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HAIN Q2 Earnings Miss, Organic Sales Slip Y/Y, FY25 Guidance Down
HAINHain Celestial(HAIN) ZACKS·2025-02-10 19:00

Core Insights - Hain Celestial Group, Inc. reported a decline in both revenue and earnings for the second quarter of fiscal 2025, missing consensus estimates [1][4][5] - The company has lowered its fiscal 2025 guidance due to challenges in commercial execution and supply chain issues [2][17] Financial Performance - Adjusted earnings were 8 cents per share, below the consensus estimate of 12 cents, down from 12 cents in the same quarter last year [4] - Net sales totaled 411.5million,missingtheconsensusestimateof411.5 million, missing the consensus estimate of 430 million, representing a 9.4% year-over-year decline [5] - Organic sales fell 7% year over year, driven by a 5-point drop in volume/mix and a 2-point reduction in price [5] - Adjusted gross profit was 94.3million,down11.794.3 million, down 11.7% from the previous year, with a gross margin contraction of 60 basis points to 22.9% [5] Segment Performance - North America segment net sales decreased 14.3% year over year to 229.3 million, with organic net sales down 9% due to reduced snack sales [7] - International segment net sales fell 2.3% to 182.2million,withorganicnetsalesdeclining4182.2 million, with organic net sales declining 4% due to decreased meal prep sales [8] - In the Snacks category, organic net sales declined 13% year over year, while Baby & Kids category saw a smaller decline of 1% [12][13] Cost and Cash Flow - SG&A expenses were 70.2 million, down 5.1% from 74millionintheyear−agoquarter[6]−AdjustedEBITDAwas74 million in the year-ago quarter [6] - Adjusted EBITDA was 37.9 million, down from 47.1millioninthepreviousyear,withamarginof9.247.1 million in the previous year, with a margin of 9.2% [6] - The company ended the quarter with cash and cash equivalents of 56.2 million and long-term debt of 721.1million[16]FutureOutlook−Theupdatedguidanceprojectsorganicnetsalesgrowthtodeclineby2−4721.1 million [16] Future Outlook - The updated guidance projects organic net sales growth to decline by 2-4%, down from a previously expected flat or better performance [18] - Adjusted EBITDA is now expected to be flat year over year, a downward revision from prior mid-single-digit growth expectations [18] - Hain anticipates generating at least 60 million in free cash flow for the year [19]