Hain Celestial reported a disappointing fiscal third quarter with net sales down 11% year-over-year and a significant net loss of $135 million, primarily due to worse-than-expected performance in North America and non-cash impairment charges. Despite the overall decline, the international segment showed a return to organic net sales growth.
Net sales decreased by 11% year-over-year to $390 million.
The company reported a net loss of $135 million, significantly higher than the $48 million net loss in the prior year period, due to $133 million in pre-tax non-cash impairment charges.
Adjusted EBITDA was $34 million, down from $44 million in the prior year period, with an adjusted EBITDA margin of 8.6%.
Organic net sales decreased by 5%, driven by a 3-point decrease in volume/mix and a 2-point decrease in price.
The company is adjusting its fiscal 2025 outlook due to slower than anticipated volume recovery, a softening and volatile macroeconomic environment, and increased investment in promotional activities.
Visualization of income flow from segment revenue to net income