• Hain Celestial Reports Fiscal Third Quarter 2023 Financial Results

    المصدر: Nasdaq GlobeNewswire / 09 مايو 2023 07:00:03   America/New_York

    BOULDER, Colo., May 09, 2023 (GLOBE NEWSWIRE) -- 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 HIGHLIGHTS
    The Company operates under two reportable segments: North America and International.

    North America
    North 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.

    International
    International 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 Information
    Hain 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 Statements
    This 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 Measures
    This 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 FY23North 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 YTDNorth 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 FY23North 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 YTDNorth 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 FY23North 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 YTDNorth 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 Davis
    Jen.Davis@hain.com


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