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CORRECTION -- Hain Celestial Reports Second Quarter 2023 Financial Results

The Hain Celestial Group, Inc.
The Hain Celestial Group, Inc.

Net Income of $11.0 million; Adjusted Net Income of $18.3 million

Adjusted EBITDA on Constant Currency Basis of $52.7 million

Reaffirming Full Year Fiscal 2023 Guidance

In a release issued under the same headline earlier today by The Hain Celestial Group, Inc. (Nasdaq: HAIN), please note in the North America and International sections of the SEGMENT HIGHLIGHTS section, the third sentences in the third paragraphs have been corrected. The corrected release follows.

LAKE SUCCESS, N.Y., Feb. 07, 2023 (GLOBE NEWSWIRE) -- The Hain Celestial Group, Inc. (Nasdaq: HAIN) (“Hain Celestial”, “Hain” or the “Company”), a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East providing consumers with A Healthier Way of Life®, today reported financial results for the second quarter ended December 31, 2022.

“I am honored and excited to be a part of the next phase of growth for our Company,” said Wendy P. Davidson, President and Chief Executive Officer. “In my first few weeks, I have witnessed firsthand what attracted me to the Company: leading natural and organic brands with strong growth potential, a simplified portfolio, and an organization passionate to live our purpose to inspire Healthier Living for All through healthier people, products, and planet. I look forward to continuing the work to transform our business and build a sustainable, profitable, high-growth global brand leader in the better-for-you consumer space.”

“We reported solid second quarter results, ahead of our guidance on both adjusted gross margin and adjusted EBITDA on a constant currency basis,” said Christopher J. Bellairs, Executive Vice President and Chief Financial Officer. “We continued to see sequential improvements in both the International and North American business units. While we experienced some retailer inventory reductions in North America that impacted our topline results, we continue to see strong momentum in key categories such as better-for-you snacks, baby, and yogurt. Additionally, while the European market remains somewhat uncertain, we see early indications of stabilization.”

FINANCIAL HIGHLIGHTS*

Summary of Second Quarter Results Compared to the Prior Year Period

  • Net sales decreased 5% to $454.2 million compared to the prior year period.

  • When adjusted for foreign exchange, acquisitions, divestitures and discontinued brands, net sales decreased 2% compared to the prior year period.

  • Gross profit margin of 22.9%, a 170-basis point decrease from the prior year period.

  • Adjusted gross profit margin of 22.9%, a 170-basis point decrease from the prior year period.

  • Net income of $11.0 million compared to $30.9 million in the prior year period; net income margin of 2.4%, a 410-basis point decrease from the prior year period.

  • Adjusted net income of $18.3 million compared to $34.3 million in prior year period; adjusted net income margin of 4.0%, a 318-basis point decrease from the prior year period.

  • Adjusted EBITDA on a constant currency basis of $52.7 million compared to $59.3 million in the prior year period; Adjusted EBITDA margin on a constant currency basis of 11.0%, a 144-basis point decrease compared to the prior year period.

  • Earnings per diluted share (“EPS”) of $0.12 compared to $0.33 in the prior year period.

  • Adjusted EPS of $0.20 compared to $0.36 in the prior year period.

* This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. Reconciliations of non-GAAP financial measures to GAAP financial measures and other non-GAAP financial calculations are provided in the tables included in this press release.

SEGMENT HIGHLIGHTS

The Company operates under two reportable segments: North America and International.

North America
North America net sales were $282.4 million, a 3% increase compared to the prior year period. When adjusted for foreign exchange, acquisitions, divestitures and discontinued brands, net sales decreased by 2% from the prior year period mainly due to retailer inventory adjustments, especially in tea, and lower sales in personal care, partially offset by higher sales in snacks.

Segment gross profit was $71.1 million, an increase of 5% from the prior year period. Adjusted gross profit was $71.1 million, an increase of 5% from the prior year period. Gross margin and adjusted gross margin were both 25.2%, representing a 60-basis point and 50-basis point increase from the prior year period, respectively. The increase was mainly driven by pricing increases and cost improvements driven by higher productivity, partially offset by inflation.

Segment operating income was $32.3 million, a 19% increase from the prior year period. Adjusted operating income was $32.3 million, a 12% increase from the prior year period. Operating income margin was 11.4%, a 160-basis point increase from the prior year period, and adjusted operating income margin was 11.5%, a 100-basis point increase from the prior year period. The increase was mainly driven by pricing increases to offset inflation, productivity, and lower marketing spend.

Adjusted EBITDA on a constant currency basis was $38.8 million, a 16% increase from the prior year period. Adjusted EBITDA margin on a constant currency basis was 13.6%, a 150-basis point increase from the prior year period.

International
International net sales were $171.8 million, a 15% decrease compared to the prior year period. When adjusted for foreign exchange, net sales decreased 3% compared to the prior year period mainly due to continued softness in plant-based categories in Europe.

Segment gross profit was $32.7 million, a 34% decrease from the prior year period. Adjusted gross profit was $32.7 million, a decrease of 34% from the prior year period. Gross margin and adjusted gross margin were both 19.0%, representing a 550-basis point and 540-basis point decrease from the prior year period, respectively. The decrease in gross profit was mainly due to the aforementioned decrease in sales, as well as higher energy and supply chain costs and under-absorption of overhead costs at our manufacturing facilities.

Segment operating income was $11.9 million, a 56% decrease from the prior year period. Adjusted operating income was $12.5 million, a decrease of 55% from the prior year period. Operating income margin was 6.9%, a 670-basis point decrease from the prior year period, and adjusted operating income margin was 7.3%, a 640-basis point decrease from the prior year period. The decrease was mainly due to lower gross profit resulting from a decline in sales, as well as higher energy and supply chain costs and under-absorption of overhead costs at our manufacturing facilities.

Adjusted EBITDA on a constant currency basis was $21.9 million, a 36% decline from the prior year period. Adjusted EBITDA margin on a constant currency basis was 11.2%, a 580-basis point decline from the prior year period.

FULL YEAR FISCAL 2023 GUIDANCE**

The Company is reaffirming its financial guidance for adjusted net sales and adjusted EBITDA on a constant currency basis of -1% to +4% compared to the prior year, driven by:

  • Stable North American topline performance with moderate price elasticities and inflation starting to plateau

  • International performance returning to growth in the second half of the year, with additional pricing actions, a benefit from private label offerings, and the lapping of both the beginning of the Russia-Ukraine war and the loss of the co-manufacturing contract and

  • Overall gross margin progression versus the prior year through continued improvement in supply chain performance with improved service levels, robust productivity, and continued cost management

“We are encouraged that we continued to see sequential improvement in our business and remain on track to deliver on our 2023 financial guidance,” added Mr. Bellairs. “With the unprecedented industry-wide supply chain challenges largely behind us, we look forward to increased investment behind our brands to drive topline growth.”

** The forward-looking non-GAAP financial measures included in this section are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include certain litigation and related expenses, transaction costs associated with acquisitions and divestitures, productivity and transformation costs, impairments, gains or losses on sales of assets and businesses, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company’s GAAP financial results.

Contacts:
Investor Relations:
Chris Mandeville
ICR
hain@icrinc.com

Media:
Robin Shallow
robin@robincomm.com

Conference Call and Webcast Information

Hain Celestial will host a conference call and webcast today at 8:30 AM Eastern Time to discuss its results and business outlook. Investors interested in participating in the live call can dial 877-407-9716 or 201-493-6779. The call will be webcast and the accompanying presentation will be available under the Investor Relations section of the Company’s website at www.hain.com.

About The Hain Celestial Group, Inc.
The Hain Celestial Group, Inc. (Nasdaq: HAIN) is a leading organic and natural products company that has been committed to creating A Healthier Way of Life® since 1993. Headquartered in Lake Success, NY with operations in North America, Europe, Asia and the Middle East, Hain Celestial’s food and beverage brands include Celestial Seasonings®, Clarks™, Cully & Sully®, Earth’s Best®, Ella’s Kitchen®, Frank Cooper’s®, Garden of Eatin’®, Hartley’s®, Health Valley®, Imagine®, Joya®, Lima®, Linda McCartney’s® (under license), MaraNatha®, Natumi®, New Covent Garden Soup Co.®, ParmCrisps®, Robertson’s®, Rose’s® (under license), Sensible Portions®, Spectrum®, Sun-Pat®, Terra®, The Greek Gods®, Thinsters®, Yorkshire Provender® and Yves Veggie Cuisine®. Hain Celestial’s personal care brands include Alba Botanica®, Avalon Organics®, JASON®, Live Clean® and Queen Helene®. For more information, visit hain.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. The words “believe,” “expect,” “anticipate,” “may,” “should,” “plan,” “intend,” “potential,” “will” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include, among other things, our beliefs or expectations relating to our future performance, results of operations and financial condition; foreign exchange and inflation rates; our strategic initiatives; our business strategy; our supply chain, including the availability and pricing of raw materials; our brand portfolio; pricing actions and product performance; current or future macroeconomic trends; and future corporate acquisitions or dispositions.

Risks and uncertainties that may cause actual results to differ materially from forward-looking statements include: challenges and uncertainty resulting from the impact of competition; our ability to manage our supply chain effectively; input cost inflation, including with respect to freight and other distribution costs; foreign currency exchange risk; risks arising from the Russia-Ukraine war; disruption of operations at our manufacturing facilities; reliance on independent contract manufacturers; changes to consumer preferences; customer concentration; reliance on independent distributors; the availability of natural and organic ingredients; risks associated with operating internationally; pending and future litigation, including litigation related to Earth’s Best® baby food products; risks associated with outsourcing arrangements; our ability to execute our cost reduction initiatives and related strategic initiatives; our ability to identify and complete acquisitions or divestitures and our level of success in integrating acquisitions; our reliance on independent certification for a number of our products; the reputation of our Company and our brands; our ability to use and protect trademarks; general economic conditions; the United Kingdom’s exit from the European Union; cybersecurity incidents; disruptions to information technology systems; the impact of climate change; liabilities, claims or regulatory change with respect to environmental matters; potential liability if our products cause illness or physical harm; the highly regulated environment in which we operate; compliance with data privacy laws; compliance with our credit agreement; the discontinuation of LIBOR; challenges and uncertainty resulting from the COVID-19 pandemic; our ability to issue preferred stock; the adequacy of our insurance coverage; impairments in the carrying value of goodwill or other intangible assets; and other risks and matters described in our most recent Annual Report on Form 10-K and our other filings from time to time with the U.S. Securities and Exchange Commission.

We undertake no obligation to update forward-looking statements to reflect actual results or changes in assumptions or circumstances, except as required by applicable law.

Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including, among others, adjusted operating income and its related margin, adjusted gross profit and its related margin, adjusted net income and its related margin, adjusted earnings per diluted share, net sales adjusted for the impact of foreign exchange, acquisitions, divestitures and discontinued brands, adjusted EBITDA and its related margin, adjusted EBITDA on a constant currency basis and its related margin and operating free cash flows. The reconciliations of historic non-GAAP financial measures to the comparable GAAP financial measures are provided in the tables below. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company’s operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company’s Consolidated Statements of Operations and Cash Flows presented in accordance with GAAP.

The Company provides net sales adjusted for the impact of foreign currency, acquisitions, divestitures and discontinued brands to demonstrate the growth rate of net sales excluding the impact of such items. The Company’s management believes net sales adjusted for such items is useful to investors because it enables them to better understand the growth of our business from period to period.

The Company believes presenting net sales adjusted for the impact of foreign currency provides useful information to investors because it provides transparency to underlying performance in the Company’s consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present net sales adjusted for the impact of foreign currency, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average monthly foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

To present net sales adjusted for the impact of acquisitions, the net sales of an acquired business are excluded from fiscal quarters constituting or falling within the current period and prior period where the applicable fiscal quarter in the prior period did not include the acquired business for the entire quarter. To present net sales adjusted for the impact of divestitures and discontinued brands, the net sales of a divested business or discontinued brand are excluded from all periods.

The Company provides adjusted EBITDA and adjusted EBITDA on a constant currency basis because the Company’s management believes that these presentations provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the Company as well as a component of performance-based executive compensation. The Company believes presenting adjusted EBITDA on a constant currency basis provides useful information to investors because it provides transparency to underlying performance in the Company’s adjusted EBITDA by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets.

The Company defines adjusted EBITDA as net income before net interest expense, income taxes, depreciation and amortization, equity in net loss of equity-method investees, stock-based compensation, net, unrealized currency losses (gains), certain litigation and related costs, CEO succession costs, plant closure related costs, net, productivity and transformation costs, warehouse and manufacturing consolidation and other costs, costs associated with acquisitions, divestitures and other transactions, gains on sales of assets, certain inventory write-downs, long-lived asset impairments and other adjustments. Adjusted EBITDA on a constant currency basis reflects adjusted EBITDA, as defined above, adjusted for the impact of foreign currency. To present adjusted EBITDA on a constant currency basis, current period adjusted EBITDA for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average monthly foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

The Company views operating free cash flows as an important measure because it is one factor in evaluating the amount of cash available for discretionary investments. The Company defines operating free cash flows as cash used in or provided by operating activities (a GAAP measure) less purchases of property, plant and equipment.



THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(unaudited and in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

Second Quarter

 

Second Quarter Year to Date

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

Net sales

$

454,208

 

 

$

476,941

 

 

$

893,559

 

 

$

931,844

 

Cost of sales

 

350,351

 

 

 

359,646

 

 

 

695,367

 

 

 

709,131

 

Gross profit

 

103,857

 

 

 

117,295

 

 

 

198,192

 

 

 

222,713

 

Selling, general and administrative expenses

 

72,357

 

 

 

80,136

 

 

 

147,308

 

 

 

153,929

 

Amortization of acquired intangible assets

 

2,785

 

 

 

2,049

 

 

 

5,573

 

 

 

4,144

 

Productivity and transformation costs

 

986

 

 

 

2,786

 

 

 

1,759

 

 

 

6,769

 

Long-lived asset impairment

 

340

 

 

 

303

 

 

 

340

 

 

 

303

 

Operating income

 

27,389

 

 

 

32,021

 

 

 

43,212

 

 

 

57,568

 

Interest and other financing expense, net

 

10,812

 

 

 

2,592

 

 

 

18,489

 

 

 

4,448

 

Other income, net

 

(1,062

)

 

 

(9,070

)

 

 

(2,852

)

 

 

(9,858

)

Income before income taxes and equity in net loss of equity-method investees

 

17,639

 

 

 

38,499

 

 

 

27,575

 

 

 

62,978

 

Provision for income taxes

 

6,357

 

 

 

7,145

 

 

 

8,988

 

 

 

11,687

 

Equity in net loss of equity-method investees

 

316

 

 

 

465

 

 

 

698

 

 

 

991

 

Net income

$

10,966

 

 

$

30,889

 

 

$

17,889

 

 

$

50,300

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic

$

0.12

 

 

$

0.33

 

 

$

0.20

 

 

$

0.53

 

Diluted

$

0.12

 

 

$

0.33

 

 

$

0.20

 

 

$

0.52

 

 

 

 

 

 

 

 

 

Shares used in the calculation of net income per common share:

 

 

 

 

 

 

Basic

 

89,380

 

 

 

94,036

 

 

 

89,343

 

 

 

95,579

 

Diluted

 

89,578

 

 

 

94,808

 

 

 

89,535

 

 

 

96,123

 

 

 

 

 

 

 

 

 



THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(unaudited and in thousands)

 

 

 

 

 

December 31, 2022

 

June 30, 2022

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

43,437

 

 

$

65,512

 

Accounts receivable, net

 

177,058

 

 

 

170,661

 

Inventories

 

324,525

 

 

 

308,034

 

Prepaid expenses and other current assets

 

58,781

 

 

 

54,079

 

Assets held for sale

 

1,500

 

 

 

1,840

 

Total current assets

 

605,301

 

 

 

600,126

 

Property, plant and equipment, net

 

294,635

 

 

 

297,405

 

Goodwill

 

927,078

 

 

 

933,796

 

Trademarks and other intangible assets, net

 

470,956

 

 

 

477,533

 

Investments and joint ventures

 

13,260

 

 

 

14,456

 

Operating lease right-of-use assets, net

 

101,374

 

 

 

114,691

 

Other assets

 

25,554

 

 

 

20,377

 

Total assets

$

2,438,158

 

 

$

2,458,384

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

153,677

 

 

$

174,765

 

Accrued expenses and other current liabilities

 

85,168

 

 

 

86,833

 

Current portion of long-term debt

 

7,602

 

 

 

7,705

 

Total current liabilities

 

246,447

 

 

 

269,303

 

Long-term debt, less current portion

 

870,800

 

 

 

880,938

 

Deferred income taxes

 

95,131

 

 

 

95,044

 

Operating lease liabilities, noncurrent portion

 

92,587

 

 

 

107,481

 

Other noncurrent liabilities

 

24,552

 

 

 

22,450

 

Total liabilities

 

1,329,517

 

 

 

1,375,216

 

Stockholders' equity:

 

 

 

Common stock

 

1,113

 

 

 

1,111

 

Additional paid-in capital

 

1,210,555

 

 

 

1,203,126

 

Retained earnings

 

786,987

 

 

 

769,098

 

Accumulated other comprehensive loss

 

(163,346

)

 

 

(164,482

)

 

 

1,835,309

 

 

 

1,808,853

 

Less: Treasury stock

 

(726,668

)

 

 

(725,685

)

Total stockholders' equity

 

1,108,641

 

 

 

1,083,168

 

Total liabilities and stockholders' equity

$

2,438,158

 

 

$

2,458,384

 

 

 

 

 



THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

Second Quarter

 

Second Quarter Year to Date

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net income

$

10,966

 

 

$

30,889

 

 

$

17,889

 

 

$

50,300

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities

 

 

 

 

 

 

 

Depreciation and amortization

 

12,155

 

 

 

10,903

 

 

 

24,125

 

 

 

21,758

 

Deferred income taxes

 

(486

)

 

 

(1,166

)

 

 

(1,983

)

 

 

(3,271

)

Equity in net loss of equity-method investees

 

316

 

 

 

465

 

 

 

698

 

 

 

991

 

Stock-based compensation, net

 

3,435

 

 

 

4,156

 

 

 

7,429

 

 

 

8,443

 

Long-lived asset impairment

 

340

 

 

 

303

 

 

 

340

 

 

 

303

 

Gain on sale of assets

 

(3,335

)

 

 

(8,645

)

 

 

(3,395

)

 

 

(8,921

)

Other non-cash items, net

 

(1,048

)

 

 

(393

)

 

 

(2,505

)

 

 

(1,486

)

Increase (decrease) in cash attributable to changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

3,053

 

 

 

21,813

 

 

 

(6,536

)

 

 

12,370

 

Inventories

 

(1,722

)

 

 

196

 

 

 

(18,629

)

 

 

2,473

 

Other current assets

 

(2,872

)

 

 

(6,026

)

 

 

(331

)

 

 

(5,126

)

Other assets and liabilities

 

2,830

 

 

 

3,342

 

 

 

4,178

 

 

 

1,776

 

Accounts payable and accrued expenses

 

(21,168

)

 

 

(25,392

)

 

 

(23,932

)

 

 

(11,579

)

Net cash provided by (used in) operating activities

 

2,464

 

 

 

30,445

 

 

 

(2,652

)

 

 

68,031

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

(6,840

)

 

 

(10,186

)

 

 

(14,055

)

 

 

(27,996

)

Acquisitions of businesses, net of cash acquired

 

-

 

 

 

(254,569

)

 

 

-

 

 

 

(254,569

)

Investments and joint ventures, net

 

242

 

 

 

(106

)

 

 

433

 

 

 

(514

)

Proceeds from sale of assets

 

7,512

 

 

 

10,570

 

 

 

7,608

 

 

 

10,734

 

Net cash provided by (used in) investing activities

 

914

 

 

 

(254,291

)

 

 

(6,014

)

 

 

(272,345

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

Borrowings under bank revolving credit facility

 

105,000

 

 

 

420,000

 

 

 

185,000

 

 

 

540,000

 

Repayments under bank revolving credit facility

 

(124,875

)

 

 

(325,000

)

 

 

(194,750

)

 

 

(330,000

)

Borrowings under term loan

 

-

 

 

 

300,000

 

 

 

-

 

 

 

300,000

 

Payments of other debt, net

 

(87

)

 

 

(2,948

)

 

 

(159

)

 

 

(3,185

)

Share repurchases

 

-

 

 

 

(89,830

)

 

 

-

 

 

 

(266,933

)

Employee shares withheld for taxes

 

(754

)

 

 

(29,858

)

 

 

(983

)

 

 

(31,033

)

Net cash (used in) provided by financing activities

 

(20,716

)

 

 

272,364

 

 

 

(10,892

)

 

 

208,849

 

Effect of exchange rate changes on cash

 

8,981

 

 

 

(278

)

 

 

(2,517

)

 

 

(3,204

)

Net (decrease) increase in cash and cash equivalents

 

(8,357

)

 

 

48,240

 

 

 

(22,075

)

 

 

1,331

 

Cash and cash equivalents at beginning of period

 

51,794

 

 

 

28,962

 

 

 

65,512

 

 

 

75,871

 

Cash and cash equivalents at end of period

$

43,437

 

 

$

77,202

 

 

$

43,437

 

 

$

77,202

 

 

 

 

 

 

 

 

 



THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Net Sales, Gross Profit and Operating Income (Loss) by Segment

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

North America

 

International

 

Corporate/Other

 

Hain Consolidated

Net Sales

 

 

 

 

 

 

 

Net sales - Q2 FY23

$

282,361

 

 

$

171,847

 

 

$

-

 

 

$

454,208

 

Net sales - Q2 FY22

$

275,014

 

 

$

201,927

 

 

$

-

 

 

$

476,941

 

% change - FY23 net sales vs. FY22 net sales

 

2.7

%

 

 

(14.9

)%

 

 

 

 

(4.8

)%

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

 

 

 

 

Q2 FY23

 

 

 

 

 

 

 

Gross profit

$

71,127

 

 

$

32,730

 

 

$

-

 

 

$

103,857

 

Non-GAAP adjustments(1)

 

22

 

 

 

(6

)

 

 

-

 

 

 

16

 

Adjusted gross profit

$

71,149

 

 

$

32,724

 

 

$

-

 

 

$

103,873

 

% change - FY23 gross profit vs. FY22 gross profit

 

5.0

%

 

 

(34.0

)%

 

 

 

 

(11.5

)%

% change - FY23 adjusted gross profit vs. FY22 adjusted gross profit

 

4.8

%

 

 

(33.8

)%

 

 

 

 

(11.5

)%

Gross margin

 

25.2

%

 

 

19.0

%

 

 

 

 

22.9

%

Adjusted gross margin

 

25.2

%

 

 

19.0

%

 

 

 

 

22.9

%

 

 

 

 

 

 

 

 

Q2 FY22

 

 

 

 

 

 

 

Gross profit

$

67,721

 

 

$

49,574

 

 

$

-

 

 

$

117,295

 

Non-GAAP adjustments(1)

 

183

 

 

 

(168

)

 

 

-

 

 

 

15

 

Adjusted gross profit

$

67,904

 

 

$

49,406

 

 

$

-

 

 

$

117,310

 

Gross margin

 

24.6

%

 

 

24.6

%

 

 

 

 

24.6

%

Adjusted gross margin

 

24.7

%

 

 

24.5

%

 

 

 

 

24.6

%

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

Q2 FY23

 

 

 

 

 

 

 

Operating income (loss)

$

32,262

 

 

$

11,940

 

 

$

(16,813

)

 

$

27,389

 

Non-GAAP adjustments(1)

 

75

 

 

 

525

 

 

 

7,363

 

 

 

7,963

 

Adjusted operating income (loss)

$

32,337

 

 

$

12,465

 

 

$

(9,450

)

 

$

35,352

 

% change - FY23 operating income (loss) vs. FY22 operating income (loss)

 

18.8

%

 

 

(56.4

)%

 

 

(25.3

)%

 

 

(14.5

)%

% change - FY23 adjusted operating income (loss) vs. FY22 adjusted operating income (loss)

 

11.6

%

 

 

(55.1

)%

 

 

(14.2

)%

 

 

(22.7

)%

Operating income margin

 

11.4

%

 

 

6.9

%

 

 

 

 

6.0

%

Adjusted operating income margin

 

11.5

%

 

 

7.3

%

 

 

 

 

7.8

%

 

 

 

 

 

 

 

 

Q2 FY22

 

 

 

 

 

 

 

Operating income (loss)

$

27,162

 

 

$

27,368

 

 

$

(22,509

)

 

$

32,021

 

Non-GAAP adjustments(1)

 

1,802

 

 

 

396

 

 

 

11,498

 

 

 

13,696

 

Adjusted operating income (loss)

$

28,964

 

 

$

27,764

 

 

$

(11,011

)

 

$

45,717

 

Operating income margin

 

9.9

%

 

 

13.6

%

 

 

 

 

6.7

%

Adjusted operating income margin

 

10.5

%

 

 

13.7

%

 

 

 

 

9.6

%

 

 

 

 

 

 

 

 

(1) See accompanying table "Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income and Adjusted EPS"

 

 

 

 

 

 

 

 

 

 



THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Net Sales, Gross Profit and Operating Income (Loss) by Segment

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

North America

 

International

 

Corporate/Other

 

Hain Consolidated

Net Sales

 

 

 

 

 

 

 

Net sales - Q2 FY23 YTD

$

570,757

 

 

$

322,802

 

 

$

-

 

 

$

893,559

 

Net sales - Q2 FY22 YTD

$

540,539

 

 

$

391,305

 

 

$

-

 

 

$

931,844

 

% change - FY23 net sales vs. FY22 net sales

 

5.6

%

 

 

(17.5

)%

 

 

 

 

(4.1

)%

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

 

 

 

 

Q2 FY23 YTD

 

 

 

 

 

 

 

Gross profit

$

136,662

 

 

$

61,530

 

 

$

-

 

 

$

198,192

 

Non-GAAP adjustments(1)

 

52

 

 

 

-

 

 

 

-

 

 

 

52

 

Adjusted gross profit

$

136,714

 

 

$

61,530

 

 

$

-

 

 

$

198,244

 

% change - FY23 gross profit vs. FY22 gross profit

 

9.7

%

 

 

(37.3

)%

 

 

 

 

(11.0

)%

% change - FY23 adjusted gross profit vs. FY22 adjusted gross profit

 

7.5

%

 

 

(37.8

)%

 

 

 

 

(12.3

)%

Gross margin

 

23.9

%

 

 

19.1

%

 

 

 

 

22.2

%

Adjusted gross margin

 

24.0

%

 

 

19.1

%

 

 

 

 

22.2

%

 

 

 

 

 

 

 

 

Q2 FY22 YTD

 

 

 

 

 

 

 

Gross profit

$

124,530

 

 

$

98,183

 

 

$

-

 

 

$

222,713

 

Non-GAAP adjustments(1)

 

2,593

 

 

 

707

 

 

 

-

 

 

 

3,300

 

Adjusted gross profit

$

127,123

 

 

$

98,890

 

 

$

-

 

 

$

226,013

 

Gross margin

 

23.0

%

 

 

25.1

%

 

 

 

 

23.9

%

Adjusted gross margin

 

23.5

%

 

 

25.3

%

 

 

 

 

24.3

%

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

Q2 FY23 YTD

 

 

 

 

 

 

 

Operating income (loss)

$

56,707

 

 

$

19,615

 

 

$

(33,110

)

 

$

43,212

 

Non-GAAP adjustments(1)

 

411

 

 

 

852

 

 

 

11,301

 

 

 

12,564

 

Adjusted operating income (loss)

$

57,118

 

 

$

20,467

 

 

$

(21,809

)

 

$

55,776

 

% change - FY23 operating income (loss) vs. FY22 operating income (loss)

 

28.9

%

 

 

(61.9

)%

 

 

(12.6

)%

 

 

(24.9

)%

% change - FY23 adjusted operating income (loss) vs. FY22 adjusted operating income (loss)

 

15.4

%

 

 

(61.4

)%

 

 

(2.9

)%

 

 

(30.3

)%

Operating income margin

 

9.9

%

 

 

6.1

%

 

 

 

 

4.8

%

Adjusted operating income margin

 

10.0

%

 

 

6.3

%

 

 

 

 

6.2

%

 

 

 

 

 

 

 

 

Q2 FY22 YTD

 

 

 

 

 

 

 

Operating income (loss)

$

44,004

 

 

$

51,437

 

 

$

(37,873

)

 

$

57,568

 

Non-GAAP adjustments(1)

 

5,497

 

 

 

1,572

 

 

 

15,424

 

 

 

22,493

 

Adjusted operating income (loss)

$

49,501

 

 

$

53,009

 

 

$

(22,449

)

 

$

80,061

 

Operating income margin

 

8.1

%

 

 

13.1

%

 

 

 

 

6.2

%

Adjusted operating income margin

 

9.2

%

 

 

13.5

%

 

 

 

 

8.6

%

 

 

 

 

 

 

 

 

(1) See accompanying table "Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income and Adjusted EPS"

 

 



THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income and Adjusted EPS

(unaudited and in thousands, except per share amounts)

 

 

 

 

 

 

 

 

Reconciliation of Gross Profit, GAAP to Gross Profit, as Adjusted:

 

 

 

 

 

 

 

 

Second Quarter

 

Second Quarter Year to Date

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Gross profit, GAAP

$

103,857

 

 

$

117,295

 

 

$

198,192

 

 

$

222,713

 

Adjustments to Cost of sales:

 

 

 

 

 

 

 

Inventory write-down

 

-

 

 

 

(46

)

 

 

-

 

 

 

(46

)

Plant closure related costs, net

 

16

 

 

 

(188

)

 

 

52

 

 

 

808

 

Warehouse/manufacturing consolidation and other costs, net

 

-

 

 

 

249

 

 

 

-

 

 

 

2,538

 

Gross profit, as adjusted

$

103,873

 

 

$

117,310

 

 

$

198,244

 

 

$

226,013

 

 

 

 

 

 

 

 

 

Reconciliation of Operating Income, GAAP to Operating Income, as Adjusted:

 

 

 

 

 

 

 

Second Quarter

 

Second Quarter Year to Date

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022