The Hain Celestial Group (HAIN) investor relations material

Executive summary

• Announced and completed the sale of the North American snacks business for $115 million in cash to reduce debt and sharpen strategic focus.

• Strategic review and turnaround plan underway, focusing on portfolio simplification, brand innovation, revenue management, productivity, and digital capabilities.

• Core categories such as tea, yogurt, and Baby & Kids remain stable or show growth, aligned with consumer trends.

• Q2 FY26 delivered strong free cash flow, a $32 million net debt reduction, and sequential improvement in the International segment.

• Net loss for the quarter was $116 million, including $132 million in pre-tax non-cash impairment charges.

Financial highlights

• Organic net sales declined 7% year-over-year to $362–384 million, driven by lower sales in both North America and international segments.

• Adjusted gross margin was 19.4–19.5%, down 330–340 basis points year-over-year due to cost inflation and lower volume mix.

• Adjusted EBITDA was $24 million (6.3% margin), down from $38 million a year ago.

• Free cash flow was $30 million, up 20–22% year-over-year.

• Net debt reduced by $32 million to $637 million; leverage ratio at 4.1x.

Outlook and guidance

• No numeric guidance for fiscal 2026 due to ongoing strategic review.

• North America portfolio post-divestiture expected to have gross margin above 30% and EBITDA margin in low double digits.

• Anticipate stronger top and bottom line performance in the second half of fiscal 2026.

• Restructuring program expected to conclude by fiscal 2027, with cumulative pretax charges of $115–$125 million and annualized pretax savings of $130–$150 million.

• Substantial doubt exists about the ability to continue as a going concern due to uncertainty in refinancing or repaying $705.8 million of debt maturing December 2026.