The Hain Celestial Group (HAIN) 4th Annual Evercore ISI Consumer and Retail Conference summary

Transformation and strategic focus

• Initiated a foundational reset in fiscal 2024, clarifying company identity as a pure play in the better-for-you space and streamlining the portfolio to five core categories.

• Integrated back office and procurement functions to leverage global scale, reducing inefficiencies and stranded costs.

• Divested non-core assets and exited non-strategic geographies, including the sale of Thinsters and Queen Helene, and consolidation of manufacturing and office footprint.

• Reduced SKUs, especially in personal care, to focus on core brands and categories, enabling margin expansion and operational simplicity.

• Ongoing portfolio optimization and SKU rationalization are now part of regular business maintenance, not large initiatives.

Capability investments and operational improvements

• Built out commercial capabilities in innovation, marketing, revenue growth management, and route to market, moving from episodic to systematic investments.

• Innovation now drives nearly 7% of growth, with successful launches like Garden Veggie Flavor Burst and Celestial Seasonings Tea extensions.

• Established centers of excellence for revenue growth management, improving trade efficiency by 70 basis points and achieving more productive promotions.

• Shifted marketing spend to a more effective mix, targeting a 70/30 working to non-working ratio and increasing focus on high-growth categories.

• Invested in digital collaboration and integrated business planning systems to enhance global efficiency.

Manufacturing, margin, and financial targets

• Consolidated manufacturing and reduced co-manufacturers, especially in personal care, leading to an expected 11 percentage point gross margin expansion in that segment by 2025.

• Streamlined operations and office space, cutting costs and improving efficiency.

• Committed to a long-term algorithm of 3%+ revenue growth, 10%+ EBITDA growth, and 12%+ EBITDA margin, with 400-500 basis points of gross margin expansion targeted by 2027.

• Investments will focus on marketing, channel expansion (notably C-stores and Away from Home), and innovation, with a pay-as-you-go approach to maintain profitability and reduce debt.