hain-20200206
The NASDAQ Global Select Market0000910406false00009104062020-02-062020-02-06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549
 ————————————

FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): February 6, 2020
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THE HAIN CELESTIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
 
————————————
 
Delaware0-2281822-3240619
(State or other jurisdiction
of incorporation)
(Commission File Number)(I.R.S. Employer Identification No.)
 
1111 Marcus Avenue, Lake Success, NY 11042
(Address of principal executive offices)
 
Registrant’s telephone number, including area code: (516) 587-5000
Former name or former address, if changed since last report: N/A
 
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))








Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $.01 per shareHAIN
The NASDAQ Global Select Market

 Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨







Item 2.02 Results of Operations and Financial Condition

On February 6, 2020, The Hain Celestial Group, Inc. issued a press release announcing financial results for its second quarter ended December 31, 2019. A copy of the press release is furnished as Exhibit 99.1 hereto.

The information contained in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, or incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.Description
  
104Cover Page Interactive Data File (embedded within the inline XBRL document)



SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 6, 2020

THE HAIN CELESTIAL GROUP, INC.
 
By: /s/ Javier H. Idrovo
Name:Javier H. Idrovo
Title:Executive Vice President and
Chief Financial Officer





Document

Exhibit 99.1

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Hain Celestial Reports Second Quarter Fiscal Year 2020 Financial Results

Transformational Strategic Plan Continues to Progress

Narrows and Reaffirms Fiscal Year 2020 Guidance

Lake Success, NY, February 6, 2020-The Hain Celestial Group, Inc. (Nasdaq: HAIN) (“Hain Celestial” or the “Company”), a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East providing consumers with A Healthier Way of Life™, today reported financial results for the second quarter ended December 31, 2019. The results contained herein are presented with the Hain Pure Protein and Tilda operating segments being treated as discontinued operations.

Mark L. Schiller, Hain Celestial’s President and Chief Executive Officer, commented, “Our team continues to execute on our transformational strategic plan, as we demonstrate another quarter of operational and financial improvement on a year-over-year basis. We have made significant progress in a very short period of time. We are delivering on the commitments we communicated to further simplify the portfolio and organization, strengthen our core capabilities, expand our margins and cash flow as well as reinvigorate profitable sales growth in a core set of high potential brands. We remain committed to delivering strong, consistent results for all our stakeholders.”

FINANCIAL HIGHLIGHTS1

Summary of Second Quarter Results from Continuing Operations2
Net sales of $506.8 million decreased 5% on an as reported and constant currency basis compared to the prior year period.
When adjusted for Foreign Exchange, Divestitures and Stock Keeping Unit (“SKU”) rationalization3, net sales decreased 1% compared to the prior year period.
Gross margin of 20.8%, a 180 basis point increase from the prior year period.
Adjusted gross margin of 22.0%, a 220 basis point increase from the prior year period.
Operating income of $9.2 million compared to an operating loss of $20.9 million in the prior year period.
Adjusted operating income of $29.5 million compared to $24.4 million in the prior year period.
Net income of $1.9 million compared to a net loss of $31.8 million in the prior year period.
Adjusted net income of $17.6 million compared to $13.0 million in prior year period.
EBITDA of $24.9 million compared to $12.2 million in the prior year period.
EBITDA margin of 4.9%, a 260 basis point improvement from the prior year period.
Adjusted EBITDA of $45.0 million compared to $37.9 million in the prior year period.
Adjusted EBITDA margin of 8.9%, a 180 basis point increase compared to the prior year period.
Earnings per diluted share (“EPS”) of $0.02 compared to a loss of $0.31 per share in the prior year period.
Adjusted EPS of $0.17 compared to $0.12 in the prior year period.





1This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided herein in the tables “Reconciliation of GAAP Results to Non-GAAP Measures.”
2Unless otherwise noted all results included in this press release are from continuing operations.
3Refer to “Net Sales Growth at Constant Currency" and "Adjusted for Divestitures and SKU Rationalization” provided herein.
The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS
Historically, the Company had three reportable segments: United States, United Kingdom and Rest of World. Effective July 1, 2019, the Company reassessed its segment reporting structure, pursuant to which the Company’s Canada and Hain Ventures operating segments, which were included within the Rest of World reportable segment, were moved to the United States reportable segment and renamed the North America segment. Additionally, the Europe operating segment, which was included in the Rest of World reportable segment, was combined with the United Kingdom reportable segment and renamed the International reportable segment. Accordingly, the Company now operates under two reportable segments: North America and International. Prior period segment information included herein has been adjusted to reflect the Company’s new reporting structure.

North America
North America net sales in the second quarter were $280.7 million, a decrease of 8% compared to the prior year period. When adjusted for Divestitures and SKU rationalization3, net sales decreased 2% from the prior year period.

Segment gross profit in the second quarter was $65.0 million, a 13% increase from the prior year period. Adjusted gross profit was $69.4 million, an increase of 14% from the prior year period. Gross margin was 23.1%, a 430 basis point increase from the prior year period and adjusted gross margin was 24.7%, a 480 basis point increase from the prior year.

Segment operating income in the second quarter was $20.1 million, a 110% increase from the prior year period. Adjusted operating income was $25.0 million, a 51% increase from the prior year period.

Segment EBITDA in the second quarter was $23.4 million, a 47% increase from the prior year period. Adjusted EBITDA was $30.1 million, a 41% increase from the prior year period. As a percent of sales on a constant currency basis, North America adjusted EBITDA margin was 10.7%, a 370 basis point increase from the prior year period.

International
International net sales in the second quarter were $226.1 million, a decrease of 1% from the prior year period. When adjusted for Foreign Exchange, Divestitures and SKU rationalization3, net sales increased 1% compared to the prior year period.

Segment gross profit in the second quarter was $40.6 million, an 8% decrease from the prior year period. Adjusted gross profit was $42.2 million, a decrease of 6% from the prior year period. Gross margin was 18.0%, a 130 basis point decrease from the prior year period and adjusted gross margin was 18.7%, a 90 basis point decrease from the prior year period.

Segment operating income in the second quarter was $12.9 million, a 15% decrease from the prior year period. Adjusted operating income was $16.5 million, a decrease of 12% from the prior year period.

Segment EBITDA in the second quarter was $21.6 million, a 5% decrease from the prior year period. Adjusted EBITDA was $25.1 million, a 5% decrease from the prior year period. As a percent of sales on a constant currency basis, International adjusted EBITDA margin was 11.1%, a 50 basis point decrease from the prior year period.
FISCAL YEAR 2020 GUIDANCE
The Company narrows and reaffirms its annual guidance for continuing operations for fiscal year 2020:
Fiscal Year 2020
ReportedConstant Currency
Adjusted EBITDA$177 Million to $192 Million
$179 Million to $194 Million
% Growth+7% to +16%+8% to +18%
Adjusted EPS$0.62 to $0.72$0.64 to $0.74
% Growth+3% to +20%+7% to +23%

Guidance, where adjusted, is provided on a non-GAAP basis and excludes: acquisition and divestiture related expenses; integration charges; restructuring charges, start-up costs, consulting fees and other costs associated




The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



with the Company’s productivity and transformation initiatives; unrealized net foreign currency gains or losses; and other non-recurring items that may be incurred during the Company’s fiscal year 2020, which the Company will continue to identify as it reports its future financial results. Guidance also excludes the impact of any future acquisitions, divestitures, or share repurchases.

The Company cannot reconcile its expected Adjusted EBITDA to net income or adjusted earnings per diluted share to earnings per diluted share under “Fiscal Year 2020 Guidance” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time.

Contact:
Katie Turner
ICR
646-277-1228

Webcast Presentation
Hain Celestial will host a conference call and webcast today at 8:30 AM Eastern Time to discuss its results and business outlook. The call will be webcast and the accompanying presentation will be available under the Investor Relations section of the Company’s website at www.hain.com.

About The Hain Celestial Group, Inc.
The Hain Celestial Group (Nasdaq: HAIN), headquartered in Lake Success, NY, is a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East. Hain Celestial participates in many natural categories with well-known brands that include Almond Dream®, Bearitos®, Better Bean®, BluePrint®, Casbah®, Celestial Seasonings®, Clarks™, Coconut Dream®, Cully & Sully®, Danival®, DeBoles®, Earth's Best®, Ella's Kitchen®, Europe's Best®, Farmhouse Fare™, Frank Cooper's®, Gale's®, Garden of Eatin'®, GG UniqueFiber™, Hain Pure Foods®, Hartley's®, Health Valley®, Imagine™, Johnson's Juice Co.™, Joya®, Lima®, Linda McCartney® (under license), MaraNatha®, Mary Berry (under license), Natumi®, New Covent Garden Soup Co.®, Orchard House®, Rice Dream®, Robertson's®, Rudi's Gluten-Free Bakery™, Rudi's Organic Bakery®, Sensible Portions®, Spectrum® Organics, Soy Dream®, Sun-Pat®, Sunripe®, Terra®, The Greek Gods®, Walnut Acres®, Yorkshire Provender®, Yves Veggie Cuisine® and William's™. The Company's personal care products are marketed under the Alba Botanica®, Avalon Organics®, Earth's Best®, JASON®, Live Clean® and Queen Helene® brands.

Safe Harbor Statement
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements are predictions based on expectations and projections about future events and are not statements of historical fact. You can identify forward-looking statements by the use of forward-looking terminology such as “plan”, “continue”, “expect”, “anticipate”, “intend”, “predict”, “project”, “estimate”, “likely”, “believe”, “might”, “seek”, “may”, “will”, “remain”, “potential”, “can”, “should”, “could”, “future” and similar expressions, or the negative of those expressions, or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of the Company’s strategic initiatives, including productivity and transformation, the Company’s Guidance for Fiscal Year 2020 and our future performance and results of operations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, levels of activity, performance or achievements of the Company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). Such factors include, among others, the impact of competitive products and changes to the competitive environment, changes to consumer preferences, the United Kingdom’s exit from the European Union, consolidation of customers or the loss of a significant customer, reliance on independent distributors, general economic and financial market conditions, risks associated with our international sales and operations, our ability to manage our supply chain effectively, volatility in the cost of commodities, ingredients, freight and fuel, our ability to execute and realize cost savings initiatives, including SKU rationalization plans, the impact of our debt and our credit agreements on our financial condition and our business, our ability to manage our financial reporting and internal control system processes, potential liabilities due to legal claims, government investigations and other regulatory enforcement actions, costs incurred due to pending and future litigation, potential liability,




The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



including in connection with indemnification obligations to our current and former officers and members of our Board of Directors that may not be covered by insurance, potential liability if our products cause illness or physical harm, impairments in the carrying value of goodwill or other intangible assets, our ability to consummate divestitures, our ability to integrate past acquisitions, the availability of organic ingredients, disruption of operations at our manufacturing facilities, loss of one or more independent co-packers, disruption of our transportation systems, risks relating to the protection of intellectual property, the risk of liabilities and claims with respect to environmental matters, the reputation of our brands, our reliance on independent certification for a number of our products, and other risks detailed from time-to-time in the Company’s reports filed with the United States Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and our subsequent reports on Forms 10-Q and 8-K. As a result of the foregoing and other factors, the Company cannot provide any assurance regarding future results, levels of activity and achievements of the Company, and neither the Company nor any person assumes responsibility for the accuracy and completeness of these statements. All forward-looking statements contained herein apply as of the date hereof or as of the date they were made and, except as required by applicable law, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflects changes in underlying assumptions or factors of new methods, future events or other changes.
Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including net sales adjusted for the impact of Foreign Exchange, Divestitures and certain other items, including SKU rationalization, as applicable in each case, adjusted operating income, adjusted gross margin, adjusted net income, adjusted earnings per diluted share, EBITDA, Adjusted EBITDA and operating free cash flow. The reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are presented in the tables “Reconciliation of GAAP Results to Non-GAAP Measures” for the three and six months ended December 31, 2019 and 2018 in the paragraphs below. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company’s operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company’s Consolidated Statements of Operations presented in accordance with GAAP.

The Company defines Operating Free Cash Flow as cash provided by or used in operating activities from continuing operations (a GAAP measure) less capital expenditures. The Company views Operating Free Cash Flow as an important measure because it is one factor in evaluating the amount of cash available for discretionary investments.

For the three and six months ended December 31, 2019 and 2018, Operating Free Cash Flow from continuing operations was calculated as follows:
Three Months Ended December 31,Six Months Ended December 31,
2019201820192018
(unaudited and in thousands) 
Cash flow provided by (used in) operating activities - continuing operations$20,729  $19,566  $17,148  $(4) 
Purchases of property, plant and equipment(16,173) (18,737) (29,337) (40,998) 
Operating Free Cash Flow - continuing operations$4,556  $829  $(12,189) $(41,002) 

The Company’s Operating Free Cash Flow from continuing operations was $4.6 million for the three months ended December 31, 2019, an increase of $3.7 million from the three months ended December 31, 2018. The Company’s Operating Free Cash Flow from continuing operations was negative $12.2 million for the six months ended December 31, 2019, an increase of $28.8 million from the six months ended December 31, 2018. The improvement in operating free cash flow resulted primarily from an improvement in net loss adjusted for non-cash charges in the current year and a decrease in capital expenditures.

The Company believes presenting net sales at constant currency provides useful information to investors because it provides transparency to underlying performance in the Company’s consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present this information for historical periods, current period net sales for




The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

The Company provides net sales adjusted for constant currency, divestitures, and certain other items including SKU rationalization, as applicable in each case, to understand the growth rate of net sales excluding the impact of such items. The Company’s management believes net sales adjusted for such items is useful to investors because it enables them to better understand the growth of our business from period-to-period.

The Company defines EBITDA as net income (loss) from continuing operations (a GAAP measure) before income taxes, net interest expense, depreciation and amortization, equity in net loss of equity-method investees, stock-based compensation, net, stock-based compensation expense in connection with the Company’s Former CEO succession plan, long-lived asset and intangible impairments and unrealized currency gains and losses. The Company defines segment EBITDA as operating income (a GAAP measure) before depreciation and amortization, stock-based compensation, net and long-lived asset impairments. Adjusted EBITDA is defined as EBITDA before divestiture related expenses, including integration and restructuring charges, and other adjustments. The Company’s management believes that these presentations provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the Company as well as a component of performance-based executive compensation.

For the three and six months ended December 31, 2019 and 2018, EBITDA and Adjusted EBITDA from continuing operations was calculated as follows:
Three Months Ended December 31,Six Months Ended December 31,
2019201820192018
(unaudited and in thousands) 
Net loss$(964) $(66,501) $(107,985) $(103,926) 
Net loss from discontinued operations(2,816) (34,714) (104,884) (49,052) 
Net income (loss) from continuing operations$1,852  $(31,787) (3,101) $(54,874) 
Provision (benefit) for income taxes1,020  5,097  489  (4,869) 
Interest expense, net4,000  4,884  8,552  8,688  
Depreciation and amortization13,219  12,205  27,142  25,065  
Equity in net loss of equity-method investees338  11  655  186  
Stock-based compensation, net3,083  1,776  5,820  1,562  
Stock-based compensation expense in connection with Chief Executive Officer Succession Agreement—  117  —  429  
Long-lived asset and intangibles impairment1,889  19,473  1,889  23,709  
Unrealized currency (gains) losses(485) 439  1,199  1,029  
EBITDA$24,916  $12,215  42,645  925  
Productivity and transformation costs12,260  9,872  26,435  20,205  
Chief Executive Officer Succession Plan expense, net—  10,031  —  29,272  
Proceeds from insurance claim—  —  (2,562) —  
Accounting review and remediation costs, net of insurance proceeds—  920  —  4,334  
SKU rationalization3,927  1,530  3,916  1,530  
Loss on sale of business1,783  —  1,783  —  
Plant closure related costs1,522  1,490  2,354  3,319  
Warehouse/manufacturing facility start-up costs639  1,708  2,518  6,307  
Litigation and related expenses—  122  48  691  
Adjusted EBITDA$45,047  $37,888  $77,137  $66,583  






The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
Net Sales, Gross Profit and Operating Income (Loss) by Segment
(unaudited and in thousands)
North AmericaInternationalCorporate/OtherTotal
Net Sales
Net sales - Three months ended 12/31/19$280,693  $226,091  $—  $506,784  
Net sales - Three months ended 12/31/18$305,574  $227,992  $—  $533,566  
% change - FY'20 net sales vs. FY'19 net sales(8.1)%(0.8)%(5.0)%
Gross Profit
Three months ended 12/31/19
Gross profit$64,969  $40,638  $—  $105,607  
Non-GAAP adjustments (1)
4,439  1,590  —  6,029  
Adjusted gross profit$69,408  $42,228  $—  $111,636  
Gross margin23.1 %18.0 %20.8 %
Adjusted gross margin24.7 %18.7 %22.0 %
Three months ended 12/31/18
Gross profit$57,410  $43,941  $—  $101,351  
Non-GAAP adjustments (1)
3,470  824  —  4,294  
Adjusted gross profit$60,880  $44,765  $—  $105,645  
Gross margin18.8 %19.3 %19.0 %
Adjusted gross margin19.9 %19.6 %19.8 %
Operating income (loss)
Three months ended 12/31/19
Operating income (loss)$20,062  $12,899  $(23,770) $9,191  
Non-GAAP adjustments (1)
4,965  3,647  11,729  20,341  
Adjusted operating income (loss)$25,027  $16,546  $(12,041) $29,532  
Operating income margin7.1 %5.7 %1.8 %
Adjusted operating income margin8.9 %7.3 %5.8 %
Three months ended 12/31/18
Operating income (loss)$9,563  $15,153  $(45,596) $(20,880) 
Non-GAAP adjustments (1)
6,995  3,644  34,624  45,263  
Adjusted operating income (loss)$16,558  $18,797  $(10,972) $24,383  
Operating income (loss) margin3.1 %6.6 %(3.9)%
Adjusted operating income margin5.4 %8.2 %4.6 %
(1) See accompanying table of "Reconciliation of GAAP Results to Non-GAAP Measures"













The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
Net Sales, Gross Profit and Operating Income (Loss) by Segment
(unaudited and in thousands)
North AmericaInternationalCorporate/OtherTotal
Net Sales
Net sales - Six months ended 12/31/19$552,394  $436,466  $—  $988,860  
Net sales - Six months ended 12/31/18$596,765  $455,279  $—  $1,052,044  
% change - FY'20 net sales vs. FY'19 net sales(7.4)%(4.1)%(6.0)%
Gross Profit
Six months ended 12/31/19
Gross profit$127,330  $76,108  $—  $203,438  
Non-GAAP adjustments (1)
6,164  2,666  —  8,830  
Adjusted gross profit$133,494  $78,774  $—  $212,268  
Gross margin23.1 %17.4 %20.6 %
Adjusted gross margin24.2 %18.0 %21.5 %
Six months ended 12/31/18
Gross profit$107,034  $83,225  $—  $190,259  
Non-GAAP adjustments (1)
8,799  2,357  —  11,156  
Adjusted gross profit$115,833  $85,582  $—  $201,415  
Gross margin17.9 %18.3 %18.1 %
Adjusted gross margin19.4 %18.8 %19.1 %
Operating income (loss)
Six months ended 12/31/19
Operating income (loss)$35,194  $22,006  $(45,554) $11,646  
Non-GAAP adjustments (1)
8,861  5,991  19,951  34,803  
Adjusted operating income (loss)$44,055  $27,997  $(25,603) $46,449  
Operating income margin6.4 %5.0 %1.2 %
Adjusted operating income margin8.0 %6.4 %4.7 %
Six months ended 12/31/18
Operating income (loss)$14,069  $20,813  $(83,726) $(48,844) 
Non-GAAP adjustments (1)
13,821  10,290  66,119  90,230  
Adjusted operating income (loss)$27,890  $31,103  $(17,607) $41,386  
Operating income (loss) margin2.4 %4.6 %(4.6)%
Adjusted operating income margin4.7 %6.8 %3.9 %
(1) See accompanying table of "Reconciliation of GAAP Results to Non-GAAP Measures"






The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
Consolidated Balance Sheets
(unaudited and in thousands)
December 31,June 30,
20192019
ASSETS
Current assets:
Cash and cash equivalents$37,024  $31,017  
Accounts receivable, net206,583  209,990  
Inventories283,127  299,341  
Prepaid expenses and other current assets50,019  51,391  
Current assets of discontinued operations—  110,048  
    Total current assets576,753  701,787  
Property, plant and equipment, net298,558  287,845  
Goodwill879,705  875,881  
Trademarks and other intangible assets, net378,796  380,286  
Investments and joint ventures18,990  18,890  
Operating lease right of use assets83,845  —  
Other assets48,298  58,764  
Noncurrent assets of discontinued operations—  259,167  
Total assets$2,284,945  $2,582,620  
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$187,376  $219,957  
Accrued expenses and other current liabilities123,272  114,265  
Current portion of long-term debt1,387  17,232  
Current liabilities of discontinued operations—  31,703  
    Total current liabilities312,035  383,157  
Long-term debt, less current portion324,864  613,537  
Deferred income taxes35,012  34,757  
Operating lease liabilities, noncurrent portion76,726  —  
Other noncurrent liabilities15,225  14,489  
Noncurrent liabilities of discontinued operations—  17,361  
Total liabilities763,862  1,063,301  
Stockholders' equity:
Common stock1,091  1,088  
Additional paid-in capital1,164,618  1,158,257  
Retained earnings586,593  695,017  
Accumulated other comprehensive loss(120,197) (225,004) 
1,632,105  1,629,358  
Treasury stock(111,022) (110,039) 
    Total stockholders' equity1,521,083  1,519,319  
    Total liabilities and stockholders' equity$2,284,945  $2,582,620  





The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
 Consolidated Statements of Operations
 (unaudited and in thousands, except per share amounts)
Three Months Ended December 31,Six Months Ended December 31,
2019201820192018
Net sales$506,784  $533,566  $988,860  $1,052,044  
Cost of sales401,177  432,215  785,422  861,785  
Gross profit105,607  101,351  203,438  190,259  
Selling, general and administrative expenses79,078  78,496  159,758  154,473  
Amortization of acquired intangibles3,189  3,322  6,272  6,681  
Productivity and transformation costs12,260  9,872  26,435  20,205  
Chief Executive Officer Succession Plan expense, net—  10,148  —  29,701  
Proceeds from insurance claim—  —  (2,562) —  
Accounting review and remediation costs, net of insurance proceeds—  920  —  4,334  
Long-lived asset and intangibles impairment1,889  19,473  1,889  23,709  
Operating income (loss)9,191  (20,880) 11,646  (48,844) 
Interest and other financing expense, net4,737  5,428  11,031  9,742  
Other expense, net1,244  371  2,572  971  
Income (loss) from continuing operations before income taxes and equity in net loss of equity-method investees3,210  (26,679) (1,957) (59,557) 
Provision (benefit) for income taxes1,020  5,097  489  (4,869) 
Equity in net loss of equity-method investees338  11  655  186  
   Net income (loss) from continuing operations$1,852  $(31,787) $(3,101) $(54,874) 
   Net loss from discontinued operations, net of tax(2,816) (34,714) (104,884) (49,052) 
Net loss$(964) $(66,501) $(107,985) $(103,926) 
Net income (loss) per common share:
Basic net income (loss) per common share from continuing operations$0.02  $(0.31) $(0.03) $(0.53) 
Basic net loss per common share from discontinued operations(0.03) (0.33) (1.01) (0.47) 
   Basic net loss per common share$(0.01) $(0.64) $(1.04) $(1.00) 
Diluted net income (loss) per common share from continuing operations$0.02  $(0.31) $(0.03) $(0.53) 
Diluted net loss per common share from discontinued operations(0.03) (0.33) (1.01) (0.47) 
   Diluted net loss per common share$(0.01) $(0.64) $(1.04) $(1.00) 
Shares used in the calculation of net income (loss) per common share:
Basic104,318  104,056  104,272  104,009  
Diluted104,619  104,056  104,272  104,009  






The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
 Consolidated Statements of Cash Flows
 (unaudited and in thousands)
 Three Months Ended December 31,Six Months Ended December 31,
 2019201820192018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss$(964) $(66,501) $(107,985) $(103,926) 
   Net loss from discontinued operations(2,816) (34,714) (104,884) (49,052) 
   Net income (loss) from continuing operations1,852  (31,787) (3,101) $(54,874) 
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used in) operating activities from continuing operations:
Depreciation and amortization13,219  12,205  27,142  25,065  
Deferred income taxes(751) (9,448) (5,155) (22,666) 
Chief Executive Officer Succession Plan expense, net—  10,031  —  29,272  
Equity in net loss of equity-method investees338  11  655  186  
Stock-based compensation, net3,083  1,893  5,820  1,991  
Long-lived asset and intangibles impairment1,889  19,473  1,889  23,709  
Other non-cash items, net897  444  2,661  1,285  
Increase (decrease) in cash attributable to changes in operating assets and liabilities:
Accounts receivable8,393  5,774  7,540  9,540  
Inventories14,896  12,892  9,389  (5,748) 
Other current assets(12,328) (1,531) 1,895  (1,528) 
Other assets and liabilities(1,386) 4,626  (1,242) 4,594  
Accounts payable and accrued expenses(9,373) (5,017) (30,345) (10,830) 
Net cash provided by (used in) operating activities - continuing operations20,729  19,566  17,148  (4) 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment(16,173) (18,737) (29,337) (40,998) 
Proceeds from sale of businesses and other13,120  4,515  13,120  3,863  
Net cash used in investing activities - continuing operations(3,053) (14,222) (16,217) (37,135) 
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings under bank revolving credit facility67,000  80,000  147,000  150,000  
Repayments under bank revolving credit facility(67,000) (77,646) (245,500) (137,646) 
Repayments under term loan—  (3,750) (206,250) (7,500) 
(Funding of) proceeds from discontinued operations entities(2,266) 16,661  309,929  13,550  
(Repayments) borrowings of other debt, net(510) 175  (501) (601) 
Shares withheld for payment of employee payroll taxes(672) (1,943) (984) (2,922) 
Net cash (used in) provided by financing activities - continuing operations(3,448) 13,497  3,694  14,881  
Effect of exchange rate changes on cash - continuing operations2,274  (822) 1,382  (1,492) 
CASH FLOWS FROM DISCONTINUED OPERATIONS
Cash provided by (used in) operating activities2,339  11,728  (5,687) (2,859) 
Cash (used in) provided by investing activities(4,605) (1,551) 301,815  (3,472) 
Cash provided by (used in) financing activities2,266  (9,965) (304,100) (4,417) 
Effect of exchange rate changes on cash - discontinued operations—  (87) (537) (477) 
Net cash flows provided by (used in) discontinued operations—  125  (8,509) (11,225) 
Net increase (decrease) in cash and cash equivalents16,502  18,144  (2,502) (34,975) 
Cash and cash equivalents at beginning of period20,522  59,899  39,526  113,018  
Cash and cash equivalents and restricted cash at end of period$37,024  $78,043  $37,024  $78,043  
Less: cash and cash equivalents of discontinued operations—  (17,098) —  $(17,098) 
Cash and cash equivalents and restricted cash of continuing operations at end of period$37,024  $60,945  $37,024  $60,945  






The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
 Reconciliation of GAAP Results to Non-GAAP Measures
 (unaudited and in thousands)
Three Months Ended December 31,
2019 GAAPAdjustments2019 Adjusted2018 GAAP Adjustments2018 Adjusted
Net sales$506,784  $—  $506,784  $533,566  $—  $533,566  
Cost of sales401,177  (6,029) 395,148  432,215  (4,294) 427,921  
Gross profit105,607  6,029  111,636  101,351  4,294  105,645  
Operating expenses(a)
84,156  (2,052) 82,104  101,291  (20,029) 81,262  
Productivity and transformation costs12,260  (12,260) —  9,872  (9,872) —  
Chief Executive Officer Succession Plan expense, net—  —  —  10,148  (10,148) —  
Accounting review and remediation costs, net of insurance proceeds—  —  —  920  (920) —  
Operating income (loss)9,191  20,341  29,532  (20,880) 45,263  24,383  
Interest and other expense (income), net(b)
5,981  (1,298) 4,683  5,799  (439) 5,360  
Provision (benefit) for income taxes1,020  5,889  6,909  5,097  934  6,031  
   Net income (loss) from continuing operations1,852  15,750  17,602  (31,787) 44,768  12,981  
   Net (loss) income from discontinued operations, net of tax(2,816) 2,816  —  (34,714) 34,714  —  
Net (loss) income(964) 18,566  17,602  (66,501) 79,482  12,981  
Diluted net income (loss) per common share from continuing operations0.02  0.15  0.17  (0.31) 0.43  0.12  
Diluted net (loss) income per common share from discontinued operations(0.03) 0.03  —  (0.33) 0.33  —  
   Diluted net (loss) income per common share(0.01) 0.18  0.17  (0.64) 0.76  0.12  

(a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset and intangibles impairment.
(b) Interest and other expense, net includes interest and other financing expenses, net and other expense, net.





The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
 Reconciliation of GAAP Results to Non-GAAP Measures
 (unaudited and in thousands)
Detail of Adjustments:
Three Months Ended December 31,
20192018
SKU rationalization$3,927  $1,530  
Plant closure related costs1,626  1,056  
Warehouse/manufacturing facility start-up costs476  1,708  
Cost of sales6,029  4,294  
Gross profit6,029  4,294  
Intangibles impairment1,889  17,900  
Warehouse/manufacturing facility start-up costs163  —  
Litigation and related expenses—  122  
Long-lived asset impairment charge associated with plant closure —  1,573  
Plant closure related costs—  434  
Operating expenses(a)
2,052  20,029  
Productivity and transformation costs12,260  9,872  
Productivity and transformation costs12,260  9,872  
Chief Executive Officer Succession Plan expense, net—  10,148  
Chief Executive Officer Succession Plan expense, net—  10,148  
Accounting review and remediation costs—  920  
Accounting review and remediation costs—  920  
Operating income (loss)20,341  45,263  
Unrealized currency (gains) losses(485) 439  
Loss on sale of business1,783  —  
Interest and other expense (income), net(b)
1,298  439  
Income tax related adjustments(5,889) (934) 
Provision (benefit) for income taxes(5,889) (934) 
   Net income (loss) from continuing operations$15,750  $44,768  

(a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset and intangibles impairment.
(b) Interest and other expense, net includes interest and other financing expenses, net and other expense, net.


The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
Reconciliation of GAAP Results to Non-GAAP Measures
(unaudited and in thousands)
Six Months Ended December 31,
2019 GAAPAdjustments2019 Adjusted2018 GAAPAdjustments2018 Adjusted
Net sales$988,860  $—  $988,860  $1,052,044  $—  $1,052,044  
Cost of sales785,422  (8,830) 776,592  861,785  (11,156) 850,629  
Gross profit203,438  8,830  212,268  190,259  11,156  201,415  
Operating expenses(a)
167,919  (2,100) 165,819  184,863  (24,834) 160,029  
Productivity and transformation costs26,435  (26,435) —  20,205  (20,205) —  
Chief Executive Officer Succession Plan expense, net—  —  —  29,701  (29,701) —  
Proceeds from insurance claim(2,562) 2,562  —  —  —  —  
Accounting review and remediation costs, net of insurance proceeds—  —  —  4,334  (4,334) —  
Operating income (loss)11,646  34,803  46,449  (48,844) 90,230  41,386  
Interest and other expense (income), net(b)
13,603  (3,957) 9,646  10,713  (1,029) 9,684  
Provision (benefit) for income taxes489  9,689  10,178  (4,869) 14,401  9,532  
   Net (loss) income from continuing operations(3,101) 29,071  25,970  (54,874) 76,858  21,984  
   Net (loss) income from discontinued operations, net of tax(104,884) 104,884  —  (49,052) 49,052  —  
Net (loss) income(107,985) 133,955  25,970  (103,926) 125,910  21,984  
Diluted net (loss) income per common share from continuing operations(0.03) 0.28  0.25  (0.53) 0.74  0.21  
Diluted net (loss) income per common share from discontinued operations(1.01) 1.01  —  (0.47) 0.47  —  
   Diluted net (loss) income per common share(1.04) 1.28  0.25  (1.00) 1.21  0.21  

(a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset and intangibles impairment.
(b) Interest and other expense, net includes interest and other financing expenses, net and other expense, net.






























The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com






THE HAIN CELESTIAL GROUP, INC.
Reconciliation of GAAP Results to Non-GAAP Measures
(unaudited and in thousands)
Detail of Adjustments:
Six Months Ended December 31,
20192018
SKU rationalization$3,916  $1,530  
Plant closure related costs2,559  3,319  
Warehouse/manufacturing facility start-up costs2,355  6,307  
Cost of sales8,830  11,156  
Gross profit8,830  11,156  
Intangibles impairment1,889  17,900  
Warehouse/manufacturing facility start-up costs163  —  
Litigation and related expenses48  691  
Long-lived asset impairment charge associated with plant closure—  5,809  
Plant closure related costs—  434  
Operating expenses(a)
2,100  24,834  
Productivity and transformation costs26,435  20,205  
Productivity and transformation costs26,435  20,205  
Chief Executive Officer Succession Plan expense, net—  29,701  
Chief Executive Officer Succession Plan expense, net—  29,701  
Proceeds from insurance claims(2,562) —  
Proceeds from insurance claims(2,562) —  
Accounting review and remediation costs—  4,334  
Accounting review and remediation costs—  4,334  
Operating income (loss)34,803  90,230  
Loss on sale of business1,783  —  
Unrealized currency losses1,199  1,029  
Deferred financing cost write-off975  —  
Interest and other expense (income), net(b)
3,957  1,029  
Income tax related adjustments(9,689) (14,401) 
Provision (benefit) for income taxes(9,689) (14,401) 
   Net (loss) income from continuing operations$29,071  $76,858  
a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset and intangibles impairment.
(b) Interest and other expense, net includes interest and other financing expenses, net and other expense, net.


The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
Net Sales Growth at Constant Currency
(unaudited and in thousands)
Hain Consolidated  North AmericaInternational
Net sales - Three months ended 12/31/19 $506,784  $280,693  $226,091  
Impact of foreign currency exchange 2,012  (69) 2,081  
Net sales on a constant currency basis - Three months ended 12/31/19 $508,796  $280,624  $228,172  
Net sales - Three months ended 12/31/18$533,566  $305,574  $227,992  
Net sales (decline) growth on a constant currency basis(4.6)%(8.2)%0.1 %
Hain Consolidated  North AmericaInternational
Net sales - Six months ended 12/31/19 $988,860  $552,394  $436,466  
Impact of foreign currency exchange 13,706  287  13,419  
Net sales on a constant currency basis - Six months ended 12/31/19 $1,002,566  $552,681  $449,885  
Net sales - Six months ended 12/31/18$1,052,044  $596,765  $455,279  
Net sales decline on a constant currency basis(4.7)%(7.4)%(1.2)%
Net Sales Growth at Constant Currency and Adjusted for Divestitures and SKU Rationalization
Hain Consolidated  North AmericaInternational
Net sales on a constant currency basis - Three months ended 12/31/19 $508,796  $280,624  $228,172  
Net sales - Three months ended 12/31/18$533,566  $305,574  $227,992  
Divestitures(7,024) (7,024) —  
SKU rationalization(13,811) (12,239) (1,572) 
Net sales on a constant currency basis adjusted for divestitures and SKU rationalization - Three months ended 12/31/18 $512,731  $286,311  $226,420  
Net sales (decline) growth on a constant currency basis adjusted for divestitures and SKU rationalization (0.8)%(2.0)%0.8 %
Hain Consolidated  North AmericaInternational
Net sales on a constant currency basis - Six months ended 12/31/19 $1,002,566  $552,681  $449,885  
Net sales - Six months ended 12/31/18$1,052,044  $596,765  $455,279  
Divestitures(8,955) (8,955) —  
SKU rationalization(33,281) (26,028) (7,253) 
Net sales on a constant currency basis adjusted for divestitures and SKU rationalization - Six months ended 12/31/18 $1,009,808  $561,782  $448,026  
Net sales (decline) growth on a constant currency basis adjusted for divestitures and SKU rationalization (0.7)%(1.6)%0.4 %






The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
Net Sales Growth at Constant Currency Continued
(unaudited and in thousands)
Adjusted EBITDA Growth at Constant Currency
Hain Consolidated  North AmericaInternational
Adjusted EBITDA - Three months ended 12/31/19 $45,047  $30,141  $25,148  
Impact of foreign currency exchange 264  (11) 276  
Adjusted EBITDA on a constant currency basis - Three months ended 12/31/19 $45,311  $30,130  $25,424  
Net sales on a constant currency basis - Three months ended 12/31/19$508,796  $280,624  $228,172  
Adjusted EBITDA growth on a constant currency basis8.9 %10.7 %11.1 %
Hain Consolidated  North AmericaInternational
Adjusted EBITDA - Six months ended 12/31/19 $77,137  $54,180  $44,859  
Impact of foreign currency exchange 1,335  24  1,312  
Adjusted EBITDA on a constant currency basis - Six months ended 12/31/19 $78,472  $54,204  $46,171  
Net sales on a constant currency basis - Six months ended 12/31/19$1,002,566  $552,681  $449,885  
Adjusted EBITDA growth on a constant currency basis7.8 %9.8 %10.3 %





The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
Segment EBITDA and Adjusted EBITDA
Three Months Ended
(unaudited and in thousands)
North America
December 31, 2019December 31, 2018
Operating Income$20,062  $9,563  
Depreciation and amortization4,201  4,269  
Long-lived asset impairment—  1,510  
Other(838) 610  
EBITDA$23,425  $15,952  
Productivity and transformation costs332  2,017  
SKU rationalization3,927  1,530  
Loss on sale of business1,783  —  
Warehouse/manufacturing facility start-up costs639  1,708  
Plant closure related costs35  231  
Adjusted EBITDA$30,141  $21,438  
International
December 31, 2019December 31, 2018
Operating Income$12,899  $15,153  
Depreciation and amortization8,339  7,502  
Long-lived asset impairment—  62  
Other367  95  
EBITDA$21,605  $22,812  
Productivity and transformation costs2,056  2,349  
Plant closure related costs1,487  1,232  
Adjusted EBITDA$25,148  $26,393  


The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com



THE HAIN CELESTIAL GROUP, INC.
Segment EBITDA and Adjusted EBITDA
Six Months Ended
(unaudited and in thousands)
North America
December 31, 2019December 31, 2018
Operating Income$35,194  $14,069  
Depreciation and amortization8,549  8,544  
Long-lived asset impairment—  1,503  
Other(173) 565  
EBITDA$43,570  $24,681  
Productivity and transformation costs2,500  3,521  
SKU rationalization3,737  1,530  
Warehouse/manufacturing facility start-up costs2,518  6,307  
Loss on sale of business1,783  —  
Plant closure related costs72  960  
Adjusted EBITDA$54,180  $36,999  
International
December 31, 2019December 31, 2018
Operating Income$22,006  $20,813  
Depreciation and amortization16,265  15,674  
Long-lived asset impairment—  4,305  
Other799  26  
EBITDA$39,070  $40,818  
Productivity and transformation costs3,328  3,202  
Plant closure related costs2,282  2,331  
SKU rationalization179  —  
Litigation and related expenses—  19  
Adjusted EBITDA$44,859  $46,370  

The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com