Hain Celestial(US:HAIN)2021-11-09 14:04Financial Performance - Net sales for the three months ended September 30, 2021 were $454.9 million, a decrease of $43.7 million, or 8.8%, compared to $498.6 million in the same period of 2020[143] - Gross profit for the three months ended September 30, 2021 was $105.4 million, a decrease of $13.7 million, or 11.5%, with a gross profit margin of 23.2% compared to 23.9% in the prior year[144] - Operating income for the three months ended September 30, 2021 was $25.5 million, significantly up from $3.3 million in the prior year quarter, reflecting improved operational efficiency[149] - The company reported net income from continuing operations of $19.4 million, compared to a net loss of $10.8 million in the prior year, marking a significant turnaround[142] - Net income from continuing operations for the three months ended September 30, 2021 was $19.4 million, or $0.20 per diluted share, compared to a net loss of $10.8 million, or $0.11 per diluted share, for the same period in 2020[157] - The company reported a net income of $19.4 million for the three months ended September 30, 2021, compared to a net income of $0.5 million in the same period of 2020[185] Expenses and Costs - Selling, general and administrative expenses decreased to $74.0 million, down $5.5 million, or 7.0%, from $79.5 million in the prior year quarter[145] - Productivity and transformation costs increased to $4.0 million, up $2.6 million from $1.4 million in the prior year quarter, primarily due to consulting fees for supply chain optimization[147] - Adjusted EBITDA for the three months ended September 30, 2021 was $47.3 million, a decrease of $7.6 million, or 13.8%, from $54.9 million in the prior year[142] - Adjusted EBITDA decreased to $47.3 million for the three months ended September 30, 2021, down from $54.9 million in the prior year[161] - Operating Free Cash Flow from continuing operations for the three months ended September 30, 2021, was $19.8 million, compared to $28.5 million for the same period in 2020[188] Sales Performance by Region - Net sales in North America for the three months ended September 30, 2021 were $265.5 million, a decrease of $15.1 million, or 5.4%, from $280.7 million in the prior year[163] - International net sales decreased to $189.4 million, down $28.6 million, or 13.1%, from $218.0 million in the prior year, but increased 1.6% on a constant currency basis[164] - The net sales decline in North America was 5.4%, while the decline in international markets was 13.1% for the three months ended September 30, 2021[181] - The impact of foreign currency exchange on net sales was a negative 2.0% for the three months ended September 30, 2021[181] Cash Flow and Investments - Cash flows provided by operating activities from continuing operations were $37.6 million, a decrease of $3.1 million from $40.7 million in the prior year[171] - Cash used in investing activities increased to $18.1 million, up $10.3 million from $7.7 million in the prior year due to increased capital expenditures[172] - Cash used in financing activities was $63.5 million, an increase of $27.6 million compared to $36.0 million in the prior year, primarily due to share repurchases[173] - The company repurchased 4.525 million shares for a total of $175.6 million at an average price of $38.80 per share during the three months ended September 30, 2021[175] Strategic Initiatives - The company is focused on simplifying its brand portfolio and identifying declining brands for potential divestiture as part of its Hain 3.0 strategy[138] - The company plans to actively seek acquisitions to strengthen its position in targeted categories, supported by its borrowing capacity[138] Miscellaneous - The COVID-19 pandemic initially increased demand for the company's products, but net sales have since normalized, impacting overall performance[139] - The impact of divestitures and discontinued brands on net sales was a positive contribution of 10.7% for the three months ended September 30, 2021[181] - The company did not have any off-balance sheet arrangements that could materially affect its consolidated financial statements as of September 30, 2021[189] - There were no changes in internal controls over financial reporting that materially affected the company during the three months ended September 30, 2021[196] - The company believes that capital spending is essential for maintaining operational capabilities, impacting the evaluation of cash available for discretionary investments[186]