Hain Celestial Reports Fiscal First Quarter 2026 Financial Results

Core Insights - The Hain Celestial Group reported financial results for its fiscal first quarter ended September 30, 2025, indicating a mixed performance with a focus on stabilizing sales and improving profitability [1][2][3]. Financial Highlights - Net sales for Q1 FY26 were $368 million, a decrease of 7% year-over-year, with organic net sales down 6% [8][9]. - The gross profit margin was 18.5%, a decrease of 220 basis points from the prior year, while adjusted gross profit margin was 19.5%, down 120 basis points [8]. - The company reported a net loss of $21 million compared to a net loss of $20 million in the prior year, with an adjusted net loss of $7 million versus $4 million [8]. - Adjusted EBITDA was $20 million, down from $22 million in the prior year, reflecting a decrease in profitability [8]. Segment Highlights - North America segment net sales were $204 million, down 12% year-over-year, with organic net sales decreasing by 7% primarily due to volume softness in snacks [9][10]. - International segment net sales were $164 million, flat year-over-year, with organic net sales down 4% driven by lower sales in baby & kids [9][13]. - The overall adjusted EBITDA margin improved to 8.3% from 5.4% in the prior year, driven by productivity savings and reduced SG&A expenses [12]. Cash Flow and Balance Sheet Highlights - Net cash used in operating activities was $8 million, an improvement from $11 million in the prior year [8]. - Free cash flow was negative $14 million, an improvement from negative $17 million in the prior year [8]. - Total debt at the end of the fiscal first quarter was $716 million, up from $705 million at the beginning of the fiscal year, with a net secured leverage ratio of 4.8x [8]. Category Highlights - Snacks experienced a significant organic net sales decline of 17% due to velocity challenges and distribution losses in North America [20]. - Baby & Kids category saw a 10% decline in organic net sales, primarily due to industry-wide volume softness in purees in the UK [21]. - Beverages grew by 2% year-over-year, driven by tea sales in North America [22]. - Meal Prep category remained flat year-over-year, with strengths in yogurt offset by weaknesses in meat-free products and soup [23].