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 first quarter ended
September 30, 2022.
Mark L. Schiller, Hain Celestial’s President and
Chief Executive Officer, commented, “Our first quarter results
delivered performance better than our guidance with sequential
improvements in gross margin and bottom-line growth versus the
fourth quarter of fiscal 2022. Behind the continued strength of our
growth brands, we benefitted from the solid performance of our
supply chain and continued productivity efforts and strong
contributions from our North America business. As a result, this
led to sequential improvements in both segment and total company
margins. International remains extremely volatile, but we are
managing what we control and making good progress against our full
year plan. While we expect continued volatility, we remain
confident in our fiscal 2023 outlook and expect to return to
profitable growth later in the year.”
FINANCIAL HIGHLIGHTS
Summary of
First Quarter Results
Compared to the Prior Year Period
- Net sales decreased 3% to $439.4 million compared to the prior
year period.
- When adjusted for foreign exchange, acquisitions, divestitures
and discontinued brands, net sales decreased 1% compared to the
prior year period.
- Gross profit margin of 21.5%, a 170-basis point decrease from
the prior year period.
- Adjusted gross profit margin of 21.5%, a 240-basis point
decrease from the prior year period.
- Net income of $6.9 million compared to $19.4 million in the
prior year period.
- Adjusted net income of $9.2 million compared to $23.8 million
in prior year period.
- Adjusted EBITDA on a constant currency basis of $38.6 million
compared to $47.3 million in the prior year period; Adjusted EBITDA
margin on a constant currency basis of 8.3%, a 210-basis point
decrease compared to the prior year period.
- Earnings per diluted share (“EPS”) of $0.08 compared to $0.20
in the prior year period.
- Adjusted EPS of $0.10 compared to $0.25 in the prior year
period.
* 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
The Company operates under two reportable
segments: North America and International.
North AmericaNorth America net
sales were $288.4 million, a 9% increase compared to the prior year
period. When adjusted for foreign exchange, acquisitions,
divestitures and discontinued brands, net sales increased by
approximately 3% from the prior year period mainly due to strong
sales in the snacks, yogurt, baby, and other product categories in
the United States, partially offset by lower sales in personal care
products and some lingering supply shortages across several
brands.
Segment gross profit was $65.5 million, an
increase of 15% from the prior year period. Adjusted gross profit
was $65.6 million, an increase of 11% from the prior year period.
Gross margin was 22.7%, a 130-basis point increase from the prior
year period, and adjusted gross margin was 22.7%, a 40-basis point
increase from the prior year period. The increase was mainly driven
by pricing increases and cost improvements driven by higher
productivity, partially offset by inflation and lower net sales in
Canada compared to the prior year period.
Segment operating income was $24.4 million, a
45% increase from the prior year period. Adjusted operating income
was $24.8 million, a 21% increase from the prior year period. The
increase in operating income was mainly driven by top-line sales
due to pricing increases and productivity, partly offset by
inflation and lower net sales in the Canada operating segment when
compared with the prior year quarter.
Adjusted EBITDA on a constant currency basis was
$30.9 million, a 28% increase from the prior year period. This
represented 10.7% as a percentage of net sales on a constant
currency basis, a 160-basis point increase from the prior year
period.
InternationalInternational
results were similar to those achieved in fourth quarter of fiscal
2022. Net sales were $151.0 million, a 20% decrease compared to the
prior year period. When adjusted for foreign exchange, net sales
decreased 7% compared to the prior year period mainly due to
continued softness in plant-based categories and the loss of a
large non-dairy co-manufacturing customer in Europe.
Segment gross profit was $28.8 million, a 41%
decrease from the prior year period. Adjusted gross profit was
$28.8 million, a decrease of 42% from the prior year period. Gross
margin was 19.1%, a 660-basis point decrease from the prior year
period, and adjusted gross margin was 19.1%, a 700-basis point
decrease from the prior year period. The decrease in gross profit
was mainly due to the aforementioned decrease in sales, as well as
higher energy and supply chain costs and under-absorption of
overhead costs at our manufacturing facilities compared to the
prior year period.
Segment operating income was $7.7 million, a 68%
decrease from the prior year period. Adjusted operating income was
$8.0 million, a decrease of 68% 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 and under-absorption of overhead costs at our
manufacturing facilities compared to the prior year period.
Adjusted EBITDA on a constant currency basis was
$17.5 million, a 46% decline from the prior year period. This
represented 9.9% as a percentage of net sales on a constant
currency basis, a 720-basis point decline from the prior year
period.
FULL YEAR FISCAL 2023
GUIDANCE
While we expect continued volatility, especially
in Europe, the Company is reaffirming its previously disclosed
guidance of adjusted net sales and adjusted EBITDA on a constant
currency basis of -1% to +4% compared to the prior year, with
growth skewed toward the second half of the year driven by:
- Ongoing momentum in North
America
- 2023 price increases, most of which
are already accepted by retail partners, to offset expected
mid-teens year-over-year inflation
- Continued improvement in our supply
chain performance with less disruptions, robust productivity and
continued cost containment and
- An uncertain, but improving, retail
environment in the United Kingdom and new contracts on our
non-diary beverage business in Europe
Contacts:Investor Relations:Chris MandevilleICR
hain@icrinc.com
Media:Robin Shallowrobin@robincomm.com
Conference Call and Webcast
InformationHain 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’®, 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®.
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;
foreign exchange and inflation rates; our strategic initiatives;
our business strategy; our supply chain, including the availability
and pricing of raw materials; our brand portfolio; pricing actions
and product performance; 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; our ability to manage our supply chain effectively;
input cost inflation, including with respect to freight and other
distribution costs; foreign currency exchange risk; risks arising
from the Russia-Ukraine war; disruption of operations at our
manufacturing facilities; reliance on independent contract
manufacturers; challenges and uncertainty resulting from the
COVID-19 pandemic; changes to consumer preferences; customer
concentration; reliance on independent distributors; the
availability of natural and organic ingredients; risks associated
with operating internationally; 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; 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, adjusted EBITDA on a constant currency
basis and operating free cash flows. The reconciliations of
historic non-GAAP financial measures to the comparable GAAP
financial measures are provided in the tables below. 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 provides net sales adjusted for the
impact of foreign currency, acquisitions, divestitures and
discontinued brands to demonstrate 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 believes presenting net sales
adjusted for the impact of foreign 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 net
sales adjusted for the impact of foreign currency, 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 monthly foreign currency exchange rate between
the current fiscal period and the corresponding period of the prior
fiscal year.
To present net sales adjusted for the impact of
acquisitions, the net sales of an acquired business are excluded
from fiscal quarters constituting or falling within the current
period and prior period where the applicable fiscal quarter in the
prior period did not include the acquired business for the entire
quarter. To present net sales adjusted for the impact of
divestitures and discontinued brands, the net sales of a divested
business or discontinued brand are excluded from all periods.
The Company provides adjusted EBITDA and
adjusted EBITDA on a constant currency basis because 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 believes presenting adjusted EBITDA on a constant
currency basis provides useful information to investors because it
provides transparency to underlying performance in the Company’s
adjusted EBITDA by excluding the effect that foreign currency
exchange rate fluctuations have on period-to-period comparability
given the volatility in foreign currency exchange markets.
The Company defines adjusted EBITDA as net
income before net interest expense, income taxes, depreciation and
amortization, equity in net loss of equity-method investees,
stock-based compensation, net, unrealized currency gains,
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 on sales of assets, and
other adjustments. Adjusted EBITDA on a constant currency basis
reflects adjusted EBITDA, as defined above, adjusted for the impact
of foreign currency. To present adjusted EBITDA on a constant
currency basis, current period adjusted EBITDA 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 monthly
foreign currency exchange rate between the current fiscal period
and the corresponding period of the prior fiscal year.
The Company views operating free cash flows as
an important measure because it is one factor in evaluating the
amount of cash available for discretionary investments. The Company
defines operating free cash flows as cash used in or provided by
operating activities (a GAAP measure) less purchases of property,
plant and equipment.
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Consolidated Balance Sheets |
(unaudited and in thousands) |
|
|
|
|
|
September 30, 2022 |
|
June 30, 2022 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
51,794 |
|
|
$ |
65,512 |
|
Accounts receivable, net |
|
172,692 |
|
|
|
170,661 |
|
Inventories |
|
315,882 |
|
|
|
308,034 |
|
Prepaid expenses and other current assets |
|
53,499 |
|
|
|
54,079 |
|
Assets held for sale |
|
1,840 |
|
|
|
1,840 |
|
Total current assets |
|
595,707 |
|
|
|
600,126 |
|
Property, plant and equipment, net |
|
281,540 |
|
|
|
297,405 |
|
Goodwill |
|
912,278 |
|
|
|
933,796 |
|
Trademarks and other intangible assets, net |
|
463,161 |
|
|
|
477,533 |
|
Investments and joint ventures |
|
13,827 |
|
|
|
14,456 |
|
Operating lease right-of-use assets, net |
|
115,517 |
|
|
|
114,691 |
|
Other assets |
|
34,960 |
|
|
|
20,377 |
|
Total assets |
$ |
2,416,990 |
|
|
$ |
2,458,384 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
157,916 |
|
|
$ |
174,765 |
|
Accrued expenses and other current liabilities |
|
91,906 |
|
|
|
86,833 |
|
Current portion of long-term debt |
|
7,657 |
|
|
|
7,705 |
|
Total current liabilities |
|
257,479 |
|
|
|
269,303 |
|
Long-term debt, less current portion |
|
891,123 |
|
|
|
880,938 |
|
Deferred income taxes |
|
97,813 |
|
|
|
95,044 |
|
Operating lease liabilities, noncurrent portion |
|
109,858 |
|
|
|
107,481 |
|
Other noncurrent liabilities |
|
19,322 |
|
|
|
22,450 |
|
Total liabilities |
|
1,375,595 |
|
|
|
1,375,216 |
|
Stockholders' equity: |
|
|
|
Common stock |
|
1,112 |
|
|
|
1,111 |
|
Additional paid-in capital |
|
1,207,120 |
|
|
|
1,203,126 |
|
Retained earnings |
|
776,021 |
|
|
|
769,098 |
|
Accumulated other comprehensive loss |
|
(216,944 |
) |
|
|
(164,482 |
) |
|
|
1,767,309 |
|
|
|
1,808,853 |
|
Less: Treasury stock |
|
(725,914 |
) |
|
|
(725,685 |
) |
Total stockholders' equity |
|
1,041,395 |
|
|
|
1,083,168 |
|
Total liabilities and stockholders' equity |
$ |
2,416,990 |
|
|
$ |
2,458,384 |
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Consolidated Statements of Operations |
(unaudited and in thousands, except per share amounts) |
|
|
|
|
|
First Quarter |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Net sales |
$ |
439,351 |
|
|
$ |
454,903 |
|
Cost of sales |
|
345,016 |
|
|
|
349,485 |
|
Gross profit |
|
94,335 |
|
|
|
105,418 |
|
Selling, general and administrative expenses |
|
74,951 |
|
|
|
73,989 |
|
Amortization of acquired intangible assets |
|
2,788 |
|
|
|
2,095 |
|
Productivity and transformation costs |
|
773 |
|
|
|
3,983 |
|
Proceeds from insurance claim |
|
- |
|
|
|
(196 |
) |
Operating income |
|
15,823 |
|
|
|
25,547 |
|
Interest and other financing expense, net |
|
7,677 |
|
|
|
1,856 |
|
Other income, net |
|
(1,790 |
) |
|
|
(788 |
) |
Income before income taxes and equity in net loss of equity-method
investees |
|
9,936 |
|
|
|
24,479 |
|
Provision for income taxes |
|
2,631 |
|
|
|
4,542 |
|
Equity in net loss of equity-method investees |
|
382 |
|
|
|
526 |
|
Net income |
$ |
6,923 |
|
|
$ |
19,411 |
|
|
|
|
|
Net income per common share: |
|
|
|
Basic |
$ |
0.08 |
|
|
$ |
0.20 |
|
Diluted |
$ |
0.08 |
|
|
$ |
0.20 |
|
|
|
|
|
Shares used in the calculation of net income per common share: |
|
|
|
Basic |
|
89,307 |
|
|
|
97,121 |
|
Diluted |
|
89,493 |
|
|
|
97,438 |
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Consolidated Statements of Cash Flows |
(unaudited and in thousands) |
|
|
|
|
|
First Quarter |
|
|
2023 |
|
|
|
2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
Net income |
$ |
6,923 |
|
|
$ |
19,411 |
|
Adjustments to reconcile net income to net cash (used in) provided
by operating activities |
|
|
|
Depreciation and amortization |
|
11,970 |
|
|
|
10,855 |
|
Deferred income taxes |
|
(1,497 |
) |
|
|
(2,105 |
) |
Equity in net loss of equity-method investees |
|
382 |
|
|
|
526 |
|
Stock-based compensation, net |
|
3,994 |
|
|
|
4,287 |
|
Gain on sale of assets |
|
(60 |
) |
|
|
(276 |
) |
Other non-cash items, net |
|
(1,457 |
) |
|
|
(1,093 |
) |
Increase (decrease) in cash attributable to changes in operating
assets and liabilities: |
|
|
Accounts receivable |
|
(9,589 |
) |
|
|
(9,443 |
) |
Inventories |
|
(16,907 |
) |
|
|
2,277 |
|
Other current assets |
|
2,541 |
|
|
|
900 |
|
Other assets and liabilities |
|
1,348 |
|
|
|
(1,566 |
) |
Accounts payable and accrued expenses |
|
(2,764 |
) |
|
|
13,813 |
|
Net cash (used in) provided by operating activities |
|
(5,116 |
) |
|
|
37,586 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
Purchases of property, plant and equipment |
|
(7,215 |
) |
|
|
(17,810 |
) |
Investments and joint ventures, net |
|
191 |
|
|
|
(408 |
) |
Proceeds from sale of assets |
|
96 |
|
|
|
164 |
|
Net cash used in investing activities |
|
(6,928 |
) |
|
|
(18,054 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
Borrowings under bank revolving credit facility |
|
80,000 |
|
|
|
120,000 |
|
Repayments under bank revolving credit facility |
|
(69,875 |
) |
|
|
(5,000 |
) |
Payments of other debt, net |
|
(72 |
) |
|
|
(237 |
) |
Share repurchases |
|
- |
|
|
|
(177,103 |
) |
Employee shares withheld for taxes |
|
(229 |
) |
|
|
(1,175 |
) |
Net cash provided by (used in) financing activities |
|
9,824 |
|
|
|
(63,515 |
) |
Effect of exchange rate changes on cash |
|
(11,498 |
) |
|
|
(2,926 |
) |
Net decrease in cash and cash equivalents |
|
(13,718 |
) |
|
|
(46,909 |
) |
Cash and cash equivalents at beginning of period |
|
65,512 |
|
|
|
75,871 |
|
Cash and cash equivalents at end of period |
$ |
51,794 |
|
|
$ |
28,962 |
|
|
|
|
|
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 |
|
HainConsolidated |
Net Sales |
|
|
|
|
|
|
|
Net sales - Q1 FY23 |
$ |
288,396 |
|
|
$ |
150,955 |
|
|
$ |
- |
|
|
$ |
439,351 |
|
Net sales - Q1 FY22 |
$ |
265,525 |
|
|
$ |
189,378 |
|
|
$ |
- |
|
|
$ |
454,903 |
|
% change - FY23 net sales vs. FY22 net sales |
|
8.6% |
|
|
|
(20.3)% |
|
|
|
|
|
(3.4)% |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
Q1 FY23 |
|
|
|
|
|
|
|
Gross profit |
$ |
65,535 |
|
|
$ |
28,800 |
|
|
$ |
- |
|
|
$ |
94,335 |
|
Non-GAAP adjustments(1) |
|
30 |
|
|
|
6 |
|
|
|
- |
|
|
|
36 |
|
Adjusted gross profit |
$ |
65,565 |
|
|
$ |
28,806 |
|
|
$ |
- |
|
|
$ |
94,371 |
|
% change - FY23 gross profit vs. FY22 gross profit |
|
15.4% |
|
|
|
(40.8)% |
|
|
|
|
|
(10.5)% |
|
% change - FY23 adjusted gross profit vs. FY22 adjusted gross
profit |
|
10.7% |
|
|
|
(41.8)% |
|
|
|
|
|
(13.2)% |
|
Gross margin |
|
22.7% |
|
|
|
19.1% |
|
|
|
|
|
21.5% |
|
Adjusted gross margin |
|
22.7% |
|
|
|
19.1% |
|
|
|
|
|
21.5% |
|
|
|
|
|
|
|
|
|
Q1 FY22 |
|
|
|
|
|
|
|
Gross profit |
$ |
56,809 |
|
|
$ |
48,609 |
|
|
$ |
- |
|
|
$ |
105,418 |
|
Non-GAAP adjustments(1) |
|
2,410 |
|
|
|
875 |
|
|
|
- |
|
|
|
3,285 |
|
Adjusted gross profit |
$ |
59,219 |
|
|
$ |
49,484 |
|
|
$ |
- |
|
|
$ |
108,703 |
|
Gross margin |
|
21.4% |
|
|
|
25.7% |
|
|
|
|
|
23.2% |
|
Adjusted gross margin |
|
22.3% |
|
|
|
26.1% |
|
|
|
|
|
23.9% |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
Q1 FY23 |
|
|
|
|
|
|
|
Operating income (loss) |
$ |
24,445 |
|
|
$ |
7,675 |
|
|
$ |
(16,297) |
|
|
$ |
15,823 |
|
Non-GAAP adjustments(1) |
|
336 |
|
|
|
327 |
|
|
|
3,938 |
|
|
|
4,601 |
|
Adjusted operating income (loss) |
$ |
24,781 |
|
|
$ |
8,002 |
|
|
$ |
(12,359) |
|
|
$ |
20,424 |
|
% change - FY23 operating income (loss) vs. FY22 operating income
(loss) |
|
45.1% |
|
|
|
(68.1)% |
|
|
|
6.1% |
|
|
|
(38.1)% |
|
% change - FY23 adjusted operating income (loss) vs. FY22 adjusted
operating income (loss) |
|
20.7% |
|
|
|
(68.3)% |
|
|
|
8.1% |
|
|
|
(40.5)% |
|
Operating income margin |
|
8.5% |
|
|
|
5.1% |
|
|
|
|
|
3.6% |
|
Adjusted operating income margin |
|
8.6% |
|
|
|
5.3% |
|
|
|
|
|
4.6% |
|
|
|
|
|
|
|
|
|
Q1 FY22 |
|
|
|
|
|
|
|
Operating income (loss) |
$ |
16,842 |
|
|
$ |
24,069 |
|
|
$ |
(15,364) |
|
|
$ |
25,547 |
|
Non-GAAP adjustments(1) |
|
3,695 |
|
|
|
1,176 |
|
|
|
3,926 |
|
|
|
8,797 |
|
Adjusted operating income (loss) |
$ |
20,537 |
|
|
$ |
25,245 |
|
|
$ |
(11,438) |
|
|
$ |
34,344 |
|
Operating income margin |
|
6.3% |
|
|
|
12.7% |
|
|
|
|
|
5.6% |
|
Adjusted operating income margin |
|
7.7% |
|
|
|
13.3% |
|
|
|
|
|
7.5% |
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
|
First Quarter |
|
2023 GAAP |
Adjustments |
2023 Adjusted |
|
2022 GAAP |
Adjustments |
2022 Adjusted |
|
|
|
|
|
|
|
|
Net sales |
$ |
439,351 |
$ |
- |
|
$ |
439,351 |
|
$ |
454,903 |
|
$ |
- |
|
$ |
454,903 |
Cost of sales |
|
345,016 |
|
(36 |
) |
|
344,980 |
|
|
349,485 |
|
|
(3,285 |
) |
|
346,200 |
Gross profit |
|
94,335 |
|
36 |
|
|
94,371 |
|
|
105,418 |
|
|
3,285 |
|
|
108,703 |
Operating expenses(a) |
|
77,739 |
|
(3,792 |
) |
|
73,947 |
|
|
76,084 |
|
|
(1,725 |
) |
|
74,359 |
Productivity and transformation costs |
|
773 |
|
(773 |
) |
|
- |
|
|
3,983 |
|
|
(3,983 |
) |
|
- |
Proceeds from insurance claim |
|
- |
|
- |
|
|
- |
|
|
(196 |
) |
|
196 |
|
|
- |
Operating income |
|
15,823 |
|
4,601 |
|
|
20,424 |
|
|
25,547 |
|
|
8,797 |
|
|
34,344 |
Interest and other expense, net(b) |
|
5,887 |
|
1,751 |
|
|
7,638 |
|
|
1,068 |
|
|
1,469 |
|
|
2,537 |
Provision for income taxes |
|
2,631 |
|
546 |
|
|
3,177 |
|
|
4,542 |
|
|
2,910 |
|
|
7,452 |
Equity in net loss of equity-method investees |
|
382 |
|
- |
|
|
382 |
|
|
526 |
|
|
- |
|
|
526 |
Net income |
|
6,923 |
|
2,304 |
|
|
9,227 |
|
|
19,411 |
|
|
4,418 |
|
|
23,829 |
|
|
|
|
|
|
|
|
Diluted net income per common share |
|
0.08 |
|
0.02 |
|
|
0.10 |
|
|
0.20 |
|
|
0.05 |
|
|
0.25 |
|
|
|
|
|
|
|
|
Detail of Adjustments: |
|
|
|
|
|
|
|
|
|
Q1 FY23 |
|
|
|
Q1 FY22 |
|
Plant closure related costs, net |
|
$ |
36 |
|
|
|
|
$ |
996 |
|
|
Warehouse/manufacturing consolidation and other costs |
|
|
- |
|
|
|
|
|
2,289 |
|
|
Cost of sales |
|
|
36 |
|
|
|
|
|
3,285 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
36 |
|
|
|
|
|
3,285 |
|
|
|
|
|
|
|
|
|
|
Transaction and integration costs, net |
|
|
1,367 |
|
|
|
|
|
(231 |
) |
|
Litigation expenses |
|
|
2,463 |
|
|
|
|
|
1,956 |
|
|
Plant closure related costs, net |
|
|
(38 |
) |
|
|
|
|
- |
|
|
Operating expenses(a) |
|
|
3,792 |
|
|
|
|
|
1,725 |
|
|
|
|
|
|
|
|
|
|
Productivity and transformation costs |
|
|
773 |
|
|
|
|
|
3,983 |
|
|
Productivity and transformation costs |
|
|
773 |
|
|
|
|
|
3,983 |
|
|
|
|
|
|
|
|
|
|
Proceeds from insurance claim |
|
|
- |
|
|
|
|
|
(196 |
) |
|
Proceeds from insurance claim |
|
|
- |
|
|
|
|
|
(196 |
) |
|
|
|
|
|
|
|
|
|
Operating income |
|
|
4,601 |
|
|
|
|
|
8,797 |
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets |
|
|
(40 |
) |
|
|
|
|
(446 |
) |
|
Unrealized currency gains |
|
|
(1,711 |
) |
|
|
|
|
(1,023 |
) |
|
Interest and other expense, net(b) |
|
|
(1,751 |
) |
|
|
|
|
(1,469 |
) |
|
|
|
|
|
|
|
|
|
Income tax related adjustments |
|
|
(546 |
) |
|
|
|
|
(2,910 |
) |
|
Provision for income taxes |
|
|
(546 |
) |
|
|
|
|
(2,910 |
) |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
2,304 |
|
|
|
|
$ |
4,418 |
|
|
|
|
|
|
|
|
|
|
(a) Operating expenses include amortization of acquired
intangibles, selling, general and administrative expenses. |
|
|
|
|
(b) Interest and other expense, net includes interest and other
financing expenses, net, unrealized currency gains, gain on sale of
assets and other expense, net. |
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Adjusted Net Sales Growth |
(unaudited and in thousands) |
|
|
|
|
|
|
Q1 FY23 |
North America |
|
International |
|
Hain Consolidated |
Net sales |
$ |
288,396 |
|
|
$ |
150,955 |
|
|
$ |
439,351 |
|
Acquisitions, divestitures and discontinued brands |
|
(16,006) |
|
|
|
- |
|
|
|
(16,006) |
|
Impact of foreign currency exchange |
|
1,068 |
|
|
|
25,786 |
|
|
|
26,854 |
|
Net sales on a constant currency basis adjusted for acquisitions,
divestitures and discontinued brands |
$ |
273,458 |
|
|
$ |
176,741 |
|
|
$ |
450,199 |
|
|
|
|
|
|
|
Q1 FY22 |
|
|
|
|
|
Net sales |
$ |
265,525 |
|
|
$ |
189,378 |
|
|
$ |
454,903 |
|
Divestitures and discontinued brands |
|
(949) |
|
|
|
- |
|
|
|
(949) |
|
Net sales adjusted for divestitures and discontinued brands |
$ |
264,576 |
|
|
$ |
189,378 |
|
|
$ |
453,954 |
|
|
|
|
|
|
|
Net sales growth (decline) |
|
8.6% |
|
|
|
(20.3)% |
|
|
|
(3.4)% |
|
Impact of acquisitions, divestitures and discontinued brands |
|
(5.6)% |
|
|
|
- |
|
|
|
(3.3)% |
|
Impact of foreign currency exchange |
|
0.4% |
|
|
|
13.6% |
|
|
|
5.9% |
|
Net sales growth (decline) on a constant currency basis adjusted
for acquisitions, divestitures and discontinued brands |
|
3.4% |
|
|
|
(6.7)% |
|
|
|
(0.8)% |
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Adjusted EBITDA |
(unaudited and in thousands) |
|
|
|
|
|
First Quarter |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Net income |
$ |
6,923 |
|
|
$ |
19,411 |
|
|
|
|
|
Depreciation and amortization |
|
11,970 |
|
|
|
10,855 |
|
Equity in net loss of equity-method investees |
|
382 |
|
|
|
526 |
|
Interest expense, net |
|
7,279 |
|
|
|
1,146 |
|
Provision for income taxes |
|
2,631 |
|
|
|
4,542 |
|
Stock-based compensation, net |
|
3,994 |
|
|
|
4,287 |
|
Unrealized currency gains |
|
(1,711 |
) |
|
|
(1,023 |
) |
Litigation and related costs |
|
|
|
Litigation expenses |
|
2,463 |
|
|
|
1,956 |
|
Proceeds from insurance claim |
|
- |
|
|
|
(196 |
) |
Restructuring activities |
|
|
|
Plant closure related costs, net |
|
(2 |
) |
|
|
996 |
|
Productivity and transformation costs |
|
773 |
|
|
|
3,204 |
|
Warehouse/manufacturing consolidation and other costs |
|
- |
|
|
|
2,289 |
|
Acquisitions, divestitures and other |
|
|
|
Transaction and integration costs, net |
|
1,367 |
|
|
|
(231 |
) |
Gain on sale of assets |
|
(40 |
) |
|
|
(446 |
) |
Adjusted EBITDA |
$ |
36,029 |
|
|
$ |
47,316 |
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Adjusted EBITDA and Adjusted EBITDA Margin by
Segment |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
Q1 FY23 |
North America |
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating income (loss) |
$ |
24,445 |
|
|
$ |
7,675 |
|
|
$ |
(16,297 |
) |
|
$ |
15,823 |
|
Depreciation and amortization |
|
4,892 |
|
|
|
6,595 |
|
|
|
483 |
|
|
|
11,970 |
|
Stock-based compensation, net |
|
1,083 |
|
|
|
391 |
|
|
|
2,520 |
|
|
|
3,994 |
|
Transaction and integration costs, net |
|
- |
|
|
|
(15 |
) |
|
|
1,382 |
|
|
|
1,367 |
|
Litigation expenses |
|
- |
|
|
|
- |
|
|
|
2,463 |
|
|
|
2,463 |
|
Plant closure related costs, net |
|
(5 |
) |
|
|
3 |
|
|
|
- |
|
|
|
(2 |
) |
Productivity and transformation costs |
|
341 |
|
|
|
338 |
|
|
|
94 |
|
|
|
773 |
|
Other |
|
25 |
|
|
|
(40 |
) |
|
|
(344 |
) |
|
|
(359 |
) |
Adjusted EBITDA |
$ |
30,781 |
|
|
$ |
14,947 |
|
|
$ |
(9,699 |
) |
|
$ |
36,029 |
|
|
|
|
|
|
|
|
|
Q1 FY22 |
|
|
|
|
|
|
|
Operating income (loss) |
$ |
16,842 |
|
|
$ |
24,069 |
|
|
$ |
(15,364 |
) |
|
$ |
25,547 |
|
Depreciation and amortization |
|
3,742 |
|
|
|
6,410 |
|
|
|
703 |
|
|
|
10,855 |
|
Stock-based compensation, net |
|
636 |
|
|
|
721 |
|
|
|
2,930 |
|
|
|
4,287 |
|
Transaction and integration costs, net |
|
(341 |
) |
|
|
- |
|
|
|
110 |
|
|
|
(231 |
) |
Litigation expenses |
|
- |
|
|
|
- |
|
|
|
1,956 |
|
|
|
1,956 |
|
Proceeds from insurance claim |
|
- |
|
|
|
- |
|
|
|
(196 |
) |
|
|
(196 |
) |
Plant closure related costs |
|
996 |
|
|
|
- |
|
|
|
- |
|
|
|
996 |
|
Productivity and transformation costs |
|
1,625 |
|
|
|
299 |
|
|
|
1,280 |
|
|
|
3,204 |
|
Warehouse/manufacturing consolidation and other costs |
|
1,413 |
|
|
|
876 |
|
|
|
- |
|
|
|
2,289 |
|
Other |
|
(811 |
) |
|
|
59 |
|
|
|
(639 |
) |
|
|
(1,391 |
) |
Adjusted EBITDA |
$ |
24,102 |
|
|
$ |
32,434 |
|
|
$ |
(9,220 |
) |
|
$ |
47,316 |
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
|
Adjusted EBITDA at Constant Currency by
Segment |
|
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
|
|
Q1 FY23 |
North America |
|
International |
|
Corporate/Other |
|
HainConsolidated |
|
Adjusted EBITDA |
$ |
30,781 |
|
|
$ |
14,947 |
|
|
$ |
(9,699) |
|
|
$ |
36,029 |
|
|
Impact of foreign currency exchange |
|
81 |
|
|
|
2,538 |
|
|
|
- |
|
|
|
2,619 |
|
|
Adjusted EBITDA on a constant currency basis |
$ |
30,862 |
|
|
$ |
17,485 |
|
|
$ |
(9,699) |
|
|
$ |
38,648 |
|
|
|
|
|
|
|
|
|
|
|
Net sales on a constant currency basis |
$ |
289,464 |
|
|
$ |
176,741 |
|
|
|
|
$ |
466,205 |
|
|
Adjusted EBITDA margin on a constant currency basis |
|
10.7% |
|
|
|
9.9% |
|
|
|
|
|
8.3% |
|
|
|
|
|
|
|
|
|
|
|
Q1 FY22 |
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
24,102 |
|
|
$ |
32,434 |
|
|
$ |
(9,220) |
|
|
$ |
47,316 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA growth (decline) on a constant currency basis |
|
28.0% |
|
|
|
(46.1)% |
|
|
|
(5.2)% |
|
|
|
(18.3)% |
|
|
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Operating Free Cash Flows |
(unaudited and in thousands) |
|
|
|
|
|
First Quarter |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
Net cash (used in) provided by operating activities |
$ |
(5,116 |
) |
|
$ |
37,586 |
|
Purchases of property, plant and equipment |
|
(7,215 |
) |
|
|
(17,810 |
) |
Operating free cash flows |
$ |
(12,331 |
) |
|
$ |
19,776 |
|
|
|
|
|
Hain Celestial (NASDAQ:HAIN)
Historical Stock Chart
From May 2024 to Jun 2024
Hain Celestial (NASDAQ:HAIN)
Historical Stock Chart
From Jun 2023 to Jun 2024