The Hain Celestial Group (HAIN) Q1 2025 earnings summary

Executive summary

• Organic net sales declined 5% year-over-year, with total net sales down 7% to $395 million, mainly due to lower volume and price declines in both North America and International segments.

• Adjusted EBITDA was $22 million, down 7% year-over-year, with margin steady at 5.7%; adjusted gross margin expanded to 20.8%.

• Net loss widened to $20 million from $10 million in the prior year, while adjusted net loss remained flat at $4 million.

• The company reaffirmed its fiscal 2025 guidance, expecting growth and margin expansion in the back half, driven by supply recovery, promotional timing, and distribution gains.

• Strategic initiatives under the Hain Reimagined strategy, including portfolio simplification and organizational redesign, are progressing, with $5 million in transformation charges this quarter.

Financial highlights

• Adjusted EBITDA was $22 million, down from $24 million a year ago; margin steady at 5.7%.

• Adjusted net loss was $4 million, or $0.04 per diluted share, consistent with the prior year.

• SG&A decreased 8% year-over-year to $71 million, reflecting operational efficiencies.

• Free cash flow was negative $17 million, compared to positive $7 million last year, due to working capital and restructuring impacts.

• Net debt reduced to $684 million at quarter-end, with a net secured leverage ratio of 3.9x.

Outlook and guidance

• Fiscal 2025 organic net sales expected to be flat or better, with adjusted EBITDA projected to grow mid-single digits.

• Gross margin anticipated to expand by at least 125 basis points; free cash flow of at least $60 million targeted.

• Growth and margin expansion are expected to be back half-weighted, driven by promotional timing, supply recovery, and distribution gains.

• EBITDA split expected to be 40% in the first half and 60% in the back half of the year.

• Hain Reimagined Program targets $130–$150 million in annualized pretax savings by FY2027.