• Hain Celestial Reports Second Quarter 2023 Financial Results

    Источник: Nasdaq GlobeNewswire / 07 фев 2023 07:00:01   America/New_York

    Net Income of $11.0 million; Adjusted Net Income of $18.3 million

    Adjusted EBITDA on Constant Currency Basis of $52.7 million

    Reaffirming Full Year Fiscal 2023 Guidance

    LAKE SUCCESS, N.Y., Feb. 07, 2023 (GLOBE NEWSWIRE) -- The Hain Celestial Group, Inc. (Nasdaq: HAIN) (“Hain Celestial”, “Hain” or the “Company”), a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East providing consumers with A Healthier Way of Life®, today reported financial results for the second quarter ended December 31, 2022.

    “I am honored and excited to be a part of the next phase of growth for our Company,” said Wendy P. Davidson, President and Chief Executive Officer. “In my first few weeks, I have witnessed firsthand what attracted me to the Company: leading natural and organic brands with strong growth potential, a simplified portfolio, and an organization passionate to live our purpose to inspire Healthier Living for All through healthier people, products, and planet. I look forward to continuing the work to transform our business and build a sustainable, profitable, high-growth global brand leader in the better-for-you consumer space.”

    “We reported solid second quarter results, ahead of our guidance on both adjusted gross margin and adjusted EBITDA on a constant currency basis,” said Christopher J. Bellairs, Executive Vice President and Chief Financial Officer. “We continued to see sequential improvements in both the International and North American business units. While we experienced some retailer inventory reductions in North America that impacted our topline results, we continue to see strong momentum in key categories such as better-for-you snacks, baby, and yogurt. Additionally, while the European market remains somewhat uncertain, we see early indications of stabilization.”

    FINANCIAL HIGHLIGHTS*

    Summary of Second Quarter Results Compared to the Prior Year Period

    • Net sales decreased 5% to $454.2 million compared to the prior year period.
    • When adjusted for foreign exchange, acquisitions, divestitures and discontinued brands, net sales decreased 2% compared to the prior year period.
    • Gross profit margin of 22.9%, a 170-basis point decrease from the prior year period.
    • Adjusted gross profit margin of 22.9%, a 170-basis point decrease from the prior year period.
    • Net income of $11.0 million compared to $30.9 million in the prior year period; net income margin of 2.4%, a 410-basis point decrease from the prior year period.
    • Adjusted net income of $18.3 million compared to $34.3 million in prior year period; adjusted net income margin of 4.0%, a 318-basis point decrease from the prior year period.
    • Adjusted EBITDA on a constant currency basis of $52.7 million compared to $59.3 million in the prior year period; Adjusted EBITDA margin on a constant currency basis of 11.0%, a 144-basis point decrease compared to the prior year period.
    • Earnings per diluted share (“EPS”) of $0.12 compared to $0.33 in the prior year period.
    • Adjusted EPS of $0.20 compared to $0.36 in the prior year period.

    * This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. Reconciliations of non-GAAP financial measures to GAAP financial measures and other non-GAAP financial calculations are provided in the tables included in this press release.

    SEGMENT HIGHLIGHTS

    The Company operates under two reportable segments: North America and International.

    North America
    North America net sales were $282.4 million, a 3% increase compared to the prior year period. When adjusted for foreign exchange, acquisitions, divestitures and discontinued brands, net sales decreased by 2% from the prior year period mainly due to retailer inventory adjustments, especially in tea, and lower sales in personal care, partially offset by higher sales in snacks.

    Segment gross profit was $71.1 million, an increase of 5% from the prior year period. Adjusted gross profit was $71.1 million, an increase of 5% from the prior year period. Gross margin and adjusted gross margin were both 25.2%, representing a 60-basis point and 50-basis point increase from the prior year period, respectively. The increase was mainly driven by pricing increases and cost improvements driven by higher productivity, partially offset by inflation.

    Segment operating income was $32.3 million, a 19% increase from the prior year period. Adjusted operating income was $32.3 million, a 12% increase from the prior year period. Operating income margin was 11.4%, a 160-basis point increase from the prior year period, and adjusted gross margin was 11.5%, a 100-basis point increase from the prior year period. The increase was mainly driven by pricing increases to offset inflation, productivity, and lower marketing spend.

    Adjusted EBITDA on a constant currency basis was $38.8 million, a 16% increase from the prior year period. Adjusted EBITDA margin on a constant currency basis was 13.6%, a 150-basis point increase from the prior year period.

    International
    International net sales were $171.8 million, a 15% decrease compared to the prior year period. When adjusted for foreign exchange, net sales decreased 3% compared to the prior year period mainly due to continued softness in plant-based categories in Europe.

    Segment gross profit was $32.7 million, a 34% decrease from the prior year period. Adjusted gross profit was $32.7 million, a decrease of 34% from the prior year period. Gross margin and adjusted gross margin were both 19.0%, representing a 550-basis point and 540-basis point decrease from the prior year period, respectively. The decrease in gross profit was mainly due to the aforementioned decrease in sales, as well as higher energy and supply chain costs and under-absorption of overhead costs at our manufacturing facilities.

    Segment operating income was $11.9 million, a 56% decrease from the prior year period. Adjusted operating income was $12.5 million, a decrease of 55% from the prior year period. Operating income margin was 6.9%, a 670-basis point decrease from the prior year period, and adjusted gross margin was 7.3%, a 640-basis point decrease from the prior year period. The decrease was mainly due to lower gross profit resulting from a decline in sales, as well as higher energy and supply chain costs and under-absorption of overhead costs at our manufacturing facilities.

    Adjusted EBITDA on a constant currency basis was $21.9 million, a 36% decline from the prior year period. Adjusted EBITDA margin on a constant currency basis was 11.2%, a 580-basis point decline from the prior year period.

    FULL YEAR FISCAL 2023 GUIDANCE**

    The Company is reaffirming its financial guidance for adjusted net sales and adjusted EBITDA on a constant currency basis of -1% to +4% compared to the prior year, driven by:

    • Stable North American topline performance with moderate price elasticities and inflation starting to plateau
    • International performance returning to growth in the second half of the year, with additional pricing actions, a benefit from private label offerings, and the lapping of both the beginning of the Russia-Ukraine war and the loss of the co-manufacturing contract and
    • Overall gross margin progression versus the prior year through continued improvement in supply chain performance with improved service levels, robust productivity, and continued cost management

    “We are encouraged that we continued to see sequential improvement in our business and remain on track to deliver on our 2023 financial guidance,” added Mr. Bellairs. “With the unprecedented industry-wide supply chain challenges largely behind us, we look forward to increased investment behind our brands to drive topline growth.”

    ** The forward-looking non-GAAP financial measures included in this section are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include certain litigation and related expenses, transaction costs associated with acquisitions and divestitures, productivity and transformation costs, impairments, gains or losses on sales of assets and businesses, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company’s GAAP financial results.

    Contacts:
    Investor Relations:
    Chris Mandeville
    ICR
    hain@icrinc.com

    Media:
    Robin Shallow
    robin@robincomm.com

    Conference Call and Webcast Information

    Hain Celestial will host a conference call and webcast today at 8:30 AM Eastern Time to discuss its results and business outlook. Investors interested in participating in the live call can dial 877-407-9716 or 201-493-6779. The call will be webcast and the accompanying presentation will be available under the Investor Relations section of the Company’s website at www.hain.com.

    About The Hain Celestial Group, Inc.
    The Hain Celestial Group, Inc. (Nasdaq: HAIN) is a leading organic and natural products company that has been committed to creating A Healthier Way of Life® since 1993. Headquartered in Lake Success, NY with operations in North America, Europe, Asia and the Middle East, Hain Celestial’s food and beverage brands include Celestial Seasonings®, Clarks™, Cully & Sully®, Earth’s Best®, Ella’s Kitchen®, Frank Cooper’s®, Garden of Eatin’®, Hartley’s®, Health Valley®, Imagine®, Joya®, Lima®, Linda McCartney’s® (under license), MaraNatha®, Natumi®, New Covent Garden Soup Co.®, ParmCrisps®, Robertson’s®, Rose’s® (under license), Sensible Portions®, Spectrum®, Sun-Pat®, Terra®, The Greek Gods®, Thinsters®, Yorkshire Provender® and Yves Veggie Cuisine®. Hain Celestial’s personal care brands include Alba Botanica®, Avalon Organics®, JASON®, Live Clean® and Queen Helene®. For more information, visit hain.com.

    Forward-Looking 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; the discontinuation of LIBOR; challenges and uncertainty resulting from the COVID-19 pandemic; our ability to issue preferred stock; the adequacy of our insurance coverage; impairments in the carrying value of goodwill or other intangible assets; and other risks and matters described in our most recent Annual Report on Form 10-K and our other filings from time to time with the U.S. Securities and Exchange Commission.

    We undertake no obligation to update forward-looking statements to reflect actual results or changes in assumptions or circumstances, except as required by applicable law.

    Non-GAAP Financial 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 on sales of assets, certain inventory write-downs, long-lived asset impairments and other adjustments. Adjusted EBITDA on a constant currency basis reflects adjusted EBITDA, as defined above, adjusted for the impact of foreign currency. To present adjusted EBITDA on a constant currency basis, current period adjusted EBITDA for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average monthly foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

    The Company views operating free cash flows as an important measure because it is one factor in evaluating the amount of cash available for discretionary investments. The Company defines operating free cash flows as cash used in or provided by operating activities (a GAAP measure) less purchases of property, plant and equipment.



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Consolidated Statements of Operations
    (unaudited and in thousands, except per share amounts)
            
     Second Quarter Second Quarter Year to Date
      2023   2022   2023   2022 
            
    Net sales$454,208  $476,941  $893,559  $931,844 
    Cost of sales 350,351   359,646   695,367   709,131 
    Gross profit 103,857   117,295   198,192   222,713 
    Selling, general and administrative expenses 72,357   80,136   147,308   153,929 
    Amortization of acquired intangible assets 2,785   2,049   5,573   4,144 
    Productivity and transformation costs 986   2,786   1,759   6,769 
    Long-lived asset impairment 340   303   340   303 
    Operating income 27,389   32,021   43,212   57,568 
    Interest and other financing expense, net 10,812   2,592   18,489   4,448 
    Other income, net (1,062)  (9,070)  (2,852)  (9,858)
    Income before income taxes and equity in net loss of equity-method investees 17,639   38,499   27,575   62,978 
    Provision for income taxes 6,357   7,145   8,988   11,687 
    Equity in net loss of equity-method investees 316   465   698   991 
    Net income$10,966  $30,889  $17,889  $50,300 
            
    Net income per common share:       
    Basic$0.12  $0.33  $0.20  $0.53 
    Diluted$0.12  $0.33  $0.20  $0.52 
            
    Shares used in the calculation of net income per common share:      
    Basic 89,380   94,036   89,343   95,579 
    Diluted 89,578   94,808   89,535   96,123 
            



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets
    (unaudited and in thousands)
        
     December 31, 2022 June 30, 2022
    ASSETS   
    Current assets:   
    Cash and cash equivalents$43,437  $65,512 
    Accounts receivable, net 177,058   170,661 
    Inventories 324,525   308,034 
    Prepaid expenses and other current assets 58,781   54,079 
    Assets held for sale 1,500   1,840 
    Total current assets 605,301   600,126 
    Property, plant and equipment, net 294,635   297,405 
    Goodwill 927,078   933,796 
    Trademarks and other intangible assets, net 470,956   477,533 
    Investments and joint ventures 13,260   14,456 
    Operating lease right-of-use assets, net 101,374   114,691 
    Other assets 25,554   20,377 
    Total assets$2,438,158  $2,458,384 
    LIABILITIES AND STOCKHOLDERS' EQUITY     
    Current liabilities:   
    Accounts payable$153,677  $174,765 
    Accrued expenses and other current liabilities 85,168   86,833 
    Current portion of long-term debt 7,602   7,705 
    Total current liabilities 246,447   269,303 
    Long-term debt, less current portion 870,800   880,938 
    Deferred income taxes 95,131   95,044 
    Operating lease liabilities, noncurrent portion 92,587   107,481 
    Other noncurrent liabilities 24,552   22,450 
    Total liabilities 1,329,517   1,375,216 
    Stockholders' equity:   
    Common stock 1,113   1,111 
    Additional paid-in capital 1,210,555   1,203,126 
    Retained earnings 786,987   769,098 
    Accumulated other comprehensive loss (163,346)  (164,482)
      1,835,309   1,808,853 
    Less: Treasury stock (726,668)  (725,685)
    Total stockholders' equity 1,108,641   1,083,168 
    Total liabilities and stockholders' equity$2,438,158  $2,458,384 
        



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Consolidated Statements of Cash Flows
    (unaudited and in thousands)
            
     Second Quarter Second Quarter Year to Date
      2023   2022   2023   2022 
    CASH FLOWS FROM OPERATING ACTIVITIES       
    Net income$10,966  $30,889  $17,889  $50,300 
    Adjustments to reconcile net income to net cash provided by (used in) operating activities       
    Depreciation and amortization 12,155   10,903   24,125   21,758 
    Deferred income taxes (486)  (1,166)  (1,983)  (3,271)
    Equity in net loss of equity-method investees 316   465   698   991 
    Stock-based compensation, net 3,435   4,156   7,429   8,443 
    Long-lived asset impairment 340   303   340   303 
    Gain on sale of assets (3,335)  (8,645)  (3,395)  (8,921)
    Other non-cash items, net (1,048)  (393)  (2,505)  (1,486)
    Increase (decrease) in cash attributable to changes in operating assets and liabilities:       
    Accounts receivable 3,053   21,813   (6,536)  12,370 
    Inventories (1,722)  196   (18,629)  2,473 
    Other current assets (2,872)  (6,026)  (331)  (5,126)
    Other assets and liabilities 2,830   3,342   4,178   1,776 
    Accounts payable and accrued expenses (21,168)  (25,392)  (23,932)  (11,579)
    Net cash provided by (used in) operating activities 2,464   30,445   (2,652)  68,031 
    CASH FLOWS FROM INVESTING ACTIVITIES       
    Purchases of property, plant and equipment (6,840)  (10,186)  (14,055)  (27,996)
    Acquisitions of businesses, net of cash acquired -   (254,569)  -   (254,569)
    Investments and joint ventures, net 242   (106)  433   (514)
    Proceeds from sale of assets 7,512   10,570   7,608   10,734 
    Net cash provided by (used in) investing activities 914   (254,291)  (6,014)  (272,345)
    CASH FLOWS FROM FINANCING ACTIVITIES       
    Borrowings under bank revolving credit facility 105,000   420,000   185,000   540,000 
    Repayments under bank revolving credit facility (124,875)  (325,000)  (194,750)  (330,000)
    Borrowings under term loan -   300,000   -   300,000 
    Payments of other debt, net (87)  (2,948)  (159)  (3,185)
    Share repurchases -   (89,830)  -   (266,933)
    Employee shares withheld for taxes (754)  (29,858)  (983)  (31,033)
    Net cash (used in) provided by financing activities (20,716)  272,364   (10,892)  208,849 
    Effect of exchange rate changes on cash 8,981   (278)  (2,517)  (3,204)
    Net (decrease) increase in cash and cash equivalents (8,357)  48,240   (22,075)  1,331 
    Cash and cash equivalents at beginning of period 51,794   28,962   65,512   75,871 
    Cash and cash equivalents at end of period$43,437  $77,202  $43,437  $77,202 
            



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Net Sales, Gross Profit and Operating Income (Loss) by Segment
    (unaudited and in thousands)
            
     North America International Corporate/Other Hain Consolidated
    Net Sales       
    Net sales - Q2 FY23$282,361  $171,847  $-  $454,208 
    Net sales - Q2 FY22$275,014  $201,927  $-  $476,941 
    % change - FY23 net sales vs. FY22 net sales 2.7%  (14.9)%    (4.8)%
            
    Gross Profit       
    Q2 FY23       
    Gross profit$71,127  $32,730  $-  $103,857 
    Non-GAAP adjustments(1) 22   (6)  -   16 
    Adjusted gross profit$71,149  $32,724  $-  $103,873 
    % change - FY23 gross profit vs. FY22 gross profit 5.0%  (34.0)%    (11.5)%
    % change - FY23 adjusted gross profit vs. FY22 adjusted gross profit 4.8%  (33.8)%    (11.5)%
    Gross margin 25.2%  19.0%    22.9%
    Adjusted gross margin 25.2%  19.0%    22.9%
            
    Q2 FY22       
    Gross profit$67,721  $49,574  $-  $117,295 
    Non-GAAP adjustments(1) 183   (168)  -   15 
    Adjusted gross profit$67,904  $49,406  $-  $117,310 
    Gross margin 24.6%  24.6%    24.6%
    Adjusted gross margin 24.7%  24.5%    24.6%
            
    Operating income (loss)       
    Q2 FY23       
    Operating income (loss)$32,262  $11,940  $(16,813) $27,389 
    Non-GAAP adjustments(1) 75   525   7,363   7,963 
    Adjusted operating income (loss)$32,337  $12,465  $(9,450) $35,352 
    % change - FY23 operating income (loss) vs. FY22 operating income (loss) 18.8%  (56.4)%  (25.3)%  (14.5)%
    % change - FY23 adjusted operating income (loss) vs. FY22 adjusted operating income (loss) 11.6%  (55.1)%  (14.2)%  (22.7)%
    Operating income margin 11.4%  6.9%    6.0%
    Adjusted operating income margin 11.5%  7.3%    7.8%
            
    Q2 FY22       
    Operating income (loss)$27,162  $27,368  $(22,509) $32,021 
    Non-GAAP adjustments(1) 1,802   396   11,498   13,696 
    Adjusted operating income (loss)$28,964  $27,764  $(11,011) $45,717 
    Operating income margin 9.9%  13.6%    6.7%
    Adjusted operating income margin 10.5%  13.7%    9.6%
            
    (1) See accompanying table "Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income and Adjusted EPS"  
            



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Net Sales, Gross Profit and Operating Income (Loss) by Segment
    (unaudited and in thousands)
            
     North America International Corporate/Other Hain Consolidated
    Net Sales       
    Net sales - Q2 FY23 YTD$570,757  $322,802  $-  $893,559 
    Net sales - Q2 FY22 YTD$540,539  $391,305  $-  $931,844 
    % change - FY23 net sales vs. FY22 net sales 5.6%  (17.5)%    (4.1)%
            
    Gross Profit       
    Q2 FY23 YTD       
    Gross profit$136,662  $61,530  $-  $198,192 
    Non-GAAP adjustments(1) 52   -   -   52 
    Adjusted gross profit$136,714  $61,530  $-  $198,244 
    % change - FY23 gross profit vs. FY22 gross profit 9.7%  (37.3)%    (11.0)%
    % change - FY23 adjusted gross profit vs. FY22 adjusted gross profit 7.5%  (37.8)%    (12.3)%
    Gross margin 23.9%  19.1%    22.2%
    Adjusted gross margin 24.0%  19.1%    22.2%
            
    Q2 FY22 YTD       
    Gross profit$124,530  $98,183  $-  $222,713 
    Non-GAAP adjustments(1) 2,593   707   -   3,300 
    Adjusted gross profit$127,123  $98,890  $-  $226,013 
    Gross margin 23.0%  25.1%    23.9%
    Adjusted gross margin 23.5%  25.3%    24.3%
            
    Operating income (loss)       
    Q2 FY23 YTD       
    Operating income (loss)$56,707  $19,615  $(33,110) $43,212 
    Non-GAAP adjustments(1) 411   852   11,301   12,564 
    Adjusted operating income (loss)$57,118  $20,467  $(21,809) $55,776 
    % change - FY23 operating income (loss) vs. FY22 operating income (loss) 28.9%  (61.9)%  (12.6)%  (24.9)%
    % change - FY23 adjusted operating income (loss) vs. FY22 adjusted operating income (loss) 15.4%  (61.4)%  (2.9)%  (30.3)%
    Operating income margin 9.9%  6.1%    4.8%
    Adjusted operating income margin 10.0%  6.3%    6.2%
            
    Q2 FY22 YTD       
    Operating income (loss)$44,004  $51,437  $(37,873) $57,568 
    Non-GAAP adjustments(1) 5,497   1,572   15,424   22,493 
    Adjusted operating income (loss)$49,501  $53,009  $(22,449) $80,061 
    Operating income margin 8.1%  13.1%    6.2%
    Adjusted operating income margin 9.2%  13.5%    8.6%
            
    (1) See accompanying table "Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income and Adjusted EPS"  



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income and Adjusted EPS
    (unaudited and in thousands, except per share amounts)
            
    Reconciliation of Gross Profit, GAAP to Gross Profit, as Adjusted:       
     Second Quarter Second Quarter Year to Date
      2023   2022   2023   2022 
    Gross profit, GAAP$103,857  $117,295  $198,192  $222,713 
    Adjustments to Cost of sales:       
    Inventory write-down -   (46)  -   (46)
    Plant closure related costs, net 16   (188)  52   808 
    Warehouse/manufacturing consolidation and other costs, net -   249   -   2,538 
    Gross profit, as adjusted$103,873  $117,310  $198,244  $226,013 
            
    Reconciliation of Operating Income, GAAP to Operating Income, as Adjusted:      
     Second Quarter Second Quarter Year to Date
      2023   2022   2023   2022 
    Operating income, GAAP$27,389  $32,021  $43,212  $57,568 
    Adjustments to Cost of sales:       
    Inventory write-down -   (46)  -   (46)
    Plant closure related costs, net 16   (188)  52   808 
    Warehouse/manufacturing consolidation and other costs, net -   249   -   2,538 
            
    Adjustments to Operating expenses(a):       
    CEO succession 5,113   -   5,113   - 
    Transaction and integration costs, net 402   8,963   1,769   8,732 
    Certain litigation expenses, net(b) 2,482   1,624   4,945   3,384 
    Long-lived asset impairment 340   303   340   303 
    Plant closure related costs, net 37   5   (1)  5 
    Productivity and transformation costs 986   2,786   1,759   6,769 
    Warehouse/manufacturing consolidation and other costs, net (1,413)  -   (1,413)  - 
    Operating income, as adjusted$35,352  $45,717  $55,776  $80,061 
            
    Reconciliation of Net Income, GAAP to Net Income, as Adjusted:       
     Second Quarter Second Quarter Year to Date
      2023   2022   2023   2022 
    Net income, GAAP$10,966  $30,889  $17,889  $50,300 
    Adjustments to Cost of sales:       
    Inventory write-down -   (46)  -   (46)
    Plant closure related costs, net 16   (188)  52   808 
    Warehouse/manufacturing consolidation and other costs, net -   249   -   2,538 
            
    Adjustments to Operating expenses(a):       
    CEO succession 5,113   -   5,113   - 
    Transaction and integration costs, net 402   8,963   1,769   8,732 
    Certain litigation expenses, net(b) 2,482   1,624   4,945   3,384 
    Long-lived asset impairment 340   303   340   303 
    Plant closure related costs, net 37   5   (1)  5 
    Productivity and transformation costs 986   2,786   1,759   6,769 
    Warehouse/manufacturing consolidation and other costs, net (1,413)  -   (1,413)  - 
            
    Adjustments to Interest and other expense (income), net(c):       
    Gain on sale of assets (3,355)  (8,656)  (3,395)  (9,102)
    Unrealized currency losses (gains) 2,160   (480)  449   (1,503)
            
    Adjustments to Provision for income taxes:       
    Net tax impact of non-GAAP adjustments 526   (1,110)  (20)  (4,020)
    Net income, as adjusted$18,260  $34,339  $27,487  $58,168 
    Net income margin 2.4%  6.5%  2.0%  5.4%
    Adjusted net income margin 4.0%  7.2%  3.1%  6.2%
            
    Diluted shares used in the calculation of net income per common share: 89,578   94,808   89,535   96,123 
            
    Diluted net income per common share, GAAP$0.12  $0.33  $0.20  $0.52 
    Diluted net income per common share, as adjusted$0.20  $0.36  $0.31  $0.61 
            
    (a) Operating expenses include amortization of acquired intangibles, selling, general and administrative expenses, long-lived asset impairment and productivity and transformation costs.
    (b) Expenses and items relating to securities class action and baby food litigation.      
    (c) Interest and other expense (income), net includes interest and other financing expenses, net, unrealized currency losses (gains), gain on sale of assets and other expense, net.
            



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Adjusted Net Sales Growth
    (unaudited and in thousands)
          
    Q2 FY23North America International Hain Consolidated
    Net sales$282,361  $171,847  $454,208 
    Acquisitions, divestitures and discontinued brands (16,849)  -   (16,849)
    Impact of foreign currency exchange 2,075   23,720   25,795 
    Net sales on a constant currency basis adjusted for acquisitions, divestitures and discontinued brands$267,587  $195,567  $463,154 
          
    Q2 FY22     
    Net sales$275,014  $201,927  $476,941 
    Acquisitions, divestitures and discontinued brands (2,280)  -   (2,280)
    Net sales adjusted for acquisitions, divestitures and discontinued brands$272,734  $201,927  $474,661 
          
    Net sales growth (decline) 2.7%  (14.9)%  (4.8)%
    Impact of acquisitions, divestitures and discontinued brands (5.4)%  -   (3.0)%
    Impact of foreign currency exchange 0.8%  11.7%  5.4%
    Net sales decline on a constant currency basis adjusted for acquisitions, divestitures and discontinued brands (1.9)%  (3.2)%  (2.4)%
          
    Q2 FY23 YTDNorth America International Hain Consolidated
    Net sales$570,757  $322,802  $893,559 
    Acquisitions, divestitures and discontinued brands (34,499)  -   (34,499)
    Impact of foreign currency exchange 3,143   49,506   52,649 
    Net sales on a constant currency basis adjusted for acquisitions, divestitures and discontinued brands$539,401  $372,308  $911,709 
          
    Q2 FY22 YTD     
    Net sales$540,539  $391,305  $931,844 
    Acquisitions, divestitures and discontinued brands (4,832)  -   (4,832)
    Net sales adjusted for acquisitions, divestitures and discontinued brands$535,707  $391,305  $927,012 
          
    Net sales growth (decline) 5.6%  (17.5)%  (4.1)%
    Impact of acquisitions, divestitures and discontinued brands (5.5)%  -   (3.2)%
    Impact of foreign currency exchange 0.6%  12.7%  5.6%
    Net sales growth (decline) on a constant currency basis adjusted for acquisitions, divestitures and discontinued brands 0.7%  (4.8)%  (1.7)%
          



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Adjusted EBITDA
    (unaudited and in thousands)
            
     Second Quarter Second Quarter Year to Date
      2023   2022   2023   2022 
            
    Net income$10,966  $30,889  $17,889  $50,300 
            
    Depreciation and amortization 12,155   10,903   24,125   21,758 
    Equity in net loss of equity-method investees 316   465   698   991 
    Interest expense, net 10,379   1,685   17,658   2,831 
    Provision for income taxes 6,357   7,145   8,988   11,687 
    Stock-based compensation, net 3,435   4,156   7,429   8,443 
    Unrealized currency losses (gains) 2,160   (480)  449   (1,503)
    Litigation and related costs       
    Certain litigation expenses, net(a) 2,482   1,624   4,945   3,384 
    Restructuring activities       
    CEO succession 5,113   -   5,113   - 
    Plant closure related costs, net 53   (183)  51   813 
    Productivity and transformation costs 986   2,247   1,759   5,451 
    Warehouse/manufacturing consolidation and other costs, net (1,972)  249   (1,972)  2,538 
    Acquisitions, divestitures and other       
    Transaction and integration costs, net 402   8,963   1,769   8,732 
    Gain on sale of assets (3,355)  (8,656)  (3,395)  (9,102)
    Impairment charges       
    Inventory write-down -   (46)  -   (46)
    Long-lived asset impairment 340   303   340   303 
    Adjusted EBITDA$49,817  $59,264  $85,846  $106,580 
            
    (a) Expenses and items relating to securities class action and baby food litigation.    
            



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Adjusted EBITDA by Segment
    (unaudited and in thousands)
            
    Q2 FY23North America International Corporate/ Other Hain Consolidated
    Operating income (loss)$32,262  $11,940  $(16,813) $27,389 
    Depreciation and amortization 4,803   6,300   1,052   12,155 
    Stock-based compensation, net 1,273   773   1,389   3,435 
    Certain litigation expenses, net(a) -   -   2,482   2,482 
    CEO succession -   -   5,113   5,113 
    Plant closure related costs, net 58   (5)  -   53 
    Productivity and transformation costs 29   521   436   986 
    Warehouse/manufacturing consolidation and other costs, net -   -   (1,972)  (1,972)
    Transaction and integration costs, net (11)  9   404   402 
    Long-lived asset impairment -   -   340   340 
    Other 96   (296)  (366)  (566)
    Adjusted EBITDA$38,510  $19,242  $(7,935) $49,817 
            
    Q2 FY22       
    Operating income (loss)$27,162  $27,368  $(22,509) $32,021 
    Depreciation and amortization 3,654   6,295   954   10,903 
    Stock-based compensation, net 778   346   3,032   4,156 
    Certain litigation expenses, net(a) -   -   1,624   1,624 
    Plant closure related costs 122   (305)  -   (183)
    Productivity and transformation costs 1,577   255   415   2,247 
    Warehouse/manufacturing consolidation and other costs, net 106   143   -   249 
    Transaction and integration costs, net 43   -   8,920   8,963 
    Inventory write-down (46)  -   -   (46)
    Long-lived asset impairment -   303   -   303 
    Other (59)  (106)  (808)  (973)
    Adjusted EBITDA$33,337  $34,299  $(8,372) $59,264 
            
    (a) Expenses and items relating to securities class action and baby food litigation.      



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Adjusted EBITDA by Segment
    (unaudited and in thousands)
            
    Q2 FY23 YTDNorth America International Corporate/ Other Hain Consolidated
    Operating income (loss)$56,707  $19,615  $(33,110) $43,212 
    Depreciation and amortization 9,695   12,895   1,535   24,125 
    Stock-based compensation, net 2,356   1,164   3,909   7,429 
    Certain litigation expenses, net(a) -   -   4,945   4,945 
    CEO succession -   -   5,113   5,113 
    Plant closure related costs, net 53   (2)  -   51 
    Productivity and transformation costs 370   859   530   1,759 
    Warehouse/manufacturing consolidation and other costs, net -   -   (1,972)  (1,972)
    Transaction and integration costs, net (11)  (6)  1,786   1,769 
    Long-lived asset impairment -   -   340   340 
    Other 121   (336)  (710)  (925)
    Adjusted EBITDA$69,291  $34,189  $(17,634) $85,846 
            
    Q2 FY22 YTD       
    Operating income (loss)$44,004  $51,437  $(37,873) $57,568 
    Depreciation and amortization 7,396   12,705   1,657   21,758 
    Stock-based compensation, net 1,414   1,067   5,962   8,443 
    Certain litigation expenses, net(a) -   -   3,384   3,384 
    Plant closure related costs, net 1,118   (305)  -   813 
    Productivity and transformation costs 3,202   554   1,695   5,451 
    Warehouse/manufacturing consolidation and other costs, net 1,519   1,019   -   2,538 
    Transaction and integration costs, net (298)  -   9,030   8,732 
    Inventory write-down (46)  -   -   (46)
    Long-lived asset impairment -   303   -   303 
    Other (870)  (47)  (1,447)  (2,364)
    Adjusted EBITDA$57,439  $66,733  $(17,592) $106,580 
            
    (a) Expenses and items relating to securities class action and baby food litigation.      
            



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Adjusted EBITDA and Adjusted EBITDA Margin at Constant Currency by Segment
    (unaudited and in thousands)
            
    Q2 FY23North America International Corporate/ Other Hain Consolidated
    Adjusted EBITDA$38,510  $19,242  $(7,935) $49,817 
    Impact of foreign currency exchange 283   2,626   -   2,909 
    Adjusted EBITDA on a constant currency basis$38,793  $21,868  $(7,935) $52,726 
            
    Net sales on a constant currency basis$284,436  $195,567    $480,003 
    Adjusted EBITDA margin on a constant currency basis 13.6%  11.2%    11.0%
            
    Q2 FY22       
    Adjusted EBITDA$33,337  $34,299  $(8,372) $59,264 
            
    Net sales$275,014  $201,927    $476,941 
    Adjusted EBITDA margin 12.1%  17.0%    12.4%
            
    Q2 FY23 vs. Q2 FY22       
    Adjusted EBITDA growth on a constant currency basis (%) 16.4%  (36.2)%  5.2%  (11.0)%
            
    Adjusted EBITDA margin change on a constant currency basis (bps) 152   (580)    (144)
            
    Q2 FY23 YTDNorth America International Corporate/ Other Hain Consolidated
    Adjusted EBITDA$69,291  $34,189  $(17,634) $85,846 
    Impact of foreign currency exchange 363   5,164   -   5,527 
    Adjusted EBITDA on a constant currency basis$69,654  $39,353  $(17,634) $91,373 
            
    Net sales on a constant currency basis$573,900  $372,308    $946,208 
    Adjusted EBITDA margin on a constant currency basis 12.1%  10.6%    9.7%
            
    Q2 FY22 YTD       
    Adjusted EBITDA$57,439  $66,733  $(17,592) $106,580 
            
    Net sales$540,539  $391,305    $931,844 
    Adjusted EBITDA margin 10.6%  17.1%    11.4%
            
    Q2 FY23 YTD vs. Q2 FY22 YTD       
    Adjusted EBITDA growth on a constant currency basis (%) 21.3%  (41.0)%  (0.2)%  (14.3)%
            
    Adjusted EBITDA margin change on a constant currency basis (bps) 151   (648)    (178)
            



    THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES
    Operating Free Cash Flows
    (unaudited and in thousands)
            
     Second Quarter Second Quarter Year to Date
      2023   2022   2023   2022 
            
    Net cash provided by (used in) operating activities$2,464  $30,445  $(2,652) $68,031 
    Purchases of property, plant and equipment (6,840)  (10,186)  (14,055)  (27,996)
    Operating free cash flows$(4,376) $20,259  $(16,707) $40,035 
            

     

     


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