HAIN Posts Loss in Q4 Amid Ongoing Portfolio Streamlining Efforts

The Hain Celestial Group, Inc. HAIN has posted fourth-quarter fiscal 2025 results, with the top and bottom lines declining year over year. Also, both metrics missed the consensus mark. Despite a challenging quarter, the company is moving forward with a comprehensive turnaround plan focused on simplifying its operations and refining its product portfolio while emphasizing core categories such as Snacks, Baby & Kids, Beverages, and Meal Prep. The company has launched a thorough portfolio review to unlock shareholder value and is actively reducing costs, streamlining its distribution network and enhancing digital capabilities to strengthen market execution. Key objectives include faster innovation, disciplined pricing and revenue-growth management, and improved supply-chain productivity and working-capital efficiency.The Hain Celestial Group, Inc. Price, Consensus and EPS Surprise  The Hain Celestial Group, Inc. price-consensus-eps-surprise-chart | The Hain Celestial Group, Inc. QuoteMore on Hain Celestial’s Q4 ResultsThe Zacks Rank #3 (Hold) company posted an adjusted loss of two cents per share, missing the Zacks Consensus Estimate for adjusted earnings of 4 cents. The bottom line also declined from adjusted earnings of 13 cents in the year-ago quarter. Net sales of $363.3 million missed the consensus estimate of $375 million. The top line declined 13.2% year over year. Organic sales fell 10.8% from the year-ago quarter. The decline in organic net sales was entirely led by an 11-point drop in the volume/mix, with pricing remaining unchanged.The adjusted gross profit was $74.3 million, which fell 24.1% from the year-ago quarter. The adjusted gross margin contracted 290 basis points (bps) from the year-ago quarter to 20.5%, meeting our estimate.SG&A expenses were $67.4 million, down 6.7% from $72.3 million in the year-ago quarter. As a percentage of net sales, this metric increased 130 bps year over year to 18.6% in the quarter under review.Adjusted EBITDA was $19.9 million, down 49.7% from $39.5 million in the year-ago quarter. The adjusted EBITDA margin was 5.5%, down 390 bps year over year. We expected an adjusted EBITDA margin of 8.1% for the quarter under review.HAIN’s Q4 Revenue & Profit Insights by SegmentsNet sales in the North America segment tumbled 20.8% from the year-ago quarter to $205.8 million, which missed our estimation of $225.3 million. Segmental organic net sales declined 14.4% year over year due to weaker snack sales and, to a lesser extent, softness in meal preparation.The segment’s adjusted gross profit was $39.5 million, down 32.6% year over year, while the adjusted gross margin fell 340 basis points to 19.2%. The decline was due to a lower volume/mix and increased trade spending, partially offset by productivity improvements.Adjusted EBITDA was $10.4 million, down from $20.9 million in the prior year, largely attributable to a lower volume/mix and elevated trade spending, partially mitigated by productivity gains and reduced SG&A expenses, primarily stemming from lower employee-related costs. The adjusted EBITDA margin declined to 5.1% from 8% a year earlier.The International segment’s net sales fell 1.0% from the year-ago quarter to $157.6 million, which beat our estimate of $158.8 million. Segmental organic net sales fell 5.9% year over year due to softness in meal prep and beverages.Segmental adjusted gross profit was $34.8 million, down 11.7% year over year. The adjusted gross margin contracted 270 basis points to 22.1%, led by cost inflation and a lower volume/mix, partially offset by productivity.Adjusted EBITDA decreased 22.5% year over year to $20.9 million. The decline was mainly attributable to softer volume/mix, partially offset by productivity gains and favorable net pricing. The adjusted EBITDA margin declined 370 basis points to 13.3%, down from 17% in the prior year.Hain Celestial’s Categorical Sales DetailsIn the Snacks category, organic net sales dropped 19.1% from the prior-year quarter, reflecting continued velocity challenges and distribution losses.In the Baby & Kids category, organic net sales fell 9.3% year over year, driven by weaker puree sales in both North America (partly tied to planned SKU reductions) and international markets.In Beverages, organic net sales declined 3.1% due to softness in North American tea offerings and private-label non-dairy beverages in Europe.For Meal Prep, organic net sales decreased 7.6%, as lower sales of oils and nut butters in North America and meat-free products in the U.K. outweighed growth in North American yogurt.HAIN Stock Past 3-Month Performance Image Source: Zacks Investment Research HAIN’s Financial Snapshot: Cash, Debt & Equity OverviewThe company closed the quarter with cash and cash equivalents of $54.4 million, long-term debt (excluding the current portion) of $697.2 million, and total shareholders’ equity of $475 million. Net cash used in operating activities was $2.6 million for the quarter.Hain Celestial’s shares have gained 25.7% in the past three months against the industry’s 2.5% decline.Better-Ranked Stocks to ConsiderWe have highlighted three better-ranked stocks, namely Celsius Holdings, Inc. CELH, Post Holdings POST and Chefs' Warehouse Holdings, LLC CHEF.Celsius Holdings specializes in commercializing healthier, nutritional functional foods, beverages and dietary supplements. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average. The consensus estimate for Celsius Holdings’ current financial-year sales and earnings indicates growth of 77.7% and 54.3%, respectively, from the year-ago period’s reported figures.Post Holdings is a consumer-packaged goods holding company. It flaunts a Zacks Rank of 1 at present.The Zacks Consensus Estimate for Post Holdings’ current fiscal-year earnings and revenues implies growth of 11% and 3.1%, respectively, from the year-ago actuals. POST delivered a trailing four-quarter average earnings surprise of 21.4%.Chefs' Warehouse is a distributor of specialty food products. It currently sports a Zacks Rank of 1.The Zacks Consensus Estimate for Chefs' Warehouse’s current financial-year earnings and revenues implies growth of 19.1% and 6.6%, respectively, from the year-ago actuals. CHEF delivered a trailing four-quarter average earnings surprise of 11.3%.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hain Celestial Group, Inc. (HAIN): Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report Post Holdings, Inc. (POST): Free Stock Analysis Report Celsius Holdings Inc. (CELH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks