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Hain Celestial Q4 Earnings Top, Hain Reimagined Strategy Yields
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The Hain Celestial Group, Inc. (HAIN - Free Report) posted fourth-quarter fiscal 2024 results, with the top line declining year over year but surpassing the Zacks Consensus Estimate. The bottom line rose year over year and beat the consensus mark.
The fiscal 2024 marked a pivotal year for the company’s Hain Reimagined strategy, during which it made significant strides in simplifying its operations and driving growth. The transition to a global operating model helped reduce geographic complexity, enhance scale and foster a performance-driven, values-based culture. Looking ahead to the fiscal 2025, HAIN plans to focus on commercial execution to boost both top- and bottom-line growth. Management remains confident in the Hain Reimagined strategy, emphasizing the strength of the company's diversified portfolio and global footprint.
More on Hain Celestial’s Q4 Financial Results
HAIN posted adjusted earnings of 13 cents per share, outpacing the Zacks Consensus Estimate of 8 cents. The bottom line increased from adjusted earnings of 11 cents reported in the year-ago quarter.
Net sales of $419 million beat the consensus estimate of $418.2 million. The top line declined 6% year over year. Organic sales fell 4% from the year-ago quarter’s reported figure.
The Hain Celestial Group, Inc. Price, Consensus and EPS Surprise
The adjusted gross profit of almost $98 million fell 3.7% from the year-ago quarter’s figure. In comparison, the adjusted gross margin expanded 70 basis points (bps) from the year-ago quarter’s reported figure to 23.4%. We had expected the adjusted gross margin to expand 40 bps to 23.1%.
SG&A expenses came in at $72.3 million, up from $66.9 million reported in the year-ago quarter.
Adjusted EBITDA stood at $40 million down from $44 million reported in the year-ago quarter’s reported figure. The adjusted EBITDA margin contracted 30 bps to 9.4%. We had expected an adjusted EBITDA margin contraction of 80 bps to 8.9%.
HAIN Provides Q4 Revenue & Profit Insights by Segment
Net sales in the North America segment tumbled 8% from the year-ago quarter’s reported figure to $260 million. Segmental organic net sales fell 5% year over year, mainly due to reduced personal care sales, partly owing to portfolio simplification and a decline in infant formula sales within the baby and kids category. This drop was partially offset by growth in the snacks segment. We expected North America’s sales to fall 7.6% to $260.3 million in the reported quarter.
The segment’s adjusted EBITDA amounted to $21 million, down from $27 million reported in the year-ago quarter. Adjusted EBITDA margin in the quarter dropped to 8% from 9.6% reported in the year-ago quarter.
The International segment’s net sales fell 4% from the year-ago quarter’s reported figure to $159 million. Segmental organic net sales also fell 4% year over year, primarily due to lower sales in plant-based meat alternatives within the meal prep category and a decline in snacks. The downside was partially offset by growth in the beverages segment. We had anticipated the segment’s sales to decline 6.6% to $155.1 million in the reported quarter.
The segment’s adjusted EBITDA was $27 million, flat year over year. Adjusted EBITDA margin in the quarter expanded 40 bps to 17%.
Image Source: Zacks Investment Research
HAIN’s Financial Snapshot: Cash, Debt and Equity Overview
The Zacks Rank #3 (Hold) company ended the reported quarter with cash and cash equivalents of $54.3 million, long-term debt (excluding the current portion) of $736.5 million and total shareholders’ equity of $942.9 million.
The company reported cash provided by operating activities of $39 million and a free cash flow of $31 million during the quarter under review.
What Lies Ahead For Hain Celestial?
For fiscal 2025, management expects organic net sales to be stable or show improvement year-over-year. Adjusted EBITDA is projected to grow by mid-single digits and gross margin is anticipated to rise by at least 125 basis points. Additionally, the company forecasts generating at least $60 million in free cash flow for the year.
The company’s shares have dropped 3.1% in the past three months against the industry’s 2.4% growth.
The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal year sales and earnings indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
Vital Farms (VITL - Free Report) offers a range of produced pasture-raised foods. It currently carries a Zacks Rank #2 (Buy). VITL has a trailing four-quarter earnings surprise of 82.5%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings indicate growth of 26.3% and 88.1%, respectively, from the prior-year reported level.
Nomad Foods (NOMD - Free Report) , carrying a Zacks Rank #2, manufactures and distributes frozen foods. NOMD has a trailing four-quarter earnings surprise of 3.1%, on average.
The Zacks Consensus Estimate for Nomad Foods’ current financial-year sales and earnings indicates growth of 4.3% and 11.5%, respectively, from the prior-year reported level.
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Hain Celestial Q4 Earnings Top, Hain Reimagined Strategy Yields
The Hain Celestial Group, Inc. (HAIN - Free Report) posted fourth-quarter fiscal 2024 results, with the top line declining year over year but surpassing the Zacks Consensus Estimate. The bottom line rose year over year and beat the consensus mark.
The fiscal 2024 marked a pivotal year for the company’s Hain Reimagined strategy, during which it made significant strides in simplifying its operations and driving growth. The transition to a global operating model helped reduce geographic complexity, enhance scale and foster a performance-driven, values-based culture. Looking ahead to the fiscal 2025, HAIN plans to focus on commercial execution to boost both top- and bottom-line growth. Management remains confident in the Hain Reimagined strategy, emphasizing the strength of the company's diversified portfolio and global footprint.
More on Hain Celestial’s Q4 Financial Results
HAIN posted adjusted earnings of 13 cents per share, outpacing the Zacks Consensus Estimate of 8 cents. The bottom line increased from adjusted earnings of 11 cents reported in the year-ago quarter.
Net sales of $419 million beat the consensus estimate of $418.2 million. The top line declined 6% year over year. Organic sales fell 4% from the year-ago quarter’s reported figure.
The Hain Celestial Group, Inc. Price, Consensus and EPS Surprise
The Hain Celestial Group, Inc. price-consensus-eps-surprise-chart | The Hain Celestial Group, Inc. Quote
The adjusted gross profit of almost $98 million fell 3.7% from the year-ago quarter’s figure. In comparison, the adjusted gross margin expanded 70 basis points (bps) from the year-ago quarter’s reported figure to 23.4%. We had expected the adjusted gross margin to expand 40 bps to 23.1%.
SG&A expenses came in at $72.3 million, up from $66.9 million reported in the year-ago quarter.
Adjusted EBITDA stood at $40 million down from $44 million reported in the year-ago quarter’s reported figure. The adjusted EBITDA margin contracted 30 bps to 9.4%. We had expected an adjusted EBITDA margin contraction of 80 bps to 8.9%.
HAIN Provides Q4 Revenue & Profit Insights by Segment
Net sales in the North America segment tumbled 8% from the year-ago quarter’s reported figure to $260 million. Segmental organic net sales fell 5% year over year, mainly due to reduced personal care sales, partly owing to portfolio simplification and a decline in infant formula sales within the baby and kids category. This drop was partially offset by growth in the snacks segment. We expected North America’s sales to fall 7.6% to $260.3 million in the reported quarter.
The segment’s adjusted EBITDA amounted to $21 million, down from $27 million reported in the year-ago quarter. Adjusted EBITDA margin in the quarter dropped to 8% from 9.6% reported in the year-ago quarter.
The International segment’s net sales fell 4% from the year-ago quarter’s reported figure to $159 million. Segmental organic net sales also fell 4% year over year, primarily due to lower sales in plant-based meat alternatives within the meal prep category and a decline in snacks. The downside was partially offset by growth in the beverages segment. We had anticipated the segment’s sales to decline 6.6% to $155.1 million in the reported quarter.
The segment’s adjusted EBITDA was $27 million, flat year over year. Adjusted EBITDA margin in the quarter expanded 40 bps to 17%.
Image Source: Zacks Investment Research
HAIN’s Financial Snapshot: Cash, Debt and Equity Overview
The Zacks Rank #3 (Hold) company ended the reported quarter with cash and cash equivalents of $54.3 million, long-term debt (excluding the current portion) of $736.5 million and total shareholders’ equity of $942.9 million.
The company reported cash provided by operating activities of $39 million and a free cash flow of $31 million during the quarter under review.
What Lies Ahead For Hain Celestial?
For fiscal 2025, management expects organic net sales to be stable or show improvement year-over-year. Adjusted EBITDA is projected to grow by mid-single digits and gross margin is anticipated to rise by at least 125 basis points. Additionally, the company forecasts generating at least $60 million in free cash flow for the year.
The company’s shares have dropped 3.1% in the past three months against the industry’s 2.4% growth.
Stocks to Consider
The Chef's Warehouse (CHEF - Free Report) , which distributes specialty food products, currently sports a Zacks Rank #1 (Strong Buy). CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal year sales and earnings indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
Vital Farms (VITL - Free Report) offers a range of produced pasture-raised foods. It currently carries a Zacks Rank #2 (Buy). VITL has a trailing four-quarter earnings surprise of 82.5%, on average.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings indicate growth of 26.3% and 88.1%, respectively, from the prior-year reported level.
Nomad Foods (NOMD - Free Report) , carrying a Zacks Rank #2, manufactures and distributes frozen foods. NOMD has a trailing four-quarter earnings surprise of 3.1%, on average.
The Zacks Consensus Estimate for Nomad Foods’ current financial-year sales and earnings indicates growth of 4.3% and 11.5%, respectively, from the prior-year reported level.