Hain Celestial Reports Fiscal Second Quarter 2026 Financial Results

Core Insights - The Hain Celestial Group reported a net cash provided by operations increase of 20% year-over-year, indicating strong cash delivery for the fiscal second quarter ended December 31, 2025 [1][2]. Financial Highlights - Net sales for the fiscal second quarter were $384 million, a decrease of 7% year-over-year, with organic net sales also down by 7% [7][8]. - The gross profit margin was 19.4%, reflecting a 330-basis point decrease from the prior year, while the adjusted gross profit margin was 19.5%, a 340-basis point decrease [7][10]. - The company reported a net loss of $116 million, compared to a net loss of $104 million in the prior year period, which included pre-tax non-cash impairment charges of $132 million [7][11]. - Adjusted EBITDA was $24 million, down from $38 million in the prior year period, marking a 57% decrease [11][14]. Cash Flow and Balance Sheet Highlights - Net cash provided by operating activities was $37 million, up from $31 million in the prior year period, while free cash flow increased to $30 million from $25 million [7][39]. - Total debt remained stable at $705 million, with net debt decreasing to $637 million from $650 million at the beginning of the fiscal year [7][39]. Segment Highlights - North America segment net sales were $198 million, down 14% year-over-year, primarily due to a 10% decrease in organic net sales driven by snacks and baby formula [8][9]. - International segment net sales were $186 million, reflecting a 2% increase year-over-year, although organic net sales decreased by 3% [8][12]. - The gross profit for the North America segment was $41 million, a decrease of 28% year-over-year, while the international segment gross profit was $34 million, an 8% decrease [10][13]. Category Highlights - Snacks experienced a significant organic net sales decline of 20% year-over-year, attributed to distribution losses and velocity challenges [19]. - Baby & Kids category saw a 14% decline in organic net sales, primarily due to industry-wide volume softness [20]. - Beverages category reported a 3% increase in organic net sales, driven by growth in tea in North America [21].