Sliding sales, impairment charges push Hain Celestial to Q2 loss

Core Insights - Hain Celestial reported a widening net loss of $116 million for Q2, compared to a loss of $104 million in the same period last year, amid declining sales and impairment charges [1][3] - The company's net sales decreased by 7% to $384.1 million, with organic sales also falling by 7% [1][3] Sales Performance - In North America, organic net sales fell by 10%, primarily due to declines in the snacks and baby-formula segments [2] - The international division's net sales decreased by 3% organically but increased by 2% on a reported basis to $186.3 million, aided by favorable exchange rates [2] Financial Impact - The second-quarter results included $132 million in impairment charges, with $119.9 million attributed to goodwill impairment [3] - Gross profit fell by 20.3% to $74.4 million, contributing to an operating loss of $98.8 million, up from $91.9 million a year earlier [3] Strategic Initiatives - The company is undergoing a strategic review, including the divestiture of its North American snacks business to enhance financial flexibility and improve margins [4] - Plans to reduce approximately 30% of SKUs in North America were announced, with expectations for sequential improvement in the latter half of the year [5] Market Reaction - Following the announcement, Hain Celestial's share price increased by 4.24% to $1.23 in early trading [5] - Analyst John Baumgartner noted that Q2 results fell short of Wall Street expectations but anticipated improved performance as the snacks business is divested [6]