The Hain Celestial Group, Inc. (Nasdaq: HAIN) (“Hain Celestial” or
the “Company”), a leading global organic and natural products
company providing consumers with A Healthier Way of Life®, today
reported financial results for the third quarter ended March 31,
2023.
Wendy Davidson, Hain Celestial President and
Chief Executive Officer, said, “Hain has undergone a significant
transformation over the past four years, and we’re continuing to
design an operating model that will enable sustainable scalability
and growth for the future. We’ve simplified our portfolio of
brands—many of which are number one or number two in their
categories—to provide the focus needed to reach their full
potential. We have taken meaningful actions to enhance and build
capabilities that are already driving operating improvement and
efficiencies, especially within supply chain and service levels.
And we’ve begun reinvesting in brand building to regain momentum
and share.”
Chris Bellairs, Hain Celestial Chief Financial
Officer, added, “While our Q3 results were weaker than expected,
mainly driven by topline performance in our North America business,
we saw strong double-digit growth among our Greek Gods® yogurt and
Earth’s Best® brands in the U.S., and our International business
continues to stabilize and improve in better-for-you snacking and
non-dairy beverage.”
Ms. Davidson continued, “I remain confident in
the long-term potential of our business and want to thank the team
for their continued passion and dedication as we fuel our future
for sustainable growth and maintain our position as a leading
organic and natural company.”
FINANCIAL HIGHLIGHTS*Summary of
Third Quarter Results Compared to the Prior Year Period
- Net sales decreased 9% to $455.2
million compared to the prior year period.
- When adjusted for foreign exchange,
acquisitions, divestitures and discontinued brands, net sales
decreased 6% compared to the prior year period.
- Gross profit margin was 21.4%, a
160-basis point decrease from the prior year period.
- Adjusted gross profit margin was
21.4%, a 200-basis point decrease from the prior year period.
- Net loss was $115.7 million
compared to net income of $24.5 million in the prior year period;
net loss margin was 25.4% compared to net income margin of 4.9% in
the prior year period.
- Net loss for the third quarter of 2023 included pretax non-cash
impairment charges of $156.6 million ($117.4 million after taxes),
substantially all of which related to the ParmCrisps® and
Thinsters® intangible assets.
- Adjusted net income was $7.4
million compared to $29.7 million in prior year period.
- Adjusted EBITDA on a constant
currency basis was $39.3 million compared to $58.7 million in the
prior year period; Adjusted EBITDA margin on a constant currency
basis was 8.3%, a 340-basis point decrease compared to the prior
year period.
- Loss per diluted share was $1.29
compared to earnings per diluted share (“EPS”) of $0.27 in the
prior year period.
- Adjusted EPS was $0.08 compared to
$0.33 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 HIGHLIGHTSThe Company
operates under two reportable segments: North America and
International.
North AmericaNorth America net
sales were $286.6 million, a 12% decrease compared to the prior
year period. When adjusted for foreign exchange, acquisitions,
divestitures and discontinued brands, net sales decreased by 11%
from the prior year period. These decreases were mainly due to
lower sales in snacks, personal care, and tea, partially offset by
higher sales in yogurt. The net sales decrease within snacks was
substantially driven by reduced distribution and customer
promotions associated with the ParmCrisps brand.
Segment gross profit was $62.7 million, a
decrease of 17% from the prior year period. Adjusted gross profit
was $62.8 million, a decrease of 19% from the prior year period.
Gross margin and adjusted gross margin were both 21.9%,
representing a 120-basis point and 180-basis point decrease from
the prior year period, respectively. The decrease was mainly driven
by plant deleverage resulting from lower volume as well as negative
mix, partially offset by improved pricing and productivity.
Segment operating loss was $136.1 million
compared to operating income of $28.5 million in the prior year
period. The decrease was mainly driven by aggregate non-cash
impairment charges of $156.6 million substantially all of which
related to the ParmCrisps and Thinsters intangible assets. Adjusted
operating income was $21.2 million compared to $31.4 million in the
prior year period. Operating loss margin was 47.5% compared to
operating income margin of 8.8% in the prior year period. Adjusted
operating income margin was 7.4%, a 230-basis point decrease from
the prior year period. The decrease was mainly driven by lower net
sales, partially offset by cost improvements due to higher
productivity.
Segment adjusted EBITDA on a constant currency
basis was $27.4 million compared to $37.3 million in the prior year
period. Adjusted EBITDA margin on a constant currency basis was
9.5%, a 200-basis point decrease from the prior year period.
InternationalInternational net
sales were $168.6 million, a 5% decrease compared to the prior year
period. When adjusted for foreign exchange, net sales increased 4%
compared to the prior year period mainly due to growth in the
United Kingdom, partially offset by softness in plant-based
categories in the rest of Europe.
Segment gross profit was $34.7 million, a 14%
decrease from the prior year period. Adjusted gross profit was
$34.7 million, a decrease of 14% from the prior year period. Gross
margin and adjusted gross margin were both 20.6%, representing a
220-basis point and 230-basis point decrease from the prior year
period, respectively. The decrease in gross profit was mainly due
to higher energy and input costs, partially offset by improved
pricing and productivity.
Segment operating income was $13.6 million, a
26% decrease from the prior year period. Adjusted operating income
was $13.9 million, a decrease of 26% from the prior year period.
Operating income margin was 8.1%, a 230-basis point decrease from
the prior year period, and adjusted operating income margin was
8.3%, a 240-basis point decrease from the prior year period. The
decrease was mainly due to increased energy and input costs and
volume mix partially offset by improved pricing and
productivity.
Segment adjusted EBITDA on a constant currency
basis was $23.1 million compared to $26.5 million in the prior year
period. Adjusted EBITDA margin on a constant currency basis was
12.6%, a 230-basis point decrease from the prior year period.
FULL YEAR AND FOURTH QUARTER FISCAL 2023
GUIDANCE**The Company is updating its financial guidance
for full year fiscal 2023 for both adjusted net sales and adjusted
EBITDA on a constant currency basis compared to the prior year and
now expects:
- Adjusted net sales to be down -4%
to -3% versus prior year, and
- Adjusted EBITDA at constant
currency to be down -15% to -13%.
For the fourth quarter of fiscal 2023, the
Company expects:
- Adjusted net sales to be down low
single digit percentages versus the prior year period,
- Adjusted gross margins to be up year-over-year and
sequentially, and
- Adjusted EBITDA at constant currency expected to be
approximately $40 million to $44 million.
__________________
** 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.
Conference Call and Webcast
InformationHain Celestial will host a conference call and
webcast today at 8:00 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. is a leading organic
and natural products company that has been committed to creating A
Healthier Way of Life® since 1993. Headquartered in Boulder, CO
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; 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) losses on sales of assets, certain inventory write-downs,
intangibles and 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) |
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Third Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
455,243 |
|
|
$ |
502,939 |
|
|
$ |
1,348,802 |
|
|
$ |
1,434,783 |
|
Cost of sales |
|
357,764 |
|
|
|
387,236 |
|
|
|
1,053,131 |
|
|
|
1,096,367 |
|
Gross profit |
|
97,479 |
|
|
|
115,703 |
|
|
|
295,671 |
|
|
|
338,416 |
|
Selling, general and administrative expenses |
|
75,047 |
|
|
|
75,750 |
|
|
|
222,355 |
|
|
|
229,679 |
|
Intangibles and long-lived asset impairment |
|
156,583 |
|
|
|
- |
|
|
|
156,923 |
|
|
|
303 |
|
Amortization of acquired intangible assets |
|
2,842 |
|
|
|
3,110 |
|
|
|
8,415 |
|
|
|
7,254 |
|
Productivity and transformation costs |
|
3,933 |
|
|
|
1,679 |
|
|
|
5,692 |
|
|
|
8,448 |
|
Operating (loss) income |
|
(140,926 |
) |
|
|
35,164 |
|
|
|
(97,714 |
) |
|
|
92,732 |
|
Interest and other financing expense, net |
|
13,421 |
|
|
|
3,224 |
|
|
|
31,910 |
|
|
|
7,672 |
|
Other expense (income), net |
|
439 |
|
|
|
(712 |
) |
|
|
(2,413 |
) |
|
|
(10,570 |
) |
(Loss) income before income taxes and equity in net loss of
equity-method investees |
|
(154,786 |
) |
|
|
32,652 |
|
|
|
(127,211 |
) |
|
|
95,630 |
|
(Benefit) provision for income taxes |
|
(39,587 |
) |
|
|
7,738 |
|
|
|
(30,599 |
) |
|
|
19,425 |
|
Equity in net loss of equity-method investees |
|
528 |
|
|
|
383 |
|
|
|
1,226 |
|
|
|
1,374 |
|
Net (loss) income |
$ |
(115,727 |
) |
|
$ |
24,531 |
|
|
$ |
(97,838 |
) |
|
$ |
74,831 |
|
|
|
|
|
|
|
|
|
Net (loss) income per common share: |
|
|
|
|
|
|
|
Basic |
$ |
(1.29 |
) |
|
$ |
0.27 |
|
|
$ |
(1.09 |
) |
|
$ |
0.80 |
|
Diluted |
$ |
(1.29 |
) |
|
$ |
0.27 |
|
|
$ |
(1.09 |
) |
|
$ |
0.79 |
|
|
|
|
|
|
|
|
|
Shares used in the calculation of net (loss) income per common
share: |
|
|
|
|
|
|
Basic |
|
89,421 |
|
|
|
91,139 |
|
|
|
89,369 |
|
|
|
94,099 |
|
Diluted |
|
89,421 |
|
|
|
91,310 |
|
|
|
89,369 |
|
|
|
94,519 |
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Consolidated Balance Sheets |
(unaudited and in thousands) |
|
|
|
|
|
March 31, 2023 |
|
June 30, 2022 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
43,682 |
|
|
$ |
65,512 |
|
Accounts receivable, net |
|
179,114 |
|
|
|
170,661 |
|
Inventories |
|
316,345 |
|
|
|
308,034 |
|
Prepaid expenses and other current assets |
|
58,719 |
|
|
|
54,079 |
|
Assets held for sale |
|
1,250 |
|
|
|
1,840 |
|
Total current assets |
|
599,110 |
|
|
|
600,126 |
|
Property, plant and equipment, net |
|
296,433 |
|
|
|
297,405 |
|
Goodwill |
|
931,729 |
|
|
|
933,796 |
|
Trademarks and other intangible assets, net |
|
314,536 |
|
|
|
477,533 |
|
Investments and joint ventures |
|
12,720 |
|
|
|
14,456 |
|
Operating lease right-of-use assets, net |
|
98,306 |
|
|
|
114,691 |
|
Other assets |
|
19,990 |
|
|
|
20,377 |
|
Total assets |
$ |
2,272,824 |
|
|
$ |
2,458,384 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
146,340 |
|
|
$ |
174,765 |
|
Accrued expenses and other current liabilities |
|
95,841 |
|
|
|
86,833 |
|
Current portion of long-term debt |
|
7,575 |
|
|
|
7,705 |
|
Total current liabilities |
|
249,756 |
|
|
|
269,303 |
|
Long-term debt, less current portion |
|
848,982 |
|
|
|
880,938 |
|
Deferred income taxes |
|
51,155 |
|
|
|
95,044 |
|
Operating lease liabilities, noncurrent portion |
|
91,885 |
|
|
|
107,481 |
|
Other noncurrent liabilities |
|
24,571 |
|
|
|
22,450 |
|
Total liabilities |
|
1,266,349 |
|
|
|
1,375,216 |
|
Stockholders' equity: |
|
|
|
Common stock |
|
1,113 |
|
|
|
1,111 |
|
Additional paid-in capital |
|
1,213,783 |
|
|
|
1,203,126 |
|
Retained earnings |
|
671,260 |
|
|
|
769,098 |
|
Accumulated other comprehensive loss |
|
(152,945 |
) |
|
|
(164,482 |
) |
|
|
1,733,211 |
|
|
|
1,808,853 |
|
Less: Treasury stock |
|
(726,736 |
) |
|
|
(725,685 |
) |
Total stockholders' equity |
|
1,006,475 |
|
|
|
1,083,168 |
|
Total liabilities and stockholders' equity |
$ |
2,272,824 |
|
|
$ |
2,458,384 |
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Consolidated Statements of Cash Flows |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Third Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
Net (loss) income |
$ |
(115,727 |
) |
|
$ |
24,531 |
|
|
$ |
(97,838 |
) |
|
$ |
74,831 |
|
Adjustments to reconcile net (loss) income to net cash provided by
operating activities |
|
|
|
|
|
|
|
Depreciation and amortization |
|
13,784 |
|
|
|
12,638 |
|
|
|
37,909 |
|
|
|
34,396 |
|
Deferred income taxes |
|
(42,826 |
) |
|
|
10,645 |
|
|
|
(44,809 |
) |
|
|
7,374 |
|
Equity in net loss of equity-method investees |
|
528 |
|
|
|
383 |
|
|
|
1,226 |
|
|
|
1,374 |
|
Stock-based compensation, net |
|
3,228 |
|
|
|
3,846 |
|
|
|
10,657 |
|
|
|
12,289 |
|
Intangibles and long-lived asset impairment |
|
156,583 |
|
|
|
- |
|
|
|
156,923 |
|
|
|
303 |
|
(Gain) loss on sale of assets |
|
(134 |
) |
|
|
52 |
|
|
|
(3,529 |
) |
|
|
(8,869 |
) |
Other non-cash items, net |
|
979 |
|
|
|
(669 |
) |
|
|
(1,526 |
) |
|
|
(2,155 |
) |
Increase (decrease) in cash attributable to changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
Accounts receivable |
|
(1,390 |
) |
|
|
1,780 |
|
|
|
(7,926 |
) |
|
|
14,150 |
|
Inventories |
|
10,095 |
|
|
|
(6,844 |
) |
|
|
(8,534 |
) |
|
|
(4,371 |
) |
Other current assets |
|
786 |
|
|
|
(5,870 |
) |
|
|
455 |
|
|
|
(10,996 |
) |
Other assets and liabilities |
|
(682 |
) |
|
|
(4,481 |
) |
|
|
3,496 |
|
|
|
(2,705 |
) |
Accounts payable and accrued expenses |
|
3,737 |
|
|
|
(4,856 |
) |
|
|
(20,195 |
) |
|
|
(16,435 |
) |
Net cash provided by operating activities |
|
28,961 |
|
|
|
31,155 |
|
|
|
26,309 |
|
|
|
99,186 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
(7,379 |
) |
|
|
(5,943 |
) |
|
|
(21,434 |
) |
|
|
(33,939 |
) |
Acquisitions of businesses, net of cash acquired |
|
- |
|
|
|
(5,905 |
) |
|
|
- |
|
|
|
(260,474 |
) |
Investments and joint ventures, net |
|
- |
|
|
|
(100 |
) |
|
|
433 |
|
|
|
(614 |
) |
Proceeds from sale of assets |
|
150 |
|
|
|
22 |
|
|
|
7,758 |
|
|
|
10,756 |
|
Net cash used in investing activities |
|
(7,229 |
) |
|
|
(11,926 |
) |
|
|
(13,243 |
) |
|
|
(284,271 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
Borrowings under bank revolving credit facility |
|
90,000 |
|
|
|
138,000 |
|
|
|
275,000 |
|
|
|
678,000 |
|
Repayments under bank revolving credit facility |
|
(106,250 |
) |
|
|
(40,000 |
) |
|
|
(301,000 |
) |
|
|
(370,000 |
) |
Borrowings under term loan |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
300,000 |
|
Repayments under term loan |
|
(5,625 |
) |
|
|
(1,875 |
) |
|
|
(5,625 |
) |
|
|
(1,875 |
) |
Payments of other debt, net |
|
(1,957 |
) |
|
|
(47 |
) |
|
|
(2,116 |
) |
|
|
(3,232 |
) |
Share repurchases |
|
- |
|
|
|
(130,472 |
) |
|
|
- |
|
|
|
(397,405 |
) |
Employee shares withheld for taxes |
|
(68 |
) |
|
|
(1,597 |
) |
|
|
(1,051 |
) |
|
|
(32,630 |
) |
Net cash (used in) provided by financing activities |
|
(23,900 |
) |
|
|
(35,991 |
) |
|
|
(34,792 |
) |
|
|
172,858 |
|
Effect of exchange rate changes on cash |
|
2,413 |
|
|
|
(2,632 |
) |
|
|
(104 |
) |
|
|
(5,836 |
) |
Net increase (decrease) in cash and cash equivalents |
|
245 |
|
|
|
(19,394 |
) |
|
|
(21,830 |
) |
|
|
(18,063 |
) |
Cash and cash equivalents at beginning of period |
|
43,437 |
|
|
|
77,202 |
|
|
|
65,512 |
|
|
|
75,871 |
|
Cash and cash equivalents at end of period |
$ |
43,682 |
|
|
$ |
57,808 |
|
|
$ |
43,682 |
|
|
$ |
57,808 |
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Net Sales, Gross Profit and Operating (Loss) Income by
Segment |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
|
North America |
|
International |
|
Corporate/Other |
|
Hain Consolidated |
Net Sales |
|
|
|
|
|
|
|
Net sales - Q3 FY23 |
$ |
286,649 |
|
|
$ |
168,594 |
|
|
$ |
- |
|
|
$ |
455,243 |
|
Net sales - Q3 FY22 |
$ |
325,742 |
|
|
$ |
177,197 |
|
|
$ |
- |
|
|
$ |
502,939 |
|
% change - FY23 net sales vs. FY22 net sales |
|
(12.0 |
)% |
|
|
(4.9 |
)% |
|
|
|
|
(9.5 |
)% |
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
Q3 FY23 |
|
|
|
|
|
|
|
Gross profit |
$ |
62,742 |
|
|
$ |
34,737 |
|
|
$ |
- |
|
|
$ |
97,479 |
|
Non-GAAP adjustments(1) |
|
22 |
|
|
|
10 |
|
|
|
- |
|
|
|
32 |
|
Adjusted gross profit |
$ |
62,764 |
|
|
$ |
34,747 |
|
|
$ |
- |
|
|
$ |
97,511 |
|
% change - FY23 gross profit vs. FY22 gross profit |
|
(16.6 |
)% |
|
|
(14.2 |
)% |
|
|
|
|
(15.8 |
)% |
% change - FY23 adjusted gross profit vs. FY22 adjusted gross
profit |
|
(18.6 |
)% |
|
|
(14.3 |
)% |
|
|
|
|
(17.1 |
)% |
Gross margin |
|
21.9 |
% |
|
|
20.6 |
% |
|
|
|
|
21.4 |
% |
Adjusted gross margin |
|
21.9 |
% |
|
|
20.6 |
% |
|
|
|
|
21.4 |
% |
|
|
|
|
|
|
|
|
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 |
% |
|
|
|
|
|
|
|
|
Operating (loss) income |
|
|
|
|
|
|
|
Q3 FY23 |
|
|
|
|
|
|
|
Operating (loss) income |
$ |
(136,127 |
) |
|
$ |
13,604 |
|
|
$ |
(18,403 |
) |
|
$ |
(140,926 |
) |
Non-GAAP adjustments(1) |
|
157,285 |
|
|
|
308 |
|
|
|
5,570 |
|
|
|
163,163 |
|
Adjusted operating income (loss) |
$ |
21,158 |
|
|
$ |
13,912 |
|
|
$ |
(12,833 |
) |
|
$ |
22,237 |
|
% change - FY23 operating (loss) income vs. FY22 operating income
(loss) |
|
(577.2 |
)% |
|
|
(25.7 |
)% |
|
|
57.8 |
% |
|
|
(500.8 |
)% |
% change - FY23 adjusted operating income (loss) vs. FY22 adjusted
operating income (loss) |
|
(32.6 |
)% |
|
|
(26.0 |
)% |
|
|
65.7 |
% |
|
|
(47.6 |
)% |
Operating (loss) income margin |
|
(47.5 |
)% |
|
|
8.1 |
% |
|
|
|
|
(31.0 |
)% |
Adjusted operating income margin |
|
7.4 |
% |
|
|
8.3 |
% |
|
|
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
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 |
% |
|
|
|
|
|
|
|
|
(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 (Loss) Income by
Segment |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
|
North America |
|
International |
|
Corporate/Other |
|
Hain Consolidated |
Net Sales |
|
|
|
|
|
|
|
Net sales - Q3 FY23 YTD |
$ |
857,406 |
|
|
$ |
491,396 |
|
|
$ |
- |
|
|
$ |
1,348,802 |
|
Net sales - Q3 FY22 YTD |
$ |
866,281 |
|
|
$ |
568,502 |
|
|
$ |
- |
|
|
$ |
1,434,783 |
|
% change - FY23 net sales vs. FY22 net sales |
|
(1.0 |
)% |
|
|
(13.6 |
)% |
|
|
|
|
(6.0 |
)% |
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
Q3 FY23 YTD |
|
|
|
|
|
|
|
Gross profit |
$ |
199,404 |
|
|
$ |
96,267 |
|
|
$ |
- |
|
|
$ |
295,671 |
|
Non-GAAP adjustments(1) |
|
74 |
|
|
|
10 |
|
|
|
- |
|
|
|
84 |
|
Adjusted gross profit |
$ |
199,478 |
|
|
$ |
96,277 |
|
|
$ |
- |
|
|
$ |
295,755 |
|
% change - FY23 gross profit vs. FY22 gross profit |
|
(0.2 |
)% |
|
|
(30.6 |
)% |
|
|
|
|
(12.6 |
)% |
% change - FY23 adjusted gross profit vs. FY22 adjusted gross
profit |
|
(2.3 |
)% |
|
|
(31.0 |
)% |
|
|
|
|
(13.9 |
)% |
Gross margin |
|
23.3 |
% |
|
|
19.6 |
% |
|
|
|
|
21.9 |
% |
Adjusted gross margin |
|
23.3 |
% |
|
|
19.6 |
% |
|
|
|
|
21.9 |
% |
|
|
|
|
|
|
|
|
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 |
% |
|
|
|
|
|
|
|
|
Operating (loss) income |
|
|
|
|
|
|
|
Q3 FY23 YTD |
|
|
|
|
|
|
|
Operating (loss) income |
$ |
(79,420 |
) |
|
$ |
33,219 |
|
|
$ |
(51,513 |
) |
|
$ |
(97,714 |
) |
Non-GAAP adjustments(1) |
|
157,696 |
|
|
|
1,160 |
|
|
|
16,871 |
|
|
|
175,727 |
|
Adjusted operating income (loss) |
$ |
78,276 |
|
|
$ |
34,379 |
|
|
$ |
(34,642 |
) |
|
$ |
78,013 |
|
% change - FY23 operating (loss) income vs. FY22 operating income
(loss) |
|
(209.5 |
)% |
|
|
(52.4 |
)% |
|
|
4.0 |
% |
|
|
(205.4 |
)% |
% change - FY23 adjusted operating income (loss) vs. FY22 adjusted
operating income (loss) |
|
(3.2 |
)% |
|
|
(52.1 |
)% |
|
|
14.7 |
% |
|
|
(36.3 |
)% |
Operating (loss) income margin |
|
(9.3 |
)% |
|
|
6.8 |
% |
|
|
|
|
(7.2 |
)% |
Adjusted operating income margin |
|
9.1 |
% |
|
|
7.0 |
% |
|
|
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
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 |
% |
|
|
|
|
|
|
|
|
(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: |
|
|
|
|
|
|
|
|
Third Quarter |
|
Third Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Gross profit, GAAP |
|
97,479 |
|
|
$ |
115,703 |
|
|
$ |
295,671 |
|
|
$ |
338,416 |
|
Adjustments to Cost of sales: |
|
|
|
|
|
|
|
Inventory write-down |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(46 |
) |
Plant closure related costs, net |
|
22 |
|
|
|
83 |
|
|
|
74 |
|
|
|
891 |
|
Transaction and integration costs, net |
|
- |
|
|
|
1,756 |
|
|
|
- |
|
|
|
1,756 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
10 |
|
|
|
94 |
|
|
|
10 |
|
|
|
2,632 |
|
Gross profit, as adjusted |
|
97,511 |
|
|
$ |
117,636 |
|
|
$ |
295,755 |
|
|
$ |
343,649 |
|
|
|
|
|
|
|
|
|
Reconciliation of Operating (Loss) Income, GAAP to Operating
Income, as Adjusted: |
|
|
|
|
|
|
|
Third Quarter |
|
Third Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Operating (loss) income, GAAP |
$ |
(140,926 |
) |
|
$ |
35,164 |
|
|
$ |
(97,714 |
) |
|
$ |
92,732 |
|
Adjustments to Cost of sales: |
|
|
|
|
|
|
|
Inventory write-down |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(46 |
) |
Plant closure related costs, net |
|
22 |
|
|
|
83 |
|
|
|
74 |
|
|
|
891 |
|
Transaction and integration costs, net |
|
- |
|
|
|
1,756 |
|
|
|
- |
|
|
|
1,756 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
10 |
|
|
|
94 |
|
|
|
10 |
|
|
|
2,632 |
|
|
|
|
|
|
|
|
|
Adjustments to Operating expenses(a): |
|
|
|
|
|
|
|
CEO succession |
|
- |
|
|
|
- |
|
|
|
5,113 |
|
|
|
- |
|
Transaction and integration costs, net |
|
215 |
|
|
|
1,663 |
|
|
|
1,984 |
|
|
|
10,395 |
|
Certain litigation expenses, net(b) |
|
(1,582 |
) |
|
|
2,005 |
|
|
|
3,363 |
|
|
|
5,389 |
|
Intangibles and long-lived asset impairment |
|
156,583 |
|
|
|
- |
|
|
|
156,923 |
|
|
|
303 |
|
Plant closure related costs, net |
|
- |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
4 |
|
Productivity and transformation costs |
|
3,933 |
|
|
|
1,679 |
|
|
|
5,692 |
|
|
|
8,448 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
3,982 |
|
|
|
- |
|
|
|
2,569 |
|
|
|
- |
|
Operating income, as adjusted |
$ |
22,237 |
|
|
$ |
42,443 |
|
|
$ |
78,013 |
|
|
$ |
122,504 |
|
|
|
|
|
|
|
|
|
Reconciliation of Net (Loss) Income, GAAP to Net Income, as
Adjusted: |
|
|
|
|
|
|
|
|
Third Quarter |
|
Third Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net (loss) income, GAAP |
$ |
(115,727 |
) |
|
$ |
24,531 |
|
|
$ |
(97,838 |
) |
|
$ |
74,831 |
|
Adjustments to Cost of sales: |
|
|
|
|
|
|
|
Inventory write-down |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(46 |
) |
Plant closure related costs, net |
|
22 |
|
|
|
83 |
|
|
|
74 |
|
|
|
891 |
|
Transaction and integration costs, net |
|
- |
|
|
|
1,756 |
|
|
|
- |
|
|
|
1,756 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
10 |
|
|
|
94 |
|
|
|
10 |
|
|
|
2,632 |
|
|
|
|
|
|
|
|
|
Adjustments to Operating expenses(a): |
|
|
|
|
|
|
|
CEO succession |
|
- |
|
|
|
- |
|
|
|
5,113 |
|
|
|
- |
|
Transaction and integration costs, net |
|
215 |
|
|
|
1,663 |
|
|
|
1,984 |
|
|
|
10,395 |
|
Certain litigation expenses, net(b) |
|
(1,582 |
) |
|
|
2,005 |
|
|
|
3,363 |
|
|
|
5,389 |
|
Intangibles and long-lived asset impairment |
|
156,583 |
|
|
|
- |
|
|
|
156,923 |
|
|
|
303 |
|
Plant closure related costs, net |
|
- |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
4 |
|
Productivity and transformation costs |
|
3,933 |
|
|
|
1,679 |
|
|
|
5,692 |
|
|
|
8,448 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
3,982 |
|
|
|
- |
|
|
|
2,569 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
Adjustments to Interest and other expense (income), net(c): |
|
|
|
|
|
|
|
(Gain) loss on sale of assets |
|
(134 |
) |
|
|
55 |
|
|
|
(3,529 |
) |
|
|
(9,047 |
) |
Unrealized currency losses (gains) |
|
202 |
|
|
|
(594 |
) |
|
|
651 |
|
|
|
(2,097 |
) |
|
|
|
|
|
|
|
|
Adjustments to (Benefit) provision for income taxes: |
|
|
|
|
|
|
|
Net tax impact of non-GAAP adjustments |
|
(40,131 |
) |
|
|
(1,533 |
) |
|
|
(40,151 |
) |
|
|
(5,553 |
) |
Net income, as adjusted |
$ |
7,373 |
|
|
$ |
29,738 |
|
|
$ |
34,860 |
|
|
$ |
87,906 |
|
Net (loss) income margin |
|
(25.4 |
)% |
|
|
4.9 |
% |
|
|
(7.3 |
)% |
|
|
5.2 |
% |
Adjusted net income margin |
|
1.6 |
% |
|
|
5.9 |
% |
|
|
2.6 |
% |
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
Diluted shares used in the calculation of net (loss) income per
common share: |
|
89,421 |
|
|
|
91,310 |
|
|
|
89,369 |
|
|
|
94,519 |
|
|
|
|
|
|
|
|
|
Diluted net (loss) income per common share, GAAP |
$ |
(1.29 |
) |
|
$ |
0.27 |
|
|
$ |
(1.09 |
) |
|
$ |
0.79 |
|
Diluted net income per common share, as adjusted |
$ |
0.08 |
|
|
$ |
0.33 |
|
|
$ |
0.39 |
|
|
$ |
0.93 |
|
|
|
|
|
|
|
|
|
(a) Operating expenses include amortization of acquired
intangibles, selling, general and administrative expenses,
intangibles and 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) loss on sale of assets and other expense, net. |
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Adjusted Net Sales Growth |
(unaudited and in thousands) |
|
|
|
|
|
|
Q3 FY23 |
North America |
|
International |
|
Hain Consolidated |
Net sales |
$ |
286,649 |
|
|
$ |
168,594 |
|
|
$ |
455,243 |
|
Acquisitions, divestitures and discontinued brands |
|
(163 |
) |
|
|
- |
|
|
|
(163 |
) |
Impact of foreign currency exchange |
|
1,881 |
|
|
|
14,760 |
|
|
|
16,641 |
|
Net sales on a constant currency basis adjusted for acquisitions,
divestitures and discontinued brands |
$ |
288,367 |
|
|
$ |
183,354 |
|
|
$ |
471,721 |
|
|
|
|
|
|
|
Q3 FY22 |
|
|
|
|
|
Net sales |
$ |
325,742 |
|
|
$ |
177,197 |
|
|
$ |
502,939 |
|
Acquisitions, divestitures and discontinued brands |
|
(2,311 |
) |
|
|
- |
|
|
|
(2,311 |
) |
Net sales adjusted for acquisitions, divestitures and discontinued
brands |
$ |
323,431 |
|
|
$ |
177,197 |
|
|
$ |
500,628 |
|
|
|
|
|
|
|
Net sales decline |
|
(12.0 |
)% |
|
|
(4.9 |
)% |
|
|
(9.5 |
)% |
Impact of acquisitions, divestitures and discontinued brands |
|
0.6 |
% |
|
|
- |
|
|
|
0.4 |
% |
Impact of foreign currency exchange |
|
0.6 |
% |
|
|
8.4 |
% |
|
|
3.3 |
% |
Net sales (decline) growth on a constant currency basis adjusted
for acquisitions, divestitures and discontinued brands |
|
(10.8 |
)% |
|
|
3.5 |
% |
|
|
(5.8 |
)% |
|
|
|
|
|
|
Q3 FY23 YTD |
North America |
|
International |
|
Hain Consolidated |
Net sales |
$ |
857,406 |
|
|
$ |
491,396 |
|
|
$ |
1,348,802 |
|
Acquisitions, divestitures and discontinued brands |
|
(34,663 |
) |
|
|
- |
|
|
|
(34,663 |
) |
Impact of foreign currency exchange |
|
5,024 |
|
|
|
64,266 |
|
|
|
69,290 |
|
Net sales on a constant currency basis adjusted for acquisitions,
divestitures and discontinued brands |
$ |
827,767 |
|
|
$ |
555,662 |
|
|
$ |
1,383,429 |
|
|
|
|
|
|
|
Q3 FY22 YTD |
|
|
|
|
|
Net sales |
$ |
866,281 |
|
|
$ |
568,502 |
|
|
$ |
1,434,783 |
|
Acquisitions, divestitures and discontinued brands |
|
(7,142 |
) |
|
|
- |
|
|
|
(7,142 |
) |
Net sales adjusted for acquisitions, divestitures and discontinued
brands |
$ |
859,139 |
|
|
$ |
568,502 |
|
|
$ |
1,427,641 |
|
|
|
|
|
|
|
Net sales decline |
|
(1.0 |
)% |
|
|
(13.6 |
)% |
|
|
(6.0 |
)% |
Impact of acquisitions, divestitures and discontinued brands |
|
(3.3 |
)% |
|
|
- |
|
|
|
(1.9 |
)% |
Impact of foreign currency exchange |
|
0.6 |
% |
|
|
11.3 |
% |
|
|
4.8 |
% |
Net sales decline on a constant currency basis adjusted for
acquisitions, divestitures and discontinued brands |
|
(3.7 |
)% |
|
|
(2.3 |
)% |
|
|
(3.1 |
)% |
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Adjusted EBITDA |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Third Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net (loss) income |
$ |
(115,727 |
) |
|
$ |
24,531 |
|
|
$ |
(97,838 |
) |
|
$ |
74,831 |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
13,784 |
|
|
|
12,638 |
|
|
|
37,909 |
|
|
|
34,396 |
|
Equity in net loss of equity-method investees |
|
528 |
|
|
|
383 |
|
|
|
1,226 |
|
|
|
1,374 |
|
Interest expense, net |
|
12,924 |
|
|
|
2,846 |
|
|
|
30,582 |
|
|
|
5,677 |
|
(Benefit) provision for income taxes |
|
(39,587 |
) |
|
|
7,738 |
|
|
|
(30,599 |
) |
|
|
19,425 |
|
Stock-based compensation, net |
|
3,228 |
|
|
|
3,846 |
|
|
|
10,657 |
|
|
|
12,289 |
|
Unrealized currency losses (gains) |
|
202 |
|
|
|
(594 |
) |
|
|
651 |
|
|
|
(2,097 |
) |
Litigation and related costs |
|
|
|
|
|
|
|
Certain litigation expenses, net(a) |
|
(1,582 |
) |
|
|
2,005 |
|
|
|
3,363 |
|
|
|
5,389 |
|
Restructuring activities |
|
|
|
|
|
|
|
CEO succession |
|
- |
|
|
|
- |
|
|
|
5,113 |
|
|
|
- |
|
Plant closure related costs, net |
|
22 |
|
|
|
82 |
|
|
|
73 |
|
|
|
895 |
|
Productivity and transformation costs |
|
3,933 |
|
|
|
1,626 |
|
|
|
5,692 |
|
|
|
7,077 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
2,871 |
|
|
|
94 |
|
|
|
899 |
|
|
|
2,632 |
|
Acquisitions, divestitures and other |
|
|
|
|
|
|
|
Transaction and integration costs, net |
|
215 |
|
|
|
3,419 |
|
|
|
1,984 |
|
|
|
12,151 |
|
(Gain) loss on sale of assets |
|
(134 |
) |
|
|
55 |
|
|
|
(3,529 |
) |
|
|
(9,047 |
) |
Impairment charges |
|
|
|
|
|
|
|
Inventory write-down |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(46 |
) |
Intangibles and long-lived asset impairment |
|
156,583 |
|
|
|
- |
|
|
|
156,923 |
|
|
|
303 |
|
Adjusted EBITDA |
$ |
37,260 |
|
|
$ |
58,669 |
|
|
$ |
123,106 |
|
|
$ |
165,249 |
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
Q3 FY23 |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating (loss) income |
$ |
(136,127 |
) |
|
$ |
13,604 |
|
|
$ |
(18,403 |
) |
|
$ |
(140,926 |
) |
Depreciation and amortization |
|
4,737 |
|
|
|
7,355 |
|
|
|
1,692 |
|
|
|
13,784 |
|
Stock-based compensation, net |
|
1,364 |
|
|
|
369 |
|
|
|
1,495 |
|
|
|
3,228 |
|
Certain litigation expenses, net(a) |
|
- |
|
|
|
- |
|
|
|
(1,582 |
) |
|
|
(1,582 |
) |
Plant closure related costs, net |
|
22 |
|
|
|
- |
|
|
|
- |
|
|
|
22 |
|
Productivity and transformation costs |
|
1,032 |
|
|
|
298 |
|
|
|
2,603 |
|
|
|
3,933 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
- |
|
|
|
10 |
|
|
|
2,861 |
|
|
|
2,871 |
|
Transaction and integration costs, net |
|
(66 |
) |
|
|
- |
|
|
|
281 |
|
|
|
215 |
|
Intangibles and long-lived asset impairment |
|
156,298 |
|
|
|
- |
|
|
|
285 |
|
|
|
156,583 |
|
Other |
|
(67 |
) |
|
|
(367 |
) |
|
|
(434 |
) |
|
|
(868 |
) |
Adjusted EBITDA |
$ |
27,193 |
|
|
$ |
21,269 |
|
|
$ |
(11,202 |
) |
|
$ |
37,260 |
|
|
|
|
|
|
|
|
|
Q3 FY22 |
|
|
|
|
|
|
|
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 |
|
Certain litigation expenses, net(a) |
|
- |
|
|
|
- |
|
|
|
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, net |
|
- |
|
|
|
94 |
|
|
|
- |
|
|
|
94 |
|
Transaction and integration costs, net |
|
1,724 |
|
|
|
- |
|
|
|
1,695 |
|
|
|
3,419 |
|
Other |
|
(81 |
) |
|
|
169 |
|
|
|
(293 |
) |
|
|
(205 |
) |
Adjusted EBITDA |
$ |
37,285 |
|
|
$ |
26,469 |
|
|
$ |
(5,085 |
) |
|
$ |
58,669 |
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
Q3 FY23 YTD |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating (loss) income |
$ |
(79,420 |
) |
|
$ |
33,219 |
|
|
$ |
(51,513 |
) |
|
$ |
(97,714 |
) |
Depreciation and amortization |
|
14,432 |
|
|
|
20,250 |
|
|
|
3,227 |
|
|
|
37,909 |
|
Stock-based compensation, net |
|
3,720 |
|
|
|
1,533 |
|
|
|
5,404 |
|
|
|
10,657 |
|
Certain litigation expenses, net(a) |
|
- |
|
|
|
- |
|
|
|
3,363 |
|
|
|
3,363 |
|
CEO succession |
|
- |
|
|
|
- |
|
|
|
5,113 |
|
|
|
5,113 |
|
Plant closure related costs, net |
|
75 |
|
|
|
(2 |
) |
|
|
- |
|
|
|
73 |
|
Productivity and transformation costs |
|
1,402 |
|
|
|
1,157 |
|
|
|
3,133 |
|
|
|
5,692 |
|
Warehouse/manufacturing consolidation and other costs, net |
|
- |
|
|
|
10 |
|
|
|
889 |
|
|
|
899 |
|
Transaction and integration costs, net |
|
(77 |
) |
|
|
(6 |
) |
|
|
2,067 |
|
|
|
1,984 |
|
Intangibles and long-lived asset impairment |
|
156,298 |
|
|
|
- |
|
|
|
625 |
|
|
|
156,923 |
|
Other |
|
54 |
|
|
|
(703 |
) |
|
|
(1,144 |
) |
|
|
(1,793 |
) |
Adjusted EBITDA |
$ |
96,484 |
|
|
$ |
55,458 |
|
|
$ |
(28,836 |
) |
|
$ |
123,106 |
|
|
|
|
|
|
|
|
|
Q3 FY22 YTD |
|
|
|
|
|
|
|
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 |
|
Certain litigation expenses, net(a) |
|
- |
|
|
|
- |
|
|
|
5,389 |
|
|
|
5,389 |
|
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, net |
|
1,519 |
|
|
|
1,113 |
|
|
|
- |
|
|
|
2,632 |
|
Transaction and integration costs, net |
|
1,426 |
|
|
|
- |
|
|
|
10,725 |
|
|
|
12,151 |
|
Inventory write-down |
|
(46 |
) |
|
|
- |
|
|
|
- |
|
|
|
(46 |
) |
Long-lived asset impairment |
|
- |
|
|
|
303 |
|
|
|
- |
|
|
|
303 |
|
Other |
|
(951 |
) |
|
|
122 |
|
|
|
(1,740 |
) |
|
|
(2,569 |
) |
Adjusted EBITDA |
$ |
94,724 |
|
|
$ |
93,202 |
|
|
$ |
(22,677 |
) |
|
$ |
165,249 |
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
Q3 FY23 |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Adjusted EBITDA |
$ |
27,193 |
|
|
$ |
21,269 |
|
|
$ |
(11,202 |
) |
|
$ |
37,260 |
|
Impact of foreign currency exchange |
|
198 |
|
|
|
1,869 |
|
|
|
- |
|
|
|
2,067 |
|
Adjusted EBITDA on a constant currency basis |
$ |
27,391 |
|
|
$ |
23,138 |
|
|
$ |
(11,202 |
) |
|
$ |
39,327 |
|
|
|
|
|
|
|
|
|
Net sales on a constant currency basis |
$ |
288,530 |
|
|
$ |
183,354 |
|
|
|
|
$ |
471,884 |
|
Adjusted EBITDA margin on a constant currency basis |
|
9.5 |
% |
|
|
12.6 |
% |
|
|
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
Q3 FY22 |
|
|
|
|
|
|
|
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 FY23 vs. Q3 FY22 |
|
|
|
|
|
|
|
Adjusted EBITDA decline on a constant currency basis (%) |
|
(26.5 |
)% |
|
|
(12.6 |
)% |
|
|
(120.3 |
)% |
|
|
(33.0 |
)% |
|
|
|
|
|
|
|
|
Adjusted EBITDA margin change on a constant currency basis
(bps) |
|
(195 |
) |
|
|
(232 |
) |
|
|
|
|
(333 |
) |
|
|
|
|
|
|
|
|
Q3 FY23 YTD |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Adjusted EBITDA |
$ |
96,484 |
|
|
$ |
55,458 |
|
|
$ |
(28,836 |
) |
|
$ |
123,106 |
|
Impact of foreign currency exchange |
|
561 |
|
|
|
7,033 |
|
|
|
- |
|
|
|
7,594 |
|
Adjusted EBITDA on a constant currency basis |
$ |
97,045 |
|
|
$ |
62,491 |
|
|
$ |
(28,836 |
) |
|
$ |
130,700 |
|
|
|
|
|
|
|
|
|
Net sales on a constant currency basis |
$ |
862,430 |
|
|
$ |
555,662 |
|
|
|
|
$ |
1,418,092 |
|
Adjusted EBITDA margin on a constant currency basis |
|
11.3 |
% |
|
|
11.2 |
% |
|
|
|
|
9.2 |
% |
|
|
|
|
|
|
|
|
Q3 FY22 YTD |
|
|
|
|
|
|
|
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 FY23 YTD vs. Q3 FY22 YTD |
|
|
|
|
|
|
|
Adjusted EBITDA growth (decline) on a constant currency basis
(%) |
|
2.5 |
% |
|
|
(33.0 |
)% |
|
|
(27.2 |
)% |
|
|
(20.9 |
)% |
|
|
|
|
|
|
|
|
Adjusted EBITDA margin change on a constant currency basis
(bps) |
|
32 |
|
|
|
(515 |
) |
|
|
|
|
(230 |
) |
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL GROUP, INC. AND
SUBSIDIARIES |
Operating Free Cash Flows |
(unaudited and in thousands) |
|
|
|
|
|
|
|
|
|
Third Quarter |
|
Third Quarter Year to Date |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
28,961 |
|
|
$ |
31,155 |
|
|
$ |
26,309 |
|
|
$ |
99,186 |
|
Purchases of property, plant and equipment |
|
(7,379 |
) |
|
|
(5,943 |
) |
|
|
(21,434 |
) |
|
|
(33,939 |
) |
Operating free cash flows |
$ |
21,582 |
|
|
$ |
25,212 |
|
|
$ |
4,875 |
|
|
$ |
65,247 |
|
|
|
|
|
|
|
|
|
Investor Contact:Alexis Tessier
investor.relations@hain.com
Media Contact: Jen DavisJen.Davis@hain.com
Hain Celestial (NASDAQ:HAIN)
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Hain Celestial (NASDAQ:HAIN)
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From Jun 2023 to Jun 2024