The Hain Celestial Group, Inc. (HAIN Quick QuoteHAIN - Free Report) has been focused on its global strategic goals and continues to make marketing investments in key brands. In the first quarter of fiscal year 2024, Hain Celestial revealed its Reimagined strategy to boost sustainable long-term growth. Management remains focused on the portfolio of five consumer-centric global Better-For-You (“BFY”) platforms, which include BFY Snacks, BFY Baby & Kids, BFY Beverages, BFY Meal Prep and BFY Personal Care.

The company has been witnessing strength in its International Segment. The segment’s net sales increased 9.3% in the first quarter of fiscal 2024, following 3.7% growth in the preceding quarter. Net sales growth in the first quarter was driven by strength in its meal preparation and beverages businesses. Solid demand for several categories, including soup, grocery and non-dairy beverages, has been boosting the segment’s performance.

HAIN remains committed on creating additional global Centers of Excellence in areas like innovation, brand building, talent management and technology. The company also remains focused on simplifying its portfolio, identifying additional areas of productivity savings, enhancing margins, reviving top-line growth and improving cash flow.

For fiscal 2024, Hain Celestial expects adjusted net sales to increase by 2-4% year over year and adjusted EBITDA in the band of $155-$165 million. It anticipates generating a free cash flow of $50-$55 million for the fiscal year.

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Shares of this Zacks Rank #3 (Hold) company have gained 4.9% in the past month compared with the industry’s 7.5% growth.

However, the company has been witnessing softness across its North America segment of late. Its first-quarter net sales in the North America segment tumbled 9.8% to $260.1 million. The decline was due to lower sales in the baby & kids business due to industry-wide challenges in organic formula supply. Softness in personal care owing to the timing shift of a sun care program hurt its performance as well.

It has also been grappling with higher operating costs and expenses for a while. For instance, in the fiscal first quarter, its selling, general and administrative expenses increased 2.9% year over year. The increase was driven primarily by growth in the wage rate and inflation in other support costs. The quarterly adjusted EBITDA dropped 33.1%, while adjusted EBITDA margin decreased 250 basis points to 5.7%.

3 Appetizing Picks

Lamb Weston (LW Quick QuoteLW - Free Report) , which offers frozen potato products, sports a Zacks Rank #1 (Strong Buy). LW has a trailing four-quarter earnings surprise of 46.2% on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Lamb Weston’s current financial-year sales and earnings suggests growth of 28.3% and 24.8%, respectively, from the year-ago reported numbers.

The Kraft Heinz Company (KHC Quick QuoteKHC - Free Report) , a food and beverage product company, currently carries a Zacks Rank #2. KHC has a trailing four-quarter earnings surprise of 9.9% on average.

The Zacks Consensus Estimate for Kraft Heinz’s current fiscal year sales suggests growth of 1.2% from the corresponding year-ago reported figure.

Vital Farms Inc. (VITL Quick QuoteVITL - Free Report) offers a range of produced pasture-raised foods. It currently has a Zacks Rank #2. VITL has a trailing four-quarter earnings surprise of 145% on average.

The Zacks Consensus Estimate for Vital Farms’ current financial-year sales suggests growth of 29.4% from the year-ago reported figure.