false0000910406The Hain Celestial Group, Inc.00009104062024-08-272024-08-27

 

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): August 27, 2024

 

 

 

 

THE HAIN CELESTIAL GROUP, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

 

 

Delaware			0-22818	22-3240619
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
221 River Street,
Hoboken, New Jersey				07030
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 516 587-5000

 

 

 

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 class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $.01 per share		HAIN		The Nasdaq Stock Market LLC

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. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On August 27, 2024, The Hain Celestial Group, Inc. issued a press release announcing financial results for its fourth quarter and fiscal year ended June 30, 2024. 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
99.1					Press Release of The Hain Celestial Group, Inc. dated August 27, 2024
104					Cover Page Interactive Data File (embedded within the inline XBRL document)

 

 

 

 

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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.

			THE HAIN CELESTIAL GROUP, INC.
Date:	August 27, 2024	By:	/s/ Lee A. Boyce
			Lee A. Boyce Chief Financial Officer

 

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Exhibit 99.1

 

 

 

Hain Celestial Reports Fourth Quarter and Fiscal Year 2024

Financial Results

 

Delivers Strong Operating Cash Flow, Debt Reduction & Achieves Updated Guidance

Company Positioned to Deliver Sustainable Growth in Fiscal 2025

 

HOBOKEN, N.J., August 27, 2024 — Hain Celestial Group (Nasdaq: HAIN), a leading global health and wellness company whose purpose is to inspire healthier living through better-for-you brands, today reported financial results for its fourth quarter and fiscal year ended June 30, 2024.

 

“Fiscal 2024 was the foundational year of our Hain Reimagined strategy, during which we made substantial progress in simplifying our business and generating fuel. We transitioned to a global operating model, reducing geographic complexity and driving scale, and developed a performance-driven, values-based culture,” said Wendy Davidson, President and CEO. “Our fuel initiatives exceeded our targets for fiscal 2024, allowing us to pay down debt, invest in capabilities, and to deliver on our updated full-year guidance.”

 

Davidson added, “Building on this solid foundation, in fiscal 2025 we will focus on commercial execution to accelerate top- and bottom-line growth. We remain confident in our Hain Reimagined strategy, the strength of our diversified portfolio and geographic footprint, the benefits of our scale model, and our ability to deliver sustainable growth and long-term value to shareholders.”

“We are pleased with our free cash flow generation in fiscal 2024 which came in above our expectations for the year. This strong performance enabled us to reduce net debt by $86 million over the course of the year, and drive improvement in our leverage ratio to 3.7x. Reduction in net debt remains a top priority as we progress towards our leverage goal of 2x to 3x by fiscal 2027,” stated Lee Boyce, CFO.

FINANCIAL HIGHLIGHTS*

 

Summary of Fiscal Fourth Quarter Results Compared to the Prior Year Period

 

 

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Summary of Fiscal Full Year 2024 Results Compared to the Prior Year

 

 

Cash Flow and Balance Sheet Highlights

 

 

SEGMENT HIGHLIGHTS

 

The company operates under two reportable segments: North America and International.

 

	Net Sales
	Quarter Ended June 30, 2024					Year Ended June 30, 2024
	$ Millions	Reported Growth Y/Y	M&A/Exit Impact1	Organic Growth Y/Y2	FX Impact2	$ Millions	Reported Growth Y/Y	M&A/Exit Impact1	Organic Growth Y/Y2	FX Impact2
North America	260	-8%	-3%	-5%	0%	1,056	-7%	-1%	-6%	0%
International	159	-4%	0%	-4%	0%	681	4%	0%	4%	4%
Total	419	-6%	-2%	-4%	0%	1,736	-3%	-1%	-2%	1%

 

1 Reflects the impact within reported net sales growth of the following items that are excluded from organic net sales growth: net sales from divested brands (Thinsters® snacks brand and Queen Helene® personal care brand), discontinued brands, and exited product categories.

2 For fiscal 2024, organic net sales growth is not adjusted for the impact of foreign exchange.

 

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North America

The fiscal fourth quarter organic net sales decrease was 5% year-over-year, due primarily to lower sales in personal care, in part due to portfolio simplification, as well as reduced sales in infant formula within baby and kids, partially offset by growth in snacks.

 

Segment gross profit in the fiscal fourth quarter was $59 million, a decrease of 7% from the prior year period. Adjusted gross profit was also $59 million, a decrease of 9% from the prior year period. Gross margin was 22.6%, a 20-basis point increase from the prior year period, and adjusted gross margin was also 22.6%, a 20-basis point decrease from the prior year period. The increase in gross margin was driven by pricing partially offset by deleverage on lower sales volume. The decrease in adjusted gross margin was driven primarily by cost inflation and deleverage on lower sales volume, partially offset by productivity and pricing.

 

Adjusted EBITDA in the fiscal fourth quarter was $21 million compared to $27 million in the prior year period. The decrease was driven primarily by deleverage on lower volume. Adjusted EBITDA margin was 8.0% compared to 9.6% in the prior year period.

 

For fiscal 2024, North America organic net sales decreased 6% compared to the prior year. The decrease was primarily due to lower sales in infant formula within baby and kids as well as personal care, in part due to portfolio simplification, partially offset by growth in beverages.

 

Segment gross profit in fiscal 2024 was $231 million, a decrease of 12% from the prior year. Adjusted gross profit was $239 million, a decrease of 9% from the prior year. Gross margin was 21.9%, a 120-basis point decrease from the prior year, and adjusted gross margin was 22.6%, a 50-basis point decrease from the prior year. The decrease was driven primarily by cost inflation and deleverage on lower sales volume, partially offset by productivity and pricing.

 

Adjusted EBITDA in fiscal 2024 was $99 million compared to $123 million in the prior year. The decrease was driven primarily by deleverage on lower volume and inflation, partially offset by pricing. Adjusted EBITDA margin was 9.4% compared to 10.8% in the prior year period.

 

International

The fiscal fourth quarter organic net sales decline was 4% year-over-year, due primarily to lower sales in plant-based meat free within meal prep as well as in snacks, partially offset by growth in beverages.

 

Segment gross profit in the fiscal fourth quarter was $39 million, a 5% increase from the prior year period. Adjusted gross profit was also $39 million, an increase of 5% from the prior year period. Gross margin and adjusted gross margin were both 24.8%, a 210-basis point increase from the prior year period. The increase was primarily due productivity, partially offset by inflation.

 

Adjusted EBITDA in the fiscal fourth quarter was $27 million, compared to $27 million in the prior year period, as productivity offset inflation. Adjusted EBITDA margin was 17.0%, a 40-basis point improvement from the prior year period.

 

For fiscal 2024, organic net sales increased 4% year-over-year. The increase was primarily due to growth in soups within meal prep as well as in beverages, partially offset by lower sales in snacks. Organic net sales growth reflects 4 percentage points of growth from the favorable impact of foreign exchange.

 

Segment gross profit in fiscal 2024 was $150 million, a 12% increase from the prior year. Adjusted gross profit was $151 million, an increase of 13% from the prior year. Gross margin was 22.1%, a 170-basis point increase from the prior year, and adjusted gross margin was 22.2%, a 180-basis point increase from the prior year. The increase was mainly due to productivity and pricing, partially offset by inflation.

 

Adjusted EBITDA in fiscal 2024 was $95 million, an increase of 15% compared to the prior year. The increase was driven primarily by productivity, partially offset by inflation. Adjusted EBITDA margin was 14.0%, a 130-basis point improvement from the prior year.

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CATEGORY HIGHLIGHTS

 

	Net Sales
	Quarter Ended June 30, 2024					Year Ended June 30, 2024
	$ Millions	Reported Growth Y/Y	M&A/Exit Impact1	Organic Growth Y/Y2	FX Impact2	$ Millions	Reported Growth Y/Y	M&A/Exit Impact1	Organic Growth Y/Y2	FX Impact2
Snacks	121	-6%	-6%	0%	0%	463	-5%	-3%	-2%	0%
Baby & Kids	64	-10%	0%	-10%	0%	253	-11%	0%	-11%	2%
Beverages	56	3%	0%	3%	-1%	253	6%	0%	6%	2%
Meal Prep	149	-5%	0%	-5%	0%	662	1%	-1%	2%	3%
Personal Care	29	-21%	-4%	-17%	0%	105	-21%	-1%	-20%	0%
Total	419	-6%	-2%	-4%	0%	1,736	-3%	-1%	-2%	1%

 

1 Reflects the impact within reported net sales growth of the following items that are excluded from organic net sales growth: net sales from divested brands (Thinsters® snacks brand and Queen Helene® personal care brand), discontinued brands, and exited product categories.

2 For fiscal 2024, organic net sales growth is not adjusted for the impact of foreign exchange.

Snacks

Fiscal fourth quarter organic net sales growth was flat year-over-year, driven primarily by growth in Terra® and Garden Veggie Snacks™, offset by softness in Hartley’s® Jelly. For fiscal 2024, organic net sales growth was down 2% from the prior year. The decline in organic net sales was driven predominately by Terra® and ParmCrisps®, partially offset by growth in Garden Veggie Snacks™.

 

Baby & Kids

The fiscal fourth quarter organic net sales decline of 10% year-over-year was primarily driven by infant formula supply, partially offset by growth in Earth’s Best® snacks and Ella’s Kitchen®. For fiscal 2024, the organic net sales decline of 11% from the prior year was driven primarily by infant formula supply.

 

Beverages

Fiscal fourth quarter organic net sales growth was 3% year-over-year. The increase was driven by non-dairy beverage in Europe. For fiscal 2024, organic net sales growth was 6% versus the prior year. The increase was driven by non-dairy beverage as well as Celestial Seasonings® tea.

 

Meal Prep

The fiscal fourth quarter organic net sales decline of 5% year-over-year was driven primarily by softness in meat-free in both Linda McCartney’s® Foods in the UK and Yves® in North America, as well as by short-term softness in private label spreads & drizzles in the UK. This was partially offset by continued strong growth in the soup brands in the UK. For fiscal 2024 organic net sales growth was 2% versus the prior year. The increase was driven by strength in soup and private label spreads and drizzles in the UK, partially offset by softness in Linda McCartney’s® Foods and Yves® plant-based meat free.

 

Personal Care

The fiscal fourth quarter organic net sales decline was 17% year-over-year. The decline was driven by softness across the portfolio and by the impact of portfolio simplification as we continue to focus on the execution of our stabilization plan. For fiscal 2024, the organic net sales decline was 20% versus the prior year, due to softness across most of the portfolio as we continue to focus on the execution of our stabilization plan.

 

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FISCAL 2025 GUIDANCE*

 

The company is offering the following guidance for fiscal 2025:

 

 

 The forward-looking non-GAAP financial measures included in this section are not reconciled to the comparable forward-looking GAAP financial measures. The company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include certain litigation and related expenses, transaction costs associated with acquisitions and divestitures, productivity and transformation costs, impairments, gains or losses on sales of assets and businesses, foreign exchange movements and other items. The unavailable information could have a significant impact on the company’s GAAP financial results.

 

Conference Call and Webcast Information

 

Hain Celestial will host a conference call and webcast today at 8:00 AM ET to discuss its results and business outlook. The live webcast and accompanying presentation are available under the Investors section of the company’s corporate website at www.hain.com. Investors and analysts can access the live call by dialing 877-407-9716 or 201-493-6779. Participation by the press and public in the Q&A session will be in listen-only mode. A replay of the call will be available approximately shortly after the conclusion of the live call until Tuesday, September 3, 2024, and can be accessed by dialing 844-512-2921 or 412-317-6671 and referencing the conference access ID: 13747882.

 

About The Hain Celestial Group

Hain Celestial Group is a leading health and wellness company whose purpose is to inspire healthier living for people, communities and the planet through better-for-you brands. For more than 30 years, Hain has intentionally focused on delivering nutrition and well-being that positively impacts today and tomorrow. Headquartered in Hoboken, N.J., Hain Celestial's products across snacks, baby/kids, beverages, meal preparation, and personal care, are marketed and sold in over 70 countries around the world. Our leading brands include Garden Veggie Snacks™, Terra® chips, Garden of Eatin'® snacks, Hartley’s® Jelly, Earth's Best® and Ella's Kitchen® baby and kids foods, Celestial Seasonings® teas, Joya® and Natumi® plant-based beverages, Greek Gods® yogurt, Cully & Sully®, Yorkshire Provender®, New Covent Garden® and Imagine® soups, Yves® and Linda McCartney's® (under license) meat-free, and Avalon Organics® personal care, among others. For more information, visit hain.com and LinkedIn.

 

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Forward-Looking Statements

 

This press release 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; our strategic initiatives, including statements related to Hain Reimagined; our business strategy; our supply chain, including the availability and pricing of raw materials; our brand portfolio; pricing actions and product performance; inflation rates; and current or future macroeconomic trends.

 

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.

 

Non-GAAP Financial Measures

 

This press release and the accompanying tables include non-GAAP financial measures, including, among others, organic net sales, adjusted operating income and its related margin, adjusted gross profit and its related margin, adjusted net income and its related margin, adjusted earnings per diluted share, adjusted EBITDA and its related margin, free cash flow and net debt. The reconciliations of historic non-GAAP financial measures to the comparable GAAP financial measures are provided in the tables below. 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 financial statements presented in accordance with GAAP.

 

We define our non-GAAP financial measures as follows:

 

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Organic net sales (for fiscal 2025): net sales excluding the impact of acquisitions, divestitures, discontinued brands and exited product categories and foreign exchange. To adjust organic net sales for the impact of acquisitions, the net sales of an acquired business are excluded from fiscal quarters constituting or falling within the current period and prior period where the applicable fiscal quarter in the prior period did not include the acquired business for the entire quarter. To adjust organic net sales for the impact of divestitures, discontinued brands and exited product categories, the net sales of a divested business, discontinued brand or exited product category are excluded from all periods. To adjust organic net sales for the impact of foreign exchange, current period net sales for 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.

 

 

 

 

 

 

 

We believe 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. We provide:

 

 

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Investor Relations Contact:

Alexis Tessier
Investor.Relations@hain.com 

 

Media Contact:

Jen Davis

Jen.Davis@hain.com
 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
	Fourth Quarter				Fourth Quarter Year to Date
	2024		2023		2024		2023
Net sales	$418,799		$447,841		$1,736,286		$1,796,643
Cost of sales	320,796		347,098		1,355,454		1,400,229
Gross profit	98,003		100,743		380,832		396,414
Selling, general and administrative expenses	72,279		66,878		290,116		289,233
Intangibles and long-lived asset impairment	5,357		18,578		76,143		175,501
Productivity and transformation costs	7,294		1,592		27,741		7,284
Amortization of acquired intangible assets	1,061		1,601		5,780		10,016
Operating income (loss)	12,012		12,094		(18,948)		(85,620)
Interest and other financing expense, net	13,704		13,873		57,213		45,783
Other expense (income), net	4,327		591		4,120		(1,822)
Loss before income taxes and equity in net loss (income) of equity-method investees	(6,019)		(2,370)		(80,281)		(129,581)
(Benefit) provision for income taxes	(3,292)		16,421		(7,820)		(14,178)
Equity in net loss (income) of equity-method investees	210		(92)		2,581		1,134
Net loss	$(2,937)		$(18,699)		$(75,042)		$(116,537)
Net loss per common share:
Basic	$(0.03)		$(0.21)		$(0.84)		$(1.30)
Diluted	$(0.03)		$(0.21)		$(0.84)		$(1.30)
Shares used in the calculation of net loss per common share:
Basic	89,845		89,477		89,750		89,396
Diluted	89,845		89,477		89,750		89,396

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited and in thousands)
	June 30, 2024		June 30, 2023
ASSETS
Current assets:
Cash and cash equivalents	$54,307		$53,364
Accounts receivable, net	179,190		160,948
Inventories	274,128		310,341
Prepaid expenses and other current assets	49,434		66,378
Total current assets	557,059		591,031
Property, plant and equipment, net	261,730		296,325
Goodwill	929,304		938,640
Trademarks and other intangible assets, net	244,799		298,105
Investments and joint ventures	10,228		12,798
Operating lease right-of-use assets, net	86,634		95,894
Other assets	27,794		25,846
Total assets	$2,117,548		$2,258,639
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$188,220		$134,780
Accrued expenses and other current liabilities	85,714		88,520
Current portion of long-term debt	7,569		7,567
Total current liabilities	281,503		230,867
Long-term debt, less current portion	736,523		821,181
Deferred income taxes	47,826		72,086
Operating lease liabilities, noncurrent portion	80,863		90,014
Other noncurrent liabilities	27,920		26,584
Total liabilities	1,174,635		1,240,732
Stockholders' equity:
Common stock	1,119		1,113
Additional paid-in capital	1,230,253		1,217,549
Retained earnings	577,519		652,561
Accumulated other comprehensive loss	(137,245)		(126,216)
	1,671,646		1,745,007
Less: Treasury stock	(728,733)		(727,100)
Total stockholders' equity	942,913		1,017,907
Total liabilities and stockholders' equity	$2,117,548		$2,258,639

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(unaudited and in thousands)
	Fourth Quarter				Fourth Quarter Year to Date
	2024		2023		2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$(2,937)		$(18,699)		$(75,042)		$(116,537)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization	10,305		12,868		44,665		50,777
Deferred income taxes	(4,597)		18,856		(23,361)		(25,953)
Equity in net loss (income) of equity-method investees	210		(92)		2,581		1,134
Stock-based compensation, net	2,569		3,766		12,704		14,423
Intangibles and long-lived asset impairment	5,357		18,578		76,143		175,501
Loss (gain) on sale of assets	3,572		-		3,634		(3,529)
Other non-cash items, net	160		255		1,104		(1,271)
Increase (decrease) in cash attributable to changes in operating assets and liabilities:
Accounts receivable	11,709		20,993		(18,963)		13,067
Inventories	4,039		8,723		31,471		189
Other current assets	276		(3,286)		14,106		(2,831)
Other assets and liabilities	1,174		(950)		(3,292)		2,546
Accounts payable and accrued expenses	7,559		(20,502)		50,605		(40,697)
Net cash provided by operating activities	39,396		40,510		116,355		66,819
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(8,692)		(6,445)		(33,461)		(27,879)
Investments and joint ventures, net	-		-		-		433
Proceeds from sale of assets	8,019		48		9,539		7,806
Net cash used in investing activities	(673)		(6,397)		(23,922)		(19,640)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings under bank revolving credit facility	34,000		53,000		186,000		328,000
Repayments under bank revolving credit facility	(55,000)		(79,000)		(252,000)		(380,000)
Repayments under term loan	(12,575)		(1,875)		(18,200)		(7,500)
Payments of other debt, net	(21)		(29)		(3,896)		(2,145)
Employee shares withheld for taxes	(33)		(364)		(1,633)		(1,415)
Net cash used in financing activities	(33,629)		(28,268)		(89,729)		(63,060)
Effect of exchange rate changes on cash	(336)		3,837		(1,761)		3,733
Net increase (decrease) in cash and cash equivalents	4,758		9,682		943		(12,148)
Cash and cash equivalents at beginning of period	49,549		43,682		53,364		65,512
Cash and cash equivalents at end of period	$54,307		$53,364		$54,307		$53,364

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Net Sales, Gross Profit and Adjusted EBITDA by Segment
(unaudited and in thousands)
	North America		International		Corporate/Other		Hain Consolidated
Net Sales
Net sales - Q4 FY24	$259,695		$159,104		$-		$418,799
Net sales - Q4 FY23	$281,756		$166,085		$-		$447,841
% change - FY24 net sales vs. FY23 net sales	(7.8)%		(4.2)%				(6.5)%
Gross Profit
Q4 FY24
Gross profit	$58,574		$39,429		$-		$98,003
Non-GAAP adjustments(1)	-		(12)		-		(12)
Adjusted gross profit	$58,574		$39,417		$-		$97,991
% change - FY24 gross profit vs. FY23 gross profit	(7.1)%		4.6%				(2.7)%
% change - FY24 adjusted gross profit vs. FY23 adjusted gross profit	(8.6)%		4.6%				(3.7)%
Gross margin	22.6%		24.8%				23.4%
Adjusted gross margin	22.6%		24.8%				23.4%
Q4 FY23
Gross profit	$63,051		$37,692		$-		$100,743
Non-GAAP adjustments(1)	1,025		-		-		1,025
Adjusted gross profit	$64,076		$37,692		$-		$101,768
Gross margin	22.4%		22.7%				22.5%
Adjusted gross margin	22.7%		22.7%				22.7%
Adjusted EBITDA
Q4 FY24
Adjusted EBITDA	$20,900		$27,020		$(8,376)		$39,544
% change - FY24 adjusted EBITDA vs. FY23 adjusted EBITDA	(22.5)%		(1.7)%		23.4%		(9.1)%
Adjusted EBITDA margin	8.0%		17.0%				9.4%
Q4 FY23
Adjusted EBITDA	$26,959		$27,487		$(10,930)		$43,516
Adjusted EBITDA margin	9.6%		16.6%				9.7%
(1) See accompanying table "Adjusted Gross Profit and Adjusted Operating Income"

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Net Sales, Gross Profit and Adjusted EBITDA by Segment
(unaudited and in thousands)
	North America		International		Corporate/Other		Hain Consolidated
Net Sales
Net sales - Q4 FY24 YTD	$1,055,527		$680,759		$-		$1,736,286
Net sales - Q4 FY23 YTD	$1,139,162		$657,481		$-		$1,796,643
% change - FY24 net sales vs. FY23 net sales	(7.3)%		3.5%				(3.4)%
Gross Profit
Q4 FY24 YTD
Gross profit	$230,689		$150,143		$-		$380,832
Non-GAAP adjustments(1)	8,157		804		-		8,961
Adjusted gross profit	$238,846		$150,947		$-		$389,793
% change - FY24 gross profit vs. FY23 gross profit	(12.1)%		12.1%				(3.9)%
% change - FY24 adjusted gross profit vs. FY23 adjusted gross profit	(9.4)%		12.7%				(1.9)%
Gross margin	21.9%		22.1%				21.9%
Adjusted gross margin	22.6%		22.2%				22.4%
Q4 FY23 YTD
Gross profit	$262,455		$133,959		$-		$396,414
Non-GAAP adjustments(1)	1,099		10		-		1,109
Adjusted gross profit	$263,554		$133,969		$-		$397,523
Gross margin	23.0%		20.4%				22.1%
Adjusted gross margin	23.1%		20.4%				22.1%
Adjusted EBITDA
Q4 FY24 YTD
Adjusted EBITDA	$98,728		$94,974		$(39,180)		$154,522
% change - FY24 adjusted EBITDA vs. FY23 adjusted EBITDA	(20.0)%		14.5%		1.5%		(7.3)%
Adjusted EBITDA margin	9.4%		14.0%				8.9%
Q4 FY23 YTD
Adjusted EBITDA	$123,443		$82,945		$(39,766)		$166,622
Adjusted EBITDA margin	10.8%		12.6%				9.3%
(1) See accompanying table "Adjusted Gross Profit and Adjusted Operating Income"

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Adjusted Gross Profit and Adjusted Operating Income
(unaudited and in thousands, except per share amounts)
Reconciliation of Gross Profit, GAAP to Gross Profit, as Adjusted:
	Fourth Quarter				Fourth Quarter Year to Date
	2024		2023		2024		2023
Gross profit, GAAP	$98,003		$100,743		$380,832		$396,414
Adjustments to Cost of sales:
Plant closure related costs, net	(12)		1,025		6,523		1,099
Warehouse/manufacturing consolidation and other costs, net	-		-		995		10
Other	-		-		1,443		-
Gross profit, as adjusted	$97,991		$101,768		$389,793		$397,523
Reconciliation of Operating Income (Loss), GAAP to Operating Income, as Adjusted:
	Fourth Quarter				Fourth Quarter Year to Date
	2024		2023		2024		2023
Operating income (loss), GAAP	$12,012		$12,094		$(18,948)		$(85,620)
Adjustments to Cost of sales:
Plant closure related costs, net	(12)		1,025		6,523		1,099
Warehouse/manufacturing consolidation and other costs, net	-		-		995		10
Other	-		-		1,443		-
Adjustments to Operating expenses(a):
Productivity and transformation costs	7,294		1,592		27,741		7,284
Intangibles and long-lived asset impairment	5,357		18,578		76,143		175,501
Certain litigation expenses, net(b)	3,189		(4,732)		7,262		(1,369)
Plant closure related costs, net	(25)		-		154		(1)
Transaction and integration costs, net	(316)		34		(34)		2,018
CEO succession	-		-		-		5,113
Warehouse/manufacturing consolidation and other costs, net	-		127		-		2,696
Operating income, as adjusted	$27,499		$28,718		$101,279		$106,731
(a) Operating expenses include amortization of acquired intangibles, selling, general and administrative expenses, intangibles and long-lived asset impairment and productivity and transformation costs.
(b) Expenses and items relating to securities class action, baby food litigation and SEC investigation.

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Adjusted Net Income and Adjusted EPS
(unaudited and in thousands, except per share amounts)
Reconciliation of Net Loss, GAAP to Net Income, as Adjusted:
	Fourth Quarter				Fourth Quarter Year to Date
	2024		2023		2024		2023
Net loss, GAAP	$(2,937)		$(18,699)		$(75,042)		$(116,537)
Adjustments to Cost of sales:
Plant closure related costs, net	(12)		1,025		6,523		1,099
Warehouse/manufacturing consolidation and other costs, net	-		-		995		10
Other	-		-		1,443		-
Adjustments to Operating expenses(a):
Productivity and transformation costs	7,294		1,592		27,741		7,284
Intangibles and long-lived asset impairment	5,357		18,578		76,143		175,501
Certain litigation expenses, net(b)	3,189		(4,732)		7,262		(1,369)
Plant closure related costs, net	(25)		-		154		(1)
Transaction and integration costs, net	(316)		34		(34)		2,018
CEO succession	-		-		-		5,113
Warehouse/manufacturing consolidation and other costs, net	-		127		-		2,696
Adjustments to Interest and other expense, net(c):
Loss (gain) on sale of assets	4,322		-		4,384		(3,529)
Unrealized currency (gains) losses	(74)		451		9		1,102
Adjustments to (Benefit) provision for income taxes:
Net tax impact of non-GAAP adjustments	(5,466)		11,673		(19,605)		(28,478)
Net income, as adjusted	$11,332		$10,049		$29,973		$44,909
Net loss margin	(0.7)%		(4.2)%		(4.3)%		(6.5)%
Adjusted net income margin	2.7%		2.2%		1.7%		2.5%
Diluted shares used in the calculation of net loss per common share:	89,845		89,477		89,750		89,396
Diluted shares used in the calculation of adjusted net income per common share:	89,965		89,698		89,923		89,604
Diluted net loss per common share, GAAP	$(0.03)		$(0.21)		$(0.84)		$(1.30)
Diluted net income per common share, as adjusted	$0.13		$0.11		$0.33		$0.50
(a) Operating expenses include amortization of acquired intangibles, selling, general and administrative expenses, intangibles and long-lived asset impairment and productivity and transformation costs.
(b) Expenses and items relating to securities class action, baby food litigation and SEC investigation.
(c) Interest and other expense, net includes interest and other financing expenses, net, unrealized currency (gains) losses, loss (gain) on sale of assets and other expense, net.

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Organic Net Sales Growth
(unaudited and in thousands)
Q4 FY24	North America		International		Hain Consolidated
Net sales	$259,695		$159,104		$418,799
Divestitures, discontinued brands and exited product categories	(1,043)		(593)		(1,636)
Organic net sales	$258,652		$158,511		$417,163
Q4 FY23
Net sales	$281,756		$166,085		$447,841
Divestitures, discontinued brands and exited product categories	(10,484)		(581)		(11,065)
Organic net sales	$271,272		$165,504		$436,776
Net sales decline	(7.8)%		(4.2)%		(6.5)%
Impact of divestitures, discontinued brands and exited product categories	3.1%		(0.0)%		2.0%
Organic net sales decline	(4.7)%		(4.2)%		(4.5)%
Q4 FY24 YTD	North America		International		Hain Consolidated
Net sales	$1,055,527		$680,759		$1,736,286
Divestitures, discontinued brands and exited product categories	(19,519)		(1,682)		(21,201)
Organic net sales	$1,036,008		$679,077		$1,715,085
Q4 FY23 YTD
Net sales	$1,139,162		$657,481		$1,796,643
Divestitures, discontinued brands and exited product categories	(36,093)		(2,662)		(38,755)
Organic net sales	$1,103,069		$654,819		$1,757,888
Net sales (decline) growth	(7.3)%		3.5%		(3.4)%
Impact of divestitures, discontinued brands and exited product categories	1.2%		0.2%		1.0%
Organic net sales (decline) growth	(6.1)%		3.7%		(2.4)%

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Adjusted EBITDA
(unaudited and in thousands)
	Fourth Quarter				Fourth Quarter Year to Date
	2024		2023		2024		2023
Net loss	$(2,937)		$(18,699)		$(75,042)		$(116,537)
Depreciation and amortization	10,305		12,868		44,665		50,777
Equity in net loss (income) of equity-method investees	210		(92)		2,581		1,134
Interest expense, net	12,954		13,354		54,232		43,936
(Benefit) provision for income taxes	(3,292)		16,421		(7,820)		(14,178)
Stock-based compensation, net	2,569		3,766		12,704		14,423
Unrealized currency (gains) losses	(74)		278		17		929
Certain litigation expenses, net(a)	3,189		(4,732)		7,262		(1,369)
Restructuring activities
Productivity and transformation costs	7,294		1,592		27,741		7,284
Plant closure related costs, net	(37)		21		5,251		94
Warehouse/manufacturing consolidation and other costs, net	-		127		995		1,026
CEO succession	-		-		-		5,113
Acquisitions, divestitures and other
Loss (gain) on sale of assets	4,322		-		4,384		(3,529)
Transaction and integration costs, net	(316)		34		(34)		2,018
Impairment charges
Intangibles and long-lived asset impairment	5,357		18,578		76,143		175,501
Other	-		-		1,443		-
Adjusted EBITDA	$39,544		$43,516		$154,522		$166,622
(a) Expenses and items relating to securities class action, baby food litigation and SEC investigation.

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Free Cash Flow
(unaudited and in thousands)
	Fourth Quarter				Fourth Quarter Year to Date
	2024		2023		2024		2023
Net cash provided by operating activities	$39,396		$40,510		$116,355		$66,819
Purchases of property, plant and equipment	(8,692)		(6,445)		(33,461)		(27,879)
Free cash flow	$30,704		$34,065		$82,894		$38,940

 

 

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THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
Net Debt
(unaudited and in thousands)
	June 30, 2024		June 30, 2023
Debt
Long-term debt, less current portion	$736,523		$821,181
Current portion of long-term debt	7,569		7,567
Total debt	744,092		828,748
Less: Cash and cash equivalents	54,307		53,364
Net debt	$689,785		$775,384

 

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