The Hain Celestial Group, Inc. — Fiscal First Quarter 2027 Earnings Summary

Financial Performance:

• Net sales were $260 million, a 29% decrease year-over-year (YoY), including a 22% impact from divestitures, discontinued brands, and exited product categories; organic net sales decreased 7% YoY.
• Organic net sales decline was driven by a 7-point decrease in volume/mix, partially offset by a 1-point increase in pricing.
• Gross profit margin was 21.8%, a 330-basis point increase from the prior year period; adjusted gross profit margin was 22.8%, a 320-basis point increase YoY.
• Net loss was $11 million compared to a net loss of $21 million in the prior year period.
• Adjusted net loss was $7 million, flat compared to an adjusted net loss of $7 million in the prior year period.
• Adjusted EBITDA was $18 million, down from $20 million in the prior year period.
• Loss per diluted share was $0.12 compared to $0.23 in the prior year period; adjusted loss per diluted share was $0.07 compared to $0.08 in the prior year period.
• Net cash used in operating activities was $19 million, compared to $8 million used in the prior year period.
• Free cash flow was negative $23 million, compared to negative $14 million in the prior year period.
• Total debt was $586 million at quarter-end, up from $558 million at the beginning of the fiscal year.
• Net debt was $523 million at quarter-end, up from $500 million at the beginning of the fiscal year.
• The company ended the quarter with a net secured leverage ratio of 5.3x under its credit agreement.

Business Segments and Product Lines:

• North America: Net sales were $111 million, down 46% YoY (organic down 6%); segment gross profit was $34 million (down 19%); adjusted gross margin was 33.5% (up 1,080 basis points); adjusted EBITDA was $17 million, flat YoY. Organic sales decline driven by lower sales in baby & kids, beverages, and meal prep.
• International: Net sales were $149 million, down 9% YoY (organic down 7%); segment gross profit was $22 million (down 14%); adjusted gross margin was 14.9% (down 80 basis points); adjusted EBITDA was $9 million, down 29% YoY. Organic sales decline driven by lower meal prep sales, partially offset by growth in baby & kids and beverages.
• Baby & Kids: Net sales $53 million, down 6% YoY (organic down 1%); decline driven by purees in North America, offset by snack growth in North America.
• Beverages: Net sales $58 million, down 2% YoY (organic down 1%); decline driven by tea in North America and International, offset by private label non-dairy beverage growth in International.
• Meal Prep: Net sales $134 million, down 16% YoY (organic down 10%); decline driven by spreads & drizzles and soup in International, offset by yogurt growth in North America.
• Snacks: Net sales $7 million, down 92% YoY (organic down 16%); category now comprises jellies in the International segment following the disposition of the North American snacks business.
• Personal Care: Net sales $9 million, down 32% YoY.

Risks and Challenges:

• The condition to enter into an amendment to the credit agreement by October 12, 2026, was not satisfied; the company remains in discussions with lenders regarding capital structure.
• The sale of the International business to AURELIUS is pending completion of the credit agreement amendment; the transaction remains subject to uncertainty.
• Risks include compliance with the credit agreement, ability to refinance or extend debt maturity, input cost inflation (including tariffs), competition, consumer preference changes, supply chain management, and reliance on independent contract manufacturers and distributors.
• Specific risks include litigation related to Earth's Best baby food products, cybersecurity incidents, potential delisting from Nasdaq, and foreign currency exchange risk.

Management Commentary and Tone:

• CEO Alison Lewis stated the company made progress on strategic actions to realign cost structure, drive productivity, and improve commercial and innovation capabilities.
• Management noted gross margin improvement reflects progress on commercial and portfolio actions.
• Lewis emphasized the receipt of final regulatory approvals for the International sale as an important step, with the goal of reducing debt and creating a more focused North America business.
• Management indicated they will provide updates as material developments occur regarding the International sale and credit agreement discussions.

Other Key Points:

• Final required regulatory approvals were received in early November 2026 for the sale of the International business to global private equity firm AURELIUS.
• The transaction remains contingent on satisfying the condition to amend the credit agreement by October 12, 2026, which was not met.
• The company is continuing discussions with AURELIUS to pursue a path forward to complete the transaction.
• The North American Snacks transaction contributed to margin improvement in the North America segment.
• Conference call and webcast information was provided for November 9, 2026, at 8:00 AM EST.