HAIN CELESTIAL GROUP INC SEC 10-K Report

The Hain Celestial Group, Inc., a leading global health and wellness company, has released its annual Form 10-K report, detailing its financial and operational performance for the fiscal year. The company, known for its better-for-you brands, operates in over 70 countries and offers a diverse product portfolio that includes snacks, baby/kids foods, beverages, and meal preparation products. The report provides insights into the company's financial metrics, business operations, strategic initiatives, and the challenges it faces in a competitive market.

Financial Highlights

• Net Sales: $1,559.8 million, a decrease of 10.2% from fiscal 2024, primarily due to declines in both the North America and International segments.
• Gross Profit: $334.1 million, representing a gross profit margin of 21.4%, down from 21.9% in fiscal 2024, driven by volume and mix softness and higher trade spend.
• Operating Loss: $461.6 million, significantly increased from $18.9 million in fiscal 2024, primarily due to goodwill impairment charges.
• Net Loss: $530.8 million, compared to a net loss of $75.0 million in fiscal 2024, largely due to goodwill and intangible asset impairments.
• Basic and Diluted Net Loss Per Common Share: $(5.89), compared to $(0.84) in fiscal 2024, reflecting the increased net loss.

Business Highlights

• Company Overview: The Hain Celestial Group, Inc. is a leading global health and wellness company focused on better-for-you brands, operating in over 70 countries with a diverse product portfolio including snacks, baby/kids foods, beverages, and meal preparation products.
• Product Portfolio: Key brands include Garden Veggie Snacks™, Terra® chips, Celestial Seasonings® teas, Earth’s Best® Organic, and The Greek Gods® yogurt, among others, with a focus on health and wellness.
• Geographical Performance: The company operates through two main segments: North America and International. The North America segment experienced a decline in net sales primarily due to lower sales in snacks, meal preparation, and personal care categories. The International segment saw a slight decrease in net sales, driven by lower sales in the beverage and snacks categories.
• Operational Strategy: Hain Celestial is focused on streamlining its portfolio, accelerating brand renovation and innovation, implementing price increases, driving productivity, and enhancing digital capabilities, including e-commerce.
• Restructuring Program: Initiated a multi-year growth, transformation, and restructuring program aimed at optimizing the portfolio, improving profitability, and increasing flexibility for growth initiatives. The program is expected to be completed by the end of fiscal 2027.
• Production Facilities: The company operates several manufacturing facilities in North America and internationally, including locations in Colorado, Pennsylvania, Ontario, England, Germany, and Austria. A manufacturing facility in Vancouver, British Columbia, is expected to close in fiscal 2026.
• New Product Initiatives: Innovation and new product development are key components of the company's growth strategy, with a focus on better-for-you alternatives to conventional packaged foods.
• Future Outlook: The company is conducting a comprehensive review of its portfolio to explore strategic options and enhance value, with a focus on its core food and beverage portfolio. The Board is also considering strategic alternatives for the personal care business.
• CEO Succession: Alison E. Lewis has been appointed as Interim President and CEO following the departure of the previous CEO, with a leadership succession plan in place to identify the next CEO.
• Impact Strategy: The company is committed to environmentally sound business practices, creating better-for-you products, and sustainable manufacturing processes, with more details available in their Impact Report.

Strategic Initiatives

• Strategic Initiatives: The Hain Celestial Group, Inc. is focused on streamlining its portfolio, accelerating brand renovation and innovation, implementing price increases, driving productivity and working capital efficiency, and enhancing digital capabilities, including e-commerce. The company initiated a multi-year growth, transformation, and restructuring program aimed at optimizing its portfolio, improving profitability, and increasing flexibility for targeted growth initiatives. The program is expected to be completed by the end of fiscal 2027, with cumulative pretax charges estimated at $100 million to $110 million.
• Capital Management: The company entered into a Fourth Amended and Restated Credit Agreement providing $1,100 million in senior secured financing, consisting of $300 million in term loans and an $800 million revolving credit facility. The company reduced the size of the revolving credit facility to $600 million as of the Fourth Amendment. As of June 30, 2025, the company had $450.5 million of loans under the Revolver and $255.6 million of Term Loans outstanding. The company did not repurchase any shares during fiscal 2025, with $173.5 million remaining under the share repurchase program. The company’s cash and cash equivalents were $54.4 million as of June 30, 2025.
• Future Outlook: The company plans to continue its strategic review of the portfolio to enhance value, with a focus on better-for-you food and beverages. The Board is considering a broad range of strategic options, including potential divestitures. The company aims to complete its restructuring program by the end of fiscal 2027, targeting annualized pretax savings of $130 million to $150 million. The company will continue to assess the impact of global economic conditions on its business and adjust its strategies accordingly.

Challenges and Risks

• Market Risks: The highly competitive nature of the markets in which the company operates could lead to price pressures and reduced market share. Changes in consumer preferences, particularly during economic downturns, could adversely affect demand for the company's products.
• Operational Risks: The company relies heavily on independent contract manufacturers, and any disruption in these relationships could impact production. Supply chain disruptions, input cost inflation, and geopolitical conflicts could further exacerbate operational challenges.
• Regulatory Risks: The company is subject to extensive regulations across multiple jurisdictions, and any changes in these regulations could increase compliance costs or restrict operations. The company also faces risks related to data privacy laws, which could result in significant liability if not properly managed.
• Emerging Risks: Geopolitical conflicts, such as the Russia-Ukraine war, have increased costs and supply chain disruptions. The company is also exposed to cybersecurity risks, which could lead to significant financial and reputational damage.
• Management Strategies: Management has identified several strategic actions to address these challenges, including portfolio optimization, brand renovation, and enhancing digital capabilities. The company is also implementing a multi-year restructuring program to improve profitability and invest in growth initiatives. However, the company has faced significant goodwill impairments due to reduced performance and market capitalization, highlighting the financial risks associated with its current strategy.
• Market Risk Disclosures: The company is exposed to foreign currency exchange rate fluctuations, which could adversely impact its financial results. Additionally, the company faces risks related to interest rate changes and credit agreement covenants, which could affect its financial flexibility and ability to refinance debt.

SEC Filing: HAIN CELESTIAL GROUP INC [ HAIN ] - 10-K - Sep. 15, 2025