Hain Celestial(HAIN) - 2026 Q2 - Quarterly Results

Financial Performance - Net sales for the fiscal second quarter were $384 million, a decrease of 7% year-over-year, with organic net sales also down 7%[4] - The gross profit margin was 19.4%, reflecting a 330-basis point decrease from the prior year period[4] - The net loss for the quarter was $116 million, compared to a net loss of $104 million in the prior year, including pre-tax non-cash impairment charges of $132 million[4] - Adjusted EBITDA was $24 million, down from $38 million in the prior year period, representing a decrease of 37%[4] - The company reported a net loss of $116.0 million in Q2 2026, compared to a net loss of $104.0 million in Q2 2025, reflecting an increase in losses of 10.1%[31] - Adjusted EBITDA for Q2 2026 was not explicitly stated but is calculated as net loss before various adjustments, indicating ongoing financial challenges[31] - The company reported a GAAP operating loss of $98,822 thousand in Q2 FY26, compared to a loss of $91,899 thousand in Q2 FY25[42] - The company reported a GAAP net loss of $116,006 in Q2 FY26, compared to a net loss of $103,975 in Q2 FY25, reflecting a year-over-year increase of 10.4%[45] - Adjusted net loss for Q2 FY26 was $(2,735), a significant decline from an adjusted net income of $7,506 in Q2 FY25, indicating a shift in financial performance[45] Sales Performance - North America segment organic net sales decreased by 10% year-over-year, primarily driven by declines in snacks and baby formula[8] - International segment organic net sales decreased by 3% year-over-year, showing sequential improvement from a 4% decrease in the previous quarter[11] - Organic net sales for Q2 2026 were $384.1 million, a decrease of 6.6% compared to $411.5 million in Q2 2025[31] - Q2 FY26 consolidated net sales decreased by 6.7% to $384,120 thousand compared to Q2 FY25, which was $411,485 thousand[37] - North America net sales in Q2 FY26 were $197,821 thousand, down 13.7% from $229,289 thousand in Q2 FY25[37] - The company experienced a net sales decline of 12.7% in North America for the year-to-date period compared to the previous year[47] - The impact of divestitures and discontinued brands accounted for a reduction of $22,932 in net sales for Q2 FY25, highlighting the effect of strategic business decisions[47] - The company reported a negative impact of $13.484 million from divestitures and exited product categories on net sales in Q2 FY26[49] - The impact of foreign currency exchange on net sales was $9.036 million in Q2 FY26[49] Cash Flow and Debt - Net cash provided by operating activities was $37 million, an increase from $31 million in the prior year period[12] - Free cash flow for the quarter was $30 million, compared to $25 million in the prior year[12] - Total debt remained stable at $705 million, with net debt decreasing to $637 million from $650 million at the beginning of the fiscal year[12] - Free cash flow for Q2 2026 was $36.97 million, an increase from $30.91 million in Q2 2025, showing improved cash generation from operations[35] - Net debt as of December 31, 2025, was $636.686 million, a decrease from $650.466 million as of June 30, 2025[55] Impairment and Goodwill - Goodwill impairment for Q2 2026 was $119.9 million, significantly higher than $91.3 million in Q2 2025, impacting overall financial performance[31] - The company incurred goodwill impairment charges of $119.908 million in Q2 FY26[51] Strategic Initiatives - The company is advancing its turnaround strategy, including the divestiture of its North American snack business to improve financial flexibility and margins[2] - The company continues to focus on organic net sales growth, excluding the impact of acquisitions and divestitures, to provide clearer insights into operational performance[29] - The company is focusing on productivity and transformation costs, which amounted to $5,234 thousand in Q2 FY26[42]