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Dec 31, 2019
Hain Celestial Q2 2020 Earnings Report
Hain Celestial demonstrated operational and financial improvement year-over-year.
Key Takeaways
Hain Celestial reported a 5% decrease in net sales to $506.8 million. However, the company saw improvements in gross margin, operating income, and net income compared to the prior year period. The company is focused on simplifying its portfolio, strengthening core capabilities, and expanding margins and cash flow.
Net sales decreased 5% to $506.8 million.
Gross margin increased 180 basis points to 20.8%.
Operating income improved to $9.2 million from an operating loss of $20.9 million in the prior year period.
Net income improved to $1.9 million from a net loss of $31.8 million in the prior year period.
Hain Celestial
Hain Celestial
Hain Celestial Revenue by Segment
Revenue by Segment
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
The Company narrows and reaffirms its annual guidance for continuing operations for fiscal year 2020.
Positive Outlook
- Adjusted EBITDA: $177 Million to $192 Million
- Adjusted EBITDA % Growth: +7% to +16%
- Adjusted EBITDA Constant Currency: $179 Million to $194 Million
- Adjusted EBITDA Constant Currency % Growth: +8% to +18%
- Adjusted EPS: $0.62 to $0.72
Challenges Ahead
- Guidance, where adjusted, is provided on a non-GAAP basis and excludes: acquisition and divestiture related expenses; integration charges; restructuring charges, start-up costs, consulting fees and other costs associated with the Company’s productivity and transformation initiatives; unrealized net foreign currency gains or losses; and other non-recurring items that may be incurred during the Company’s fiscal year 2020, which the Company will continue to identify as it reports its future financial results.
- Guidance also excludes the impact of any future acquisitions, divestitures, or share repurchases.
- The Company cannot reconcile its expected Adjusted EBITDA to net income or adjusted earnings per diluted share to earnings per diluted share under “Fiscal Year 2020 Guidance” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time.
- Adjusted EPS % Growth: +3% to +20%
- Adjusted EPS Constant Currency: $0.64 to $0.74
Revenue & Expenses
Visualization of income flow from segment revenue to net income