Core Insights - Hain Celestial Group, Inc. reported a decline in both top and bottom lines for Q2 fiscal 2026, with net sales of $384.1 million, a 6.7% year-over-year decrease, although it surpassed consensus estimates [3][10] - The adjusted loss per share was 3 cents, down from adjusted earnings of 8 cents in the same quarter last year [3] - The stock price fell 19.5% due to significant volume declines, particularly in snacks and baby categories, and near-term margin pressures [1][10] Financial Performance - Adjusted gross profit decreased to $74.9 million from $94.3 million year-over-year, with the adjusted gross margin contracting 340 basis points to 19.5% [4] - SG&A expenses were reduced to $60.9 million, down 13.2% from $70.2 million in the prior-year quarter, reflecting lower employee-related expenses [5] - Adjusted EBITDA was $24.3 million, a 35.9% decline from $37.9 million in the prior-year quarter, with an adjusted EBITDA margin of 6.3% [6] Segment Performance - North America segment net sales fell 13.7% year-over-year to $197.8 million, with organic net sales down 10.3% due to weakness in snacks and baby formula [7] - International segment net sales increased 2.3% year-over-year to $186.3 million, benefiting from foreign currency tailwinds, although organic net sales slipped 2.7% [10][11] - In the Snacks category, organic net sales plunged 19.9% year-over-year, while Baby & Kids sales fell 14.2% [13] Cash Flow and Debt Management - The company ended the quarter with cash and cash equivalents of $68 million and long-term debt of $0.4 million [16] - Net cash provided by operating activities was $37 million, up from $30.9 million in the prior-year period, with free cash flow inflow of $30 million compared to $24.5 million last year [16] Strategic Outlook - The company is not providing numeric guidance for fiscal 2026 due to uncertainties related to the strategic review and the divestiture of the North American Snacks business, expected to close in February [19] - Post-divestiture, the North American portfolio is anticipated to generate a gross margin above 30% and an EBITDA margin in the low-double digits [20] - Hain Celestial aims to strengthen its financial position through initiatives to stabilize sales, improve profitability, optimize cash flow, and reduce debt [22]

Core Insights - Hain Celestial Group, Inc. (HAIN) reported a decline in both top and bottom lines for Q1 fiscal 2026, with net sales of $367.9 million, a 6.8% year-over-year decrease, while adjusted loss per share was 8 cents, wider than the consensus estimate of 4 cents [1][3][4] Financial Performance - Net sales exceeded consensus estimates but declined year over year, with organic net sales down 5.8% due to a 7-point decrease in volume/mix, partially offset by a 1-point increase in pricing [4] - Adjusted gross profit was $71.9 million, down 12.3% from the previous year, with an adjusted gross margin of 19.5%, lagging behind the estimated 20.4% [4] - SG&A expenses decreased by 8.2% to $65.5 million, representing 17.8% of net sales, a reduction of 30 basis points year over year [5] - Adjusted EBITDA was $19.7 million, down 11.8% from the prior year, with an adjusted EBITDA margin of 5.4% [5] Segment Performance - North America segment net sales fell 11.8% to $203.9 million, with organic net sales down 7.4% due to weaker snack volumes [6] - International segment net sales totaled $164 million, a slight increase of 0.3% year over year, but organic net sales declined 3.9% [9] - In the Snacks category, organic net sales dropped 17.2%, while the Baby & Kids category saw a decline of 9.5% [12] Cash and Debt Overview - The company ended the quarter with cash and cash equivalents of $47.9 million and long-term debt of $708.6 million [14] - Free cash flow for the quarter was an outflow of $14 million, an improvement from $17 million in the prior year, driven by better inventory management [15]

Core Insights - Hain Celestial reported Q3 CY2025 results that exceeded revenue expectations but experienced a year-on-year sales decline of 6.8% to $367.9 million [1][5] - The company posted a non-GAAP loss of $0.08 per share, which was 48.1% below analysts' consensus estimates [1][5] Revenue and Financial Performance - Revenue for the quarter was $367.9 million, surpassing analyst estimates of $360.5 million, but reflecting a 6.8% decline year-on-year [5] - Adjusted EPS was -$0.08 compared to analyst expectations of -$0.05, marking a 48.1% miss [5] - Adjusted EBITDA stood at $19.73 million, aligning with analyst estimates, resulting in a 5.4% margin [5] - Operating margin decreased to -1.9%, down from 2.1% in the same quarter last year [5] - Organic revenue fell by 6% year-on-year, compared to analyst estimates of a 5.4% decline, representing a 61.1 basis point miss [5] - Market capitalization is reported at $108.4 million [5] Management Commentary and Strategy - Management noted improvements in organic net sales trends, particularly in North America, with growth in Beverages, Baby and Kids, and Meal Prep segments [3][4] - Cost control measures, a revamped operating model, and targeted brand renovation initiatives are beginning to show positive results [3] - The company plans to accelerate new product launches and implement cost-saving initiatives to enhance margins and stabilize sales [3] - The '5 actions to win' plan includes portfolio simplification, revenue growth management, and digital marketing to drive performance in the second half of the year [3] - Upcoming innovations are expected in Snacks and Baby and Kids categories, focusing on premiumization and pricing strategies to counter inflation [3]

Core Viewpoint - Hain Celestial has reported a decline in both revenue and profit for Q4 fiscal 2025, missing consensus estimates and reflecting ongoing challenges in its portfolio streamlining efforts [2][3][4]. Financial Performance - The company posted an adjusted loss of $0.02 per share, missing the Zacks Consensus Estimate of $0.04, and down from adjusted earnings of $0.13 in the same quarter last year [3]. - Net sales were $363.3 million, falling short of the consensus estimate of $375 million, representing a 13.2% year-over-year decline [4]. - Organic sales decreased by 10.8% compared to the previous year, primarily driven by an 11-point drop in volume/mix, while pricing remained stable [4]. Profitability Metrics - Adjusted gross profit was $74.3 million, down 24.1% year over year, with the adjusted gross margin contracting by 290 basis points to 20.5% [4]. - SG&A expenses were $67.4 million, a decrease of 6.7% from $72.3 million in the prior year, but as a percentage of net sales, it increased by 130 basis points to 18.6% [5]. - Adjusted EBITDA fell to $19.9 million, down 49.7% from $39.5 million in the year-ago quarter, with the adjusted EBITDA margin declining to 5.5% from 9.4% [5]. Segment Performance - North America segment net sales dropped 20.8% year over year to $205.8 million, with organic net sales down 14.4% due to weaker snack sales [6]. - The International segment saw net sales decrease by 1.0% to $157.6 million, with organic net sales down 5.9% due to softness in meal preparation and beverages [9]. - In the Snacks category, organic net sales fell 19.1%, while Baby & Kids and Beverages categories saw declines of 9.3% and 3.1%, respectively [12]. Financial Position - The company ended the quarter with cash and cash equivalents of $54.4 million and long-term debt of $697.2 million, resulting in total shareholders' equity of $475 million [13]. - Net cash used in operating activities was $2.6 million for the quarter [13]. Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting down by 83.33% [14]. - Hain Celestial currently holds a Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [16].