The Hain Celestial Group (HAIN) investor relations material

Executive summary

• Q1 FY26 results aligned with expectations, showing sequential improvement in organic net sales trends across North America and International, despite year-over-year declines in snacks and baby food categories.

• The company is executing a five-point turnaround strategy: portfolio streamlining, brand renovation, revenue growth management, productivity, and digital capabilities, with early benefits from cost discipline and digital marketing.

• Near-term priorities include stabilizing sales, improving profitability, optimizing cash, and deleveraging the balance sheet.

• Multi-year restructuring program is underway, with $14 million in charges this quarter and cumulative charges of $103 million.

• Strategic review with Goldman Sachs is ongoing, including exploration of alternatives for the personal care business.

Financial highlights

• Net sales for Q1 FY26 were $368 million, down 7% year-over-year; organic net sales declined 6%.

• Adjusted EBITDA was $20 million, down 12% year-over-year, with a margin of 5.4%.

• Adjusted net loss was $7 million ($0.08 per diluted share), compared to $4 million ($0.04 per share) in the prior year.

• SG&A expenses decreased 8% year-over-year to $66 million, representing 17.8% of net sales.

• Free cash flow was negative $14 million, improved from negative $17 million in the prior year.

Outlook and guidance

• No numeric guidance for FY26 due to ongoing strategic review, but positive free cash flow is expected.

• Stronger top- and bottom-line performance anticipated in the second half, driven by cost-cutting, innovation, and increased marketing investment.

• Marketing spend will increase by $2 million in Q2 to support innovation.

• Restructuring program expected to complete by FY27, with cumulative pretax charges of $100–$110 million and annualized pretax savings of $130–$150 million.