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Jun 30, 2020
Hain Celestial Q4 2020 Earnings Report
Profitability at the high-end of expectations and strong margin improvement through continued execution of transformational plan.
Key Takeaways
Hain Celestial reported strong Q4 2020 financial results, with profitability at the high-end of company expectations. The company's transformational strategic plan resulted in strong margin improvement and operating cash flow generation.
Net sales increased 1% to $511.7 million, or 3% on a constant currency basis, compared to the prior year period.
Gross margin of 25.4%, a 658 basis point increase from the prior year period.
Operating income of $25.3 million compared to an operating loss of $2.6 million in the prior year period.
Net income of $3.7 million compared to a net loss of $7.3 million in the prior year period.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For fiscal 2021, the Company expects continued margin expansion, strong double digit adjusted EBITDA growth and double digit operating free cash flow growth. The Company believes that the first half of fiscal 2021 will yield stronger net sales and adjusted EBITDA growth than the second half of the year due to its strong consumer and customer plans as well as increased at home eating occasions related to COVID-19. For the first quarter, based on actual results to date, the Company expects mid-single digit net sales growth after adjusting for divestitures and discontinued brands, and several hundred basis points of margin improvement and adjusted EBITDA growth.
Positive Outlook
- Continued margin expansion expected.
- Strong double digit adjusted EBITDA growth expected.
- Double digit operating free cash flow growth expected.
- First half of fiscal 2021 will yield stronger net sales growth.
- First half of fiscal 2021 will yield stronger adjusted EBITDA growth.
Challenges Ahead
- Uncertainty around the duration and impact of the COVID-19 pandemic.
- No specific financial guidance for fiscal 2021 is provided.
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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