By Wendy Davidson
President & Chief Executive Officer

Fiscal 2025 marks the second year of our Hain Reimagined multi-year transformation designed to reset, refocus and revitalize our business. We made significant progress during our foundational year and are a fundamentally different and stronger company than we were one year ago. Today we reported our first-quarter financial results, highlighting our continued progress and the momentum we've built upon over the past year.

In the quarter, we drove overall adjusted gross margin expansion, driven by strong fuel generation. We continued to shape a winning portfolio and focused on strategic divestitures. We paid down debt and reinvested in our brands to drive reach and scale across our core categories and geographies. Operationally, we underwent a holistic redesign of our North America route to market, which is strengthening our customer relationships, increasing distribution across channels and unlocking category advisory opportunities.

We had known headwinds at the start of Fiscal 2025, namely promotional timing shifts in our Snacks business, late second quarter recovery of our Earth’s Best infant formula supply and short-term impacts due to SKU reduction, which led to a soft first quarter, as expected. However, we are confident in the work underway and the building blocks planned for the year to deliver on our pivot to growth in the back half, and I’m pleased to reaffirm our fiscal 2025 guidance.

Within our categories, we saw progress within the quarter in snacks, with mid-single-digit TDP growth for our largest brand, Garden Veggie, and double-digit velocity improvement on Terra chips. In Baby and Kids, Earth’s Best showed accelerating growth in snacks and cereal, while Ella’s Kitchen, our #1 baby brand in the UK, outperformed market volume in the first quarter. Additionally, in beverages, we saw growth with our flagship Celestial Seasonings tea brand and our premium non-dairy beverage brand, Natumi, increased its organic share in the natural channel.

While the macro environment remains challenging and the consumer remains stretched, better-for-you continues to be an area of growing interest for consumers – and they continue to look for premium products. We are well positioned to meet this consumer need and we have ample white space to drive growth for our beloved brands. 

Within our extensive portfolio of snacks, baby and kids, beverages, meal prep and personal care, key brands in these categories have 70% or better brand awareness and abundant opportunity to drive household penetration. Our emphasis on brand building this quarter led to improved household penetration for key brands and growth in both Ecommerce and away-from-home channels. We expect continued improvement in awareness, reach, household penetration and market share with the new brand campaigns and marketing initiatives already underway in North America and International.

Our Hain Reimagined strategy is a bold transformation of our company and fiscal 2025 is a pivotal year as we transition from foundation to execution. We’ve completed much of the heavy lifting by streamlining our portfolio, resetting our global operating model, activating our fuel program, and investing in key capabilities. We are now intensely focused on commercial execution to drive both top- and bottom- line growth.

I want to thank our Hain team members who are dedicated to inspiring healthier living through better-for-you brands and who live our values every day. Their contributions and unwavering commitment enable us to deliver on Hain Reimagined and fulfill our promises to our consumers, our customers and our stakeholders.

Forward-Looking Statements

This post contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. The words “believe,” “expect,” “anticipate,” “may,” “should,” “plan,” “intend,” “potential,” “will” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include, among other things: our beliefs or expectations relating to our future performance, results of operations and financial condition, including statements related to our ability to expand margins, improve net working capital, reduce debt and improve leverage; our strategic initiatives and business strategy, including statements related to Hain Reimagined and our Hain Reimagined goals; our supply of products contracted for with our contract manufacturers, including infant formula; our supply chain, including the availability and pricing of raw materials; our productivity pipeline; our brand portfolio; and pricing actions and product performance.

Risks and uncertainties that may cause actual results to differ materially from forward-looking statements include: challenges and uncertainty resulting from the impact of competition; our ability to manage our supply chain effectively; input cost inflation, including with respect to freight and other distribution costs; disruption of operations at our manufacturing facilities; reliance on independent contract manufacturers; changes to consumer preferences; customer concentration; our ability to execute our cost reduction initiatives and related strategic initiatives; reliance on independent distributors; risks associated with operating internationally; the availability of organic ingredients; risks associated with outsourcing arrangements; risks associated with geopolitical conflicts or events; our ability to identify and complete acquisitions or divestitures and our level of success in integrating acquisitions; our reliance on independent certification for a number of our products; our ability to attract and retain highly skilled people; risks related to tax matters; impairments in the carrying value of goodwill or other intangible assets; the reputation of our company and our brands; our ability to use and protect trademarks; foreign currency exchange risk; general economic conditions; compliance with our credit agreement; cybersecurity incidents; disruptions to information technology systems; the impact of climate change and related disclosure regulations; liabilities, claims or regulatory change with respect to environmental matters; pending and future litigation, including litigation relating to Earth’s Best® baby food products; potential liability if our products cause illness or physical harm; the highly regulated environment in which we operate; compliance with data privacy laws; the adequacy of our insurance coverage; and other risks and matters described in our most recent Annual Report on Form 10-K and our other filings from time to time with the U.S. Securities and Exchange Commission.

We undertake no obligation to update forward-looking statements to reflect actual results or changes in assumptions or circumstances, except as required by applicable law.