The Hain Celestial Group, Inc. (Nasdaq: HAIN) (“Hain Celestial”,
“Hain” or the “Company”), a leading organic and natural products
company with operations in North America, Europe, Asia and the
Middle East providing consumers with A Healthier Way of Life®,
today reported financial results for the third quarter ended March
31, 2022.
Mark L. Schiller, Hain Celestial’s President and
Chief Executive Officer, commented, “Despite a very challenging
quarter, we are pleased to see underlying strength in our brands
and accelerating topline growth in Q3, while navigating supply
chain and labor disruptions and escalating inflationary costs.
Consumption growth in the U.S. was extremely strong and is expected
to continue into the fourth quarter. To offset cost pressures and
deliver sequential margin improvement in Q4, we have increased
prices and are delivering additional supply chain productivity
initiatives. The team remains confident in our Hain 3.0 strategy
and laser-focused on delivering accelerating top line and long-term
profitable growth.”
FINANCIAL HIGHLIGHTS
Summary of Third
Quarter Results from Continuing
Operations Compared to the Prior Year
Period
- Net sales increased 2.1% to $502.9 million compared to the
prior year period.
- When adjusted for foreign exchange, acquisitions, divestitures
and discontinued brands, net sales increased 1.5% compared to the
prior year period.
- Gross profit margin of 23.0%, a 340 basis point decrease from
the prior year period.
- Adjusted gross profit margin of 23.4%, a 400 basis point
decrease from the prior year period.
- Operating income of $35.2 million compared to $49.6 million in
the prior year period.
- Adjusted operating income of $42.4 million compared to $59.7
million in the prior year period.
- Net income of $24.5 million compared to $34.3 million in the
prior year period.
- Adjusted net income of $29.7 million compared to $44.7 million
in prior year period.
- Adjusted EBITDA of $58.7 million compared to $73.8 million in
the prior year period.
- Adjusted EBITDA margin of 11.7%, a 330 basis point decrease
compared to the prior year period.
- Earnings per diluted share (“EPS”) of $0.27 compared to $0.34
in the prior year period.
- Adjusted EPS of $0.33 compared to $0.44 in the prior year
period.
- Repurchased 3.6 million shares, or 3.8% of the outstanding
common stock, at an average price of $36.48 per share.
____________________* Notes:
- The results contained in this press
release are presented with the Tilda operating segment being
treated as discontinued operations. Unless otherwise noted, all
results included in this press release are from continuing
operations.
- This press release includes certain
non-GAAP financial measures, which are intended to supplement, not
substitute for, comparable GAAP financial measures. Reconciliations
of non-GAAP financial measures to GAAP financial measures and other
non-GAAP financial calculations are provided in the tables included
in this press release.
SEGMENT HIGHLIGHTS FROM CONTINUING
OPERATIONS
The Company operates under two reportable
segments: North America and International.
North AmericaNorth America net
sales in the third quarter were $325.7 million, an increase of 13%
compared to the prior year period. When adjusted for foreign
exchange, acquisitions, divestitures and discontinued brands, net
sales increased by approximately 9% from the prior year period
mainly due to stronger sales in the snacks, baby and personal care
categories.
Segment gross profit in the third quarter was
$75.2 million, a 4% decrease from the prior year period. Adjusted
gross profit was $77.1 million, a decrease of 6% from the prior
year period. Gross margin was 23.1%, a 420 basis point decrease
from the prior year period, and adjusted gross margin was 23.7%, a
480 basis point decrease from the prior year period. The decrease
was mainly driven by higher inflation, including increased
distribution and warehousing costs, compared to the prior year
period.
Segment operating income in the third quarter
was $28.5 million, a 28% decrease from the prior year period.
Adjusted operating income was $31.4 million, a 29% decrease
resulting primarily from inflationary and supply chain challenges
above and beyond the level we were able to price for (such as
continued industry-wide distribution and warehousing cost pressures
driven by labor shortages, freight carrier availability and other
freight cost issues) and lower net sales in the Canada operating
segment when compared to the prior year period.
Adjusted EBITDA in the third quarter was $37.3
million, a 23% decrease from the prior year period. As a percentage
of net sales, North America adjusted EBITDA margin was 11.4%, a 540
basis point decrease from the prior year period.
InternationalInternational net
sales in the third quarter were $177.2 million, a decrease of 14%
compared to the prior year period. Foreign exchange and
divestitures reduced third quarter net sales by 360 and 180 basis
points, respectively. When adjusted for foreign exchange and
divestitures, net sales decreased 8% compared to the prior year
period mainly due to a decline in the Europe and United Kingdom
operating segments, partially offset by an increase in sales in the
Ella's Kitchen UK operating segment.
Segment gross profit in the third quarter was
$40.5 million, a 21% decrease from the prior year period. Adjusted
gross profit was $40.6 million, a decrease of 24% from the prior
year period. Gross margin was 22.8%, a 220 basis point decrease
from the prior year period, and adjusted gross margin was 22.9%, a
310 basis point decrease from the prior year period. The decrease
in gross profit was mainly due to the aforementioned decrease in
sales and higher energy and supply chain costs compared to the
prior year period.
Segment operating income in the third quarter
was $18.3 million, a 32% decrease from the prior year period.
Adjusted operating income was $18.8 million, a decrease of 36% from
the prior year period. The decrease in operating income was mainly
due to lower gross profit resulting from a decline in sales, as
well as higher energy and supply chain costs, when compared to the
prior year period.
Adjusted EBITDA in the third quarter was $26.5
million, a 28% decrease from the prior year period. As a percentage
of net sales, International adjusted EBITDA margin was 14.9%, a 300
basis point decrease from the prior year period.
CAPITAL MANAGEMENT
As previously disclosed, the Board of Directors
of the Company approved an additional $200 million share repurchase
authorization in February 2022. Share repurchases under this
authorization commenced in February 2022, after the Company’s $300
million authorization was fully utilized. The extent to which the
Company repurchases its shares and the timing of such repurchases
will be at the Company’s discretion and will depend upon market
conditions and other corporate considerations. Repurchases may be
made from time to time in the open market, pursuant to pre-set
trading plans, in private transactions or otherwise.
During the third quarter of fiscal year 2022,
the Company repurchased 3.6 million shares, or 3.8% of the
outstanding common stock, at an average price of $36.48 per share
for a total of $130.4 million, excluding commissions. As of March
31, 2022, the Company had $186.6 million remaining under its $200
million authorization.
GUIDANCE
For the fourth quarter fiscal year 2022,
compared to the prior year period, the Company expects:
- Low to mid single digit adjusted
net sales growth supported by double digit growth in North
America,
- Modest adjusted gross margin
reduction, and
- Adjusted EBITDA down low to mid
single digits (including approximately 300 basis points of foreign
exchange headwind).
The Company updates its adjusted net sales and
adjusted EBITDA guidance for full fiscal year 2022 compared to
fiscal year 2021 and now expects:
- Approximately flat adjusted net
sales,
- Modest adjusted gross margin
reduction, and a
- Low double digit adjusted EBITDA
decline.
Notes: Adjusted net sales is defined as adjusted
for the impact of foreign currency changes, acquisitions,
divestitures, and discontinued brands. All references in this
“Guidance” section to growth or declines in adjusted net sales or
adjusted EBITDA compared to a prior year period represent
percentage growth or percentage decline.
Contacts:Investor Relations:Chris Mandeville
and Anna Kate HellerICR hain@icrinc.com
Media:Robin Shallowrobin@robincomm.com
Conference Call and Webcast Information
Hain Celestial will host a conference call and
webcast today at 8:30 AM Eastern Time to discuss its results and
business outlook. Investors interested in participating in the live
call can dial 877-407-9716 from the U.S. and 201-493-6779
internationally. The call will be webcast and the accompanying
presentation will be available under the Investor Relations section
of the Company’s website at www.hain.com.
About The Hain Celestial Group,
Inc.The Hain Celestial Group, Inc. (Nasdaq: HAIN) is a
leading organic and natural products company that has been
committed to creating A Healthier Way of Life® since 1993.
Headquartered in Lake Success, NY with operations in North America,
Europe, Asia and the Middle East, Hain Celestial’s food and
beverage brands include Celestial Seasonings®, Clarks™, Cully &
Sully®, Earth’s Best®, Ella’s Kitchen®, Frank Cooper’s®, Garden of
Eatin’®, Hain Pure Foods®, Hartley’s®, Health Valley®, Imagine®,
Joya®, Lima®, Linda McCartney’s® (under license), MaraNatha®,
Natumi®, New Covent Garden Soup Co.®, ParmCrisps®, Robertson’s®,
Rose’s® (under license), Sensible Portions®, Spectrum®, Sun-Pat®,
Terra®, The Greek Gods®, Thinsters®, Yorkshire Provender® and Yves
Veggie Cuisine®. Hain Celestial’s personal care brands include Alba
Botanica®, Avalon Organics®, JASON®, Live Clean® and Queen Helene®
brands. For more information, visit hain.com.
Forward-Looking StatementsThis
press release contains forward-looking statements within the
meaning of safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks,
uncertainties and assumptions. If the risks or uncertainties ever
materialize or the assumptions prove incorrect, our results may
differ materially from those expressed or implied by such
forward-looking statements. The words “believe,” “expect,”
“anticipate,” “may,” “should,” “plan,” “intend,” “potential,”
“will” and similar expressions are intended to identify such
forward-looking statements. Forward-looking statements include,
among other things, our beliefs or expectations relating to our
future performance, results of operations and financial condition;
our strategic initiatives, business strategy, supply chain, brand
portfolio and product performance; the COVID-19 pandemic; the
success of our pricing negotiations; current or future
macroeconomic trends; and future corporate acquisitions or
dispositions.
Risks and uncertainties that may cause actual
results to differ materially from forward-looking statements
include: challenges and uncertainty resulting from the impact of
competition; challenges and uncertainty resulting from the COVID-19
pandemic; our ability to manage our supply chain effectively;
supply chain disruptions, cybersecurity risks and other risks
arising from the war in Ukraine; disruption of operations at our
manufacturing facilities; reliance on independent contract
manufacturers; changes to consumer preferences; customer
concentration; reliance on independent distributors; the
availability of organic ingredients; risks associated with our
international sales and operations; risks associated with
outsourcing arrangements; our ability to execute our cost reduction
initiatives and related strategic initiatives; our ability to
identify and complete acquisitions or divestitures and our level of
success in integrating acquisitions; our reliance on independent
certification for a number of our products; the reputation of our
Company and our brands; our ability to use and protect trademarks;
general economic conditions; input cost inflation; the United
Kingdom’s exit from the European Union; cybersecurity incidents;
disruptions to information technology systems; the impact of
climate change; liabilities, claims or regulatory change with
respect to environmental matters; potential liability if our
products cause illness or physical harm; the highly regulated
environment in which we operate; pending and future litigation;
compliance with data privacy laws; compliance with our credit
agreement; the discontinuation of LIBOR; our ability to issue
preferred stock; the adequacy of our insurance coverage;
impairments in the carrying value of goodwill or other intangible
assets; and other risks and matters described in our most recent
Annual Report on Form 10-K and our other filings from time to time
with the U.S. Securities and Exchange Commission.
We undertake no obligation to update
forward-looking statements to reflect actual results or changes in
assumptions or circumstances, except as required by applicable
law.
Non-GAAP Financial MeasuresThis
press release and the accompanying tables include non-GAAP
financial measures, including, among others, adjusted operating
income and its related margin, adjusted gross profit and its
related margin, adjusted net income, adjusted earnings per diluted
share, net sales adjusted for the impact of foreign exchange,
acquisitions, divestitures and discontinued brands, adjusted EBITDA
and its related margin and operating free cash flow. The
reconciliations of these non-GAAP financial measures to the
comparable GAAP financial measures are provided herein in the
tables. Management believes that the non-GAAP financial measures
presented provide useful additional information to investors about
current trends in the Company’s operations and are useful for
period-over-period comparisons of operations. These non-GAAP
financial measures should not be considered in isolation or as a
substitute for the comparable GAAP measures. In addition, these
non-GAAP measures may not be the same as similar measures provided
by other companies due to potential differences in methods of
calculation and items being excluded. They should be read only in
connection with the Company’s Consolidated Statements of Operations
and Cash Flows presented in accordance with GAAP.
Certain forward-looking non-GAAP financial
measures included in this press release are not reconciled to the
comparable forward-looking GAAP financial measures. The Company is
not able to reconcile these forward-looking non-GAAP financial
measures to their most directly comparable forward-looking GAAP
financial measures without unreasonable efforts because the Company
is unable to predict with a reasonable degree of certainty the type
and extent of certain items that would be expected to impact GAAP
measures but would not impact the non-GAAP measures. Such items may
include litigation and related expenses, transaction costs
associated with acquisitions and divestitures, productivity and
transformation costs, impairments, gains or losses on sales of
assets and businesses, foreign exchange movements and other items.
The unavailable information could have a significant impact on the
Company’s GAAP financial results.
The Company believes presenting net sales at
constant currency provides useful information to investors because
it provides transparency to underlying performance in the Company’s
consolidated net sales by excluding the effect that foreign
currency exchange rate fluctuations have on period-to-period
comparability given the volatility in foreign currency exchange
markets. To present this information for historical periods,
current period net sales for entities reporting in currencies other
than the U.S. dollar are translated into U.S. dollars at the
average monthly exchange rates in effect during the corresponding
period of the prior fiscal year, rather than at the actual average
monthly exchange rate in effect during the current period of the
current fiscal year. As a result, the foreign currency impact is
equal to the current year results in local currencies multiplied by
the change in average foreign currency exchange rate between the
current fiscal period and the corresponding period of the prior
fiscal year.
The Company provides net sales adjusted for the
impact of foreign currency, acquisitions, divestitures and
discontinued brands to understand the growth rate of net sales
excluding the impact of such items. The Company’s management
believes net sales adjusted for such items is useful to investors
because it enables them to better understand the growth of our
business from period-to-period.
The Company defines adjusted EBITDA as net
income before net interest expense, income taxes, depreciation and
amortization, equity in net loss (income) of equity-method
investees, stock-based compensation, net, unrealized currency gains
and losses, litigation and related costs, plant closure related
costs, net, productivity and transformation costs, warehouse and
manufacturing consolidation and other costs, costs associated with
acquisitions, divestitures and other transactions, gains or losses
on sales of assets and businesses, inventory write-downs,
impairment of long-lived assets and other adjustments. The
Company’s management believes that these presentations provide
useful information to management, analysts and investors regarding
certain additional financial and business trends relating to its
results of operations and financial condition. In addition,
management uses these measures for reviewing the financial results
of the Company as well as a component of performance-based
executive compensation.
The Company defines operating free cash flow as
cash provided by or used in operating activities from continuing
operations (a GAAP measure) less purchases of property, plant and
equipment. The Company views operating free cash flow as an
important measure because it is one factor in evaluating the amount
of cash available for discretionary investments.
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Consolidated Balance Sheets |
(unaudited and in thousands) |
|
|
|
|
|
March 31, 2022 |
|
June 30, 2021 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
57,808 |
|
|
$ |
75,871 |
|
Accounts receivable, net |
|
158,734 |
|
|
|
174,066 |
|
Inventories |
|
294,428 |
|
|
|
285,410 |
|
Prepaid expenses and other current assets |
|
45,308 |
|
|
|
39,834 |
|
Assets held for sale |
|
3,313 |
|
|
|
1,874 |
|
Total current assets |
|
559,591 |
|
|
|
577,055 |
|
Property, plant and equipment, net |
|
312,819 |
|
|
|
312,777 |
|
Goodwill |
|
950,820 |
|
|
|
871,067 |
|
Trademarks and other intangible assets, net |
|
492,939 |
|
|
|
314,895 |
|
Investments and joint ventures |
|
16,056 |
|
|
|
16,917 |
|
Operating lease right-of-use assets, net |
|
88,636 |
|
|
|
92,010 |
|
Other assets |
|
20,619 |
|
|
|
21,187 |
|
Total assets |
$ |
2,441,480 |
|
|
$ |
2,205,908 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
176,699 |
|
|
$ |
171,947 |
|
Accrued expenses and other current liabilities |
|
98,181 |
|
|
|
117,957 |
|
Current portion of long-term debt |
|
7,774 |
|
|
|
530 |
|
Total current liabilities |
|
282,654 |
|
|
|
290,434 |
|
Long-term debt, less current portion |
|
827,771 |
|
|
|
230,492 |
|
Deferred income taxes |
|
86,120 |
|
|
|
42,639 |
|
Operating lease liabilities, noncurrent portion |
|
81,379 |
|
|
|
85,929 |
|
Other noncurrent liabilities |
|
19,512 |
|
|
|
33,531 |
|
Total liabilities |
|
1,297,436 |
|
|
|
683,025 |
|
Stockholders' equity: |
|
|
|
Common stock |
|
1,111 |
|
|
|
1,096 |
|
Additional paid-in capital |
|
1,199,804 |
|
|
|
1,187,530 |
|
Retained earnings |
|
766,056 |
|
|
|
691,225 |
|
Accumulated other comprehensive loss |
|
(110,350 |
) |
|
|
(73,011 |
) |
|
|
1,856,621 |
|
|
|
1,806,840 |
|
Less: Treasury stock |
|
(712,577 |
) |
|
|
(283,957 |
) |
Total stockholders' equity |
|
1,144,044 |
|
|
|
1,522,883 |
|
Total liabilities and stockholders' equity |
$ |
2,441,480 |
|
|
$ |
2,205,908 |
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Consolidated Statements of Operations |
(unaudited and in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Third Quarter Year to Date |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
502,939 |
|
|
$ |
492,604 |
|
|
$ |
1,434,783 |
|
|
$ |
1,519,649 |
|
Cost of sales |
|
387,236 |
|
|
|
362,698 |
|
|
|
1,096,367 |
|
|
|
1,140,614 |
|
Gross profit |
|
115,703 |
|
|
|
129,906 |
|
|
|
338,416 |
|
|
|
379,035 |
|
Selling, general and administrative expenses |
|
75,750 |
|
|
|
74,325 |
|
|
|
229,875 |
|
|
|
238,471 |
|
Amortization of acquired intangible assets |
|
3,110 |
|
|
|
2,145 |
|
|
|
7,254 |
|
|
|
6,771 |
|
Productivity and transformation costs |
|
1,679 |
|
|
|
4,451 |
|
|
|
8,448 |
|
|
|
10,895 |
|
Proceeds from insurance claim |
|
- |
|
|
|
(592 |
) |
|
|
(196 |
) |
|
|
(592 |
) |
Long-lived asset and intangibles impairment |
|
- |
|
|
|
- |
|
|
|
303 |
|
|
|
57,676 |
|
Operating income |
|
35,164 |
|
|
|
49,577 |
|
|
|
92,732 |
|
|
|
65,814 |
|
Interest and other financing expense, net |
|
3,224 |
|
|
|
2,030 |
|
|
|
7,672 |
|
|
|
6,820 |
|
Other (income) expense, net |
|
(712 |
) |
|
|
1,566 |
|
|
|
(10,570 |
) |
|
|
(852 |
) |
Income from continuing operations before income taxes and equity in
net loss (income) of equity-method investees |
|
32,652 |
|
|
|
45,981 |
|
|
|
95,630 |
|
|
|
59,846 |
|
Provision for income taxes |
|
7,738 |
|
|
|
11,797 |
|
|
|
19,425 |
|
|
|
33,197 |
|
Equity in net loss (income) of equity-method investees |
|
383 |
|
|
|
(70 |
) |
|
|
1,374 |
|
|
|
1,025 |
|
Net income from continuing operations |
$ |
24,531 |
|
|
$ |
34,254 |
|
|
$ |
74,831 |
|
|
$ |
25,624 |
|
Net income from discontinued operations, net of tax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11,255 |
|
Net income |
$ |
24,531 |
|
|
$ |
34,254 |
|
|
$ |
74,831 |
|
|
$ |
36,879 |
|
|
|
|
|
|
|
|
|
Net income per common share: |
|
|
|
|
|
|
|
Basic net income per common share from continuing operations |
$ |
0.27 |
|
|
$ |
0.34 |
|
|
$ |
0.80 |
|
|
$ |
0.25 |
|
Basic net income per common share from discontinued operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.11 |
|
Basic net income per common share |
$ |
0.27 |
|
|
$ |
0.34 |
|
|
$ |
0.80 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
Diluted net income per common share from continuing operations |
$ |
0.27 |
|
|
$ |
0.34 |
|
|
$ |
0.79 |
|
|
$ |
0.25 |
|
Diluted net income per common share from discontinued
operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.11 |
|
Diluted net income per common share |
$ |
0.27 |
|
|
$ |
0.34 |
|
|
$ |
0.79 |
|
|
$ |
0.36 |
|
|
|
|
|
|
|
|
|
Shares used in the calculation of net income per common share: |
|
|
|
|
|
|
|
Basic |
|
91,139 |
|
|
|
99,831 |
|
|
|
94,099 |
|
|
|
100,502 |
|
Diluted |
|
91,310 |
|
|
|
101,596 |
|
|
|
94,519 |
|
|
|
101,385 |
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
|
Consolidated Statements of Cash Flows |
|
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Third Quarter Year to Date |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net income |
$ |
24,531 |
|
|
$ |
34,254 |
|
|
$ |
74,831 |
|
|
$ |
36,879 |
|
|
Net income from discontinued operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11,255 |
|
|
Net income from continuing operations |
|
24,531 |
|
|
|
34,254 |
|
|
|
74,831 |
|
|
|
25,624 |
|
|
Adjustments to reconcile net income from continuing operations to
net cash provided by operating activities from continuing
operations: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
12,638 |
|
|
|
12,814 |
|
|
|
34,396 |
|
|
|
37,768 |
|
|
Deferred income taxes |
|
10,645 |
|
|
|
3,124 |
|
|
|
7,374 |
|
|
|
3,216 |
|
|
Equity in net loss (income) of equity-method investees |
|
383 |
|
|
|
(70 |
) |
|
|
1,374 |
|
|
|
1,025 |
|
|
Stock-based compensation, net |
|
3,846 |
|
|
|
3,698 |
|
|
|
12,289 |
|
|
|
11,888 |
|
|
Long-lived asset and intangibles impairment |
|
- |
|
|
|
- |
|
|
|
303 |
|
|
|
57,676 |
|
|
Loss (gain) on sale of assets |
|
52 |
|
|
|
- |
|
|
|
(8,869 |
) |
|
|
- |
|
|
Loss on sale of businesses |
|
- |
|
|
|
1,828 |
|
|
|
- |
|
|
|
1,217 |
|
|
Other non-cash items, net |
|
(669 |
) |
|
|
431 |
|
|
|
(2,155 |
) |
|
|
(723 |
) |
|
Increase (decrease) in cash attributable to changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
1,780 |
|
|
|
(11,198 |
) |
|
|
14,150 |
|
|
|
(20,721 |
) |
|
Inventories |
|
(6,844 |
) |
|
|
(1,792 |
) |
|
|
(4,371 |
) |
|
|
(60,304 |
) |
|
Other current assets |
|
(5,870 |
) |
|
|
769 |
|
|
|
(10,996 |
) |
|
|
56,487 |
|
|
Other assets and liabilities |
|
(4,481 |
) |
|
|
85 |
|
|
|
(2,705 |
) |
|
|
(952 |
) |
|
Accounts payable and accrued expenses |
|
(4,856 |
) |
|
|
(1,956 |
) |
|
|
(16,435 |
) |
|
|
34,316 |
|
|
Net cash provided by operating activities from continuing
operations |
|
31,155 |
|
|
|
41,987 |
|
|
|
99,186 |
|
|
|
146,517 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(5,943 |
) |
|
|
(23,391 |
) |
|
|
(33,939 |
) |
|
|
(53,062 |
) |
|
Acquisitions of businesses, net of cash acquired |
|
(5,905 |
) |
|
|
- |
|
|
|
(260,474 |
) |
|
|
- |
|
|
Investment in joint venture |
|
(100 |
) |
|
|
(263 |
) |
|
|
(614 |
) |
|
|
(694 |
) |
|
Proceeds from sale of assets |
|
22 |
|
|
|
- |
|
|
|
10,756 |
|
|
|
- |
|
|
Proceeds from sale of businesses, net and other |
|
- |
|
|
|
22,930 |
|
|
|
- |
|
|
|
27,788 |
|
|
Net cash used in investing activities from continuing
operations |
|
(11,926 |
) |
|
|
(724 |
) |
|
|
(284,271 |
) |
|
|
(25,968 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Borrowings under bank revolving credit facility |
|
138,000 |
|
|
|
56,000 |
|
|
|
678,000 |
|
|
|
206,000 |
|
|
Repayments under bank revolving credit facility |
|
(40,000 |
) |
|
|
(94,000 |
) |
|
|
(370,000 |
) |
|
|
(231,000 |
) |
|
Borrowings under term loan |
|
- |
|
|
|
- |
|
|
|
300,000 |
|
|
|
- |
|
|
Repayments under term loan |
|
(1,875 |
) |
|
|
- |
|
|
|
(1,875 |
) |
|
|
- |
|
|
Payments of other debt, net |
|
(47 |
) |
|
|
(206 |
) |
|
|
(3,232 |
) |
|
|
(1,917 |
) |
|
Share repurchases |
|
(130,472 |
) |
|
|
(8,562 |
) |
|
|
(397,405 |
) |
|
|
(80,298 |
) |
|
Employee shares withheld for taxes |
|
(1,597 |
) |
|
|
(2,018 |
) |
|
|
(32,630 |
) |
|
|
(3,741 |
) |
|
Net cash (used in) provided by financing activities from continuing
operations |
|
(35,991 |
) |
|
|
(48,786 |
) |
|
|
172,858 |
|
|
|
(110,956 |
) |
|
Effect of exchange rate changes on cash from continuing
operations |
|
(2,632 |
) |
|
|
(84 |
) |
|
|
(5,836 |
) |
|
|
5,650 |
|
|
Net (decrease) increase in cash and cash equivalents |
|
(19,394 |
) |
|
|
(7,607 |
) |
|
|
(18,063 |
) |
|
|
15,243 |
|
|
Cash and cash equivalents at beginning of period |
|
77,202 |
|
|
|
60,621 |
|
|
|
75,871 |
|
|
|
37,771 |
|
|
Cash and cash equivalents at end of period |
$ |
57,808 |
|
|
$ |
53,014 |
|
|
$ |
57,808 |
|
|
$ |
53,014 |
|
|
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Net Sales, Gross Profit and Operating Income (Loss) by
Segment |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
|
North America |
|
International |
|
Corporate/Other |
|
Hain Consolidated |
Net Sales |
|
|
|
|
|
|
|
Net sales - Q3 FY22 |
$ |
325,742 |
|
|
$ |
177,197 |
|
|
$ |
- |
|
|
$ |
502,939 |
|
Net sales - Q3 FY21 |
$ |
287,500 |
|
|
$ |
205,104 |
|
|
$ |
- |
|
|
$ |
492,604 |
|
% change - FY22 net sales vs. FY21 net sales |
|
13.3 |
% |
|
|
(13.6 |
)% |
|
|
|
|
2.1 |
% |
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
Q3 FY22 |
|
|
|
|
|
|
|
Gross profit |
$ |
75,233 |
|
|
$ |
40,470 |
|
|
$ |
- |
|
|
$ |
115,703 |
|
Non-GAAP adjustments(1) |
|
1,836 |
|
|
|
97 |
|
|
|
- |
|
|
|
1,933 |
|
Adjusted gross profit |
$ |
77,069 |
|
|
$ |
40,567 |
|
|
$ |
- |
|
|
$ |
117,636 |
|
Gross margin |
|
23.1 |
% |
|
|
22.8 |
% |
|
|
|
|
23.0 |
% |
Adjusted gross margin |
|
23.7 |
% |
|
|
22.9 |
% |
|
|
|
|
23.4 |
% |
|
|
|
|
|
|
|
|
Q3 FY21 |
|
|
|
|
|
|
|
Gross profit |
$ |
78,513 |
|
|
$ |
51,393 |
|
|
$ |
- |
|
|
$ |
129,906 |
|
Non-GAAP adjustments(1) |
|
3,272 |
|
|
|
1,954 |
|
|
|
- |
|
|
|
5,226 |
|
Adjusted gross profit |
$ |
81,785 |
|
|
$ |
53,347 |
|
|
$ |
- |
|
|
$ |
135,132 |
|
Gross margin |
|
27.3 |
% |
|
|
25.1 |
% |
|
|
|
|
26.4 |
% |
Adjusted gross margin |
|
28.4 |
% |
|
|
26.0 |
% |
|
|
|
|
27.4 |
% |
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
Q3 FY22 |
|
|
|
|
|
|
|
Operating income (loss) |
$ |
28,526 |
|
|
$ |
18,303 |
|
|
$ |
(11,665 |
) |
|
$ |
35,164 |
|
Non-GAAP adjustments(1) |
|
2,857 |
|
|
|
504 |
|
|
|
3,918 |
|
|
|
7,279 |
|
Adjusted operating income (loss) |
$ |
31,383 |
|
|
$ |
18,807 |
|
|
$ |
(7,747 |
) |
|
$ |
42,443 |
|
Operating income margin |
|
8.8 |
% |
|
|
10.3 |
% |
|
|
|
|
7.0 |
% |
Adjusted operating income margin |
|
9.6 |
% |
|
|
10.6 |
% |
|
|
|
|
8.4 |
% |
|
|
|
|
|
|
|
|
Q3 FY21 |
|
|
|
|
|
|
|
Operating income (loss) |
$ |
39,492 |
|
|
$ |
26,774 |
|
|
$ |
(16,689 |
) |
|
$ |
49,577 |
|
Non-GAAP adjustments(1) |
|
4,438 |
|
|
|
2,798 |
|
|
|
2,856 |
|
|
|
10,092 |
|
Adjusted operating income (loss) |
$ |
43,930 |
|
|
$ |
29,572 |
|
|
$ |
(13,833 |
) |
|
$ |
59,669 |
|
Operating income margin |
|
13.7 |
% |
|
|
13.1 |
% |
|
|
|
|
10.1 |
% |
Adjusted operating income margin |
|
15.3 |
% |
|
|
14.4 |
% |
|
|
|
|
12.1 |
% |
|
|
|
|
|
|
|
|
(1) See accompanying table "Adjusted Gross Profit, Adjusted
Operating Income, Adjusted Net Income and Adjusted EPS" |
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Net Sales, Gross Profit and Operating Income (Loss) by
Segment |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
|
North America |
|
International |
|
Corporate/Other |
|
Hain Consolidated |
Net Sales |
|
|
|
|
|
|
|
Net sales - Q3 FY22 YTD |
$ |
866,281 |
|
|
$ |
568,502 |
|
|
$ |
- |
|
|
$ |
1,434,783 |
|
Net sales - Q3 FY21 YTD |
$ |
850,780 |
|
|
$ |
668,869 |
|
|
$ |
- |
|
|
$ |
1,519,649 |
|
% change - FY22 net sales vs. FY21 net sales |
|
1.8 |
% |
|
|
(15.0 |
)% |
|
|
|
|
(5.6 |
)% |
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
Q3 FY22 YTD |
|
|
|
|
|
|
|
Gross profit |
$ |
199,763 |
|
|
$ |
138,653 |
|
|
$ |
- |
|
|
$ |
338,416 |
|
Non-GAAP adjustments(1) |
|
4,429 |
|
|
|
804 |
|
|
|
- |
|
|
|
5,233 |
|
Adjusted gross profit |
$ |
204,192 |
|
|
$ |
139,457 |
|
|
$ |
- |
|
|
$ |
343,649 |
|
Gross margin |
|
23.1 |
% |
|
|
24.4 |
% |
|
|
|
|
23.6 |
% |
Adjusted gross margin |
|
23.6 |
% |
|
|
24.5 |
% |
|
|
|
|
24.0 |
% |
|
|
|
|
|
|
|
|
Q3 FY21 YTD |
|
|
|
|
|
|
|
Gross profit |
$ |
231,813 |
|
|
$ |
147,222 |
|
|
$ |
- |
|
|
$ |
379,035 |
|
Non-GAAP adjustments(1) |
|
6,438 |
|
|
|
3,869 |
|
|
|
- |
|
|
|
10,307 |
|
Adjusted gross profit |
$ |
238,251 |
|
|
$ |
151,091 |
|
|
$ |
- |
|
|
$ |
389,342 |
|
Gross margin |
|
27.2 |
% |
|
|
22.0 |
% |
|
|
|
|
24.9 |
% |
Adjusted gross margin |
|
28.0 |
% |
|
|
22.6 |
% |
|
|
|
|
25.6 |
% |
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
Q3 FY22 YTD |
|
|
|
|
|
|
|
Operating income (loss) |
$ |
72,530 |
|
|
$ |
69,740 |
|
|
$ |
(49,538 |
) |
|
$ |
92,732 |
|
Non-GAAP adjustments(1) |
|
8,354 |
|
|
|
2,076 |
|
|
|
19,342 |
|
|
|
29,772 |
|
Adjusted operating income (loss) |
$ |
80,884 |
|
|
$ |
71,816 |
|
|
$ |
(30,196 |
) |
|
$ |
122,504 |
|
Operating income margin |
|
8.4 |
% |
|
|
12.3 |
% |
|
|
|
|
6.5 |
% |
Adjusted operating income margin |
|
9.3 |
% |
|
|
12.6 |
% |
|
|
|
|
8.5 |
% |
|
|
|
|
|
|
|
|
Q3 FY21 YTD |
|
|
|
|
|
|
|
Operating income (loss) |
$ |
105,188 |
|
|
$ |
8,144 |
|
|
$ |
(47,518 |
) |
|
$ |
65,814 |
|
Non-GAAP adjustments(1) |
|
8,929 |
|
|
|
63,792 |
|
|
|
7,981 |
|
|
|
80,702 |
|
Adjusted operating income (loss) |
$ |
114,117 |
|
|
$ |
71,936 |
|
|
$ |
(39,537 |
) |
|
$ |
146,516 |
|
Operating income margin |
|
12.4 |
% |
|
|
1.2 |
% |
|
|
|
|
4.3 |
% |
Adjusted operating income margin |
|
13.4 |
% |
|
|
10.8 |
% |
|
|
|
|
9.6 |
% |
|
|
|
|
|
|
|
|
(1) See accompanying table "Adjusted Gross Profit, Adjusted
Operating Income, Adjusted Net Income and Adjusted EPS" |
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Adjusted Gross Profit, Adjusted Operating Income, Adjusted
Net Income and Adjusted EPS |
(unaudited and in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Third Quarter |
|
2022 GAAP |
Adjustments |
2022 Adjusted |
|
2021 GAAP |
Adjustments |
2021 Adjusted |
|
|
|
|
|
|
|
|
Net sales |
$ |
502,939 |
$ |
- |
|
$ |
502,939 |
|
$ |
492,604 |
|
$ |
- |
|
$ |
492,604 |
Cost of sales |
|
387,236 |
|
(1,933 |
) |
|
385,303 |
|
|
362,698 |
|
|
(5,226 |
) |
|
357,472 |
Gross profit |
|
115,703 |
|
1,933 |
|
|
117,636 |
|
|
129,906 |
|
|
5,226 |
|
|
135,132 |
Operating expenses(a) |
|
78,860 |
|
(3,667 |
) |
|
75,193 |
|
|
76,470 |
|
|
(1,007 |
) |
|
75,463 |
Productivity and transformation costs |
|
1,679 |
|
(1,679 |
) |
|
- |
|
|
4,451 |
|
|
(4,451 |
) |
|
- |
Proceeds from insurance claim |
|
- |
|
- |
|
|
- |
|
|
(592 |
) |
|
592 |
|
|
- |
Operating income |
|
35,164 |
|
7,279 |
|
|
42,443 |
|
|
49,577 |
|
|
10,092 |
|
|
59,669 |
Interest and other expense (income), net(b) |
|
2,512 |
|
539 |
|
|
3,051 |
|
|
3,596 |
|
|
(2,346 |
) |
|
1,250 |
Provision for income taxes |
|
7,738 |
|
1,533 |
|
|
9,271 |
|
|
11,797 |
|
|
1,950 |
|
|
13,747 |
Net income |
|
24,531 |
|
5,207 |
|
|
29,738 |
|
|
34,254 |
|
|
10,488 |
|
|
44,742 |
|
|
|
|
|
|
|
|
Diluted net income per common share |
|
0.27 |
|
0.06 |
|
|
0.33 |
|
|
0.34 |
|
|
0.10 |
|
|
0.44 |
|
|
|
|
|
|
|
|
Detail of Adjustments: |
|
|
|
|
|
|
|
|
|
Q3 FY22 |
|
|
|
Q3 FY21 |
|
Plant closure related costs, net |
|
$ |
83 |
|
|
|
|
$ |
1,666 |
|
|
Transaction and integration costs, net |
|
|
1,756 |
|
|
|
|
|
- |
|
|
Warehouse/manufacturing consolidation and other costs |
|
|
94 |
|
|
|
|
|
3,560 |
|
|
Cost of sales |
|
|
1,933 |
|
|
|
|
|
5,226 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
1,933 |
|
|
|
|
|
5,226 |
|
|
|
|
|
|
|
|
|
|
Transaction and integration costs, net |
|
|
1,663 |
|
|
|
|
|
102 |
|
|
Litigation expenses |
|
|
2,005 |
|
|
|
|
|
644 |
|
|
Plant closure related costs, net |
|
|
(1 |
) |
|
|
|
|
(2 |
) |
|
Warehouse/manufacturing consolidation and other costs |
|
|
- |
|
|
|
|
|
263 |
|
|
Operating expenses(a) |
|
|
3,667 |
|
|
|
|
|
1,007 |
|
|
|
|
|
|
|
|
|
|
Productivity and transformation costs |
|
|
1,679 |
|
|
|
|
|
4,451 |
|
|
Productivity and transformation costs |
|
|
1,679 |
|
|
|
|
|
4,451 |
|
|
|
|
|
|
|
|
|
|
Proceeds from insurance claim |
|
|
- |
|
|
|
|
|
(592 |
) |
|
Proceeds from insurance claim |
|
|
- |
|
|
|
|
|
(592 |
) |
|
|
|
|
|
|
|
|
|
Operating income |
|
|
7,279 |
|
|
|
|
|
10,092 |
|
|
|
|
|
|
|
|
|
|
Loss on sale of assets |
|
|
55 |
|
|
|
|
|
- |
|
|
Loss on sale of businesses |
|
|
- |
|
|
|
|
|
1,904 |
|
|
Unrealized currency (gains) losses |
|
|
(594 |
) |
|
|
|
|
442 |
|
|
Interest and other expense (income), net(b) |
|
|
(539 |
) |
|
|
|
|
2,346 |
|
|
|
|
|
|
|
|
|
|
Income tax related adjustments |
|
|
(1,533 |
) |
|
|
|
|
(1,950 |
) |
|
Provision for income taxes |
|
|
(1,533 |
) |
|
|
|
|
(1,950 |
) |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
5,207 |
|
|
|
|
$ |
10,488 |
|
|
|
|
|
|
|
|
|
|
(a) Operating expenses include amortization of acquired intangibles
and selling, general and administrative expenses. |
|
|
|
|
(b) Interest and other expense (income), net includes interest and
other financing expenses, net, unrealized currency (gains) losses,
loss on sale of assets and businesses and other expense, net. |
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Adjusted Gross Profit, Adjusted Operating Income, Adjusted
Net Income and Adjusted EPS |
(unaudited and in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Third Quarter Year to Date |
|
2022 GAAP |
Adjustments |
2022 Adjusted |
|
2021 GAAP |
Adjustments |
2021 Adjusted |
|
|
|
|
|
|
|
|
Net sales |
$ |
1,434,783 |
|
$ |
- |
|
$ |
1,434,783 |
|
$ |
1,519,649 |
|
$ |
- |
|
$ |
1,519,649 |
Cost of sales |
|
1,096,367 |
|
|
(5,233 |
) |
|
1,091,134 |
|
|
1,140,614 |
|
|
(10,307 |
) |
|
1,130,307 |
Gross profit |
|
338,416 |
|
|
5,233 |
|
|
343,649 |
|
|
379,035 |
|
|
10,307 |
|
|
389,342 |
Operating expenses(a) |
|
237,432 |
|
|
(16,287 |
) |
|
221,145 |
|
|
302,918 |
|
|
(60,092 |
) |
|
242,826 |
Productivity and transformation costs |
|
8,448 |
|
|
(8,448 |
) |
|
- |
|
|
10,895 |
|
|
(10,895 |
) |
|
- |
Proceeds from insurance claim |
|
(196 |
) |
|
196 |
|
|
- |
|
|
(592 |
) |
|
592 |
|
|
- |
Operating income |
|
92,732 |
|
|
29,772 |
|
|
122,504 |
|
|
65,814 |
|
|
80,702 |
|
|
146,516 |
Interest and other (income) expense, net(b) |
|
(2,898 |
) |
|
11,144 |
|
|
8,246 |
|
|
5,968 |
|
|
(758 |
) |
|
5,210 |
Provision for income taxes |
|
19,425 |
|
|
5,553 |
|
|
24,978 |
|
|
33,197 |
|
|
215 |
|
|
33,412 |
Net income from continuing operations |
|
74,831 |
|
|
13,075 |
|
|
87,906 |
|
|
25,624 |
|
|
81,245 |
|
|
106,869 |
Net income (loss) from discontinued operations, net of tax |
|
- |
|
|
- |
|
|
- |
|
|
11,255 |
|
|
(11,255 |
) |
|
- |
Net income |
|
74,831 |
|
|
13,075 |
|
|
87,906 |
|
|
36,879 |
|
|
69,990 |
|
|
106,869 |
|
|
|
|
|
|
|
|
Diluted net income per common share from continuing operations |
|
0.79 |
|
|
0.14 |
|
|
0.93 |
|
|
0.25 |
|
|
0.80 |
|
|
1.05 |
Diluted net income (loss) per common share from discontinued
operations |
|
- |
|
|
- |
|
|
- |
|
|
0.11 |
|
|
(0.11 |
) |
|
- |
Diluted net income per common share |
|
0.79 |
|
|
0.14 |
|
|
0.93 |
|
|
0.36 |
|
|
0.69 |
|
|
1.05 |
|
|
|
|
|
|
|
|
Detail of Adjustments: |
|
|
|
|
|
|
|
|
|
Q3 FY22 YTD |
|
|
|
Q3 FY21 YTD |
|
Inventory write-down |
|
$ |
(46 |
) |
|
|
|
$ |
311 |
|
|
Plant closure related costs, net |
|
|
891 |
|
|
|
|
|
2,721 |
|
|
Transaction and integration costs, net |
|
|
1,756 |
|
|
|
|
|
- |
|
|
Warehouse/manufacturing consolidation and other costs |
|
|
2,632 |
|
|
|
|
|
7,275 |
|
|
Cost of sales |
|
|
5,233 |
|
|
|
|
|
10,307 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
5,233 |
|
|
|
|
|
10,307 |
|
|
|
|
|
|
|
|
|
|
Transaction and integration costs, net |
|
|
10,395 |
|
|
|
|
|
1,476 |
|
|
Litigation expenses |
|
|
5,585 |
|
|
|
|
|
644 |
|
|
Long-lived asset and intangibles impairment |
|
|
303 |
|
|
|
|
|
57,676 |
|
|
Plant closure related costs, net |
|
|
4 |
|
|
|
|
|
33 |
|
|
Warehouse/manufacturing consolidation and other costs |
|
|
- |
|
|
|
|
|
263 |
|
|
Operating expenses(a) |
|
|
16,287 |
|
|
|
|
|
60,092 |
|
|
|
|
|
|
|
|
|
|
Productivity and transformation costs |
|
|
8,448 |
|
|
|
|
|
10,895 |
|
|
Productivity and transformation costs |
|
|
8,448 |
|
|
|
|
|
10,895 |
|
|
|
|
|
|
|
|
|
|
Proceeds from insurance claim |
|
|
(196 |
) |
|
|
|
|
(592 |
) |
|
Proceeds from insurance claim |
|
|
(196 |
) |
|
|
|
|
(592 |
) |
|
|
|
|
|
|
|
|
|
Operating income |
|
|
29,772 |
|
|
|
|
|
80,702 |
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
|
(9,047 |
) |
|
|
|
|
- |
|
|
Loss on sale of businesses |
|
|
- |
|
|
|
|
|
1,293 |
|
|
Unrealized currency gains |
|
|
(2,097 |
) |
|
|
|
|
(535 |
) |
|
Interest and other (income) expense, net(b) |
|
|
(11,144 |
) |
|
|
|
|
758 |
|
|
|
|
|
|
|
|
|
|
Income tax related adjustments |
|
|
(5,553 |
) |
|
|
|
|
(215 |
) |
|
Provision for income taxes |
|
|
(5,553 |
) |
|
|
|
|
(215 |
) |
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
13,075 |
|
|
|
|
$ |
81,245 |
|
|
|
|
|
|
|
|
|
|
(a) Operating expenses include amortization of acquired
intangibles, selling, general and administrative expenses and
long-lived asset and intangibles impairment. |
|
(b) Interest and other (income) expense, net includes interest and
other financing expenses, net, unrealized currency gains, (gain)
loss on sale of assets and businesses and other expense, net. |
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
|
Adjusted Net Sales Growth |
|
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
Q3 FY22 |
North America |
|
International |
|
Hain Consolidated |
|
Net sales |
$ |
325,742 |
|
|
$ |
177,197 |
|
|
$ |
502,939 |
|
|
Acquisitions, divestitures and discontinued brands |
|
(25,232 |
) |
|
|
- |
|
|
|
(25,232 |
) |
|
Impact of foreign currency exchange |
|
30 |
|
|
|
7,301 |
|
|
|
7,331 |
|
|
Net sales on a constant currency basis adjusted for acquisitions,
divestitures and discontinued brands |
$ |
300,540 |
|
|
$ |
184,498 |
|
|
$ |
485,038 |
|
|
|
|
|
|
|
|
|
Q3 FY21 |
|
|
|
|
|
|
Net sales |
$ |
287,500 |
|
|
$ |
205,104 |
|
|
$ |
492,604 |
|
|
Divestitures and discontinued brands |
|
(10,562 |
) |
|
|
(4,224 |
) |
|
|
(14,786 |
) |
|
Net sales adjusted for divestitures and discontinued brands |
$ |
276,938 |
|
|
$ |
200,880 |
|
|
$ |
477,818 |
|
|
|
|
|
|
|
|
|
Net sales growth (decline) |
|
13.3 |
% |
|
|
(13.6 |
)% |
|
|
2.1 |
% |
|
Impact of acquisitions, divestitures and discontinued brands |
|
(4.8 |
)% |
|
|
1.8 |
% |
|
|
(2.1 |
)% |
|
Impact of foreign currency exchange |
|
- |
|
|
|
3.6 |
% |
|
|
1.5 |
% |
|
Net sales growth (decline) on a constant currency basis adjusted
for acquisitions, divestitures and discontinued brands |
|
8.5 |
% |
|
|
(8.2 |
)% |
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
Q3 FY22 YTD |
North America |
|
International |
|
Hain Consolidated |
|
Net sales |
$ |
866,281 |
|
|
$ |
568,502 |
|
|
$ |
1,434,783 |
|
|
Acquisitions, divestitures and discontinued brands |
|
(25,759 |
) |
|
|
- |
|
|
|
(25,759 |
) |
|
Impact of foreign currency exchange |
|
(2,697 |
) |
|
|
(1,067 |
) |
|
|
(3,764 |
) |
|
Net sales on a constant currency basis adjusted for acquisitions,
divestitures and discontinued brands |
$ |
837,825 |
|
|
$ |
567,435 |
|
|
$ |
1,405,260 |
|
|
|
|
|
|
|
|
|
Q3 FY21 YTD |
|
|
|
|
|
|
Net sales |
$ |
850,780 |
|
|
$ |
668,869 |
|
|
$ |
1,519,649 |
|
|
Divestitures and discontinued brands |
|
(34,536 |
) |
|
|
(75,511 |
) |
|
|
(110,047 |
) |
|
Net sales adjusted for divestitures and discontinued brands |
$ |
816,244 |
|
|
$ |
593,358 |
|
|
$ |
1,409,602 |
|
|
|
|
|
|
|
|
|
Net sales growth (decline) |
|
1.8 |
% |
|
|
(15.0 |
)% |
|
|
(5.6 |
)% |
|
Impact of acquisitions, divestitures and discontinued brands |
|
1.1 |
% |
|
|
10.8 |
% |
|
|
5.5 |
% |
|
Impact of foreign currency exchange |
|
(0.3 |
)% |
|
|
(0.2 |
)% |
|
|
(0.2 |
)% |
|
Net sales growth (decline) on a constant currency basis adjusted
for acquisitions, divestitures and discontinued brands |
|
2.6 |
% |
|
|
(4.4 |
)% |
|
|
(0.3 |
)% |
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Adjusted EBITDA |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Third Quarter Year to Date |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
24,531 |
|
|
$ |
34,254 |
|
|
$ |
74,831 |
|
|
$ |
36,879 |
|
Net income from discontinued operations, net of tax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
11,255 |
|
Net income from continuing operations |
$ |
24,531 |
|
|
$ |
34,254 |
|
|
$ |
74,831 |
|
|
$ |
25,624 |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
12,638 |
|
|
|
12,814 |
|
|
|
34,396 |
|
|
|
37,768 |
|
Equity in net loss (income) of equity-method investees |
|
383 |
|
|
|
(70 |
) |
|
|
1,374 |
|
|
|
1,025 |
|
Interest expense, net |
|
2,846 |
|
|
|
1,327 |
|
|
|
5,677 |
|
|
|
4,781 |
|
Provision for income taxes |
|
7,738 |
|
|
|
11,797 |
|
|
|
19,425 |
|
|
|
33,197 |
|
Stock-based compensation, net |
|
3,846 |
|
|
|
3,698 |
|
|
|
12,289 |
|
|
|
11,888 |
|
Unrealized currency (gains) losses |
|
(594 |
) |
|
|
442 |
|
|
|
(2,097 |
) |
|
|
(535 |
) |
Litigation and related costs |
|
|
|
|
|
|
|
Litigation expenses |
|
2,005 |
|
|
|
644 |
|
|
|
5,585 |
|
|
|
644 |
|
Proceeds from insurance claim |
|
- |
|
|
|
(592 |
) |
|
|
(196 |
) |
|
|
(592 |
) |
Restructuring activities |
|
|
|
|
|
|
|
Plant closure related costs, net |
|
82 |
|
|
|
21 |
|
|
|
895 |
|
|
|
17 |
|
Productivity and transformation costs |
|
1,626 |
|
|
|
3,813 |
|
|
|
7,077 |
|
|
|
8,952 |
|
Warehouse/manufacturing consolidation and other costs |
|
94 |
|
|
|
3,598 |
|
|
|
2,632 |
|
|
|
7,313 |
|
Acquisitions, divestitures and other |
|
|
|
|
|
|
|
Transaction and integration costs, net |
|
3,419 |
|
|
|
102 |
|
|
|
12,151 |
|
|
|
1,476 |
|
Loss (gain) on sale of assets |
|
55 |
|
|
|
- |
|
|
|
(9,047 |
) |
|
|
- |
|
Loss on sale of businesses |
|
- |
|
|
|
1,904 |
|
|
|
- |
|
|
|
1,293 |
|
Impairment charges |
|
|
|
|
|
|
|
Inventory write-down |
|
- |
|
|
|
- |
|
|
|
(46 |
) |
|
|
311 |
|
Long-lived asset and intangibles impairment |
|
- |
|
|
|
- |
|
|
|
303 |
|
|
|
57,676 |
|
Adjusted EBITDA |
$ |
58,669 |
|
|
$ |
73,752 |
|
|
$ |
165,249 |
|
|
$ |
190,838 |
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Adjusted EBITDA and Adjusted EBITDA Margin by
Segment |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
Q3 FY22 |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating income (loss) |
$ |
28,526 |
|
|
$ |
18,303 |
|
|
$ |
(11,665 |
) |
|
$ |
35,164 |
|
Depreciation and amortization |
|
5,062 |
|
|
|
7,099 |
|
|
|
477 |
|
|
|
12,638 |
|
Stock-based compensation, net |
|
921 |
|
|
|
394 |
|
|
|
2,531 |
|
|
|
3,846 |
|
Transaction and integration costs, net |
|
1,724 |
|
|
|
- |
|
|
|
1,695 |
|
|
|
3,419 |
|
Litigation expenses |
|
- |
|
|
|
- |
|
|
|
2,005 |
|
|
|
2,005 |
|
Plant closure related costs, net |
|
79 |
|
|
|
3 |
|
|
|
- |
|
|
|
82 |
|
Productivity and transformation costs |
|
1,054 |
|
|
|
407 |
|
|
|
165 |
|
|
|
1,626 |
|
Warehouse/manufacturing consolidation and other costs |
|
- |
|
|
|
94 |
|
|
|
- |
|
|
|
94 |
|
Other |
|
(81 |
) |
|
|
169 |
|
|
|
(293 |
) |
|
|
(205 |
) |
Adjusted EBITDA |
$ |
37,285 |
|
|
$ |
26,469 |
|
|
$ |
(5,085 |
) |
|
$ |
58,669 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
325,742 |
|
|
$ |
177,197 |
|
|
|
|
$ |
502,939 |
|
Adjusted EBITDA margin |
|
11.4 |
% |
|
|
14.9 |
% |
|
|
|
|
11.7 |
% |
|
|
|
|
|
|
|
|
Q3 FY21 |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating income (loss) |
$ |
39,492 |
|
|
$ |
26,774 |
|
|
$ |
(16,689 |
) |
|
$ |
49,577 |
|
Depreciation and amortization |
|
4,432 |
|
|
|
7,688 |
|
|
|
694 |
|
|
|
12,814 |
|
Stock-based compensation, net |
|
849 |
|
|
|
179 |
|
|
|
2,670 |
|
|
|
3,698 |
|
Transaction and integration costs, net |
|
- |
|
|
|
- |
|
|
|
102 |
|
|
|
102 |
|
Litigation expenses |
|
- |
|
|
|
- |
|
|
|
644 |
|
|
|
644 |
|
Proceeds from insurance claim |
|
- |
|
|
|
- |
|
|
|
(592 |
) |
|
|
(592 |
) |
Plant closure related costs, net |
|
21 |
|
|
|
- |
|
|
|
- |
|
|
|
21 |
|
Productivity and transformation costs |
|
1,129 |
|
|
|
621 |
|
|
|
2,063 |
|
|
|
3,813 |
|
Warehouse/manufacturing consolidation and other costs |
|
2,591 |
|
|
|
1,007 |
|
|
|
- |
|
|
|
3,598 |
|
Other |
|
(7 |
) |
|
|
477 |
|
|
|
(393 |
) |
|
|
77 |
|
Adjusted EBITDA |
$ |
48,507 |
|
|
$ |
36,746 |
|
|
$ |
(11,501 |
) |
|
$ |
73,752 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
287,500 |
|
|
$ |
205,104 |
|
|
|
|
$ |
492,604 |
|
Adjusted EBITDA margin |
|
16.9 |
% |
|
|
17.9 |
% |
|
|
|
|
15.0 |
% |
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Adjusted EBITDA and Adjusted EBITDA Margin by
Segment |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
Q3 FY22 YTD |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating income (loss) |
$ |
72,530 |
|
|
$ |
69,740 |
|
|
$ |
(49,538 |
) |
|
$ |
92,732 |
|
Depreciation and amortization |
|
12,458 |
|
|
|
19,804 |
|
|
|
2,134 |
|
|
|
34,396 |
|
Stock-based compensation, net |
|
2,335 |
|
|
|
1,461 |
|
|
|
8,493 |
|
|
|
12,289 |
|
Transaction and integration costs, net |
|
1,426 |
|
|
|
- |
|
|
|
10,725 |
|
|
|
12,151 |
|
Litigation expenses |
|
- |
|
|
|
- |
|
|
|
5,585 |
|
|
|
5,585 |
|
Proceeds from insurance claim |
|
- |
|
|
|
- |
|
|
|
(196 |
) |
|
|
(196 |
) |
Plant closure related costs, net |
|
1,197 |
|
|
|
(302 |
) |
|
|
- |
|
|
|
895 |
|
Productivity and transformation costs |
|
4,256 |
|
|
|
961 |
|
|
|
1,860 |
|
|
|
7,077 |
|
Warehouse/manufacturing consolidation and other costs |
|
1,519 |
|
|
|
1,113 |
|
|
|
- |
|
|
|
2,632 |
|
Inventory write-down |
|
(46 |
) |
|
|
- |
|
|
|
- |
|
|
|
(46 |
) |
Long-lived asset and intangibles impairment |
|
- |
|
|
|
303 |
|
|
|
- |
|
|
|
303 |
|
Other |
|
(951 |
) |
|
|
122 |
|
|
|
(1,740 |
) |
|
|
(2,569 |
) |
Adjusted EBITDA |
$ |
94,724 |
|
|
$ |
93,202 |
|
|
$ |
(22,677 |
) |
|
$ |
165,249 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
866,281 |
|
|
$ |
568,502 |
|
|
|
|
$ |
1,434,783 |
|
Adjusted EBITDA margin |
|
10.9 |
% |
|
|
16.4 |
% |
|
|
|
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 FY21 YTD |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating income (loss) |
$ |
105,188 |
|
|
$ |
8,144 |
|
|
$ |
(47,518 |
) |
|
$ |
65,814 |
|
Depreciation and amortization |
|
12,693 |
|
|
|
22,969 |
|
|
|
2,106 |
|
|
|
37,768 |
|
Stock-based compensation, net |
|
2,568 |
|
|
|
1,223 |
|
|
|
8,097 |
|
|
|
11,888 |
|
Transaction and integration costs, net |
|
(72 |
) |
|
|
86 |
|
|
|
1,462 |
|
|
|
1,476 |
|
Litigation expenses |
|
- |
|
|
|
- |
|
|
|
644 |
|
|
|
644 |
|
Proceeds from insurance claim |
|
- |
|
|
|
- |
|
|
|
(592 |
) |
|
|
(592 |
) |
Plant closure related costs, net |
|
(7 |
) |
|
|
24 |
|
|
|
- |
|
|
|
17 |
|
Productivity and transformation costs |
|
2,506 |
|
|
|
3,509 |
|
|
|
2,937 |
|
|
|
8,952 |
|
Warehouse/manufacturing consolidation and other costs |
|
4,413 |
|
|
|
2,900 |
|
|
|
- |
|
|
|
7,313 |
|
Inventory write-down |
|
311 |
|
|
|
- |
|
|
|
- |
|
|
|
311 |
|
Long-lived asset and intangibles impairment |
|
(11 |
) |
|
|
56,104 |
|
|
|
1,583 |
|
|
|
57,676 |
|
Other |
|
(361 |
) |
|
|
664 |
|
|
|
(732 |
) |
|
|
(429 |
) |
Adjusted EBITDA |
$ |
127,228 |
|
|
$ |
95,623 |
|
|
$ |
(32,013 |
) |
|
$ |
190,838 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
850,780 |
|
|
$ |
668,869 |
|
|
|
|
$ |
1,519,649 |
|
Adjusted EBITDA margin |
|
15.0 |
% |
|
|
14.3 |
% |
|
|
|
|
12.6 |
% |
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Operating Free Cash Flow |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Third Quarter Year to Date |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities from continuing
operations |
$ |
31,155 |
|
|
$ |
41,987 |
|
|
$ |
99,186 |
|
|
$ |
146,517 |
|
Purchases of property, plant and equipment |
|
(5,943 |
) |
|
|
(23,391 |
) |
|
|
(33,939 |
) |
|
|
(53,062 |
) |
Operating free cash flow from continuing operations |
$ |
25,212 |
|
|
$ |
18,596 |
|
|
$ |
65,247 |
|
|
$ |
93,455 |
|
|
|
|
|
|
|
|
|
Hain Celestial (NASDAQ:HAIN)
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From Jun 2024 to Jul 2024
Hain Celestial (NASDAQ:HAIN)
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From Jul 2023 to Jul 2024