Hain Celestial Reports Fiscal Second Quarter 2025 Financial Results

Core Insights - Hain Celestial Group reported a net sales decline of 9% year-over-year, with net sales totaling $411 million for the fiscal second quarter ended December 31, 2024 [6][9][43] - The company generated strong operating cash flow of$31 million, an increase from $21 million in the prior year period, and reduced total debt to$729 million from $744 million at the beginning of the fiscal year [6][5][23] - The company is exploring strategic options for its personal care category to focus on its core better-for-you food and beverage portfolio, aiming to simplify operations and enhance shareholder value [3][23] Financial Performance - Organic net sales decreased by 7$104 million, compared to a net loss of $14 million in the prior year, primarily due to non-cash goodwill and intangible asset impairment charges of$107 million [6][9] Segment Performance - North America segment net sales decreased by 14% year-over-year, while the International segment saw a smaller decline of 2% [9][10] - The snacks category experienced a significant decline of 21% in net sales, attributed to ineffective in-store marketing and promotional activities [17][18] - The personal care segment faced a drastic decline of 47% in net sales, driven by SKU simplification initiatives [22][23] Guidance and Outlook - The company has revised its fiscal 2025 guidance, expecting organic net sales growth to decline by 2% to 4% [24][23] - Adjusted EBITDA is anticipated to remain flat year-over-year, with gross margin expected to increase by at least 90 basis points [30][23] - Free cash flow is projected to be at least $60 million, reflecting improved cash generation capabilities [30][23]