NASDAQ$HAIN

Hain Celestial · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Hain Celestial demonstrated operational and financial improvement year-over-year.

Hain Celestial reported a 5% decrease in net sales to $506.8 million. However, the company saw improvements in gross margin, operating income, and net income compared to the prior year period. The company is focused on simplifying its portfolio, strengthening core capabilities, and expanding margins and cash flow.

  • Net sales decreased 5% to $506.8 million.
  • Gross margin increased 180 basis points to 20.8%.
  • Operating income improved to $9.2 million from an operating loss of $20.9 million in the prior year period.
  • Net income improved to $1.9 million from a net loss of $31.8 million in the prior year period.

Headline financials

Total Revenue

$507M

Previous: $584M-13.2%
EPS (adj)

$0.17

Previous: $0.14+21.4%
Gross Margin

20.8%

Previous: 19.0%+9.5%
Adjusted Gross Margin

22.0%

Previous: 19.8%+11.1%
Adjusted EBITDA

$45M

Previous: $37.9M+18.7%
Adjusted EBITDA Margin

8.9%

Previous: 7.1%+25.4%
Capital Expenditures

-$29.3M

Previous: -$41.5M+29.4%
Free Cash Flow

-$30.3M

Previous: -$108M+72.0%
Net Income

-$964K

Previous: -$66.5M+98.6%
Operating Income

$9.19M

Previous: -$15.4M+159.7%
Gross Profit

$106M

Previous: $114M-7.6%
Cash & Equivalents

$37M

Previous: $38.2M-3.0%
Total Assets

$2.28B

Previous: $2.8B-18.5%
Stock-Based Comp

$3.08M

Previous: $1.9M+62.6%

Revenue & EPS history

Hain Celestial · Revenue · Quarterly

$507M

Q2 2020-13.2%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Hain Celestial · $507M total across 2 segments · Q2 2020

  • North America
    $281M-8.1%
  • International
    $226M-0.8%

Forward guidance

The Company narrows and reaffirms its annual guidance for continuing operations for fiscal year 2020.

Tailwinds

  • Adjusted EBITDA: $177 Million to $192 Million
  • Adjusted EBITDA % Growth: +7% to +16%
  • Adjusted EBITDA Constant Currency: $179 Million to $194 Million
  • Adjusted EBITDA Constant Currency % Growth: +8% to +18%
  • Adjusted EPS: $0.62 to $0.72

Headwinds

  • Guidance, where adjusted, is provided on a non-GAAP basis and excludes: acquisition and divestiture related expenses; integration charges; restructuring charges, start-up costs, consulting fees and other costs associated with the Company’s productivity and transformation initiatives; unrealized net foreign currency gains or losses; and other non-recurring items that may be incurred during the Company’s fiscal year 2020, which the Company will continue to identify as it reports its future financial results.
  • Guidance also excludes the impact of any future acquisitions, divestitures, or share repurchases.
  • The Company cannot reconcile its expected Adjusted EBITDA to net income or adjusted earnings per diluted share to earnings per diluted share under “Fiscal Year 2020 Guidance” without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company’s control and/or cannot be reasonably predicted at this time.
  • Adjusted EPS % Growth: +3% to +20%
  • Adjusted EPS Constant Currency: $0.64 to $0.74

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.5%

Avg return

Earnings day

-1.9%

Avg return

5 days after

-2.3%

Avg return

30 days after

46%

31 / 67 earnings

Positive

+20.9%

Q4 2024

Best reaction

-48.4%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+12.9%+17.4%-3.7%
Q2 2026-19.5%-22.0%-48.0%
Q1 2026+14.4%+32.7%-3.7%
Q3 2025-48.4%-36.1%-36.1%
Q2 2025-10.7%-13.6%-11.3%
Q1 2025-16.7%-24.9%-7.1%
Q4 2024+20.9%+17.1%+20.9%
Q3 2024+5.6%+14.1%+13.4%
Q2 2024-11.9%-12.7%-17.4%
Q1 2024-6.0%-3.6%-6.7%
Q4 2023-2.5%-9.1%-16.4%
Q3 2023-14.4%-19.8%-31.0%
Q2 2023-10.0%-12.8%-19.6%
Q1 2023+1.4%+10.6%-8.1%
Q4 2022-13.9%-17.0%-31.1%
Q3 2022-24.9%-20.7%-22.6%
Q2 2022+1.4%+2.1%-5.9%
Q1 2022+5.0%-9.0%-14.9%
Q4 2021-9.7%-6.5%+0.1%
Q3 2021+0.0%-0.9%+0.2%
Q2 2021+4.5%+6.2%+7.3%
Q1 2021+2.1%+11.9%+13.8%
Q4 2020-4.4%-7.5%-4.3%
Q3 2020+10.9%+16.7%+11.3%
Q2 2020+9.3%+7.6%-6.2%
Q1 2020+7.0%+5.7%+3.9%
Q4 2019+3.8%+4.4%+17.3%
Q3 2019-3.7%+0.6%-11.5%
Q2 2019-10.6%+1.5%+20.9%
Q1 2019-14.9%-15.5%-26.1%
Q4 2018-3.6%-0.2%-7.5%
Q3 2018-2.2%-2.5%-3.4%
Q2 2018-5.5%-8.7%-2.3%
Q1 2018+1.6%+3.8%+19.0%
Q4 2017-2.4%-2.6%+0.2%
Q3 2017-4.7%+4.8%+32.0%
Q1 2017-4.7%+4.8%+32.0%
Q2 2017-4.7%+4.8%+32.0%
Q4 2016-4.7%+4.8%+32.0%
Q3 2016+9.0%
Q2 2016-4.2%
Q1 2016-4.8%
Q4 2015-6.2%
Q3 2015-0.5%
Q2 2015+6.2%
Q1 2015+1.0%
Q4 2014+10.2%
Q3 2014+8.0%
Q2 2014-4.5%
Q1 2014+3.8%
Q4 2013+9.5%
Q3 2013-1.8%
Q2 2013+1.0%
Q1 2013-1.0%
Q4 2012+19.4%
Q3 2012-0.6%
Q2 2012+1.5%
Q1 2012-1.3%
Q4 2009+1.0%
Q4 2011+1.0%
Q3 2011+1.5%
Q3 2010+1.5%
Q2 2011+1.6%
Q2 2010+1.6%
Q4 2010-0.8%
Q1 2010-0.8%
Q1 2011-0.8%

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