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Mar 31, 2021
Hain Celestial Q3 2021 Earnings Report
Hain Celestial's financial performance improved significantly in the third quarter of fiscal year 2021, with notable expansion in gross margin and growth in net income and adjusted EBITDA.
Key Takeaways
Hain Celestial reported a decrease in net sales by 11% to $492.6 million, but experienced a 244 basis point increase in gross margin and a 22% increase in adjusted EBITDA. The company's operating income increased to $49.6 million, and net income grew to $34.3 million, reflecting improved profitability despite the sales decline.
Net sales decreased by 11% to $492.6 million, but decreased 6% when adjusted for foreign exchange, divestitures, and discontinued brands.
Gross margin increased by 244 basis points to 26.4%, and adjusted gross margin increased by 317 basis points to 27.4%.
Operating income rose to $49.6 million from $19.1 million, and adjusted EBITDA increased by 22% to $73.8 million.
Earnings per diluted share (EPS) increased to $0.34 from $0.24, and adjusted EPS increased to $0.44 from $0.28.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company reaffirms its expectation for gross and adjusted EBITDA margin expansion as well as strong double-digit adjusted EBITDA and operating free cash flow growth for fiscal year 2021. For the fourth quarter fiscal year 2021, in comparison to the prior year period, the Company expects (a) strong gross margin and EBITDA margin improvement, (b) adjusted EBITDA growth near 10% and (c) 5% to 8% decline in net sales when adjusted for foreign exchange, divestitures and discontinued brands.
Positive Outlook
- Strong gross margin improvement expected.
- EBITDA margin improvement expected.
- Adjusted EBITDA growth near 10% expected.
- Mid-single digit growth in net sales when adjusted for foreign exchange, divestitures and discontinued brands compared to the fourth quarter of fiscal year 2019
- Reaffirms expectation for gross and adjusted EBITDA margin expansion
Challenges Ahead
- 5% to 8% decline in net sales expected when adjusted for foreign exchange, divestitures and discontinued brands.
- Net sales decreased 11% to $492.6 million compared to the prior year period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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