Q1 2025 Hain Celestial Group Inc Earnings Call Transcript
Key Points
- The Hain Celestial Group Inc (HAIN) achieved adjusted gross margin expansion in the first quarter, driven by strong productivity and fuel delivery.
- The company has made significant progress in its Hain Reimagined strategy, particularly in simplifying its brand portfolio and enhancing its revenue growth management capabilities.
- The away-from-home and e-commerce channels showed strong growth, with double-digit sales increases in North America and international markets.
- The company has successfully extended payables and reduced inventory levels, contributing to improved working capital management.
- Hain Celestial reaffirmed its fiscal 2025 guidance, expecting organic net sales to be flat or better and adjusted EBITDA to grow by a mid-single-digit percentage.
- The Hain Celestial Group Inc (HAIN) experienced a 5% decline in organic net sales year-over-year, driven by lower sales in both North America and international segments.
- Adjusted EBITDA decreased to $22 million from $24 million a year ago, with a margin of 5.7%, indicating challenges in maintaining profitability.
- The company's North America segment saw a 6% decline in organic net sales, primarily due to lower sales in snacks and meal prep.
- Free cash flow was an outflow of $17 million in the first quarter, compared to an inflow of $7 million in the prior year period.
- The company faces ongoing challenges in the personal care category, with a double-digit decline in organic net sales due to SKU reductions and manufacturing consolidation.
Good morning, ladies and gentlemen, and welcome to The Hain Celestial fiscal first-quarter 2025 earnings conference call. (Operator Instructions) This call is being recorded on Thursday, November 7, 2024.
I would now like to turn the conference over to Alexis Tessier, Vice President of Investor Relations. Please go ahead.
Good morning, and thank you for joining us for a review of our first-quarter results. I'm joined this morning by Wendy Davidson, our President and Chief Executive Officer; and Lee Boyce, our Chief Financial Officer.
Slide two shows our forward-looking statements disclaimer. As you are aware, during the course of this call, we may make forward-looking statements within the meaning of federal securities laws. These include expectations and assumptions regarding the company's future operations and financial performance. These statements are based on our current expectations and involve risks and uncertainties that could cause actual results to differ
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