The Hain Celestial Group (HAIN) investor relations material

Executive summary

• Achieved strong cash generation and reduced total debt by $155 million, aided by the North America Snacks divestiture, materially improving the financial position.

• Focused on optimizing cash, strengthening the balance sheet, improving profitability, and stabilizing sales as part of a turnaround strategy.

• Advanced innovation and renovation pipelines, driving share gains in core categories like tea, yogurt, and baby foods, with half of international brands gaining or holding share.

• International business faced volume softness due to geopolitical uncertainty and inflation, but innovation and brand relaunches are underway.

• Net loss narrowed to $106 million from $135 million year-over-year, impacted by a $51 million pre-tax loss on sale and $46 million in impairment charges.

Financial highlights

• Q3 net sales were $338 million, down 13% year-over-year; organic net sales declined 6%.

• Adjusted EBITDA was $26 million, down from $34 million a year ago; adjusted EBITDA margin improved sequentially to 7.8% from 6.3% in Q2.

• Adjusted net loss was $1 million ($0.01 per share) versus adjusted net income of $6 million ($0.07 per share) last year.

• Adjusted gross margin was 21%, down 90 bps year-over-year but up 150 bps sequentially.

• Free cash flow was $35 million, a significant improvement from a $2 million outflow last year.

Outlook and guidance

• No numeric guidance for fiscal 2026 due to ongoing strategic review; positive free cash flow still expected.

• Fiscal 2027 priorities include stabilizing sales, improving margins, generating cash, and eliminating stranded costs.

• Stranded costs from the snacks divestiture expected at the high end of $20-25 million, with 70% already addressed.