Business
Hain Celestial Reports Fiscal Second Quarter 2025 Financial Results
Strong Operating Cash Flow and Reduction in Debt; Positioned to Pivot to Growth in Back HalfExploring Strategic Options for Personal Care Category HOBOKEN,
About this update from The Hain Celestial Group, Inc.
[{"type":"text","content":"Strong Operating Cash Flow and Reduction in Debt; Positioned to Pivot to Growth in Back HalfExploring Strategic Options for Personal Care Category HOBOKEN, N.J., Feb. 10, 2025 (GLOBE NEWSWIRE) -- 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 fiscal second quarter ended December 31, 2024. “Despite challenges in the quarter, we generated strong operating cash flow and further reduced debt. We drove sequential improvement in baby & kids and in our largest category, meal prep. However, sales growth in the quarter was hindered by poor in-store performance in snacks, driven by marketing and promotion effectiveness, and supply chain challenges, both of which we have already taken steps to address. We are confident that the actions taken, combined with promotional timing shifts, confirmed distribution gains, and full infant formula supply, will drive organic net sales growth in the second half of the year,\" said Wendy Davidson, Hain Celestial President and CEO. Davidson continued, “The significant progress we have made towards stabilizing our personal care business is driving sequential improvement in gross margin and in sales trends in our core channels of natural and e-commerce. With the goal of further advancing the Focus pillar of our Hain Reimagined strategy and concentrating our portfolio on better-for-you food & beverages, we are exploring strategic options for our personal care business. We believe this is the best path to focus the organization, simplify our business, and create long-term value for shareholders.” FINANCIAL HIGHLIGHTS* Summary of Fiscal Second Quarter Results Compared to the Prior Year Period Net sales were $411 million, down 9% year-over-year. Organic net sales, defined as net sales adjusted to exclude the impact of foreign exchange, acquisitions, divestitures, discontinued brands and exited product categories, decreased 7% compared to the prior year period. The decrease in organic net sales was comprised of a 5-point decrease in volume/mix and a 2-point decrease in price. Gross profit margin was 22.7%, a 20-basis point increase from the prior year period. Adjusted gross profit margin was 22.9%, a 60-basis point decrease from the prior year period. Net loss wa...