Shares of the packaged-food company jumped on signs of a turnaround. Shares of Hain Celestial (HAIN 18.59%) were jumping today after the packaged-food company posted betterthan-expected results in its fiscal fourth-quarter earnings report. As of 2:57 p.m. EDT, the stock was up 21.2% on the news. Hain's profitability initiatives are paying off The maker of Celestial Seasonings tea and other products actually missed revenue estimates in the quarter, reporting a revenue decline of 6% to $418.8 million, which m ...

The Hain Celestial Group, Inc. (HAIN) posted fourth-quarter fiscal 2024 results, with the top line declining year over year but surpassing the Zacks Consensus Estimate. The bottom line rose year over year and beat the consensus mark. The fiscal 2024 marked a pivotal year for the company's Hain Reimagined strategy, during which it made significant strides in simplifying its operations and driving growth. The transition to a global operating model helped reduce geographic complexity, enhance scale and foster ...

Financial Data and Key Metrics - Organic net sales growth for fiscal 2024 was ahead of guidance at down 2%, driven by 4% growth in International offset by a 6% decline in North America [28] - Adjusted EBITDA for fiscal 2024 was $155 million, at the high end of guidance, compared to $167 million in the prior year [28] - Adjusted gross margin increased 30 basis points year-over-year to 22.4% for fiscal 2024 [29] - Free cash flow generation improved significantly to $83 million in fiscal 2024, up from $39 million in the prior year, driven by working capital initiatives [33] - Net leverage ratio improved to 3.7x at the end of fiscal 2024, down from 4.1x at the beginning of the year [34] Business Segment Performance North America - Organic net sales declined 5% in Q4 2024, primarily due to lower sales in infant formula (260 bps drag) and Personal Care (170 bps drag) [32] - Adjusted EBITDA margin in North America decreased 150 bps year-over-year to 8% in Q4 2024 [32] - Snacks category showed positive momentum, with Garden Veggie Flavor Burst driving mid-single digit consumption growth [16] International - Organic net sales declined 4% in Q4 2024, with strong growth in beverages offset by softness in plant-based meat free and snacks [33] - Adjusted EBITDA margin improved 40 bps year-over-year to 17% in Q4 2024 [33] - European non-dairy beverage business drove mid-single digit organic net sales growth in the Beverage category [21] Market and Channel Performance - Away-from-home revenues grew low double-digits in both North America and International, with C-store count increasing 42% in the U.S. [12] - E-commerce saw growth in North America, with Garden Veggie up low-single digits and Celestial up mid-single digits [13] - Hartley's in the UK is positioned for a strong back-to-school season with plans to double feature space [18] Strategic Initiatives and Industry Competition - The company made significant progress on its Hain Reimagined strategy, achieving $65 million in savings from operational efficiency initiatives, exceeding the $61 million target [8] - Portfolio simplification included exiting non-strategic categories and brands, such as Queen Helene and Thinsters, and reducing SKUs in Personal Care by over 60% [6][51] - Innovation pipeline showed strong performance, with Sleepytime with Melatonin breaking into the top 100 SKUs in the tea category and Garden Veggie Flavor Burst being the 1 new product in the better-for-you snack category [14] Management Commentary on Operating Environment and Outlook - Management expects to pivot to growth in fiscal 2025, with organic net sales growth flat or better, adjusted EBITDA growth in the mid-single digits, and gross margin expansion of at least 125 bps [35] - The company remains committed to its long-term algorithm of 3%+ organic net sales CAGR, 400-500 bps of adjusted gross margin expansion, and adjusted EBITDA margin of 12%+ by fiscal 2027 [37] - Significant opportunities remain in working capital management, with a target of $165 million in savings outlined on Investor Day [10] Q&A Session Highlights Question: Drivers of potential outperformance in fiscal 2025 - Incremental outperformance could come from formula sales recovery in the back half, promotional shifts in snacks, and broader geographic distribution expansion for Greek Gods [41][42] - The company has regained distribution in 48,000 C-stores, with potential for additional overdrivers as these distribution points realize their velocity [44] Question: Impact of SKU rationalization and business exits - The flat organic sales outlook for fiscal 2025 includes headwinds from normal SKU rationalization within the current portfolio, not just whole category exits [54] - Business exits and divestitures, such as Thinsters and Queen Helene, have impacted reported sales, with the company providing an adjusted baseline for 2024 organic sales [55] Question: Outlook for the snacks portfolio - The company feels confident in its snacks portfolio, with Garden Veggie, Terra, and Garden of Eatin' gaining incremental ACV with large retail partners, moving from mid-20s to mid-70s ACV in some cases [71] - A new master brand campaign for Garden Veggie, "YUMbelievably Delicious," was launched to support the portfolio [72] Question: Tea business performance and outlook - Softness in Celestial Seasonings volumes was attributed to packaging changes (removing overwrap) and reduced promotional spend in Q4 in anticipation of a master brand campaign launch in early October [84] - New innovations, including a beauty wellness tea with Biotin and a lemon tea, are expected to contribute to growth in fiscal 2025 [85]

Core Insights - Hain Celestial Group reported a strong operating cash flow and significant debt reduction, positioning the company for sustainable growth in fiscal 2025 [1][2] - The company achieved an updated guidance for fiscal 2025, focusing on commercial execution to enhance both top- and bottom-line growth [2][29] Financial Highlights - For the fourth quarter of fiscal 2024, net sales were $419 million, a decrease of 6% year-over-year, with organic net sales down 4% [3][5] - Gross profit margin improved to 23.4%, a 90-basis point increase from the prior year, while adjusted gross profit margin also rose to 23.4% [3] - The net loss for the fourth quarter was $3 million, an improvement from a net loss of $19 million in the prior year [3] - For the full fiscal year 2024, net sales totaled $1,736 million, down 3% year-over-year, with organic net sales decreasing by 2% [5][6] Cash Flow and Balance Sheet - Net cash provided by operating activities in the fourth quarter was $39 million, compared to $41 million in the prior year [7] - Free cash flow for the fourth quarter was $31 million, down from $34 million in the prior year [7] - Total debt at the end of the fiscal year was $744 million, reduced from $829 million at the beginning of the year, with net debt decreasing to $690 million [7] Segment Highlights - North America segment reported a 6% decline in organic net sales for fiscal 2024, primarily due to lower sales in infant formula and personal care [10][13] - The International segment saw a 4% increase in organic net sales for fiscal 2024, driven by growth in soups and beverages [19][21] - In the fourth quarter, the North America segment's gross profit was $59 million, a decrease of 7% from the prior year, while the International segment's gross profit increased by 5% to $39 million [11][17] Category Highlights - Snacks category experienced a 6% decline in net sales for the fourth quarter, while beverages grew by 3% [23][26] - The personal care category faced a significant decline of 21% in net sales for the fourth quarter, attributed to portfolio simplification [28] Fiscal 2025 Guidance - The company expects organic net sales growth to be flat or better in fiscal 2025, with adjusted EBITDA anticipated to grow by mid-single digits [29] - Gross margin is projected to increase by at least 125 basis points, and free cash flow is expected to reach at least $60 million [29]

Core Viewpoint - Hain Celestial Group, Inc. is expected to report declines in both revenue and earnings for the fourth quarter of fiscal 2024, with significant challenges in its North America segment impacting overall performance [1][2][3]. Revenue Summary - The Zacks Consensus Estimate for Hain Celestial's fourth-quarter revenues is $418.2 million, reflecting a 6.6% decrease from the same quarter last year [1]. - For fiscal 2024, the consensus revenue estimate is $1.7 billion, indicating a 3.4% decline year-over-year [1]. Earnings Summary - The consensus estimate for quarterly earnings remains at 8 cents per share, representing a 27.3% decline from the prior-year quarter [2]. - For fiscal 2024, the earnings consensus is pegged at 29 cents per share, indicating a 42% slump compared to the previous year [2]. Segment Performance - The North America unit is experiencing persistent weakness, particularly in the baby and kids category, with an expected organic sales decline of 7.3% for the upcoming quarter [3]. - Management projects an overall organic sales decline of 3-4% for fiscal 2024, with an anticipated decline of 4.4% based on current models [4]. EBITDA and Strategy - The company expects adjusted EBITDA for the full year to be between $150 million and $155 million, reflecting a year-over-year decline [4]. - Despite these challenges, the strength of Hain Celestial's multi-year Reimagined strategy and growth in the International segment, projected to reach $676.8 million (a 2.9% increase year-over-year), may provide some support [5]. Earnings Prediction Model - The current model does not predict an earnings beat for Hain Celestial, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [6].

Core Insights - The Hain Celestial Group is on track to achieve over $60 million in cost savings by the end of fiscal year 2024 as part of its multi-year growth strategy [1][3] - The "Hain Reimagined" strategy, introduced in September 2023, aims to transform the company into a globally integrated enterprise focused on revenue growth management, cash management, and operational efficiencies [2][3] Financial Performance - Hain's Q3 FY2024 earnings report highlights that fuel initiatives, including sourcing and productivity programs, have generated operating cash flow that supports margin expansion and investments in critical capabilities [3] Strategic Initiatives - The company is focusing on working capital management, operational efficiencies, and best-in-class safety standards to position itself for future success [2][4] - The "Fuel" pillar of the Hain Reimagined strategy is essential for funding the transformation and driving long-term shareholder value [2] 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's product portfolio includes various categories such as snacks, beverages, and personal care, featuring well-known brands like Garden Veggie Snacks™, Celestial Seasonings®, and Earth's Best® [5]

Recently Retired Kimberly-Clark Chief Growth Officer and Former Coca-Cola Executive Brings Extensive Global Marketing, e-Commerce, and Digital Leadership to Hain Board HOBOKEN, N.J., Aug. 19, 2024 /PRNewswire/ -- Hain Celestial Group (Nasdaq: HAIN), a leading global health and wellness company whose purpose is to inspire healthier living through better-for-you brands, today announced that Alison Lewis has been appointed to its Board of Directors effective September 1, 2024. She will serve on the Compensatio ...

HOBOKEN, N.J., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Hain Celestial Group (Nasdaq: HAIN), a leading global health and wellness company whose purpose is to inspire healthier living through better-for-you brands, plans to issue its financial results for the fiscal fourth quarter and full year before the market opens on Tuesday, August 27, 2024. The company will host a conference call, which will be webcast, to discuss the results at 8:00 AM ET. Speaking on behalf of Hain Celestial will be Wendy Davidson, Presiden ...

HOBOKEN, N.J., Aug. 06, 2024 (GLOBE NEWSWIRE) -- Hain Celestial Group (NASDAQ:HAIN), a leading global health and wellness company whose purpose is to inspire healthier living through better-for-you brands, plans to issue its financial results for the fiscal fourth quarter and full year before the market opens on Tuesday, August 27, 2024. The company will host a conference call, which will be webcast, to discuss the results at 8:00 AM ET. Speaking on behalf of Hain Celestial will be Wendy Davidson, President ...

Core Insights - The back-to-school season is a significant time for families, with 80% of parents planning to enroll their children in extracurricular activities [1] - Hain Celestial Group offers a range of health-focused snacks and meal prep solutions aimed at meeting the needs of busy families during this season [2][3] Product Offerings - Hain Celestial provides a variety of better-for-you snacks, including Garden Veggie Snacks™ and Earth's Best® Organic products, which are designed to appeal to children and parents alike [4][6] - The company emphasizes the importance of nutritious breakfasts and lunches, featuring products like MaraNatha® Almond Butter and Greek Gods® Yogurt, which are marketed as healthy options for families [6][8] Consumer Trends - More than half of parents are seeking healthier snack options that their children will enjoy, with 58% of consumers interested in convenient snacks for on-the-go consumption [3][9] - The demand for organic and nutritious food options is reflected in the popularity of products like Earth's Best® Organic Pouches, which cater to the dietary needs of young children [8][9] Retail Presence - Hain Celestial's products are available at major retailers such as Walmart, Amazon, and Target, as well as local grocery stores, indicating a strong market presence [9] Company Overview - Hain Celestial Group is a leading health and wellness company focused on inspiring healthier living through its diverse range of brands, which are marketed in over 75 countries [10]