Hain Celestial(US:HAIN)2025-11-07 21:03Financial Performance - Net sales for the three months ended September 30, 2025, were $367.9 million, a decrease of $26.7 million, or 6.8%, compared to the prior year quarter [154]. - Gross profit for the same period was $68.1 million, a decrease of $13.5 million, or 16.6%, with a gross profit margin of 18.5% compared to 20.7% in the prior year [155]. - Operating loss for the three months ended September 30, 2025, was $6.9 million, compared to operating income of $3.1 million in the prior year quarter [160]. - Net loss for the three months ended September 30, 2025, was $20.6 million, or $0.23 per diluted share, compared to a net loss of $19.7 million, or $0.22 per diluted share, in the prior year [167]. - Adjusted EBITDA was $19.7 million for the three months ended September 30, 2025, down from $22.4 million in the prior year [168]. - Organic net sales for the three months ended September 30, 2025, were $341.5 million, a decline of 5.8% compared to the same period in 2024 [200]. - Adjusted EBITDA for the three months ended September 30, 2025, was $19.7 million, compared to $22.4 million in the same period of 2024 [204]. Expenses and Costs - Selling, general and administrative expenses decreased by $5.8 million, or 8.2%, to $65.5 million due to lower employee-related costs [157]. - Productivity and transformation costs increased by $3.2 million, or 63.8%, to $8.2 million, primarily due to costs associated with the Restructuring Program [158]. - Interest and other financing expense increased by $1.8 million, or 12.8%, to $15.5 million, primarily due to higher financing fees [161]. Restructuring Program - The cumulative pretax charges associated with the Restructuring Program are expected to be between $100 million and $110 million [150]. - Annualized pretax savings from the Restructuring Program are expected to be between $130 million and $150 million [151]. Sales by Region - North America net sales for Q3 2025 were $203.9 million, a decrease of $27.2 million or 11.8% from Q3 2024, with organic net sales down 7.4% to $185.0 million [171]. - International net sales for Q3 2025 were $164.0 million, an increase of $0.5 million or 0.3%, while organic net sales decreased by $6.4 million or 3.9% to $156.5 million [175]. Cash Flow and Debt - Cash used in operating activities was $8.5 million for Q3 2025, a decrease of $2.3 million from $10.8 million in the prior year period, primarily due to improved working capital management [192]. - Total debt increased by $11.4 million to $716.2 million as of September 30, 2025, compared to $704.8 million at June 30, 2025 [190]. - Cash and cash equivalents decreased by $6.5 million to $47.9 million as of September 30, 2025, from $54.4 million at June 30, 2025 [190]. - Free cash flow was negative $13.7 million for the three months ended September 30, 2025, an improvement of $2.8 million from negative free cash flow of $16.5 million in the same period of the prior year [195]. Financial Ratios and Covenants - The Company maintained a consolidated secured leverage ratio of 4.81:1.00 as of September 30, 2025, in compliance with all financial covenants [182]. - The Fourth Amendment to the Credit Agreement requires a minimum Consolidated EBITDA of $17.0 million for the quarter ending September 30, 2025 [186]. - The weighted average interest rate on outstanding borrowings under the Credit Agreement was 7.78% as of September 30, 2025, with a commitment fee of 0.25% per annum on unused amounts [188]. Share Repurchase and Goodwill - The company had $173.5 million of remaining authorization under the share repurchase program as of September 30, 2025 [196]. - The company did not repurchase any shares under the repurchase program during the three months ended September 30, 2025 [196]. - As of September 30, 2025, goodwill associated with the U.S. and U.K. reporting units had a carrying value of $312.3 million and $114.0 million, respectively [210]. Market Capitalization - The company expects that its market capitalization should reconcile within a reasonable range to the sum of the fair values of its individual reporting units [211].