabyCenter, and its Organic Dairy Infant Formula was named a "Top Choice" by Consumer Reports after testing over 40 baby formulas [3] Product Quality and Ingredients - Earth's Best's USDA certified organic formulas are made with non-GMO ingredients and milk from grass-fed cows, providing 30 vitamins and minerals essential for infant growth and development [4] - The formulas are designed to be easy to digest and include Omega-3 DHA and Omega-6 ARA to support brain and eye development [4] Company Overview - Hain Celestial Group is a leading health and wellness company focused on inspiring healthier living through better-for-you brands, with products marketed in over 70 countries [6] - The company has a diverse portfolio that includes snacks, baby/kids products, beverages, meal preparation, and personal care items [6]

Industry Overview - The natural foods industry has transitioned from a niche market to a mainstream sector due to increased health awareness and environmental concerns among consumers [2] - There is a rising emphasis on clean eating, sustainability, and ethical sourcing, leading to the popularity of natural and organic food products [2] - Consumers are increasingly seeking transparency in sourcing and minimal processing, preferring organic, non-GMO, and preservative-free options [3] Market Growth Drivers - Governments worldwide are encouraging clean eating and implementing stricter food labeling regulations, which further boost market growth [3] - Natural food companies are experiencing increased brand loyalty and the ability to charge premium prices due to these trends [3] - The global healthy foods market is projected to reach $2.26 trillion by 2035, indicating significant growth potential [5] Company Responses - Companies like General Mills and Beyond Meat are responding to the demand for organic, clean-label, and ethically sourced foods [4] - Firms are investing in plant-based alternatives, functional foods, and sustainable farming technologies to meet consumer preferences [5] Key Players - Hain Celestial is a pioneer in the natural and organic food space, focusing on high-growth segments like infant nutrition and snacks [7] - Vital Farms emphasizes transparency and ethical farming practices, with a strong position in pasture-raised eggs and a goal of $1 billion in net revenues by 2027 [10][12] - Sprouts Farmers Market is recognized for its unique leadership in the natural and organic grocery segment, focusing on fresh, local, and innovative products [13] - United Natural Foods is advancing the natural and organic food movement through its wholesale distribution network, achieving 12% sales growth in its Wholesale Natural Products segment [16] Innovation and Infrastructure - Companies are investing in infrastructure and supply chain improvements to meet surging consumer demand while maintaining quality [11][15] - Hain Celestial is focusing on innovation and operational productivity to enhance competitiveness in the natural and organic category [9] - Vital Farms is scaling its supply chain by partnering with over 500 family farms and investing in production capacity [11] - Sprouts Farmers is launching over 350 new products in 2025, emphasizing organic certification and high-protein formulations [14] - United Natural Foods is streamlining processes through Lean Daily Management to improve service levels and ensure efficient delivery of products [17][18]

Core Points - Hain Celestial Group will release its fiscal fourth quarter and full year financial results on September 15, 2025, before market opens [1] - The company is now classified as an accelerated filer under SEC rules [1] - A conference call to discuss the results will be held at 8:00 AM ET, which will be webcast [1][2] Company Overview - Hain Celestial Group 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 is headquartered in Hoboken, N.J. [3] - Hain's products are marketed and sold in over 70 countries, with notable brands including Garden Veggie Snacks™, Terra® chips, and Earth's Best® Organic [3]

Core Insights - Hain Celestial Group has launched a new safety initiative called "For Our Loved Ones," focusing on the emotional connection of safety among employees and their families [1][2] - The initiative has led to significant improvements in workplace safety metrics, with the Total Recordable Incident Rate (TRIR) now 3.5 times better than the industry average and the Lost Time Incident Rate (LTIR) at 2 times better than the industry average [2] - The campaign emphasizes a culture of safety that involves all employees, encouraging them to share personal connections to safety, thereby reinforcing the importance of safety in the workplace [3][4] Safety Metrics - The Total Recordable Incident Rate (TRIR) has improved to 3.5 times better than the industry average since the campaign's launch [2] - The Lost Time Incident Rate (LTIR) is now 2 times better than the industry average [2] - Global proactive reporting of safety incidents has increased by 19% since the campaign began [2] Employee Engagement - The initiative has fostered a culture where safety is a shared value among over 2,000 team members, encouraging them to prioritize safety in their daily operations [4] - Employees are motivated to participate in safety practices, such as wearing personal protective equipment and conducting safety checks, as part of their commitment to quality and safety [4] Company Overview - Hain Celestial Group is a leading health and wellness company with a mission to inspire healthier living through better-for-you brands, operating in over 70 countries [5] - The company has a diverse product range, including snacks, beverages, and baby foods, and has been focused on nutrition and well-being for over 30 years [5]

Core Insights - Hain Celestial Group is launching the "Savor Your Summer" Sweepstakes to promote healthier snacking options during the summer season [1][2] - The promotion encourages consumers to engage with better-for-you snack brands, with a significant increase in demand for such options as 95% of snackers are trying to choose healthier snacks [2][5] - The sweepstakes offers prizes including $1,000 gift cards and is supported by various marketing strategies such as paid media and influencer engagement [3][4] Company Overview - Hain Celestial Group is a leading health and wellness company focused on inspiring healthier living through better-for-you brands, with over 30 years of experience in delivering nutrition and well-being [8] - The company’s product portfolio includes a variety of snacks, baby/kids foods, beverages, and meal preparation items, marketed in over 70 countries [8] - Notable brands under Hain Celestial include Garden Veggie Snacks™, Terra® chips, and Garden of Eatin'®, which emphasize natural ingredients and healthier options [7][8] Market Trends - There is a notable increase in household penetration and spending on salty snacks during the summer, indicating a growing market for snack products [2] - The demand for better-for-you snacks is rising, with consumers increasingly seeking healthier alternatives [2][5] - The promotion is expected to enhance consumer engagement and drive sales for Hain's snack brands during the summer season [3][4]

The Hain Celestial Group, Inc. (HAIN) has posted third-quarter fiscal 2025 results, with the top and bottom lines declining year over year. Also, both metrics missed the consensus mark. The company has lowered its fiscal 2025 guidance, reflecting ongoing challenges. As a result, its shares have tumbled 47.7% as of yesterday's closing, indicating market concerns.Despite challenges in the quarter, the company is undergoing a strategic transformation focused on streamlining operations, simplifying its portfoli ...

[Part I - Financial Information](index=3&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The company reported a significant increase in net loss for both the three and nine months ended March 31, 2025, primarily driven by substantial **goodwill** and long-lived asset **impairment** charges totaling **$243.5 million** for the nine-month period. Total assets decreased to **$1.84 billion** from **$2.12 billion** at June 30, 2024, largely due to the **goodwill impairment**. Cash provided by operating activities decreased significantly year-over-year, from **$77.0 million** to **$24.8 million** for the nine-month period Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $552,123 | $557,059 | | Goodwill | $712,727 | $929,304 | | **Total Assets** | **$1,844,055** | **$2,117,548** | | Total Current Liabilities | $304,735 | $281,503 | | Long-term Debt, less current portion | $701,401 | $736,523 | | **Total Liabilities** | **$1,147,350** | **$1,174,635** | | **Total Stockholders' Equity** | **$696,705** | **$942,913** | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $390,351 | $438,358 | $1,196,432 | $1,317,487 | | Gross Profit | $84,650 | $96,671 | $259,712 | $282,829 | | Goodwill Impairment | $110,251 | $0 | $201,518 | $0 | | Operating Loss | $(121,079) | $(27,901) | $(209,925) | $(30,960) | | **Net Loss** | **$(134,588)** | **$(48,194)** | **$(258,226)** | **$(72,105)** | | **Diluted Net Loss per Share** | **$(1.49)** | **$(0.54)** | **$(2.87)** | **$(0.80)** | Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $24,763 | $76,959 | | Net cash used in investing activities | $(354) | $(23,249) | | Net cash used in financing activities | $(36,475) | $(56,100) | | **Net decrease in cash and cash equivalents** | **$(9,882)** | **$(3,815)** | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes to the financial statements reveal significant corporate activities, including exploring strategic alternatives for its Personal Care business, recording a major **goodwill impairment**, amending its credit agreement, continuing the 'Hain Reimagined' transformation program, and involvement in legal proceedings - The company is exploring strategic alternatives for its Personal Care (PC) business, which has been classified as held for sale. A non-cash charge of **$23.1 million** was recorded to write down the disposal group's carrying amount to its estimated fair value[41](index=41&type=chunk)[42](index=42&type=chunk) - On August 30, 2024, the company sold its ParmCrisps® business for **$12.0 million** in cash, recognizing a pretax loss on the sale of **$3.9 million**[43](index=43&type=chunk) - A significant **goodwill impairment** charge of **$201.5 million** was recorded for the nine months ended March 31, 2025, entirely within the North America segment, due to reduced performance and a decline in market capitalization. This includes a **$110.3 million** charge in the third quarter[51](index=51&type=chunk)[52](index=52&type=chunk) - The company initiated the 'Hain Reimagined Program' in fiscal 2024, a multi-year transformation plan expected to be completed by fiscal 2027. For the nine months ended March 31, 2025, the company incurred **$20.4 million** in expenses related to this program[111](index=111&type=chunk)[115](index=115&type=chunk) - The company is a defendant in numerous baby food class action and personal injury lawsuits, which have been consolidated into a multi-district litigation (MDL). The SEC concluded its investigation into the company in February 2025 and does not intend to recommend an enforcement action[121](index=121&type=chunk)[126](index=126&type=chunk)[132](index=132&type=chunk) Net Sales by Product Category (in thousands) | Product Category | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Snacks | $277,688 | $342,118 | | Baby & Kids | $182,225 | $188,458 | | Beverages | $189,364 | $197,116 | | Meal preparation | $499,311 | $513,004 | | Personal care | $47,844 | $76,791 | | **Total** | **$1,196,432** | **$1,317,487** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **9.2%** decline in nine-month net sales to softness in North America, divestitures, and discontinued brands. The significant increase in **net loss** to **$258.2 million** was primarily due to a **$201.5 million goodwill impairment** in the North America segment. The 'Hain Reimagined' program is underway to optimize the portfolio and improve profitability, with expected annualized savings of **$130-$150 million**. Liquidity remains adequate, supported by cash from operations and the credit facility, which was recently amended to provide more covenant flexibility. Cash from operations decreased significantly due to higher working capital usage [Results of Operations](index=35&type=section&id=Results%20of%20Operations) For the third quarter, net sales fell **11.0%** to **$390.4 million**, with organic sales down **5.3%**. The **net loss** widened to **$134.6 million** from **$48.2 million** a year ago, driven by a **$110.3 million goodwill impairment**. For the nine-month period, net sales decreased **9.2%** to **$1.20 billion**, with organic sales down **5.2%**. The nine-month **net loss** was **$258.2 million**, compared to a **$72.1 million** loss in the prior year, primarily due to a cumulative **$201.5 million goodwill impairment** charge Q3 FY2025 vs Q3 FY2024 Consolidated Results (in thousands) | Metric | Q3 FY2025 | Q3 FY2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $390,351 | $438,358 | $(48,007) | (11.0)% | | Gross profit | $84,650 | $96,671 | $(12,021) | (12.4)% | | Goodwill impairment | $110,251 | $— | $110,251 | N/A | | Operating loss | $(121,079) | $(27,901) | $(93,178) | N/A | | Net loss | $(134,588) | $(48,194) | $(86,394) | 179.3% | | Adjusted EBITDA | $33,615 | $43,762 | $(10,147) | (23.2)% | Nine Months FY2025 vs FY2024 Consolidated Results (in thousands) | Metric | 9M FY2025 | 9M FY2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $1,196,432 | $1,317,487 | $(121,055) | (9.2)% | | Gross profit | $259,712 | $282,829 | $(23,117) | (8.2)% | | Goodwill impairment | $201,518 | $— | $201,518 | N/A | | Operating loss | $(209,925) | $(30,960) | $(178,965) | N/A | | Net loss | $(258,226) | $(72,105) | $(186,121) | 258.1% | | Adjusted EBITDA | $93,883 | $114,978 | $(21,095) | (18.3)% | - Q3 organic net sales decreased **5.3%**, driven by a **2.9%** decrease in volume/mix and a **2.5%** decrease in price, primarily from promotional activity[151](index=151&type=chunk) - Nine-month organic net sales decreased **5.2%**, comprised of a **3.4%** decrease in volume/mix and a **1.9%** decrease in price[179](index=179&type=chunk) [Segment Results](index=38&type=section&id=Segment%20Results) In Q3, the North America segment's net sales fell **17.0%** (**9.6%** organic) due to lower volumes in snacks and softness in personal care, causing **Adjusted EBITDA** to drop **37.9%**. The International segment's net sales decreased **1.4%** but grew **0.5%** organically, driven by meal preparation and baby & kids categories; however, **Adjusted EBITDA** declined **9.7%** due to inflation and pricing pressures. For the nine-month period, North America sales were down **14.2%** (**7.5%** organic), while International sales were down **1.5%** (**2.3%** organic) Q3 FY2025 Segment Performance (in thousands) | Segment | Net Sales | % Change | Adjusted EBITDA | % Change | | :--- | :--- | :--- | :--- | :--- | | North America | $222,407 | (17.0)% | $17,306 | (37.9)% | | International | $167,944 | (1.4)% | $22,166 | (9.7)% | - North America Q3 organic net sales decreased **9.6%**, primarily due to lower sales in the snacks and baby & kids categories. The snacks category was impacted by lower volume and continued category softness[170](index=170&type=chunk)[171](index=171&type=chunk) - International Q3 organic net sales increased **0.5%**, driven by strong performance in meal preparation (soup) and baby & kids categories, which offset declines in beverages and snacks[173](index=173&type=chunk)[174](index=174&type=chunk) Nine Months FY2025 Segment Performance (in thousands) | Segment | Net Sales | % Change | Adjusted EBITDA | % Change | | :--- | :--- | :--- | :--- | :--- | | North America | $682,836 | (14.2)% | $55,072 | (29.2)% | | International | $513,596 | (1.5)% | $65,062 | (4.3)% | [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily sourced from cash from operations and its credit facility. As of March 31, 2025, total debt was **$709.0 million**, down from **$744.1 million** at fiscal year-end 2024. Cash provided by operating activities for the nine months decreased to **$24.8 million** from **$77.0 million** in the prior year, mainly due to higher working capital usage. Consequently, **free cash flow** fell to **$5.7 million** from **$52.2 million**. The company amended its credit agreement in May 2025 to increase its maximum consolidated secured leverage ratio and reduce the revolver size to **$700 million** Cash Flow Summary (Nine Months Ended Mar 31, in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Cash from Operating Activities | $24,763 | $76,959 | | Cash from Investing Activities | $(354) | $(23,249) | | Cash from Financing Activities | $(36,475) | $(56,100) | - **Free cash flow** for the nine months ended March 31, 2025 was **$5.7 million**, a significant decrease from **$52.2 million** in the prior-year period, driven by lower cash from operations[220](index=220&type=chunk)[230](index=230&type=chunk) - On May 5, 2025, the company entered into a Third Amendment to its Credit Agreement, which amended the maximum consolidated secured leverage ratio, increased the interest rate spread, and reduced the revolver size from **$800 million** to **$700 million**[210](index=210&type=chunk)[211](index=211&type=chunk) - As of March 31, 2025, the company was in compliance with all debt covenants, with a consolidated secured leverage ratio of **4.23:1.00**[208](index=208&type=chunk) [Critical Accounting Estimates](index=49&type=section&id=Critical%20Accounting%20Estimates) The company identified **goodwill valuation** as a critical accounting estimate. Due to a significant reduction in performance and a decline in market capitalization, an interim quantitative **impairment** test was performed for the U.S. and Canada reporting units as of March 31, 2025. This test resulted in a non-cash **goodwill impairment** charge of **$110.3 million** for the quarter. The company notes that **goodwill** for the U.S., Canada, and U.K. reporting units remains at risk of future **impairment** if performance does not meet projections or market conditions deteriorate - An interim quantitative **impairment** test for **goodwill** was conducted for the U.S. and Canada reporting units as of March 31, 2025, due to a significant reduction in actual and projected performance and a continued decline in the company's market capitalization[233](index=233&type=chunk) - The **impairment** test resulted in a non-cash charge of **$88.7 million** for the U.S. reporting unit and **$21.5 million** for the Canada reporting unit during the third quarter[234](index=234&type=chunk) - **Goodwill** related to the U.S., Canada, and U.K. reporting units is at risk of potential future **impairment** if expected future cash flows are not met or if market factors like discount rates deteriorate[235](index=235&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no significant changes in the company's market risk exposures from those disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2024 - No significant changes in market risk were reported for the nine months ended March 31, 2025, compared to the fiscal year ended June 30, 2024[239](index=239&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's Interim CEO and CFO concluded that the disclosure controls and procedures were effective as of March 31, 2025. There were no material changes in internal control over financial reporting during the third quarter of fiscal 2025 - Management, including the Interim CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[240](index=240&type=chunk) - No changes occurred during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[241](index=241&type=chunk) [Part II - Other Information](index=47&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company incorporates by reference the details of its legal proceedings from Note 17 of the financial statements. These primarily relate to securities class actions and extensive litigation concerning alleged heavy metals in its Earth's Best® baby food products - Information regarding legal proceedings is incorporated by reference from Note 17, Commitments and Contingencies[244](index=244&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended June 30, 2024 - No material changes from the risk factors disclosed in the company's most recent Form 10-K have been reported[245](index=245&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third quarter of fiscal 2025, the company did not repurchase any of its own shares under its approved repurchase programs. However, **21,820** shares were withheld to satisfy tax obligations related to stock-based compensation - No shares were repurchased under the company's share repurchase programs during the three months ended March 31, 2025[246](index=246&type=chunk) [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) On May 5, 2025, the company executed the Third Amendment to its Credit Agreement. This amendment adjusted the maximum consolidated secured leverage ratio covenant, increased the applicable interest rate margins, and reduced the total revolving credit facility from **$800 million** to **$700 million** - On May 5, 2025, the company amended its Credit Agreement. The maximum consolidated secured leverage ratio was changed to **4.75:1.00** through March 31, 2026, stepping down thereafter[249](index=249&type=chunk)[250](index=250&type=chunk) - The interest rate on loans under the amended agreement increased to Term SOFR plus **3.0%** or Base Rate plus **2.0%**[251](index=251&type=chunk) - The amendment also reduced the aggregate size of the revolving credit facility from **$800 million** to **$700 million**[252](index=252&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO, and XBRL data files [Signatures](index=49&type=section&id=Signatures) The report is duly signed by the Interim President and Chief Executive Officer, the Chief Financial Officer, and the Chief Accounting Officer as of May 7, 2025

Core Viewpoint - Hain Celestial reported quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.12 per share, representing a -41.67% earnings surprise [1][2] Financial Performance - The company posted revenues of $390.35 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 5.10%, compared to $438.36 million in the same quarter last year [2] - Over the last four quarters, Hain Celestial has surpassed consensus EPS estimates only once [2] Stock Performance - Hain Celestial shares have declined approximately 55% since the beginning of the year, while the S&P 500 has decreased by -4.7% [3] - The current Zacks Rank for Hain Celestial is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $410.8 million, and for the current fiscal year, it is $0.33 on revenues of $1.63 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock movements [6] Industry Context - The Food - Miscellaneous industry, to which Hain Celestial belongs, is currently in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Data and Key Metrics Changes - The company reported a 5% decline in organic net sales and adjusted EBITDA of $34 million, which is over 20% below last year's performance [14][22] - Adjusted gross margin fell 50 basis points to 21.8% in the third quarter, and adjusted EBITDA margin decreased by 140 basis points to 8.6% of net sales [22][24] - Free cash flow in the third quarter was an outflow of $2 million compared to an inflow of $30 million in the prior year [31] Business Line Data and Key Metrics Changes - In North America, organic net sales declined 10% year over year, primarily driven by lower sales in Snacks and Baby and Kids [25] - International organic net sales grew 0.5% in the quarter, led by growth in Meal Prep and Baby and Kids [26] - Snacks category saw a 13% decline in organic net sales year over year, while Baby and Kids experienced a 6% decline [28] Market Data and Key Metrics Changes - The North American segment accounted for 80% of the top line shortfall, with two-thirds attributed to Snacks [42] - The international segment is expected to improve sequentially in the fourth quarter due to pricing actions and new innovations [26] Company Strategy and Development Direction - The company has initiated a strategic review of its portfolio to maximize shareholder value, retaining Goldman Sachs as a financial advisor [10][62] - The focus is on simplifying operations, enhancing brand innovation, and improving revenue growth management [19][37] - The company aims to reduce overhead spending and strengthen digital capabilities to drive operational productivity [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged disappointing third-quarter results and emphasized the need for clarity, focus, and action moving forward [12][36] - The company expects organic net sales growth for the full year to decline approximately 5% to 6% and adjusted EBITDA to be around $125 million [35] - Management remains optimistic about the future, citing strong brand potential and a growing market for better-for-you products [36][84] Other Important Information - The company has taken $83 million in charges associated with its transformation program, with total charges expected to be between $115 million and $125 million by fiscal 2027 [23] - Interest costs fell 16% year over year to $12 million, driven by lower outstanding borrowings and reduced interest rates [24] Q&A Session Summary Question: Insights on Snacks and Infant Nutrition Categories - Management noted that 80% of the top line shortfall came from North America, with two-thirds from Snacks, and emphasized the need for improved execution and marketing [42][44] Question: Visibility and Forecasting Improvements - Management acknowledged the need for better forecasting and visibility, highlighting investments in the commercial team and digital capabilities [52][53] Question: Strategic Review Details - The strategic review will evaluate a broad range of options to enhance shareholder value, but specifics are not yet available as the process is still early [62] Question: Pricing Strategy in Current Environment - Management confirmed that pricing is under review and emphasized the importance of revenue growth management to address pricing execution issues [93][94] Question: Brand Positioning and Value Creation - Management stated that the focus will be on creating value through innovation and marketing, aiming to charge appropriate prices for their brands [78][79]