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Mar 31, 2024
Hain Celestial Q3 2024 Earnings Report
Hain Celestial's Q3 2024 financial results were reported, highlighting gross margin expansion and strong operating cash flow driven by the Hain Reimagined strategy.
Key Takeaways
Hain Celestial reported a decrease in net sales by 3.7% to $438.4 million, but showcased progress in gross margin expansion with a 60-basis point increase. The company reduced its debt leverage to 3.9x and generated strong operating cash flow, reflecting strategic actions to simplify the business and strengthen the balance sheet.
Net sales decreased by 3.7% year-over-year to $438.4 million, with a similar decrease in organic net sales.
Gross profit margin increased by 60 basis points to 22.1%, and adjusted gross profit margin increased by 90 basis points to 22.3%.
Net loss was $48.2 million, an improvement from a net loss of $115.7 million in the prior year period.
Adjusted EBITDA increased by 17.5% year-over-year to $43.8 million, with an adjusted EBITDA margin of 10.0%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Hain Celestial is revising its fiscal year 2024 guidance due to underperformance in infant formula recovery, snacks execution, and personal care stabilization. Organic net sales are expected to decline 3 to 4% year-over-year, and adjusted EBITDA is projected to be between $150 million and $155 million. Free cash flow guidance is reaffirmed at $40 million to $45 million.
Positive Outlook
- Aggressively addressing Personal Care stabilization through portfolio and operating footprint consolidation.
- Working closely with formula supplier to ensure a full recovery beginning in the second half of 2024.
- Realigned the commercial business in North America with a series of leadership changes.
- Clear plan to accelerate our execution in the North America region.
- Free cash flow guidance is reaffirmed and expected to be $40 million to $45 million.
Challenges Ahead
- Infant formula business did not recover as expected as our supplier did not meet their commitment.
- Execution in our Snacks business did not meet our standards.
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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