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• Organic Net Sales: Declined 7% in the second quarter.

• Free Cash Flow: $25 million generated in the quarter.

• Net Debt Reduction: Reduced by $12 million in the quarter.

• Adjusted EBITDA: $38 million for the quarter.

• Adjusted EBITDA Margin: Increased by 350 basis points from the first quarter.

• Adjusted Gross Margin: 22.9%, a decrease of approximately 60 basis points year-over-year.

• SG&A Expenses: Decreased 5% year-over-year to $70 million.

• Interest Costs: Fell 21% year-over-year to $13 million.

• Adjusted Net Income: $8 million or $0.08 per diluted share.

• North America Organic Net Sales: Declined 9% year-over-year.

• International Organic Net Sales: Declined 4% in the quarter.

• Free Cash Flow Improvement: $25 million compared to $15 million in the prior year period.

• Cash on Hand: $56 million at the end of the quarter.

• Net Debt: $672 million.

• Net Leverage Ratio: 4.1 times.

• Fiscal 2025 Outlook: Organic net sales expected to be down 2% to 4%; adjusted EBITDA to be flat year-over-year.

• Warning! GuruFocus has detected 3 Warning Sign with HAIN.

Release Date: February 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• The Hain Celestial Group Inc (NASDAQ:HAIN) reported strong operating cash flow and reduced net debt by $12 million in the quarter.

• The company saw sequential improvement in the Baby & Kids segment, driven by the recovery in infant formula supply and growth in Earth's Best brand.

• Hain Celestial's Greek Gods Yogurt showed healthy velocities and increased household penetration, contributing positively to the Meal Prep category.

• The company is expanding its distribution, particularly in the snacks category, with a 5% increase at its largest retail partner and significant gains in convenience stores.

• Hain Celestial's focus on better-for-you products, free from artificial colors and flavors, positions it well to meet increasing consumer demand for healthier options.

Negative Points

• The Hain Celestial Group Inc (NASDAQ:HAIN) experienced a 7% decline in organic net sales in the second quarter, primarily due to poor in-store performance in snacks and short-term supply challenges.

• Adjusted EBITDA decreased to $38 million from $47 million a year ago, reflecting lower sales and pricing challenges.

• The company faced short-term service issues in the beverage category, impacting Celestial Seasonings sales due to a shortage of a key raw material.

• Despite distribution gains, the snacks category struggled with velocity on shelves, affecting overall sales performance.

• The macroeconomic environment remains volatile, prompting a more cautious outlook for the full fiscal year, with expected organic net sales down 2% to 4%.