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Hain Celestial(HAIN) - 2025 Q2 - Quarterly Results
HAINHain Celestial(HAIN)2025-02-10 12:11

Financial Performance - Net sales for the fiscal second quarter were 411million,adecreaseof9411 million, a decrease of 9% year-over-year, with organic net sales down 7%[6] - The net loss was 104 million, compared to a net loss of 14millionintheprioryearperiod,withadjustednetincomeat14 million in the prior year period, with adjusted net income at 8 million, down from 11million[6]−AdjustedEBITDAforthefiscalsecondquarterwas11 million[6] - Adjusted EBITDA for the fiscal second quarter was 38 million, down from 47millionintheprioryear,withanadjustedEBITDAmarginof9.247 million in the prior year, with an adjusted EBITDA margin of 9.2%[12] - The company reported a net loss of 103,975,000 in Q2 2025, compared to a net loss of 13,535,000inQ22024,indicatingasignificantincreaseinlosses[38]−AdjustedEBITDAforQ22025wasnotexplicitlystatedbutisakeymetricforevaluatingoperationalperformance[32]−AdjustedEBITDAforQ2FY25was13,535,000 in Q2 2024, indicating a significant increase in losses[38] - Adjusted EBITDA for Q2 2025 was not explicitly stated but is a key metric for evaluating operational performance[32] - Adjusted EBITDA for Q2 FY25 was 37.893 million, down 19.6% from Q2 FY24's 47.126million[44]−AdjustednetincomeforQ2FY25was47.126 million[44] - Adjusted net income for Q2 FY25 was 7.506 million, compared to 10.899millioninQ2FY24,markingadeclineof31.910.899 million in Q2 FY24, marking a decline of 31.9%[48] Sales and Revenue Trends - Organic net sales in the snacks category declined by 13% year-over-year, primarily due to in-store marketing activation and promotion effectiveness[17] - The company is revising its fiscal 2025 guidance, expecting organic net sales growth to be down 2% to 4% and adjusted EBITDA to be flat year-over-year[27] - Q2 FY25 consolidated net sales decreased by 9.4% to 411.485 million compared to Q2 FY24's 454.100million[44]−OrganicnetsalesforQ2FY25declinedby6.8454.100 million[44] - Organic net sales for Q2 FY25 declined by 6.8% to 403.853 million, compared to 433.230millioninQ2FY24[50]−Year−to−datenetsalesforQ2FY25were433.230 million in Q2 FY24[50] - Year-to-date net sales for Q2 FY25 were 806.081 million, a decrease of 8.3% from 879.129 million in Q2 FY24[46] - The Baby & Snacks segment saw a net sales decline of 21.2% and 18.1% year-to-date, respectively[52] - The company experienced a significant decline in the Meal Prep segment, with a 46.6% decrease in net sales year-over-year[52] Profitability and Margins - The gross profit margin was 22.7%, a 20-basis point increase from the prior year, while adjusted gross profit margin decreased by 60 basis points to 22.9%[6] - Gross profit for Q2 2025 was 93,452,000, down from 102,215,000inQ22024,reflectingagrossmargindecline[38]−AdjustedgrossprofitforQ2FY25was102,215,000 in Q2 2024, reflecting a gross margin decline[38] - Adjusted gross profit for Q2 FY25 was 94.310 million, reflecting an 11.7% decline from Q2 FY24's 106.771million[44]−ThegrossmarginforQ2FY25was22.7106.771 million[44] - The gross margin for Q2 FY25 was 22.7%, down from 22.5% in Q2 FY24[44] - Adjusted EBITDA margin for Q2 FY25 was 9.2%, compared to 10.4% in Q2 FY24[44] Debt and Cash Flow - Total debt decreased to 729 million from 744millionatthebeginningofthefiscalyear,withnetdebtat744 million at the beginning of the fiscal year, with net debt at 672 million[12] - Free cash flow is projected to be at least 60millionforthefiscalyear[27]−CashandcashequivalentsattheendofQ22025were60 million for the fiscal year[27] - Cash and cash equivalents at the end of Q2 2025 were 56,200,000, slightly up from 54,307,000attheendofQ22024[42]−FreecashflowforQ2FY25was54,307,000 at the end of Q2 2024[42] - Free cash flow for Q2 FY25 was (6.382) million, compared to (5.829)millioninQ2FY24[56]−TotaldebtasofJune30,2024,was(5.829) million in Q2 FY24[56] - Total debt as of June 30, 2024, was 744.092 million, with net debt at 689.785million[58]StrategicInitiatives−Thecompanyisexploringstrategicoptionsforitspersonalcarebusinesstofocusonbetter−for−youfoodandbeverages[3]−Thecompanyemphasizedtheimportanceoforganicnetsalesasameasureofgrowth,excludingtheimpactofacquisitionsandforeignexchange[36]−Theimpactofdivestituresanddiscontinuedbrandscontributedtoa3.3689.785 million[58] Strategic Initiatives - The company is exploring strategic options for its personal care business to focus on better-for-you food and beverages[3] - The company emphasized the importance of organic net sales as a measure of growth, excluding the impact of acquisitions and foreign exchange[36] - The impact of divestitures and discontinued brands contributed to a 3.3% decline in consolidated net sales for Q2 FY25[50] - The impact of divestitures and discontinued brands reduced net sales by 4.557 million in Q2 FY25[52] - Future outlook includes continued focus on organic growth despite recent challenges in various segments[52]