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Hain Celestial Reports Fiscal Third Quarter 2023 Financial Results

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

New CEO Taking Steps to Shape Future for Growth

BOULDER, Colo., May 09, 2023 (GLOBE NEWSWIRE) -- The Hain Celestial Group, Inc. (Nasdaq: HAIN) (“Hain Celestial” or the “Company”), a leading global organic and natural products company providing consumers with A Healthier Way of Life®, today reported financial results for the third quarter ended March 31, 2023.

Wendy Davidson, Hain Celestial President and Chief Executive Officer, said, “Hain has undergone a significant transformation over the past four years, and we’re continuing to design an operating model that will enable sustainable scalability and growth for the future. We’ve simplified our portfolio of brands—many of which are number one or number two in their categories—to provide the focus needed to reach their full potential. We have taken meaningful actions to enhance and build capabilities that are already driving operating improvement and efficiencies, especially within supply chain and service levels. And we’ve begun reinvesting in brand building to regain momentum and share.”

ANNUNCIO PUBBLICITARIO

Chris Bellairs, Hain Celestial Chief Financial Officer, added, “While our Q3 results were weaker than expected, mainly driven by topline performance in our North America business, we saw strong double-digit growth among our Greek Gods® yogurt and Earth’s Best® brands in the U.S., and our International business continues to stabilize and improve in better-for-you snacking and non-dairy beverage.”

Ms. Davidson continued, “I remain confident in the long-term potential of our business and want to thank the team for their continued passion and dedication as we fuel our future for sustainable growth and maintain our position as a leading organic and natural company.”

FINANCIAL HIGHLIGHTS*
Summary of Third Quarter Results Compared to the Prior Year Period

  • Net sales decreased 9% to $455.2 million compared to the prior year period.

  • When adjusted for foreign exchange, acquisitions, divestitures and discontinued brands, net sales decreased 6% compared to the prior year period.

  • Gross profit margin was 21.4%, a 160-basis point decrease from the prior year period.

  • Adjusted gross profit margin was 21.4%, a 200-basis point decrease from the prior year period.

  • Net loss was $115.7 million compared to net income of $24.5 million in the prior year period; net loss margin was 25.4% compared to net income margin of 4.9% in the prior year period.

    • Net loss for the third quarter of 2023 included pretax non-cash impairment charges of $156.6 million ($117.4 million after taxes), substantially all of which related to the ParmCrisps® and Thinsters® intangible assets.

  • Adjusted net income was $7.4 million compared to $29.7 million in prior year period.

  • Adjusted EBITDA on a constant currency basis was $39.3 million compared to $58.7 million in the prior year period; Adjusted EBITDA margin on a constant currency basis was 8.3%, a 340-basis point decrease compared to the prior year period.

  • Loss per diluted share was $1.29 compared to earnings per diluted share (“EPS”) of $0.27 in the prior year period.

  • Adjusted EPS was $0.08 compared to $0.33 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 $286.6 million, a 12% decrease compared to the prior year period. When adjusted for foreign exchange, acquisitions, divestitures and discontinued brands, net sales decreased by 11% from the prior year period. These decreases were mainly due to lower sales in snacks, personal care, and tea, partially offset by higher sales in yogurt. The net sales decrease within snacks was substantially driven by reduced distribution and customer promotions associated with the ParmCrisps brand.

Segment gross profit was $62.7 million, a decrease of 17% from the prior year period. Adjusted gross profit was $62.8 million, a decrease of 19% from the prior year period. Gross margin and adjusted gross margin were both 21.9%, representing a 120-basis point and 180-basis point decrease from the prior year period, respectively. The decrease was mainly driven by plant deleverage resulting from lower volume as well as negative mix, partially offset by improved pricing and productivity.

Segment operating loss was $136.1 million compared to operating income of $28.5 million in the prior year period. The decrease was mainly driven by aggregate non-cash impairment charges of $156.6 million substantially all of which related to the ParmCrisps and Thinsters intangible assets. Adjusted operating income was $21.2 million compared to $31.4 million in the prior year period. Operating loss margin was 47.5% compared to operating income margin of 8.8% in the prior year period. Adjusted operating income margin was 7.4%, a 230-basis point decrease from the prior year period. The decrease was mainly driven by lower net sales, partially offset by cost improvements due to higher productivity.

Segment adjusted EBITDA on a constant currency basis was $27.4 million compared to $37.3 million in the prior year period. Adjusted EBITDA margin on a constant currency basis was 9.5%, a 200-basis point decrease from the prior year period.

International
International net sales were $168.6 million, a 5% decrease compared to the prior year period. When adjusted for foreign exchange, net sales increased 4% compared to the prior year period mainly due to growth in the United Kingdom, partially offset by softness in plant-based categories in the rest of Europe.

Segment gross profit was $34.7 million, a 14% decrease from the prior year period. Adjusted gross profit was $34.7 million, a decrease of 14% from the prior year period. Gross margin and adjusted gross margin were both 20.6%, representing a 220-basis point and 230-basis point decrease from the prior year period, respectively. The decrease in gross profit was mainly due to higher energy and input costs, partially offset by improved pricing and productivity.

Segment operating income was $13.6 million, a 26% decrease from the prior year period. Adjusted operating income was $13.9 million, a decrease of 26% from the prior year period. Operating income margin was 8.1%, a 230-basis point decrease from the prior year period, and adjusted operating income margin was 8.3%, a 240-basis point decrease from the prior year period. The decrease was mainly due to increased energy and input costs and volume mix partially offset by improved pricing and productivity.

Segment adjusted EBITDA on a constant currency basis was $23.1 million compared to $26.5 million in the prior year period. Adjusted EBITDA margin on a constant currency basis was 12.6%, a 230-basis point decrease from the prior year period.

FULL YEAR AND FOURTH QUARTER FISCAL 2023 GUIDANCE**
The Company is updating its financial guidance for full year fiscal 2023 for both adjusted net sales and adjusted EBITDA on a constant currency basis compared to the prior year and now expects:

  • Adjusted net sales to be down -4% to -3% versus prior year, and

  • Adjusted EBITDA at constant currency to be down -15% to -13%.

For the fourth quarter of fiscal 2023, the Company expects:

  • Adjusted net sales to be down low single digit percentages versus the prior year period,

  • Adjusted gross margins to be up year-over-year and sequentially, and

  • Adjusted EBITDA at constant currency expected to be approximately $40 million to $44 million.

__________________

** 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.

Conference Call and Webcast Information
Hain Celestial will host a conference call and webcast today at 8:00 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. is a leading organic and natural products company that has been committed to creating A Healthier Way of Life® since 1993. Headquartered in Boulder, CO 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; 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) losses on sales of assets, certain inventory write-downs, intangibles and 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)

 

 

 

 

 

 

 

 

 

Third Quarter

 

Third Quarter Year to Date

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

Net sales

$

455,243

 

 

$

502,939

 

 

$

1,348,802

 

 

$

1,434,783

 

Cost of sales

 

357,764

 

 

 

387,236

 

 

 

1,053,131

 

 

 

1,096,367

 

Gross profit

 

97,479

 

 

 

115,703

 

 

 

295,671

 

 

 

338,416

 

Selling, general and administrative expenses

 

75,047

 

 

 

75,750

 

 

 

222,355

 

 

 

229,679

 

Intangibles and long-lived asset impairment

 

156,583

 

 

 

-

 

 

 

156,923

 

 

 

303

 

Amortization of acquired intangible assets

 

2,842

 

 

 

3,110

 

 

 

8,415

 

 

 

7,254

 

Productivity and transformation costs

 

3,933

 

 

 

1,679

 

 

 

5,692

 

 

 

8,448

 

Operating (loss) income

 

(140,926

)

 

 

35,164

 

 

 

(97,714

)

 

 

92,732

 

Interest and other financing expense, net

 

13,421

 

 

 

3,224

 

 

 

31,910

 

 

 

7,672

 

Other expense (income), net

 

439

 

 

 

(712

)

 

 

(2,413

)

 

 

(10,570

)

(Loss) income before income taxes and equity in net loss of equity-method investees

 

(154,786

)

 

 

32,652

 

 

 

(127,211

)

 

 

95,630

 

(Benefit) provision for income taxes

 

(39,587

)

 

 

7,738

 

 

 

(30,599

)

 

 

19,425

 

Equity in net loss of equity-method investees

 

528

 

 

 

383

 

 

 

1,226

 

 

 

1,374

 

Net (loss) income

$

(115,727

)

 

$

24,531

 

 

$

(97,838

)

 

$

74,831

 

 

 

 

 

 

 

 

 

Net (loss) income per common share:

 

 

 

 

 

 

 

Basic

$

(1.29

)

 

$

0.27

 

 

$

(1.09

)

 

$

0.80

 

Diluted

$

(1.29

)

 

$

0.27

 

 

$

(1.09

)

 

$

0.79

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

Basic

 

89,421

 

 

 

91,139

 

 

 

89,369

 

 

 

94,099

 

Diluted

 

89,421

 

 

 

91,310

 

 

 

89,369

 

 

 

94,519

 

 

 

 

 

 

 

 

 


THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(unaudited and in thousands)

 

 

 

 

 

March 31, 2023

 

June 30, 2022

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

43,682

 

 

$

65,512

 

Accounts receivable, net

 

179,114

 

 

 

170,661

 

Inventories

 

316,345

 

 

 

308,034

 

Prepaid expenses and other current assets

 

58,719

 

 

 

54,079

 

Assets held for sale

 

1,250

 

 

 

1,840

 

Total current assets

 

599,110

 

 

 

600,126

 

Property, plant and equipment, net

 

296,433

 

 

 

297,405

 

Goodwill

 

931,729

 

 

 

933,796

 

Trademarks and other intangible assets, net

 

314,536

 

 

 

477,533

 

Investments and joint ventures

 

12,720

 

 

 

14,456

 

Operating lease right-of-use assets, net

 

98,306

 

 

 

114,691

 

Other assets

 

19,990

 

 

 

20,377

 

Total assets

$

2,272,824

 

 

$

2,458,384

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

Current liabilities:

 

 

 

Accounts payable

$

146,340

 

 

$

174,765

 

Accrued expenses and other current liabilities

 

95,841

 

 

 

86,833

 

Current portion of long-term debt

 

7,575

 

 

 

7,705

 

Total current liabilities

 

249,756

 

 

 

269,303

 

Long-term debt, less current portion

 

848,982

 

 

 

880,938

 

Deferred income taxes

 

51,155

 

 

 

95,044

 

Operating lease liabilities, noncurrent portion

 

91,885

 

 

 

107,481

 

Other noncurrent liabilities

 

24,571

 

 

 

22,450

 

Total liabilities

 

1,266,349

 

 

 

1,375,216

 

Stockholders' equity:

 

 

 

Common stock

 

1,113

 

 

 

1,111

 

Additional paid-in capital

 

1,213,783

 

 

 

1,203,126

 

Retained earnings

 

671,260

 

 

 

769,098

 

Accumulated other comprehensive loss

 

(152,945

)

 

 

(164,482

)

 

 

1,733,211

 

 

 

1,808,853

 

Less: Treasury stock

 

(726,736

)

 

 

(725,685

)

Total stockholders' equity

 

1,006,475

 

 

 

1,083,168

 

Total liabilities and stockholders' equity

$

2,272,824

 

 

$

2,458,384

 

 

 

 

 


THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

Third Quarter

 

Third Quarter Year to Date

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net (loss) income

$

(115,727

)

 

$

24,531

 

 

$

(97,838

)

 

$

74,831

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

13,784

 

 

 

12,638

 

 

 

37,909

 

 

 

34,396

 

Deferred income taxes

 

(42,826

)

 

 

10,645

 

 

 

(44,809

)

 

 

7,374

 

Equity in net loss of equity-method investees

 

528

 

 

 

383

 

 

 

1,226

 

 

 

1,374

 

Stock-based compensation, net

 

3,228

 

 

 

3,846

 

 

 

10,657

 

 

 

12,289

 

Intangibles and long-lived asset impairment

 

156,583

 

 

 

-

 

 

 

156,923

 

 

 

303

 

(Gain) loss on sale of assets

 

(134

)

 

 

52

 

 

 

(3,529

)

 

 

(8,869

)

Other non-cash items, net

 

979

 

 

 

(669

)

 

 

(1,526

)

 

 

(2,155

)

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

 

 

 

 

 

 

 

Accounts receivable

 

(1,390

)

 

 

1,780

 

 

 

(7,926

)

 

 

14,150

 

Inventories

 

10,095

 

 

 

(6,844

)

 

 

(8,534

)

 

 

(4,371

)

Other current assets

 

786

 

 

 

(5,870

)

 

 

455

 

 

 

(10,996

)

Other assets and liabilities

 

(682

)

 

 

(4,481

)

 

 

3,496

 

 

 

(2,705

)

Accounts payable and accrued expenses

 

3,737

 

 

 

(4,856

)

 

 

(20,195

)

 

 

(16,435

)

Net cash provided by operating activities

 

28,961

 

 

 

31,155

 

 

 

26,309

 

 

 

99,186

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

(7,379

)

 

 

(5,943

)

 

 

(21,434

)

 

 

(33,939

)

Acquisitions of businesses, net of cash acquired

 

-

 

 

 

(5,905

)

 

 

-

 

 

 

(260,474

)

Investments and joint ventures, net

 

-

 

 

 

(100

)

 

 

433

 

 

 

(614

)

Proceeds from sale of assets

 

150

 

 

 

22

 

 

 

7,758

 

 

 

10,756

 

Net cash used in investing activities

 

(7,229

)

 

 

(11,926

)

 

 

(13,243

)

 

 

(284,271

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

Borrowings under bank revolving credit facility

 

90,000

 

 

 

138,000

 

 

 

275,000

 

 

 

678,000

 

Repayments under bank revolving credit facility

 

(106,250

)

 

 

(40,000

)

 

 

(301,000

)

 

 

(370,000

)

Borrowings under term loan

 

-

 

 

 

-

 

 

 

-

 

 

 

300,000

 

Repayments under term loan

 

(5,625

)

 

 

(1,875

)

 

 

(5,625

)

 

 

(1,875

)

Payments of other debt, net

 

(1,957

)

 

 

(47

)

 

 

(2,116

)

 

 

(3,232

)

Share repurchases

 

-

 

 

 

(130,472

)

 

 

-

 

 

 

(397,405

)

Employee shares withheld for taxes

 

(68

)

 

 

(1,597

)

 

 

(1,051

)

 

 

(32,630

)

Net cash (used in) provided by financing activities

 

(23,900

)

 

 

(35,991

)

 

 

(34,792

)

 

 

172,858

 

Effect of exchange rate changes on cash

 

2,413

 

 

 

(2,632

)

 

 

(104

)

 

 

(5,836

)

Net increase (decrease) in cash and cash equivalents

 

245

 

 

 

(19,394

)

 

 

(21,830

)

 

 

(18,063

)

Cash and cash equivalents at beginning of period

 

43,437

 

 

 

77,202

 

 

 

65,512

 

 

 

75,871

 

Cash and cash equivalents at end of period

$

43,682

 

 

$

57,808

 

 

$

43,682

 

 

$

57,808

 

 

 

 

 

 

 

 

 


THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

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

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

North America

 

International

 

Corporate/Other

 

Hain Consolidated

Net Sales

 

 

 

 

 

 

 

Net sales - Q3 FY23

$

286,649

 

 

$

168,594

 

 

$

-

 

 

$

455,243

 

Net sales - Q3 FY22

$

325,742

 

 

$

177,197

 

 

$

-

 

 

$

502,939

 

% change - FY23 net sales vs. FY22 net sales

 

(12.0

)%

 

 

(4.9

)%

 

 

 

 

(9.5

)%

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

 

 

 

 

Q3 FY23

 

 

 

 

 

 

 

Gross profit

$

62,742

 

 

$

34,737

 

 

$

-

 

 

$

97,479

 

Non-GAAP adjustments(1)

 

22

 

 

 

10

 

 

 

-

 

 

 

32

 

Adjusted gross profit

$

62,764

 

 

$

34,747

 

 

$

-

 

 

$

97,511

 

% change - FY23 gross profit vs. FY22 gross profit

 

(16.6

)%

 

 

(14.2

)%

 

 

 

 

(15.8

)%

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

 

(18.6

)%

 

 

(14.3

)%

 

 

 

 

(17.1

)%

Gross margin

 

21.9

%

 

 

20.6

%

 

 

 

 

21.4

%

Adjusted gross margin

 

21.9

%

 

 

20.6

%

 

 

 

 

21.4

%

 

 

 

 

 

 

 

 

Q3 FY22

 

 

 

 

 

 

 

Gross profit

$

75,233

 

 

$

40,470

 

 

$

-

 

 

$

115,703

 

Non-GAAP adjustments(1)

 

1,836

 

 

 

97

 

 

 

-

 

 

 

1,933

 

Adjusted gross profit

$

77,069

 

 

$

40,567

 

 

$

-

 

 

$

117,636

 

Gross margin

 

23.1

%

 

 

22.8

%

 

 

 

 

23.0

%

Adjusted gross margin

 

23.7

%

 

 

22.9

%

 

 

 

 

23.4

%

 

 

 

 

 

 

 

 

Operating (loss) income

 

 

 

 

 

 

 

Q3 FY23

 

 

 

 

 

 

 

Operating (loss) income

$

(136,127

)

 

$

13,604

 

 

$

(18,403

)

 

$

(140,926

)

Non-GAAP adjustments(1)

 

157,285

 

 

 

308

 

 

 

5,570

 

 

 

163,163

 

Adjusted operating income (loss)

$

21,158

 

 

$

13,912

 

 

$

(12,833

)

 

$

22,237

 

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

 

(577.2

)%

 

 

(25.7

)%

 

 

57.8

%

 

 

(500.8

)%

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

 

(32.6

)%

 

 

(26.0

)%

 

 

65.7

%

 

 

(47.6

)%

Operating (loss) income margin

 

(47.5

)%

 

 

8.1

%

 

 

 

 

(31.0

)%

Adjusted operating income margin

 

7.4

%

 

 

8.3

%

 

 

 

 

4.9

%

 

 

 

 

 

 

 

 

Q3 FY22

 

 

 

 

 

 

 

Operating income (loss)

$

28,526

 

 

$

18,303

 

 

$

(11,665

)

 

$

35,164

 

Non-GAAP adjustments(1)

 

2,857

 

 

 

504

 

 

 

3,918

 

 

 

7,279

 

Adjusted operating income (loss)

$

31,383

 

 

$

18,807

 

 

$

(7,747

)

 

$

42,443

 

Operating income margin

 

8.8

%

 

 

10.3

%

 

 

 

 

7.0

%

Adjusted operating income margin

 

9.6

%

 

 

10.6

%

 

 

 

 

8.4

%

 

 

 

 

 

 

 

 

(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 (Loss) Income by Segment

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

North America

 

International

 

Corporate/Other

 

Hain Consolidated

Net Sales

 

 

 

 

 

 

 

Net sales - Q3 FY23 YTD

$

857,406

 

 

$

491,396

 

 

$

-

 

 

$

1,348,802

 

Net sales - Q3 FY22 YTD

$

866,281

 

 

$

568,502

 

 

$

-

 

 

$

1,434,783

 

% change - FY23 net sales vs. FY22 net sales

 

(1.0

)%

 

 

(13.6

)%

 

 

 

 

(6.0

)%

 

 

 

 

 

 

 

 

Gross Profit

 

 

 

 

 

 

 

Q3 FY23 YTD

 

 

 

 

 

 

 

Gross profit

$

199,404

 

 

$

96,267

 

 

$

-

 

 

$

295,671

 

Non-GAAP adjustments(1)

 

74

 

 

 

10

 

 

 

-

 

 

 

84

 

Adjusted gross profit

$

199,478

 

 

$

96,277

 

 

$

-

 

 

$

295,755

 

% change - FY23 gross profit vs. FY22 gross profit

 

(0.2

)%

 

 

(30.6

)%

 

 

 

 

(12.6

)%

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

 

(2.3

)%

 

 

(31.0

)%

 

 

 

 

(13.9

)%

Gross margin

 

23.3

%

 

 

19.6

%

 

 

 

 

21.9

%

Adjusted gross margin

 

23.3

%

 

 

19.6

%

 

 

 

 

21.9

%

 

 

 

 

 

 

 

 

Q3 FY22 YTD

 

 

 

 

 

 

 

Gross profit

$

199,763

 

 

$

138,653

 

 

$

-

 

 

$

338,416

 

Non-GAAP adjustments(1)

 

4,429

 

 

 

804

 

 

 

-

 

 

 

5,233

 

Adjusted gross profit

$

204,192

 

 

$

139,457

 

 

$

-

 

 

$

343,649

 

Gross margin

 

23.1

%

 

 

24.4

%

 

 

 

 

23.6

%

Adjusted gross margin

 

23.6

%

 

 

24.5

%

 

 

 

 

24.0

%

 

 

 

 

 

 

 

 

Operating (loss) income

 

 

 

 

 

 

 

Q3 FY23 YTD

 

 

 

 

 

 

 

Operating (loss) income

$

(79,420

)

 

$

33,219

 

 

$

(51,513

)

 

$

(97,714

)

Non-GAAP adjustments(1)

 

157,696

 

 

 

1,160

 

 

 

16,871

 

 

 

175,727

 

Adjusted operating income (loss)

$

78,276

 

 

$

34,379

 

 

$

(34,642

)

 

$

78,013

 

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

 

(209.5

)%

 

 

(52.4

)%

 

 

4.0

%

 

 

(205.4

)%

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

 

(3.2

)%

 

 

(52.1

)%

 

 

14.7

%

 

 

(36.3

)%

Operating (loss) income margin

 

(9.3

)%

 

 

6.8

%

 

 

 

 

(7.2

)%

Adjusted operating income margin

 

9.1

%

 

 

7.0

%

 

 

 

 

5.8

%

 

 

 

 

 

 

 

 

Q3 FY22 YTD

 

 

 

 

 

 

 

Operating income (loss)

$

72,530

 

 

$

69,740

 

 

$

(49,538

)

 

$

92,732

 

Non-GAAP adjustments(1)

 

8,354

 

 

 

2,076

 

 

 

19,342

 

 

 

29,772

 

Adjusted operating income (loss)

$

80,884

 

 

$

71,816

 

 

$

(30,196

)

 

$

122,504

 

Operating income margin

 

8.4

%

 

 

12.3

%

 

 

 

 

6.5

%

Adjusted operating income margin

 

9.3

%

 

 

12.6

%

 

 

 

 

8.5

%

 

 

 

 

 

 

 

 

(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:

 

 

 

 

 

 

 

 

Third Quarter

 

Third Quarter Year to Date

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Gross profit, GAAP

 

97,479

 

 

$

115,703

 

 

$

295,671

 

 

$

338,416

 

Adjustments to Cost of sales:

 

 

 

 

 

 

 

Inventory write-down

 

-

 

 

 

-

 

 

 

-

 

 

 

(46

)

Plant closure related costs, net

 

22

 

 

 

83

 

 

 

74

 

 

 

891

 

Transaction and integration costs, net

 

-

 

 

 

1,756

 

 

 

-

 

 

 

1,756

 

Warehouse/manufacturing consolidation and other costs, net

 

10

 

 

 

94

 

 

 

10

 

 

 

2,632

 

Gross profit, as adjusted

 

97,511

 

 

$

117,636

 

 

$

295,755

 

 

$

343,649

 

 

 

 

 

 

 

 

 

Reconciliation of Operating (Loss) Income, GAAP to Operating Income, as Adjusted:

 

 

 

 

 

 

 

Third Quarter

 

Third Quarter Year to Date

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Operating (loss) income, GAAP

$

(140,926

)

 

$

35,164

 

 

$

(97,714

)

 

$

92,732

 

Adjustments to Cost of sales:

 

 

 

 

 

 

 

Inventory write-down

 

-

 

 

 

-

 

 

 

-

 

 

 

(46

)

Plant closure related costs, net

 

22

 

 

 

83

 

 

 

74

 

 

 

891

 

Transaction and integration costs, net

 

-

 

 

 

1,756

 

 

 

-

 

 

 

1,756

 

Warehouse/manufacturing consolidation and other costs, net

 

10

 

 

 

94

 

 

 

10

 

 

 

2,632

 

 

 

 

 

 

 

 

 

Adjustments to Operating expenses(a):

 

 

 

 

 

 

 

CEO succession

 

-

 

 

 

-

 

 

 

5,113

 

 

 

-

 

Transaction and integration costs, net

 

215

 

 

 

1,663

 

 

 

1,984

 

 

 

10,395

 

Certain litigation expenses, net(b)

 

(1,582

)

 

 

2,005

 

 

 

3,363

 

 

 

5,389

 

Intangibles and long-lived asset impairment

 

156,583

 

 

 

-

 

 

 

156,923

 

 

 

303

 

Plant closure related costs, net

 

-

 

 

 

(1

)

 

 

(1

)

 

 

4

 

Productivity and transformation costs

 

3,933

 

 

 

1,679

 

 

 

5,692

 

 

 

8,448

 

Warehouse/manufacturing consolidation and other costs, net

 

3,982

 

 

 

-

 

 

 

2,569

 

 

 

-

 

Operating income, as adjusted

$

22,237

 

 

$

42,443

 

 

$

78,013

 

 

$

122,504

 

 

 

 

 

 

 

 

 

Reconciliation of Net (Loss) Income, GAAP to Net Income, as Adjusted:

 

 

 

 

 

 

 

 

Third Quarter

 

Third Quarter Year to Date

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net (loss) income, GAAP

$

(115,727

)

 

$

24,531

 

 

$

(97,838

)

 

$

74,831

 

Adjustments to Cost of sales:

 

 

 

 

 

 

 

Inventory write-down

 

-

 

 

 

-

 

 

 

-

 

 

 

(46

)

Plant closure related costs, net

 

22

 

 

 

83

 

 

 

74

 

 

 

891

 

Transaction and integration costs, net

 

-

 

 

 

1,756

 

 

 

-

 

 

 

1,756

 

Warehouse/manufacturing consolidation and other costs, net

 

10

 

 

 

94

 

 

 

10

 

 

 

2,632

 

 

 

 

 

 

 

 

 

Adjustments to Operating expenses(a):

 

 

 

 

 

 

 

CEO succession

 

-

 

 

 

-

 

 

 

5,113

 

 

 

-

 

Transaction and integration costs, net

 

215

 

 

 

1,663

 

 

 

1,984

 

 

 

10,395

 

Certain litigation expenses, net(b)

 

(1,582

)

 

 

2,005

 

 

 

3,363

 

 

 

5,389

 

Intangibles and long-lived asset impairment

 

156,583

 

 

 

-

 

 

 

156,923

 

 

 

303

 

Plant closure related costs, net

 

-

 

 

 

(1

)

 

 

(1

)

 

 

4

 

Productivity and transformation costs

 

3,933

 

 

 

1,679

 

 

 

5,692

 

 

 

8,448

 

Warehouse/manufacturing consolidation and other costs, net

 

3,982

 

 

 

-

 

 

 

2,569

 

 

 

-

 

 

 

 

 

 

 

 

 

Adjustments to Interest and other expense (income), net(c):

 

 

 

 

 

 

 

(Gain) loss on sale of assets

 

(134

)

 

 

55

 

 

 

(3,529

)

 

 

(9,047

)

Unrealized currency losses (gains)

 

202

 

 

 

(594

)

 

 

651

 

 

 

(2,097

)

 

 

 

 

 

 

 

 

Adjustments to (Benefit) provision for income taxes:

 

 

 

 

 

 

 

Net tax impact of non-GAAP adjustments

 

(40,131

)

 

 

(1,533

)

 

 

(40,151

)

 

 

(5,553

)

Net income, as adjusted

$

7,373

 

 

$

29,738

 

 

$

34,860

 

 

$

87,906

 

Net (loss) income margin

 

(25.4

)%

 

 

4.9

%

 

 

(7.3

)%

 

 

5.2

%

Adjusted net income margin

 

1.6

%

 

 

5.9

%

 

 

2.6

%

 

 

6.1

%

 

 

 

 

 

 

 

 

Diluted shares used in the calculation of net (loss) income per common share:

 

89,421

 

 

 

91,310

 

 

 

89,369

 

 

 

94,519

 

 

 

 

 

 

 

 

 

Diluted net (loss) income per common share, GAAP

$

(1.29

)

 

$

0.27

 

 

$

(1.09

)

 

$

0.79

 

Diluted net income per common share, as adjusted

$

0.08

 

 

$

0.33

 

 

$

0.39

 

 

$

0.93

 

 

 

 

 

 

 

 

 

(a) Operating expenses include amortization of acquired intangibles, selling, general and administrative expenses, intangibles and long-lived asset impairment and productivity and transformation costs.

(b) Expenses and items relating to securities class action and baby food litigation.

 

 

 

 

 

 

(c) Interest and other expense (income), net includes interest and other financing expenses, net, unrealized currency losses (gains), (gain) loss on sale of assets and other expense, net.

 


THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Adjusted Net Sales Growth

(unaudited and in thousands)

 

 

 

 

 

 

Q3 FY23

North America

 

International

 

Hain Consolidated

Net sales

$

286,649

 

 

$

168,594

 

 

$

455,243

 

Acquisitions, divestitures and discontinued brands

 

(163

)

 

 

-

 

 

 

(163

)

Impact of foreign currency exchange

 

1,881

 

 

 

14,760

 

 

 

16,641

 

Net sales on a constant currency basis adjusted for acquisitions, divestitures and discontinued brands

$

288,367

 

 

$

183,354

 

 

$

471,721

 

 

 

 

 

 

 

Q3 FY22

 

 

 

 

 

Net sales

$

325,742

 

 

$

177,197

 

 

$

502,939

 

Acquisitions, divestitures and discontinued brands

 

(2,311

)

 

 

-

 

 

 

(2,311

)

Net sales adjusted for acquisitions, divestitures and discontinued brands

$

323,431

 

 

$

177,197

 

 

$

500,628

 

 

 

 

 

 

 

Net sales decline

 

(12.0

)%

 

 

(4.9

)%

 

 

(9.5

)%

Impact of acquisitions, divestitures and discontinued brands

 

0.6

%

 

 

-

 

 

 

0.4

%

Impact of foreign currency exchange

 

0.6

%

 

 

8.4

%

 

 

3.3

%

Net sales (decline) growth on a constant currency basis adjusted for acquisitions, divestitures and discontinued brands

 

(10.8

)%

 

 

3.5

%

 

 

(5.8

)%

 

 

 

 

 

 

Q3 FY23 YTD

North America

 

International

 

Hain Consolidated

Net sales

$

857,406

 

 

$

491,396

 

 

$

1,348,802

 

Acquisitions, divestitures and discontinued brands

 

(34,663

)

 

 

-

 

 

 

(34,663

)

Impact of foreign currency exchange

 

5,024

 

 

 

64,266

 

 

 

69,290

 

Net sales on a constant currency basis adjusted for acquisitions, divestitures and discontinued brands

$

827,767

 

 

$

555,662

 

 

$

1,383,429

 

 

 

 

 

 

 

Q3 FY22 YTD

 

 

 

 

 

Net sales

$

866,281

 

 

$

568,502

 

 

$

1,434,783

 

Acquisitions, divestitures and discontinued brands

 

(7,142

)

 

 

-

 

 

 

(7,142

)

Net sales adjusted for acquisitions, divestitures and discontinued brands

$

859,139

 

 

$

568,502

 

 

$

1,427,641

 

 

 

 

 

 

 

Net sales decline

 

(1.0

)%

 

 

(13.6

)%

 

 

(6.0

)%

Impact of acquisitions, divestitures and discontinued brands

 

(3.3

)%

 

 

-

 

 

 

(1.9

)%

Impact of foreign currency exchange

 

0.6

%

 

 

11.3

%

 

 

4.8

%

Net sales decline on a constant currency basis adjusted for acquisitions, divestitures and discontinued brands

 

(3.7

)%

 

 

(2.3

)%

 

 

(3.1

)%

 

 

 

 

 

 


THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Adjusted EBITDA

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

Third Quarter

 

Third Quarter Year to Date

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

Net (loss) income

$

(115,727

)

 

$

24,531

 

 

$

(97,838

)

 

$

74,831

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

13,784

 

 

 

12,638

 

 

 

37,909

 

 

 

34,396

 

Equity in net loss of equity-method investees

 

528

 

 

 

383

 

 

 

1,226

 

 

 

1,374

 

Interest expense, net

 

12,924

 

 

 

2,846

 

 

 

30,582

 

 

 

5,677

 

(Benefit) provision for income taxes

 

(39,587

)

 

 

7,738

 

 

 

(30,599

)

 

 

19,425

 

Stock-based compensation, net

 

3,228

 

 

 

3,846

 

 

 

10,657

 

 

 

12,289

 

Unrealized currency losses (gains)

 

202

 

 

 

(594

)

 

 

651

 

 

 

(2,097

)

Litigation and related costs

 

 

 

 

 

 

 

Certain litigation expenses, net(a)

 

(1,582

)

 

 

2,005

 

 

 

3,363

 

 

 

5,389

 

Restructuring activities

 

 

 

 

 

 

 

CEO succession

 

-

 

 

 

-

 

 

 

5,113

 

 

 

-

 

Plant closure related costs, net

 

22

 

 

 

82

 

 

 

73

 

 

 

895

 

Productivity and transformation costs

 

3,933

 

 

 

1,626

 

 

 

5,692

 

 

 

7,077

 

Warehouse/manufacturing consolidation and other costs, net

 

2,871

 

 

 

94

 

 

 

899

 

 

 

2,632

 

Acquisitions, divestitures and other

 

 

 

 

 

 

 

Transaction and integration costs, net

 

215

 

 

 

3,419

 

 

 

1,984

 

 

 

12,151

 

(Gain) loss on sale of assets

 

(134

)

 

 

55

 

 

 

(3,529

)

 

 

(9,047

)

Impairment charges

 

 

 

 

 

 

 

Inventory write-down

 

-

 

 

 

-

 

 

 

-

 

 

 

(46

)

Intangibles and long-lived asset impairment

 

156,583

 

 

 

-

 

 

 

156,923

 

 

 

303

 

Adjusted EBITDA

$

37,260

 

 

$

58,669

 

 

$

123,106

 

 

$

165,249

 

 

 

 

 

 

 

 

 

(a) Expenses and items relating to securities class action and baby food litigation.

 

 

 

 

 

 

 

 

 

 

 

 


THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Adjusted EBITDA by Segment

(unaudited and in thousands)

 

 

 

 

 

 

 

 

Q3 FY23

North America

 

International

 

Corporate/ Other

 

Hain Consolidated

Operating (loss) income

$

(136,127

)

 

$

13,604

 

 

$

(18,403

)

 

$

(140,926

)

Depreciation and amortization

 

4,737

 

 

 

7,355

 

 

 

1,692

 

 

 

13,784

 

Stock-based compensation, net

 

1,364

 

 

 

369

 

 

 

1,495

 

 

 

3,228

 

Certain litigation expenses, net(a)

 

-

 

 

 

-

 

 

 

(1,582

)

 

 

(1,582

)

Plant closure related costs, net

 

22

 

 

 

-

 

 

 

-

 

 

 

22

 

Productivity and transformation costs

 

1,032

 

 

 

298

 

 

 

2,603

 

 

 

3,933

 

Warehouse/manufacturing consolidation and other costs, net

 

-

 

 

 

10

 

 

 

2,861

 

 

 

2,871

 

Transaction and integration costs, net

 

(66

)

 

 

-

 

 

 

281

 

 

 

215

 

Intangibles and long-lived asset impairment

 

156,298

 

 

 

-

 

 

 

285

 

 

 

156,583

 

Other

 

(67

)

 

 

(367

)

 

 

(434

)

 

 

(868

)

Adjusted EBITDA

$

27,193

 

 

$

21,269

 

 

$

(11,202

)

 

$

37,260

 

 

 

 

 

 

 

 

 

Q3 FY22

 

 

 

 

 

 

 

Operating income (loss)

$

28,526

 

 

$

18,303

 

 

$

(11,665

)

 

$

35,164

 

Depreciation and amortization

 

5,062

 

 

 

7,099

 

 

 

477

 

 

 

12,638

 

Stock-based compensation, net

 

921

 

 

 

394

 

 

 

2,531

 

 

 

3,846

 

Certain litigation expenses, net(a)

 

-

 

 

 

-

 

 

 

2,005

 

 

 

2,005

 

Plant closure related costs, net

 

79

 

 

 

3

 

 

 

-

 

 

 

82

 

Productivity and transformation costs

 

1,054

 

 

 

407

 

 

 

165

 

 

 

1,626

 

Warehouse/manufacturing consolidation and other costs, net

 

-

 

 

 

94

 

 

 

-

 

 

 

94

 

Transaction and integration costs, net

 

1,724

 

 

 

-

 

 

 

1,695

 

 

 

3,419

 

Other

 

(81

)

 

 

169

 

 

 

(293

)

 

 

(205

)

Adjusted EBITDA

$

37,285

 

 

$

26,469

 

 

$

(5,085

)

 

$

58,669

 

 

 

 

 

 

 

 

 

(a) Expenses and items relating to securities class action and baby food litigation.

 

 

 

 

 

 

 

 

 

 

 

 

 


THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Adjusted EBITDA by Segment

(unaudited and in thousands)

 

 

 

 

 

 

 

 

Q3 FY23 YTD

North America

 

International

 

Corporate/ Other

 

Hain Consolidated

Operating (loss) income

$

(79,420

)

 

$

33,219

 

 

$

(51,513

)

 

$

(97,714

)

Depreciation and amortization

 

14,432

 

 

 

20,250

 

 

 

3,227

 

 

 

37,909

 

Stock-based compensation, net

 

3,720

 

 

 

1,533

 

 

 

5,404

 

 

 

10,657

 

Certain litigation expenses, net(a)

 

-

 

 

 

-

 

 

 

3,363

 

 

 

3,363

 

CEO succession

 

-

 

 

 

-

 

 

 

5,113

 

 

 

5,113

 

Plant closure related costs, net

 

75

 

 

 

(2

)

 

 

-

 

 

 

73

 

Productivity and transformation costs

 

1,402

 

 

 

1,157

 

 

 

3,133

 

 

 

5,692

 

Warehouse/manufacturing consolidation and other costs, net

 

-

 

 

 

10

 

 

 

889

 

 

 

899

 

Transaction and integration costs, net

 

(77

)

 

 

(6

)

 

 

2,067

 

 

 

1,984

 

Intangibles and long-lived asset impairment

 

156,298

 

 

 

-

 

 

 

625

 

 

 

156,923

 

Other

 

54

 

 

 

(703

)

 

 

(1,144

)

 

 

(1,793

)

Adjusted EBITDA

$

96,484

 

 

$

55,458

 

 

$

(28,836

)

 

$

123,106

 

 

 

 

 

 

 

 

 

Q3 FY22 YTD

 

 

 

 

 

 

 

Operating income (loss)

$

72,530

 

 

$

69,740

 

 

$

(49,538

)

 

$

92,732

 

Depreciation and amortization

 

12,458

 

 

 

19,804

 

 

 

2,134

 

 

 

34,396

 

Stock-based compensation, net

 

2,335

 

 

 

1,461

 

 

 

8,493

 

 

 

12,289

 

Certain litigation expenses, net(a)

 

-

 

 

 

-

 

 

 

5,389

 

 

 

5,389

 

Plant closure related costs, net

 

1,197

 

 

 

(302

)

 

 

-

 

 

 

895

 

Productivity and transformation costs

 

4,256

 

 

 

961

 

 

 

1,860

 

 

 

7,077

 

Warehouse/manufacturing consolidation and other costs, net

 

1,519

 

 

 

1,113

 

 

 

-

 

 

 

2,632

 

Transaction and integration costs, net

 

1,426

 

 

 

-

 

 

 

10,725

 

 

 

12,151

 

Inventory write-down

 

(46

)

 

 

-

 

 

 

-

 

 

 

(46

)

Long-lived asset impairment

 

-

 

 

 

303

 

 

 

-

 

 

 

303

 

Other

 

(951

)

 

 

122

 

 

 

(1,740

)

 

 

(2,569

)

Adjusted EBITDA

$

94,724

 

 

$

93,202

 

 

$

(22,677

)

 

$

165,249

 

 

 

 

 

 

 

 

 

(a) Expenses and items relating to securities class action and baby food litigation.

 

 

 

 

 

 

 

 

 

 

 

 

 


THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Adjusted EBITDA and Adjusted EBITDA Margin at Constant Currency by Segment

(unaudited and in thousands)

 

 

 

 

 

 

 

 

Q3 FY23

North America

 

International

 

Corporate/ Other

 

Hain Consolidated

Adjusted EBITDA

$

27,193

 

 

$

21,269

 

 

$

(11,202

)

 

$

37,260

 

Impact of foreign currency exchange

 

198

 

 

 

1,869

 

 

 

-

 

 

 

2,067

 

Adjusted EBITDA on a constant currency basis

$

27,391

 

 

$

23,138

 

 

$

(11,202

)

 

$

39,327

 

 

 

 

 

 

 

 

 

Net sales on a constant currency basis

$

288,530

 

 

$

183,354

 

 

 

 

$

471,884

 

Adjusted EBITDA margin on a constant currency basis

 

9.5

%

 

 

12.6

%

 

 

 

 

8.3

%

 

 

 

 

 

 

 

 

Q3 FY22

 

 

 

 

 

 

 

Adjusted EBITDA

$

37,285

 

 

$

26,469

 

 

$

(5,085

)

 

$

58,669

 

 

 

 

 

 

 

 

 

Net sales

$

325,742

 

 

$

177,197

 

 

 

 

$

502,939

 

Adjusted EBITDA margin

 

11.4

%

 

 

14.9

%

 

 

 

 

11.7

%

 

 

 

 

 

 

 

 

Q3 FY23 vs. Q3 FY22

 

 

 

 

 

 

 

Adjusted EBITDA decline on a constant currency basis (%)

 

(26.5

)%

 

 

(12.6

)%

 

 

(120.3

)%

 

 

(33.0

)%

 

 

 

 

 

 

 

 

Adjusted EBITDA margin change on a constant currency basis (bps)

 

(195

)

 

 

(232

)

 

 

 

 

(333

)

 

 

 

 

 

 

 

 

Q3 FY23 YTD

North America

 

International

 

Corporate/ Other

 

Hain Consolidated

Adjusted EBITDA

$

96,484

 

 

$

55,458

 

 

$

(28,836

)

 

$

123,106

 

Impact of foreign currency exchange

 

561

 

 

 

7,033

 

 

 

-

 

 

 

7,594

 

Adjusted EBITDA on a constant currency basis

$

97,045

 

 

$

62,491

 

 

$

(28,836

)

 

$

130,700

 

 

 

 

 

 

 

 

 

Net sales on a constant currency basis

$

862,430

 

 

$

555,662

 

 

 

 

$

1,418,092

 

Adjusted EBITDA margin on a constant currency basis

 

11.3

%

 

 

11.2

%

 

 

 

 

9.2

%

 

 

 

 

 

 

 

 

Q3 FY22 YTD

 

 

 

 

 

 

 

Adjusted EBITDA

$

94,724

 

 

$

93,202

 

 

$

(22,677

)

 

$

165,249

 

 

 

 

 

 

 

 

 

Net sales

$

866,281

 

 

$

568,502

 

 

 

 

$

1,434,783

 

Adjusted EBITDA margin

 

10.9

%

 

 

16.4

%

 

 

 

 

11.5

%

 

 

 

 

 

 

 

 

Q3 FY23 YTD vs. Q3 FY22 YTD

 

 

 

 

 

 

 

Adjusted EBITDA growth (decline) on a constant currency basis (%)

 

2.5

%

 

 

(33.0

)%

 

 

(27.2

)%

 

 

(20.9

)%

 

 

 

 

 

 

 

 

Adjusted EBITDA margin change on a constant currency basis (bps)

 

32

 

 

 

(515

)

 

 

 

 

(230

)

 

 

 

 

 

 

 

 


THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES

Operating Free Cash Flows

(unaudited and in thousands)

 

 

 

 

 

 

 

 

 

Third Quarter

 

Third Quarter Year to Date

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

28,961

 

 

$

31,155

 

 

$

26,309

 

 

$

99,186

 

Purchases of property, plant and equipment

 

(7,379

)

 

 

(5,943

)

 

 

(21,434

)

 

 

(33,939

)

Operating free cash flows

$

21,582

 

 

$

25,212

 

 

$

4,875

 

 

$

65,247

 

 

 

 

 

 

 

 

 

Investor Contact:
Alexis Tessier
investor.relations@hain.com

Media Contact:
Jen Davis
Jen.Davis@hain.com