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 [13][20] - 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 [20] - Interest costs decreased by 16% year over year to $12 million, driven by lower outstanding borrowings and a reduction in interest rates [22] 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 [24] - International organic net sales grew by 0.5%, led by growth in Meal Prep and Baby and Kids, despite declines in beverages and snacks [25] - Snacks category saw a 13% year-over-year decline in organic net sales, while Baby and Kids experienced a 6% decline [27] Market Data and Key Metrics Changes - The North American segment accounted for 80% of the top line shortfall, with two-thirds attributed to Snacks [40] - The international segment is expected to improve sequentially in the fourth quarter due to pricing actions and new innovations [25] - The overall snacks category has softened, with only a few brands driving growth during the quarter [40] Company Strategy and Development Direction - The company launched a new strategy called "Hain Reimagined," aimed at streamlining operations and simplifying the product portfolio [6][9] - A formal process to review the company's portfolio has been initiated to maximize shareholder value, with Goldman Sachs retained as a financial advisor [9] - The focus is on five key drivers: simplifying the business, accelerating innovation, implementing strategic revenue growth management, driving operational productivity, and enhancing digital capabilities [16][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the third quarter results were disappointing and emphasized the need for clarity, focus, and action moving forward [11][12] - The company expects organic net sales growth for the full year to decline approximately 5% to 6%, with adjusted EBITDA around $125 million [33] - Management remains optimistic about the future, citing strong brands in attractive categories and a commitment to continuous improvement [34][35] Other Important Information - The company took charges totaling $8 million associated with restructuring, with total transformation program charges expected to be between $115 million and $125 million by fiscal 2027 [21] - Free cash flow in the third quarter was an outflow of $2 million, compared to an inflow of $30 million in the prior year [29] - The company closed the quarter with cash on hand of $44 million and net debt of $665 million, with a net leverage ratio of 4.2 times [30][31] Q&A Session Summary Question: Insights on Snacks and Infant Nutrition Categories - Management acknowledged underperformance in Snacks, attributing 80% of the top line shortfall to North America, with two-thirds from Snacks [40][41] - They noted execution challenges and category softness, but expressed confidence in brand health and upcoming marketing efforts [41][42] Question: Visibility and Forecasting Improvements - Management indicated that investments in the commercial team and digital capabilities would enhance forecasting and visibility [50][51] Question: Strategic Review Details - The strategic review aims to evaluate the strategy and portfolio to maximize shareholder value, with no specifics available yet as the process is early [58][59] Question: Pricing Strategy and Market Environment - Management confirmed that pricing is under review and emphasized the need for improved execution in revenue growth management [90][91] Question: Brand Positioning and Value Creation - Management stated the importance of creating value in brands through innovation and marketing, aiming to charge appropriate prices based on brand value [76][77] Question: Right to Win and Competitive Environment - Management expressed confidence in the company's right to win, emphasizing the need for brand renovation and innovation to support growth [78][80]

Financial Performance - Q3 FY25 - Net sales decreased by 11% to $390 million compared to the previous year[30] - Organic net sales decreased by 5% to $374 million compared to the previous year[30] - Adjusted gross margin decreased by 50 bps to 218%[30] - Adjusted EBITDA decreased by 23% to $34 million compared to the previous year[30] - Adjusted EBITDA margin decreased by 140 bps to 86%[30] - Adjusted net income decreased by 46% to $6 million compared to the previous year[30] - Adjusted earnings per share decreased by 46% to $007[30] Segment Performance - North America organic net sales decreased by 10% to $204 million, with adjusted EBITDA decreasing by 38% to $17 million[36] - International organic net sales increased by 05% to $170 million, with adjusted EBITDA decreasing by 10% to $22 million[39] Category Performance - Snacks organic net sales decreased by 13% to $89 million[41] - Baby & Kids organic net sales decreased by 6% to $60 million[41] - Beverages organic net sales decreased by 7% to $64 million[41] - Meal Prep organic net sales increased by 1% to $161 million[41] Debt and Cash Flow - Net debt decreased to $66453 million[80] - Free cash flow was negative $2276 million[82] Guidance - The company revised its full-year guidance, projecting organic net sales growth of approximately -5% to -6%[55]

[Executive Summary & Key Financial Highlights](index=1&type=section&id=FINANCIAL%20HIGHLIGHTS%2A) Hain Celestial reported disappointing Q3 FY25 results, with net sales down 11% and a $135 million net loss, announcing a CEO transition and strategic review - The company announced a CEO transition and a strategic review of its portfolio[2](index=2&type=chunk) - Management is focusing on five key drivers for improving value: simplifying the business, accelerating brand innovation, strategic revenue management, driving operational productivity, and strengthening digital capabilities[3](index=3&type=chunk) Q3 FY25 Financial Highlights vs. Prior Year (in millions) | Metric | Q3 FY25 | Q3 FY24 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $390M | $438M | -11% | | Organic Net Sales Growth | -5% | N/A | N/A | | Gross Profit Margin | 21.7% | 22.1% | -40 bps | | Adjusted Gross Profit Margin | 21.8% | 22.3% | -50 bps | | Net Loss | ($135M) | ($48M) | Widened | | Adjusted Net Income | $6M | $11M | -45.5% | | Loss per Diluted Share | ($1.49) | ($0.54) | Widened | | Adjusted EPS | $0.07 | $0.13 | -46.2% | [Segment Performance](index=2&type=section&id=SEGMENT%20HIGHLIGHTS) Segment performance was mixed, with North America's organic net sales declining 10%, while International achieved 0.5% organic growth Segment Net Sales Performance (Q3 FY25 vs Q3 FY24, in millions) | Segment | Net Sales (Q3 FY25) | Reported Growth Y/Y | Organic Growth Y/Y | | :--- | :--- | :--- | :--- | | North America | $222M | -17.0% | -9.6% | | International | $168M | -1.4% | 0.5% | | **Total** | **$390M** | **-11.0%** | **-5.3%** | [North America](index=2&type=section&id=North%20America) North America's organic net sales declined 10% due to lower snacks and baby & kids sales, resulting in a 37.9% drop in adjusted EBITDA to $17 million - Organic net sales decline of **10%** was primarily driven by lower sales in snacks and baby & kids[10](index=10&type=chunk) - Adjusted EBITDA decreased to **$17 million** from **$28 million** in the prior year, with the margin contracting to **7.8%** from **10.4%**, driven by lower volume/mix and higher trade spend, partially offset by productivity[13](index=13&type=chunk) [International](index=3&type=section&id=International) International segment achieved 0.5% organic net sales growth from meal prep and baby & kids, despite a 10% drop in adjusted EBITDA to $22 million - Organic net sales grew **0.5% YoY**, driven by growth in meal prep and baby & kids, and supply chain recovery from previous service issues[14](index=14&type=chunk) - Adjusted EBITDA decreased **10%** to **$22 million**, with the margin falling to **13.2%** from **14.4%**, primarily driven by inflation and net pricing[16](index=16&type=chunk) [Category Performance](index=3&type=section&id=CATEGORY%20HIGHLIGHTS) Category performance was generally weak, with Snacks declining 13% organically, while Meal Prep showed slight growth and Personal Care sales dropped Organic Net Sales Growth by Category (Q3 FY25 vs Q3 FY24) | Category | Organic Growth Y/Y | Key Drivers | | :--- | :--- | :--- | | Snacks | -13% | Lower promotion effectiveness, continued category softness | | Baby & Kids | -6% | Lapping lost formula sales, softness in pouches, SKU simplification | | Beverages | -7% | Channel mix shift in Europe, slow start to hot tea season | | Meal Prep | +1% | Growth in UK soup and North American yogurt | [Financial Condition and Corporate Updates](index=2&type=section&id=Financial%20Condition%20and%20Corporate%20Updates) Free cash flow was negative $2 million, a significant decline, though total debt reduced to $709 million, and credit agreement amended for flexibility Key Balance Sheet and Cash Flow Metrics (in millions) | Metric | End of Q3 FY25 | Start of FY25 (June 30, 2024) | | :--- | :--- | :--- | | Total Debt | $709M | $744M | | Net Debt | $665M | $690M | | **Metric** | **Q3 FY25** | **Q3 FY24** | | Free Cash Flow | ($2M) | $30M | - Subsequent to the quarter end, the company amended its credit agreement to increase the maximum net secured leverage ratio to **4.75x** through March 31, 2026, providing increased operational flexibility[22](index=22&type=chunk) [Fiscal 2025 Guidance](index=4&type=section&id=FISCAL%202025%20GUIDANCE%2A) Hain Celestial revised its full-year fiscal 2025 guidance downwards, anticipating larger declines in organic net sales and lower adjusted EBITDA - Guidance was revised due to slower than anticipated volume recovery, a softening and volatile macroeconomic environment, and increased investment in promotional activities[23](index=23&type=chunk) Revised Fiscal 2025 Guidance | Metric | Revised FY2025 Guidance | | :--- | :--- | | Organic Net Sales Growth | Approx. -5% to -6% | | Adjusted EBITDA | Approx. $125 million | | Gross Margin | Approx. 21.5% | | Free Cash Flow | Approx. $40 million | [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents unaudited consolidated statements of operations, balance sheets, and cash flows for Q3 FY25, detailing financial performance and position [Consolidated Statements of Operations](index=8&type=section&id=THE%20HAIN%20CELESTIAL%20GROUP%2C%20INC.%20AND%20SUBSIDIARIES%20Consolidated%20Statements%20of%20Operations) For Q3 FY25, the company reported net sales of $390.4 million and a net loss of $134.6 million, significantly impacted by impairment charges Q3 FY25 Consolidated Statement of Operations Highlights (in thousands) | Line Item | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Net sales | $390,351 | $438,358 | | Gross profit | $84,650 | $96,671 | | Goodwill impairment | $110,251 | $- | | Operating loss | $(121,079) | $(27,901) | | Net loss | $(134,588) | $(48,194) | | Diluted loss per share | $(1.49) | $(0.54) | [Consolidated Balance Sheets](index=9&type=section&id=THE%20HAIN%20CELESTIAL%20GROUP%2C%20INC.%20AND%20SUBSIDIARIES%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets were $1.84 billion, down from $2.12 billion due to reduced goodwill, with total liabilities at $1.15 billion Consolidated Balance Sheet Highlights (in thousands) | Line Item | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $44,425 | $54,307 | | Goodwill | $712,727 | $929,304 | | Total assets | $1,844,055 | $2,117,548 | | Total liabilities | $1,147,350 | $1,174,635 | | Total stockholders' equity | $696,705 | $942,913 | [Consolidated Statements of Cash Flows](index=10&type=section&id=THE%20HAIN%20CELESTIAL%20GROUP%2C%20INC.%20AND%20SUBSIDIARIES%20Consolidated%20Statements%20of%20Cash%20Flows) For Q3 FY25, net cash from operating activities was $4.6 million, a significant decrease, resulting in negative free cash flow of $2.3 million Q3 FY25 Consolidated Statement of Cash Flows Highlights (in thousands) | Line Item | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,645 | $42,274 | | Purchases of property, plant and equipment | $(6,921) | $(12,034) | | Free cash flow | $(2,276) | $30,240 | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles non-GAAP financial measures to GAAP, adjusting for items like impairments and restructuring to provide a clearer view of operational performance - Non-GAAP measures are used to provide additional information on operational trends and for period-over-period comparisons, excluding items like acquisitions, divestitures, held for sale businesses, impairments, and restructuring costs[30](index=30&type=chunk)[31](index=31&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (Q3 FY25, in thousands) | Description | Amount | | :--- | :--- | | **Net loss (GAAP)** | **$(134,588)** | | Depreciation and amortization | $10,455 | | Interest expense, net | $11,096 | | (Benefit) for income taxes | $(505) | | Stock-based compensation, net | $2,973 | | Goodwill impairment | $110,251 | | Long-lived asset and intangibles impairment | $24,012 | | Other adjustments (restructuring, litigation, etc.) | $8,921 | | **Adjusted EBITDA (Non-GAAP)** | **$33,615** |

Core Viewpoint - The Hain Celestial Group reported disappointing financial results for the fiscal third quarter, primarily due to underperformance in North America, but noted a return to organic net sales growth in the international segment and progress in reducing net debt [2][6][24]. Financial Highlights - Net sales for the third quarter were $390 million, down 11% year-over-year, with organic net sales decreasing by 5% [6][8]. - Gross profit margin was 21.7%, a decrease of 40 basis points from the prior year, while adjusted gross profit margin was 21.8%, down 50 basis points [6][11]. - The company reported a net loss of $135 million compared to a net loss of $48 million in the prior year, which included pre-tax non-cash impairment charges of $133 million [6][36]. - Adjusted EBITDA was $34 million, down from $44 million in the prior year, with an adjusted EBITDA margin of 8.6% compared to 10.0% [6][12]. Segment Highlights - North America segment net sales were $222 million, down 17% year-over-year, with organic net sales declining by 10% [8][10]. - International segment net sales were $168 million, down 1.4%, but organic net sales grew by 0.5% [8][13]. - The Snacks category saw a 20% decline in net sales, while Meal Prep experienced a slight growth of 1% [18][22]. Cash Flow and Balance Sheet Highlights - Net cash provided by operating activities was $5 million, down from $42 million in the prior year, with free cash flow turning negative at $2 million [7][42]. - Total debt at the end of the fiscal third quarter was $709 million, reduced from $744 million at the beginning of the fiscal year [7][17]. Guidance - The company adjusted its fiscal 2025 guidance, expecting organic net sales growth to decline by approximately 5%-6%, with adjusted EBITDA projected at around $125 million and gross margin at approximately 21.5% [24][25].

Core Insights - Hain Celestial Group announced the departure of Wendy Davidson as President and CEO, effective immediately, and has appointed Alison E. Lewis as Interim President and CEO [1][2][3] - The Board is executing a leadership succession plan and conducting a comprehensive strategic review of the Company's portfolio with the assistance of Goldman Sachs & Co to enhance shareholder value [4][5] Leadership Transition - Alison E. Lewis, with over 30 years of experience in the consumer goods industry, has been appointed as Interim President and CEO [2][6] - Dawn Zier, Chair of the Board, expressed confidence in Lewis's ability to lead during the transition and emphasized the focus on maximizing the value of Hain [3] Strategic Review - The Board's strategic review aims to evaluate the Company's strategy and portfolio in light of recent performance, with no definitive timetable for completion [5] - The review will explore a broad range of strategic options to enhance value for shareholders [4][5] 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 [7][8] - The Company has a diverse product portfolio including snacks, beverages, and baby foods, with well-known brands such as Garden Veggie Snacks™, Celestial Seasonings® teas, and Earth's Best® Organic [7][8]

Group 1 - Hain Celestial Group plans to release its financial results for the fiscal third quarter on May 7, 2025, before market opening [1] - The conference call to discuss the results will be hosted by CEO Wendy Davidson and CFO Lee Boyce at 8:00 AM ET [1] - A question-and-answer session will follow the prepared remarks, with participation from covering analysts [1] Group 2 - The webcast and presentation will be available on the company's corporate website under the Investors section [2] - Investors can access the conference call by dialing specific numbers and referencing a conference ID [2] - A replay of the call will be available until May 14, 2025, with access through designated phone numbers [2] Group 3 - 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 products for over 30 years and operates in over 70 countries [3] - Notable brands under Hain Celestial include Garden Veggie Snacks™, Terra® chips, and Earth's Best® Organic, among others [3]

Core Insights - Hain Celestial Group emphasizes its commitment to high-quality and safe baby food products, particularly through its Earth's Best brand, which has been a trusted partner for parents and caregivers for over 40 years [2][3][5] Group 1: Company Commitment to Safety - The company highlights the importance of food safety in the baby food category, addressing concerns about heavy metals and contaminants that are increasingly prevalent in consumer discussions [2][3] - Hain Celestial's North America President, Chad Marquardt, discusses the company's actions to ensure food safety, including ingredient sourcing and testing transparency [4][5] Group 2: Product Quality and Standards - Earth's Best brand focuses on using wholesome, USDA-organic ingredients while minimizing unwanted elements, such as trace levels of heavy metals [3] - Hain Celestial is dedicated to continuously refining its practices to uphold high quality and safety standards in the better-for-you space [5] Group 3: Market Presence - Hain Celestial Group markets and sells its products in over 70 countries, with a diverse portfolio that includes snacks, beverages, and personal care items [5]

Manufacturer's channel expansion unlocks new opportunities to reach a broader consumer base, enhance market presence HOBOKEN, N.J., April 2, 2025 /PRNewswire/ -- Embracing its "first to mind, first to find" approach, The Hain Celestial Group, Inc. (Nasdaq: HAIN), a leading global health and wellness company whose purpose is to inspire healthier living through better-for-you brands, is increasing access to its snack offerings by making them available at Dollar General stores. Hain Celestial’s Garden Vegg ...

Core Insights - Earth's Best has launched a new line of organic play + learn finger foods aimed at children aged 6 months and up, reinforcing its commitment to child nutrition and development [1][3][6] - The new products are designed based on childhood nutrition research, featuring textures and flavors that promote self-feeding skills [2][8] - The finger foods are made with simple, wholesome ingredients, free from artificial flavors and preservatives, and are crafted to dissolve easily for young children [2][4] Product Details - The product line includes Organic Crunchy Sticks, Organic Melty Hoops, and Organic Munchy Fingers, each tailored for different developmental stages [3][8] - Organic Crunchy Sticks are available in a 0.56 oz multi-serve package and are designed for children aged 6+ months [4][8] - Organic Melty Hoops come in a 0.70 oz multi-serve bag and a 1.28 oz 4ct single-serve multipack, suitable for children aged 8+ months [4][8] - Organic Munchy Fingers are offered in a 1.05 oz box of nine, aimed at children aged 10+ months [4][8] Company Background - Earth's Best was founded in 1985 and has been a leader in organic baby food, providing a variety of nutritious options for families [6][7] - The brand's mission focuses on helping children build healthy eating habits from an early age [6][7] - The Hain Celestial Group, which owns Earth's Best, is a health and wellness company that markets products in over 70 countries [7]

Core Insights - Earth's Best has launched a new line of organic play + learn finger foods aimed at children aged 6 months and up, focusing on healthy habits and self-feeding skill development [1][3][6] - The new products are designed based on childhood nutrition research, featuring simple ingredients without artificial flavors or preservatives, and are crafted to dissolve easily for young children [2][8] Product Details - The product line includes three types: Organic Crunchy Sticks (0.56 oz), Organic Melty Hoops (0.70 oz and 1.28 oz), and Organic Munchy Fingers (1.05 oz) [4][8] - Organic Crunchy Sticks are aimed at children 6+ months, promoting the palmar grasp with flavors like Strawberry Banana and Cheddar Cheese [8] - Organic Melty Hoops target children 8+ months, designed for the pincer grip, available in Spring Veggies and Strawberries + Mangoes [8] - Organic Munchy Fingers are for children 10+ months, helping with the radial digital grasp, available in Mixed Berry and Mango Carrot flavors [8] Company Background - Earth's Best was founded in 1985 and has been a leader in organic baby food, providing a variety of nutritious options for families [6] - The brand's mission is to make wholesome food enjoyable for children while assisting families in the early feeding years [6] - The Hain Celestial Group, which owns Earth's Best, is a health and wellness company focused on inspiring healthier living through better-for-you brands [7]