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 second quarter ended
December 31, 2022.
“I am honored and excited to be a part of the
next phase of growth for our Company,” said Wendy P. Davidson,
President and Chief Executive Officer. “In my first few weeks, I
have witnessed firsthand what attracted me to the Company: leading
natural and organic brands with strong growth potential, a
simplified portfolio, and an organization passionate to live our
purpose to inspire Healthier Living for All through healthier
people, products, and planet. I look forward to continuing the work
to transform our business and build a sustainable, profitable,
high-growth global brand leader in the better-for-you consumer
space.”
“We reported solid second quarter results, ahead
of our guidance on both adjusted gross margin and adjusted EBITDA
on a constant currency basis,” said Christopher J. Bellairs,
Executive Vice President and Chief Financial Officer. “We continued
to see sequential improvements in both the International and North
American business units. While we experienced some retailer
inventory reductions in North America that impacted our topline
results, we continue to see strong momentum in key categories such
as better-for-you snacks, baby, and yogurt. Additionally, while the
European market remains somewhat uncertain, we see early
indications of stabilization.”
FINANCIAL HIGHLIGHTS*
Summary of
Second Quarter Results
Compared to the Prior Year Period
- Net sales decreased 5% to $454.2
million compared to the prior year period.
- When adjusted for foreign exchange,
acquisitions, divestitures and discontinued brands, net sales
decreased 2% compared to the prior year period.
- Gross profit margin of 22.9%, a
170-basis point decrease from the prior year period.
- Adjusted gross profit margin of
22.9%, a 170-basis point decrease from the prior year period.
- Net income of $11.0 million
compared to $30.9 million in the prior year period; net income
margin of 2.4%, a 410-basis point decrease from the prior year
period.
- Adjusted net income of $18.3
million compared to $34.3 million in prior year period; adjusted
net income margin of 4.0%, a 318-basis point decrease from the
prior year period.
- Adjusted EBITDA on a constant
currency basis of $52.7 million compared to $59.3 million in the
prior year period; Adjusted EBITDA margin on a constant currency
basis of 11.0%, a 144-basis point decrease compared to the prior
year period.
- Earnings per diluted share (“EPS”)
of $0.12 compared to $0.33 in the prior year period.
- Adjusted EPS of $0.20 compared to
$0.36 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 $282.4 million, a 3% increase compared to the prior year
period. When adjusted for foreign exchange, acquisitions,
divestitures and discontinued brands, net sales decreased by 2%
from the prior year period mainly due to retailer inventory
adjustments, especially in tea, and lower sales in personal care,
partially offset by higher sales in snacks.
Segment gross profit was $71.1 million, an
increase of 5% from the prior year period. Adjusted gross profit
was $71.1 million, an increase of 5% from the prior year period.
Gross margin and adjusted gross margin were both 25.2%,
representing a 60-basis point and 50-basis point increase from the
prior year period, respectively. The increase was mainly driven by
pricing increases and cost improvements driven by higher
productivity, partially offset by inflation.
Segment operating income was $32.3 million, a
19% increase from the prior year period. Adjusted operating income
was $32.3 million, a 12% increase from the prior year period.
Operating income margin was 11.4%, a 160-basis point increase from
the prior year period, and adjusted gross margin was 11.5%, a
100-basis point increase from the prior year period. The increase
was mainly driven by pricing increases to offset inflation,
productivity, and lower marketing spend.
Adjusted EBITDA on a constant currency basis was
$38.8 million, a 16% increase from the prior year period. Adjusted
EBITDA margin on a constant currency basis was 13.6%, a 150-basis
point increase from the prior year period.
InternationalInternational net
sales were $171.8 million, a 15% decrease compared to the prior
year period. When adjusted for foreign exchange, net sales
decreased 3% compared to the prior year period mainly due to
continued softness in plant-based categories in Europe.
Segment gross profit was $32.7 million, a 34%
decrease from the prior year period. Adjusted gross profit was
$32.7 million, a decrease of 34% from the prior year period. Gross
margin and adjusted gross margin were both 19.0%, representing a
550-basis point and 540-basis point decrease from the prior year
period, respectively. 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.
Segment operating income was $11.9 million, a
56% decrease from the prior year period. Adjusted operating income
was $12.5 million, a decrease of 55% from the prior year period.
Operating income margin was 6.9%, a 670-basis point decrease from
the prior year period, and adjusted gross margin was 7.3%, a
640-basis point decrease from the prior year period. The decrease
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.
Adjusted EBITDA on a constant currency basis was
$21.9 million, a 36% decline from the prior year period. Adjusted
EBITDA margin on a constant currency basis was 11.2%, a 580-basis
point decline from the prior year period.
FULL YEAR FISCAL 2023
GUIDANCE**
The Company is reaffirming its financial
guidance for adjusted net sales and adjusted EBITDA on a constant
currency basis of -1% to +4% compared to the prior year, driven
by:
- Stable North American topline
performance with moderate price elasticities and inflation starting
to plateau
- International performance returning
to growth in the second half of the year, with additional pricing
actions, a benefit from private label offerings, and the lapping of
both the beginning of the Russia-Ukraine war and the loss of the
co-manufacturing contract and
- Overall gross margin progression
versus the prior year through continued improvement in supply chain
performance with improved service levels, robust productivity, and
continued cost management
“We are encouraged that we continued to see
sequential improvement in our business and remain on track to
deliver on our 2023 financial guidance,” added Mr. Bellairs. “With
the unprecedented industry-wide supply chain challenges largely
behind us, we look forward to increased investment behind our
brands to drive topline growth.”
** The forward-looking
non-GAAP financial measures included in this section 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 certain
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.
Contacts:Investor Relations:Chris MandevilleICR
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 or 201-493-6779. 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; changes to consumer preferences; customer
concentration; reliance on independent distributors; the
availability of natural and organic ingredients; risks associated
with operating internationally; pending and future litigation,
including litigation related to Earth’s Best® baby food products;
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; compliance with data privacy laws;
compliance with our credit agreement; the discontinuation of LIBOR;
challenges and uncertainty resulting from the COVID-19 pandemic;
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 and its related margin,
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 its related margin
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.
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 losses (gains),
certain litigation and related costs, CEO succession 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, certain inventory write-downs, long-lived
asset impairments 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
Statements of Operations |
(unaudited and in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
454,208 |
|
|
$ |
476,941 |
|
|
$ |
893,559 |
|
|
$ |
931,844 |
|
Cost of sales |
|
350,351 |
|
|
|
359,646 |
|
|
|
695,367 |
|
|
|
709,131 |
|
Gross
profit |
|
103,857 |
|
|
|
117,295 |
|
|
|
198,192 |
|
|
|
222,713 |
|
Selling, general and administrative expenses |
|
72,357 |
|
|
|
80,136 |
|
|
|
147,308 |
|
|
|
153,929 |
|
Amortization of acquired intangible assets |
|
2,785 |
|
|
|
2,049 |
|
|
|
5,573 |
|
|
|
4,144 |
|
Productivity and transformation costs |
|
986 |
|
|
|
2,786 |
|
|
|
1,759 |
|
|
|
6,769 |
|
Long-lived asset impairment |
|
340 |
|
|
|
303 |
|
|
|
340 |
|
|
|
303 |
|
Operating
income |
|
27,389 |
|
|
|
32,021 |
|
|
|
43,212 |
|
|
|
57,568 |
|
Interest and other financing expense, net |
|
10,812 |
|
|
|
2,592 |
|
|
|
18,489 |
|
|
|
4,448 |
|
Other income, net |
|
(1,062 |
) |
|
|
(9,070 |
) |
|
|
(2,852 |
) |
|
|
(9,858 |
) |
Income
before income taxes and equity in net loss of equity-method
investees |
|
17,639 |
|
|
|
38,499 |
|
|
|
27,575 |
|
|
|
62,978 |
|
Provision for income taxes |
|
6,357 |
|
|
|
7,145 |
|
|
|
8,988 |
|
|
|
11,687 |
|
Equity in net loss of equity-method investees |
|
316 |
|
|
|
465 |
|
|
|
698 |
|
|
|
991 |
|
Net
income |
$ |
10,966 |
|
|
$ |
30,889 |
|
|
$ |
17,889 |
|
|
$ |
50,300 |
|
|
|
|
|
|
|
|
|
Net income
per common share: |
|
|
|
|
|
|
|
Basic |
$ |
0.12 |
|
|
$ |
0.33 |
|
|
$ |
0.20 |
|
|
$ |
0.53 |
|
Diluted |
$ |
0.12 |
|
|
$ |
0.33 |
|
|
$ |
0.20 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
Shares used in the calculation of net income per common share: |
|
|
|
|
|
|
Basic |
|
89,380 |
|
|
|
94,036 |
|
|
|
89,343 |
|
|
|
95,579 |
|
Diluted |
|
89,578 |
|
|
|
94,808 |
|
|
|
89,535 |
|
|
|
96,123 |
|
|
|
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. AND SUBSIDIARIES |
Consolidated
Balance Sheets |
(unaudited and in
thousands) |
|
|
|
|
|
December 31, 2022 |
|
June 30, 2022 |
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
43,437 |
|
|
$ |
65,512 |
|
Accounts receivable, net |
|
177,058 |
|
|
|
170,661 |
|
Inventories |
|
324,525 |
|
|
|
308,034 |
|
Prepaid expenses and other current assets |
|
58,781 |
|
|
|
54,079 |
|
Assets held for sale |
|
1,500 |
|
|
|
1,840 |
|
Total
current assets |
|
605,301 |
|
|
|
600,126 |
|
Property,
plant and equipment, net |
|
294,635 |
|
|
|
297,405 |
|
Goodwill |
|
927,078 |
|
|
|
933,796 |
|
Trademarks
and other intangible assets, net |
|
470,956 |
|
|
|
477,533 |
|
Investments
and joint ventures |
|
13,260 |
|
|
|
14,456 |
|
Operating
lease right-of-use assets, net |
|
101,374 |
|
|
|
114,691 |
|
Other
assets |
|
25,554 |
|
|
|
20,377 |
|
Total
assets |
$ |
2,438,158 |
|
|
$ |
2,458,384 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
153,677 |
|
|
$ |
174,765 |
|
Accrued expenses and other current liabilities |
|
85,168 |
|
|
|
86,833 |
|
Current portion of long-term debt |
|
7,602 |
|
|
|
7,705 |
|
Total
current liabilities |
|
246,447 |
|
|
|
269,303 |
|
Long-term
debt, less current portion |
|
870,800 |
|
|
|
880,938 |
|
Deferred
income taxes |
|
95,131 |
|
|
|
95,044 |
|
Operating
lease liabilities, noncurrent portion |
|
92,587 |
|
|
|
107,481 |
|
Other
noncurrent liabilities |
|
24,552 |
|
|
|
22,450 |
|
Total
liabilities |
|
1,329,517 |
|
|
|
1,375,216 |
|
Stockholders' equity: |
|
|
|
Common stock |
|
1,113 |
|
|
|
1,111 |
|
Additional paid-in capital |
|
1,210,555 |
|
|
|
1,203,126 |
|
Retained earnings |
|
786,987 |
|
|
|
769,098 |
|
Accumulated other comprehensive loss |
|
(163,346 |
) |
|
|
(164,482 |
) |
|
|
1,835,309 |
|
|
|
1,808,853 |
|
Less: Treasury stock |
|
(726,668 |
) |
|
|
(725,685 |
) |
Total
stockholders' equity |
|
1,108,641 |
|
|
|
1,083,168 |
|
Total
liabilities and stockholders' equity |
$ |
2,438,158 |
|
|
$ |
2,458,384 |
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. AND SUBSIDIARIES |
Consolidated
Statements of Cash Flows |
(unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
CASH FLOWS
FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
Net
income |
$ |
10,966 |
|
|
$ |
30,889 |
|
|
$ |
17,889 |
|
|
$ |
50,300 |
|
Adjustments
to reconcile net income to net cash provided by (used in) operating
activities |
|
|
|
|
|
|
|
Depreciation and amortization |
|
12,155 |
|
|
|
10,903 |
|
|
|
24,125 |
|
|
|
21,758 |
|
Deferred income taxes |
|
(486 |
) |
|
|
(1,166 |
) |
|
|
(1,983 |
) |
|
|
(3,271 |
) |
Equity in net loss of equity-method investees |
|
316 |
|
|
|
465 |
|
|
|
698 |
|
|
|
991 |
|
Stock-based compensation, net |
|
3,435 |
|
|
|
4,156 |
|
|
|
7,429 |
|
|
|
8,443 |
|
Long-lived asset impairment |
|
340 |
|
|
|
303 |
|
|
|
340 |
|
|
|
303 |
|
Gain on sale of assets |
|
(3,335 |
) |
|
|
(8,645 |
) |
|
|
(3,395 |
) |
|
|
(8,921 |
) |
Other non-cash items, net |
|
(1,048 |
) |
|
|
(393 |
) |
|
|
(2,505 |
) |
|
|
(1,486 |
) |
Increase
(decrease) in cash attributable to changes in operating assets and
liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
3,053 |
|
|
|
21,813 |
|
|
|
(6,536 |
) |
|
|
12,370 |
|
Inventories |
|
(1,722 |
) |
|
|
196 |
|
|
|
(18,629 |
) |
|
|
2,473 |
|
Other current assets |
|
(2,872 |
) |
|
|
(6,026 |
) |
|
|
(331 |
) |
|
|
(5,126 |
) |
Other assets and liabilities |
|
2,830 |
|
|
|
3,342 |
|
|
|
4,178 |
|
|
|
1,776 |
|
Accounts payable and accrued expenses |
|
(21,168 |
) |
|
|
(25,392 |
) |
|
|
(23,932 |
) |
|
|
(11,579 |
) |
Net cash
provided by (used in) operating activities |
|
2,464 |
|
|
|
30,445 |
|
|
|
(2,652 |
) |
|
|
68,031 |
|
CASH FLOWS
FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(6,840 |
) |
|
|
(10,186 |
) |
|
|
(14,055 |
) |
|
|
(27,996 |
) |
Acquisitions of businesses, net of cash acquired |
|
- |
|
|
|
(254,569 |
) |
|
|
- |
|
|
|
(254,569 |
) |
Investments and joint ventures, net |
|
242 |
|
|
|
(106 |
) |
|
|
433 |
|
|
|
(514 |
) |
Proceeds from sale of assets |
|
7,512 |
|
|
|
10,570 |
|
|
|
7,608 |
|
|
|
10,734 |
|
Net cash
provided by (used in) investing activities |
|
914 |
|
|
|
(254,291 |
) |
|
|
(6,014 |
) |
|
|
(272,345 |
) |
CASH FLOWS
FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
Borrowings under bank revolving credit facility |
|
105,000 |
|
|
|
420,000 |
|
|
|
185,000 |
|
|
|
540,000 |
|
Repayments under bank revolving credit facility |
|
(124,875 |
) |
|
|
(325,000 |
) |
|
|
(194,750 |
) |
|
|
(330,000 |
) |
Borrowings under term loan |
|
- |
|
|
|
300,000 |
|
|
|
- |
|
|
|
300,000 |
|
Payments of other debt, net |
|
(87 |
) |
|
|
(2,948 |
) |
|
|
(159 |
) |
|
|
(3,185 |
) |
Share repurchases |
|
- |
|
|
|
(89,830 |
) |
|
|
- |
|
|
|
(266,933 |
) |
Employee shares withheld for taxes |
|
(754 |
) |
|
|
(29,858 |
) |
|
|
(983 |
) |
|
|
(31,033 |
) |
Net cash
(used in) provided by financing activities |
|
(20,716 |
) |
|
|
272,364 |
|
|
|
(10,892 |
) |
|
|
208,849 |
|
Effect of exchange rate changes on cash |
|
8,981 |
|
|
|
(278 |
) |
|
|
(2,517 |
) |
|
|
(3,204 |
) |
Net (decrease) increase in cash and cash equivalents |
|
(8,357 |
) |
|
|
48,240 |
|
|
|
(22,075 |
) |
|
|
1,331 |
|
Cash and
cash equivalents at beginning of period |
|
51,794 |
|
|
|
28,962 |
|
|
|
65,512 |
|
|
|
75,871 |
|
Cash and
cash equivalents at end of period |
$ |
43,437 |
|
|
$ |
77,202 |
|
|
$ |
43,437 |
|
|
$ |
77,202 |
|
|
|
|
|
|
|
|
|
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 - Q2 FY23 |
$ |
282,361 |
|
|
$ |
171,847 |
|
|
$ |
- |
|
|
$ |
454,208 |
|
Net sales -
Q2 FY22 |
$ |
275,014 |
|
|
$ |
201,927 |
|
|
$ |
- |
|
|
$ |
476,941 |
|
% change -
FY23 net sales vs. FY22 net sales |
|
2.7 |
% |
|
|
(14.9 |
)% |
|
|
|
|
(4.8 |
)% |
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
Q2 FY23 |
|
|
|
|
|
|
|
Gross
profit |
$ |
71,127 |
|
|
$ |
32,730 |
|
|
$ |
- |
|
|
$ |
103,857 |
|
Non-GAAP adjustments(1) |
|
22 |
|
|
|
(6 |
) |
|
|
- |
|
|
|
16 |
|
Adjusted
gross profit |
$ |
71,149 |
|
|
$ |
32,724 |
|
|
$ |
- |
|
|
$ |
103,873 |
|
% change -
FY23 gross profit vs. FY22 gross profit |
|
5.0 |
% |
|
|
(34.0 |
)% |
|
|
|
|
(11.5 |
)% |
% change -
FY23 adjusted gross profit vs. FY22 adjusted gross profit |
|
4.8 |
% |
|
|
(33.8 |
)% |
|
|
|
|
(11.5 |
)% |
Gross
margin |
|
25.2 |
% |
|
|
19.0 |
% |
|
|
|
|
22.9 |
% |
Adjusted
gross margin |
|
25.2 |
% |
|
|
19.0 |
% |
|
|
|
|
22.9 |
% |
|
|
|
|
|
|
|
|
Q2 FY22 |
|
|
|
|
|
|
|
Gross
profit |
$ |
67,721 |
|
|
$ |
49,574 |
|
|
$ |
- |
|
|
$ |
117,295 |
|
Non-GAAP adjustments(1) |
|
183 |
|
|
|
(168 |
) |
|
|
- |
|
|
|
15 |
|
Adjusted
gross profit |
$ |
67,904 |
|
|
$ |
49,406 |
|
|
$ |
- |
|
|
$ |
117,310 |
|
Gross
margin |
|
24.6 |
% |
|
|
24.6 |
% |
|
|
|
|
24.6 |
% |
Adjusted
gross margin |
|
24.7 |
% |
|
|
24.5 |
% |
|
|
|
|
24.6 |
% |
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
Q2 FY23 |
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
32,262 |
|
|
$ |
11,940 |
|
|
$ |
(16,813 |
) |
|
$ |
27,389 |
|
Non-GAAP adjustments(1) |
|
75 |
|
|
|
525 |
|
|
|
7,363 |
|
|
|
7,963 |
|
Adjusted
operating income (loss) |
$ |
32,337 |
|
|
$ |
12,465 |
|
|
$ |
(9,450 |
) |
|
$ |
35,352 |
|
% change -
FY23 operating income (loss) vs. FY22 operating income (loss) |
|
18.8 |
% |
|
|
(56.4 |
)% |
|
|
(25.3 |
)% |
|
|
(14.5 |
)% |
% change -
FY23 adjusted operating income (loss) vs. FY22 adjusted operating
income (loss) |
|
11.6 |
% |
|
|
(55.1 |
)% |
|
|
(14.2 |
)% |
|
|
(22.7 |
)% |
Operating
income margin |
|
11.4 |
% |
|
|
6.9 |
% |
|
|
|
|
6.0 |
% |
Adjusted
operating income margin |
|
11.5 |
% |
|
|
7.3 |
% |
|
|
|
|
7.8 |
% |
|
|
|
|
|
|
|
|
Q2 FY22 |
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
27,162 |
|
|
$ |
27,368 |
|
|
$ |
(22,509 |
) |
|
$ |
32,021 |
|
Non-GAAP adjustments(1) |
|
1,802 |
|
|
|
396 |
|
|
|
11,498 |
|
|
|
13,696 |
|
Adjusted
operating income (loss) |
$ |
28,964 |
|
|
$ |
27,764 |
|
|
$ |
(11,011 |
) |
|
$ |
45,717 |
|
Operating
income margin |
|
9.9 |
% |
|
|
13.6 |
% |
|
|
|
|
6.7 |
% |
Adjusted
operating income margin |
|
10.5 |
% |
|
|
13.7 |
% |
|
|
|
|
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 |
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 - Q2 FY23 YTD |
$ |
570,757 |
|
|
$ |
322,802 |
|
|
$ |
- |
|
|
$ |
893,559 |
|
Net sales -
Q2 FY22 YTD |
$ |
540,539 |
|
|
$ |
391,305 |
|
|
$ |
- |
|
|
$ |
931,844 |
|
% change -
FY23 net sales vs. FY22 net sales |
|
5.6 |
% |
|
|
(17.5 |
)% |
|
|
|
|
(4.1 |
)% |
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
Q2 FY23
YTD |
|
|
|
|
|
|
|
Gross
profit |
$ |
136,662 |
|
|
$ |
61,530 |
|
|
$ |
- |
|
|
$ |
198,192 |
|
Non-GAAP adjustments(1) |
|
52 |
|
|
|
- |
|
|
|
- |
|
|
|
52 |
|
Adjusted
gross profit |
$ |
136,714 |
|
|
$ |
61,530 |
|
|
$ |
- |
|
|
$ |
198,244 |
|
% change -
FY23 gross profit vs. FY22 gross profit |
|
9.7 |
% |
|
|
(37.3 |
)% |
|
|
|
|
(11.0 |
)% |
% change -
FY23 adjusted gross profit vs. FY22 adjusted gross profit |
|
7.5 |
% |
|
|
(37.8 |
)% |
|
|
|
|
(12.3 |
)% |
Gross
margin |
|
23.9 |
% |
|
|
19.1 |
% |
|
|
|
|
22.2 |
% |
Adjusted
gross margin |
|
24.0 |
% |
|
|
19.1 |
% |
|
|
|
|
22.2 |
% |
|
|
|
|
|
|
|
|
Q2 FY22
YTD |
|
|
|
|
|
|
|
Gross
profit |
$ |
124,530 |
|
|
$ |
98,183 |
|
|
$ |
- |
|
|
$ |
222,713 |
|
Non-GAAP adjustments(1) |
|
2,593 |
|
|
|
707 |
|
|
|
- |
|
|
|
3,300 |
|
Adjusted
gross profit |
$ |
127,123 |
|
|
$ |
98,890 |
|
|
$ |
- |
|
|
$ |
226,013 |
|
Gross
margin |
|
23.0 |
% |
|
|
25.1 |
% |
|
|
|
|
23.9 |
% |
Adjusted
gross margin |
|
23.5 |
% |
|
|
25.3 |
% |
|
|
|
|
24.3 |
% |
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
Q2 FY23
YTD |
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
56,707 |
|
|
$ |
19,615 |
|
|
$ |
(33,110 |
) |
|
$ |
43,212 |
|
Non-GAAP adjustments(1) |
|
411 |
|
|
|
852 |
|
|
|
11,301 |
|
|
|
12,564 |
|
Adjusted
operating income (loss) |
$ |
57,118 |
|
|
$ |
20,467 |
|
|
$ |
(21,809 |
) |
|
$ |
55,776 |
|
% change -
FY23 operating income (loss) vs. FY22 operating income (loss) |
|
28.9 |
% |
|
|
(61.9 |
)% |
|
|
(12.6 |
)% |
|
|
(24.9 |
)% |
% change -
FY23 adjusted operating income (loss) vs. FY22 adjusted operating
income (loss) |
|
15.4 |
% |
|
|
(61.4 |
)% |
|
|
(2.9 |
)% |
|
|
(30.3 |
)% |
Operating
income margin |
|
9.9 |
% |
|
|
6.1 |
% |
|
|
|
|
4.8 |
% |
Adjusted
operating income margin |
|
10.0 |
% |
|
|
6.3 |
% |
|
|
|
|
6.2 |
% |
|
|
|
|
|
|
|
|
Q2 FY22
YTD |
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
44,004 |
|
|
$ |
51,437 |
|
|
$ |
(37,873 |
) |
|
$ |
57,568 |
|
Non-GAAP adjustments(1) |
|
5,497 |
|
|
|
1,572 |
|
|
|
15,424 |
|
|
|
22,493 |
|
Adjusted
operating income (loss) |
$ |
49,501 |
|
|
$ |
53,009 |
|
|
$ |
(22,449 |
) |
|
$ |
80,061 |
|
Operating
income margin |
|
8.1 |
% |
|
|
13.1 |
% |
|
|
|
|
6.2 |
% |
Adjusted
operating income margin |
|
9.2 |
% |
|
|
13.5 |
% |
|
|
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
Reconciliation of Gross Profit, GAAP to Gross Profit, as
Adjusted: |
|
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Gross
profit, GAAP |
$ |
103,857 |
|
|
$ |
117,295 |
|
|
$ |
198,192 |
|
|
$ |
222,713 |
|
Adjustments to Cost of sales: |
|
|
|
|
|
|
|
Inventory write-down |
|
- |
|
|
|
(46 |
) |
|
|
- |
|
|
|
(46 |
) |
Plant closure related costs, net |
|
16 |
|
|
|
(188 |
) |
|
|
52 |
|
|
|
808 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
- |
|
|
|
249 |
|
|
|
- |
|
|
|
2,538 |
|
Gross
profit, as adjusted |
$ |
103,873 |
|
|
$ |
117,310 |
|
|
$ |
198,244 |
|
|
$ |
226,013 |
|
|
|
|
|
|
|
|
|
Reconciliation of Operating Income, GAAP to Operating Income, as
Adjusted: |
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Operating
income, GAAP |
$ |
27,389 |
|
|
$ |
32,021 |
|
|
$ |
43,212 |
|
|
$ |
57,568 |
|
Adjustments to Cost of sales: |
|
|
|
|
|
|
|
Inventory write-down |
|
- |
|
|
|
(46 |
) |
|
|
- |
|
|
|
(46 |
) |
Plant closure related costs, net |
|
16 |
|
|
|
(188 |
) |
|
|
52 |
|
|
|
808 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
- |
|
|
|
249 |
|
|
|
- |
|
|
|
2,538 |
|
|
|
|
|
|
|
|
|
Adjustments to Operating expenses(a): |
|
|
|
|
|
|
|
CEO succession |
|
5,113 |
|
|
|
- |
|
|
|
5,113 |
|
|
|
- |
|
Transaction and integration costs, net |
|
402 |
|
|
|
8,963 |
|
|
|
1,769 |
|
|
|
8,732 |
|
Certain litigation expenses, net(b) |
|
2,482 |
|
|
|
1,624 |
|
|
|
4,945 |
|
|
|
3,384 |
|
Long-lived asset impairment |
|
340 |
|
|
|
303 |
|
|
|
340 |
|
|
|
303 |
|
Plant closure related costs, net |
|
37 |
|
|
|
5 |
|
|
|
(1 |
) |
|
|
5 |
|
Productivity and transformation costs |
|
986 |
|
|
|
2,786 |
|
|
|
1,759 |
|
|
|
6,769 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
(1,413 |
) |
|
|
- |
|
|
|
(1,413 |
) |
|
|
- |
|
Operating
income, as adjusted |
$ |
35,352 |
|
|
$ |
45,717 |
|
|
$ |
55,776 |
|
|
$ |
80,061 |
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income, GAAP to Net Income, as Adjusted: |
|
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income,
GAAP |
$ |
10,966 |
|
|
$ |
30,889 |
|
|
$ |
17,889 |
|
|
$ |
50,300 |
|
Adjustments to Cost of sales: |
|
|
|
|
|
|
|
Inventory write-down |
|
- |
|
|
|
(46 |
) |
|
|
- |
|
|
|
(46 |
) |
Plant closure related costs, net |
|
16 |
|
|
|
(188 |
) |
|
|
52 |
|
|
|
808 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
- |
|
|
|
249 |
|
|
|
- |
|
|
|
2,538 |
|
|
|
|
|
|
|
|
|
Adjustments to Operating expenses(a): |
|
|
|
|
|
|
|
CEO succession |
|
5,113 |
|
|
|
- |
|
|
|
5,113 |
|
|
|
- |
|
Transaction and integration costs, net |
|
402 |
|
|
|
8,963 |
|
|
|
1,769 |
|
|
|
8,732 |
|
Certain litigation expenses, net(b) |
|
2,482 |
|
|
|
1,624 |
|
|
|
4,945 |
|
|
|
3,384 |
|
Long-lived asset impairment |
|
340 |
|
|
|
303 |
|
|
|
340 |
|
|
|
303 |
|
Plant closure related costs, net |
|
37 |
|
|
|
5 |
|
|
|
(1 |
) |
|
|
5 |
|
Productivity and transformation costs |
|
986 |
|
|
|
2,786 |
|
|
|
1,759 |
|
|
|
6,769 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
(1,413 |
) |
|
|
- |
|
|
|
(1,413 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
Adjustments to Interest and other expense (income), net(c): |
|
|
|
|
|
|
|
Gain on sale of assets |
|
(3,355 |
) |
|
|
(8,656 |
) |
|
|
(3,395 |
) |
|
|
(9,102 |
) |
Unrealized currency losses (gains) |
|
2,160 |
|
|
|
(480 |
) |
|
|
449 |
|
|
|
(1,503 |
) |
|
|
|
|
|
|
|
|
Adjustments to Provision for income taxes: |
|
|
|
|
|
|
|
Net tax impact of non-GAAP adjustments |
|
526 |
|
|
|
(1,110 |
) |
|
|
(20 |
) |
|
|
(4,020 |
) |
Net income,
as adjusted |
$ |
18,260 |
|
|
$ |
34,339 |
|
|
$ |
27,487 |
|
|
$ |
58,168 |
|
Net income
margin |
|
2.4 |
% |
|
|
6.5 |
% |
|
|
2.0 |
% |
|
|
5.4 |
% |
Adjusted net
income margin |
|
4.0 |
% |
|
|
7.2 |
% |
|
|
3.1 |
% |
|
|
6.2 |
% |
|
|
|
|
|
|
|
|
Diluted
shares used in the calculation of net income per common share: |
|
89,578 |
|
|
|
94,808 |
|
|
|
89,535 |
|
|
|
96,123 |
|
|
|
|
|
|
|
|
|
Diluted net
income per common share, GAAP |
$ |
0.12 |
|
|
$ |
0.33 |
|
|
$ |
0.20 |
|
|
$ |
0.52 |
|
Diluted net
income per common share, as adjusted |
$ |
0.20 |
|
|
$ |
0.36 |
|
|
$ |
0.31 |
|
|
$ |
0.61 |
|
|
|
|
|
|
|
|
|
(a) Operating
expenses include amortization of acquired intangibles, selling,
general and administrative expenses, long-lived asset impairment
and productivity and transformation costs. |
(b) Expenses and items relating to securities class action and
baby food litigation. |
|
|
|
|
|
|
(c) Interest and
other expense (income), net includes interest and other financing
expenses, net, unrealized currency losses (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) |
|
|
|
|
|
|
Q2
FY23 |
North America |
|
International |
|
Hain Consolidated |
Net sales |
$ |
282,361 |
|
|
$ |
171,847 |
|
|
$ |
454,208 |
|
Acquisitions, divestitures and discontinued brands |
|
(16,849 |
) |
|
|
- |
|
|
|
(16,849 |
) |
Impact of foreign currency exchange |
|
2,075 |
|
|
|
23,720 |
|
|
|
25,795 |
|
Net sales on
a constant currency basis adjusted for acquisitions, divestitures
and discontinued brands |
$ |
267,587 |
|
|
$ |
195,567 |
|
|
$ |
463,154 |
|
|
|
|
|
|
|
Q2
FY22 |
|
|
|
|
|
Net
sales |
$ |
275,014 |
|
|
$ |
201,927 |
|
|
$ |
476,941 |
|
Acquisitions, divestitures and discontinued brands |
|
(2,280 |
) |
|
|
- |
|
|
|
(2,280 |
) |
Net sales
adjusted for acquisitions, divestitures and discontinued
brands |
$ |
272,734 |
|
|
$ |
201,927 |
|
|
$ |
474,661 |
|
|
|
|
|
|
|
Net sales
growth (decline) |
|
2.7 |
% |
|
|
(14.9 |
)% |
|
|
(4.8 |
)% |
Impact of acquisitions, divestitures and discontinued brands |
|
(5.4 |
)% |
|
|
- |
|
|
|
(3.0 |
)% |
Impact of foreign currency exchange |
|
0.8 |
% |
|
|
11.7 |
% |
|
|
5.4 |
% |
Net sales
decline on a constant currency basis adjusted for acquisitions,
divestitures and discontinued brands |
|
(1.9 |
)% |
|
|
(3.2 |
)% |
|
|
(2.4 |
)% |
|
|
|
|
|
|
Q2
FY23 YTD |
North America |
|
International |
|
Hain Consolidated |
Net
sales |
$ |
570,757 |
|
|
$ |
322,802 |
|
|
$ |
893,559 |
|
Acquisitions, divestitures and discontinued brands |
|
(34,499 |
) |
|
|
- |
|
|
|
(34,499 |
) |
Impact of foreign currency exchange |
|
3,143 |
|
|
|
49,506 |
|
|
|
52,649 |
|
Net sales on
a constant currency basis adjusted for acquisitions, divestitures
and discontinued brands |
$ |
539,401 |
|
|
$ |
372,308 |
|
|
$ |
911,709 |
|
|
|
|
|
|
|
Q2
FY22 YTD |
|
|
|
|
|
Net
sales |
$ |
540,539 |
|
|
$ |
391,305 |
|
|
$ |
931,844 |
|
Acquisitions, divestitures and discontinued brands |
|
(4,832 |
) |
|
|
- |
|
|
|
(4,832 |
) |
Net sales
adjusted for acquisitions, divestitures and discontinued
brands |
$ |
535,707 |
|
|
$ |
391,305 |
|
|
$ |
927,012 |
|
|
|
|
|
|
|
Net sales
growth (decline) |
|
5.6 |
% |
|
|
(17.5 |
)% |
|
|
(4.1 |
)% |
Impact of acquisitions, divestitures and discontinued brands |
|
(5.5 |
)% |
|
|
- |
|
|
|
(3.2 |
)% |
Impact of foreign currency exchange |
|
0.6 |
% |
|
|
12.7 |
% |
|
|
5.6 |
% |
Net sales
growth (decline) on a constant currency basis adjusted for
acquisitions, divestitures and discontinued brands |
|
0.7 |
% |
|
|
(4.8 |
)% |
|
|
(1.7 |
)% |
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. AND SUBSIDIARIES |
Adjusted
EBITDA |
(unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
10,966 |
|
|
$ |
30,889 |
|
|
$ |
17,889 |
|
|
$ |
50,300 |
|
|
|
|
|
|
|
|
|
Depreciation
and amortization |
|
12,155 |
|
|
|
10,903 |
|
|
|
24,125 |
|
|
|
21,758 |
|
Equity in
net loss of equity-method investees |
|
316 |
|
|
|
465 |
|
|
|
698 |
|
|
|
991 |
|
Interest
expense, net |
|
10,379 |
|
|
|
1,685 |
|
|
|
17,658 |
|
|
|
2,831 |
|
Provision
for income taxes |
|
6,357 |
|
|
|
7,145 |
|
|
|
8,988 |
|
|
|
11,687 |
|
Stock-based
compensation, net |
|
3,435 |
|
|
|
4,156 |
|
|
|
7,429 |
|
|
|
8,443 |
|
Unrealized
currency losses (gains) |
|
2,160 |
|
|
|
(480 |
) |
|
|
449 |
|
|
|
(1,503 |
) |
Litigation
and related costs |
|
|
|
|
|
|
|
Certain litigation expenses, net(a) |
|
2,482 |
|
|
|
1,624 |
|
|
|
4,945 |
|
|
|
3,384 |
|
Restructuring activities |
|
|
|
|
|
|
|
CEO succession |
|
5,113 |
|
|
|
- |
|
|
|
5,113 |
|
|
|
- |
|
Plant closure related costs, net |
|
53 |
|
|
|
(183 |
) |
|
|
51 |
|
|
|
813 |
|
Productivity and transformation costs |
|
986 |
|
|
|
2,247 |
|
|
|
1,759 |
|
|
|
5,451 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
(1,972 |
) |
|
|
249 |
|
|
|
(1,972 |
) |
|
|
2,538 |
|
Acquisitions, divestitures and other |
|
|
|
|
|
|
|
Transaction and integration costs, net |
|
402 |
|
|
|
8,963 |
|
|
|
1,769 |
|
|
|
8,732 |
|
Gain on sale of assets |
|
(3,355 |
) |
|
|
(8,656 |
) |
|
|
(3,395 |
) |
|
|
(9,102 |
) |
Impairment
charges |
|
|
|
|
|
|
|
Inventory write-down |
|
- |
|
|
|
(46 |
) |
|
|
- |
|
|
|
(46 |
) |
Long-lived asset impairment |
|
340 |
|
|
|
303 |
|
|
|
340 |
|
|
|
303 |
|
Adjusted
EBITDA |
$ |
49,817 |
|
|
$ |
59,264 |
|
|
$ |
85,846 |
|
|
$ |
106,580 |
|
|
|
|
|
|
|
|
|
(a) Expenses and items relating to securities class action and
baby food litigation. |
|
|
|
|
|
|
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. AND SUBSIDIARIES |
Adjusted
EBITDA by Segment |
(unaudited and in
thousands) |
|
|
|
|
|
|
|
|
Q2
FY23 |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating income (loss) |
$ |
32,262 |
|
|
$ |
11,940 |
|
|
$ |
(16,813 |
) |
|
$ |
27,389 |
|
Depreciation and amortization |
|
4,803 |
|
|
|
6,300 |
|
|
|
1,052 |
|
|
|
12,155 |
|
Stock-based compensation, net |
|
1,273 |
|
|
|
773 |
|
|
|
1,389 |
|
|
|
3,435 |
|
Certain litigation expenses, net(a) |
|
- |
|
|
|
- |
|
|
|
2,482 |
|
|
|
2,482 |
|
CEO succession |
|
- |
|
|
|
- |
|
|
|
5,113 |
|
|
|
5,113 |
|
Plant closure related costs, net |
|
58 |
|
|
|
(5 |
) |
|
|
- |
|
|
|
53 |
|
Productivity and transformation costs |
|
29 |
|
|
|
521 |
|
|
|
436 |
|
|
|
986 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
- |
|
|
|
- |
|
|
|
(1,972 |
) |
|
|
(1,972 |
) |
Transaction and integration costs, net |
|
(11 |
) |
|
|
9 |
|
|
|
404 |
|
|
|
402 |
|
Long-lived asset impairment |
|
- |
|
|
|
- |
|
|
|
340 |
|
|
|
340 |
|
Other |
|
96 |
|
|
|
(296 |
) |
|
|
(366 |
) |
|
|
(566 |
) |
Adjusted
EBITDA |
$ |
38,510 |
|
|
$ |
19,242 |
|
|
$ |
(7,935 |
) |
|
$ |
49,817 |
|
|
|
|
|
|
|
|
|
Q2
FY22 |
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
27,162 |
|
|
$ |
27,368 |
|
|
$ |
(22,509 |
) |
|
$ |
32,021 |
|
Depreciation and amortization |
|
3,654 |
|
|
|
6,295 |
|
|
|
954 |
|
|
|
10,903 |
|
Stock-based compensation, net |
|
778 |
|
|
|
346 |
|
|
|
3,032 |
|
|
|
4,156 |
|
Certain litigation expenses, net(a) |
|
- |
|
|
|
- |
|
|
|
1,624 |
|
|
|
1,624 |
|
Plant closure related costs |
|
122 |
|
|
|
(305 |
) |
|
|
- |
|
|
|
(183 |
) |
Productivity and transformation costs |
|
1,577 |
|
|
|
255 |
|
|
|
415 |
|
|
|
2,247 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
106 |
|
|
|
143 |
|
|
|
- |
|
|
|
249 |
|
Transaction and integration costs, net |
|
43 |
|
|
|
- |
|
|
|
8,920 |
|
|
|
8,963 |
|
Inventory write-down |
|
(46 |
) |
|
|
- |
|
|
|
- |
|
|
|
(46 |
) |
Long-lived asset impairment |
|
- |
|
|
|
303 |
|
|
|
- |
|
|
|
303 |
|
Other |
|
(59 |
) |
|
|
(106 |
) |
|
|
(808 |
) |
|
|
(973 |
) |
Adjusted
EBITDA |
$ |
33,337 |
|
|
$ |
34,299 |
|
|
$ |
(8,372 |
) |
|
$ |
59,264 |
|
|
|
|
|
|
|
|
|
(a) Expenses and items relating to securities class action and
baby food litigation. |
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. AND SUBSIDIARIES |
Adjusted
EBITDA by Segment |
(unaudited and in
thousands) |
|
|
|
|
|
|
|
|
Q2
FY23 YTD |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating income (loss) |
$ |
56,707 |
|
|
$ |
19,615 |
|
|
$ |
(33,110 |
) |
|
$ |
43,212 |
|
Depreciation and amortization |
|
9,695 |
|
|
|
12,895 |
|
|
|
1,535 |
|
|
|
24,125 |
|
Stock-based compensation, net |
|
2,356 |
|
|
|
1,164 |
|
|
|
3,909 |
|
|
|
7,429 |
|
Certain litigation expenses, net(a) |
|
- |
|
|
|
- |
|
|
|
4,945 |
|
|
|
4,945 |
|
CEO succession |
|
- |
|
|
|
- |
|
|
|
5,113 |
|
|
|
5,113 |
|
Plant closure related costs, net |
|
53 |
|
|
|
(2 |
) |
|
|
- |
|
|
|
51 |
|
Productivity and transformation costs |
|
370 |
|
|
|
859 |
|
|
|
530 |
|
|
|
1,759 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
- |
|
|
|
- |
|
|
|
(1,972 |
) |
|
|
(1,972 |
) |
Transaction and integration costs, net |
|
(11 |
) |
|
|
(6 |
) |
|
|
1,786 |
|
|
|
1,769 |
|
Long-lived asset impairment |
|
- |
|
|
|
- |
|
|
|
340 |
|
|
|
340 |
|
Other |
|
121 |
|
|
|
(336 |
) |
|
|
(710 |
) |
|
|
(925 |
) |
Adjusted
EBITDA |
$ |
69,291 |
|
|
$ |
34,189 |
|
|
$ |
(17,634 |
) |
|
$ |
85,846 |
|
|
|
|
|
|
|
|
|
Q2
FY22 YTD |
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
44,004 |
|
|
$ |
51,437 |
|
|
$ |
(37,873 |
) |
|
$ |
57,568 |
|
Depreciation and amortization |
|
7,396 |
|
|
|
12,705 |
|
|
|
1,657 |
|
|
|
21,758 |
|
Stock-based compensation, net |
|
1,414 |
|
|
|
1,067 |
|
|
|
5,962 |
|
|
|
8,443 |
|
Certain litigation expenses, net(a) |
|
- |
|
|
|
- |
|
|
|
3,384 |
|
|
|
3,384 |
|
Plant closure related costs, net |
|
1,118 |
|
|
|
(305 |
) |
|
|
- |
|
|
|
813 |
|
Productivity and transformation costs |
|
3,202 |
|
|
|
554 |
|
|
|
1,695 |
|
|
|
5,451 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
1,519 |
|
|
|
1,019 |
|
|
|
- |
|
|
|
2,538 |
|
Transaction and integration costs, net |
|
(298 |
) |
|
|
- |
|
|
|
9,030 |
|
|
|
8,732 |
|
Inventory write-down |
|
(46 |
) |
|
|
- |
|
|
|
- |
|
|
|
(46 |
) |
Long-lived asset impairment |
|
- |
|
|
|
303 |
|
|
|
- |
|
|
|
303 |
|
Other |
|
(870 |
) |
|
|
(47 |
) |
|
|
(1,447 |
) |
|
|
(2,364 |
) |
Adjusted
EBITDA |
$ |
57,439 |
|
|
$ |
66,733 |
|
|
$ |
(17,592 |
) |
|
$ |
106,580 |
|
|
|
|
|
|
|
|
|
(a) Expenses and items relating to securities class action and
baby food litigation. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. AND SUBSIDIARIES |
Adjusted
EBITDA and Adjusted EBITDA Margin at Constant Currency by
Segment |
(unaudited and in
thousands) |
|
|
|
|
|
|
|
|
Q2
FY23 |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Adjusted EBITDA |
$ |
38,510 |
|
|
$ |
19,242 |
|
|
$ |
(7,935 |
) |
|
$ |
49,817 |
|
Impact of foreign currency exchange |
|
283 |
|
|
|
2,626 |
|
|
|
- |
|
|
|
2,909 |
|
Adjusted
EBITDA on a constant currency basis |
$ |
38,793 |
|
|
$ |
21,868 |
|
|
$ |
(7,935 |
) |
|
$ |
52,726 |
|
|
|
|
|
|
|
|
|
Net sales on
a constant currency basis |
$ |
284,436 |
|
|
$ |
195,567 |
|
|
|
|
$ |
480,003 |
|
Adjusted
EBITDA margin on a constant currency basis |
|
13.6 |
% |
|
|
11.2 |
% |
|
|
|
|
11.0 |
% |
|
|
|
|
|
|
|
|
Q2
FY22 |
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
33,337 |
|
|
$ |
34,299 |
|
|
$ |
(8,372 |
) |
|
$ |
59,264 |
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
275,014 |
|
|
$ |
201,927 |
|
|
|
|
$ |
476,941 |
|
Adjusted
EBITDA margin |
|
12.1 |
% |
|
|
17.0 |
% |
|
|
|
|
12.4 |
% |
|
|
|
|
|
|
|
|
Q2
FY23 vs. Q2 FY22 |
|
|
|
|
|
|
|
Adjusted
EBITDA growth on a constant currency basis (%) |
|
16.4 |
% |
|
|
(36.2 |
)% |
|
|
5.2 |
% |
|
|
(11.0 |
)% |
|
|
|
|
|
|
|
|
Adjusted
EBITDA margin change on a constant currency basis (bps) |
|
152 |
|
|
|
(580 |
) |
|
|
|
|
(144 |
) |
|
|
|
|
|
|
|
|
Q2
FY23 YTD |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Adjusted
EBITDA |
$ |
69,291 |
|
|
$ |
34,189 |
|
|
$ |
(17,634 |
) |
|
$ |
85,846 |
|
Impact of foreign currency exchange |
|
363 |
|
|
|
5,164 |
|
|
|
- |
|
|
|
5,527 |
|
Adjusted
EBITDA on a constant currency basis |
$ |
69,654 |
|
|
$ |
39,353 |
|
|
$ |
(17,634 |
) |
|
$ |
91,373 |
|
|
|
|
|
|
|
|
|
Net sales on
a constant currency basis |
$ |
573,900 |
|
|
$ |
372,308 |
|
|
|
|
$ |
946,208 |
|
Adjusted
EBITDA margin on a constant currency basis |
|
12.1 |
% |
|
|
10.6 |
% |
|
|
|
|
9.7 |
% |
|
|
|
|
|
|
|
|
Q2
FY22 YTD |
|
|
|
|
|
|
|
Adjusted
EBITDA |
$ |
57,439 |
|
|
$ |
66,733 |
|
|
$ |
(17,592 |
) |
|
$ |
106,580 |
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
540,539 |
|
|
$ |
391,305 |
|
|
|
|
$ |
931,844 |
|
Adjusted
EBITDA margin |
|
10.6 |
% |
|
|
17.1 |
% |
|
|
|
|
11.4 |
% |
|
|
|
|
|
|
|
|
Q2
FY23 YTD vs. Q2 FY22 YTD |
|
|
|
|
|
|
|
Adjusted
EBITDA growth on a constant currency basis (%) |
|
21.3 |
% |
|
|
(41.0 |
)% |
|
|
(0.2 |
)% |
|
|
(14.3 |
)% |
|
|
|
|
|
|
|
|
Adjusted
EBITDA margin change on a constant currency basis (bps) |
|
151 |
|
|
|
(648 |
) |
|
|
|
|
(178 |
) |
|
|
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. AND SUBSIDIARIES |
Operating
Free Cash Flows |
(unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net cash
provided by (used in) operating activities |
$ |
2,464 |
|
|
$ |
30,445 |
|
|
$ |
(2,652 |
) |
|
$ |
68,031 |
|
Purchases of property, plant and equipment |
|
(6,840 |
) |
|
|
(10,186 |
) |
|
|
(14,055 |
) |
|
|
(27,996 |
) |
Operating
free cash flows |
$ |
(4,376 |
) |
|
$ |
20,259 |
|
|
$ |
(16,707 |
) |
|
$ |
40,035 |
|
|
|
|
|
|
|
|
|
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