NASDAQ$HAIN

Hain Celestial · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Hain Celestial's financial performance improved significantly in the third quarter of fiscal year 2021, with notable expansion in gross margin and growth in net income and adjusted EBITDA.

Hain Celestial reported a decrease in net sales by 11% to $492.6 million, but experienced a 244 basis point increase in gross margin and a 22% increase in adjusted EBITDA. The company's operating income increased to $49.6 million, and net income grew to $34.3 million, reflecting improved profitability despite the sales decline.

  • Net sales decreased by 11% to $492.6 million, but decreased 6% when adjusted for foreign exchange, divestitures, and discontinued brands.
  • Gross margin increased by 244 basis points to 26.4%, and adjusted gross margin increased by 317 basis points to 27.4%.
  • Operating income rose to $49.6 million from $19.1 million, and adjusted EBITDA increased by 22% to $73.8 million.
  • Earnings per diluted share (EPS) increased to $0.34 from $0.24, and adjusted EPS increased to $0.44 from $0.28.

Headline financials

Total Revenue

$493M

Previous: $553M-11.0%
EPS (adj)

$0.44

Previous: $0.28+57.1%
Gross Margin

26.4%

No prior period
Adjusted Gross Margin

27.4%

No prior period
Adjusted EBITDA

$73.8M

Previous: $60.7M+21.6%
Adjusted EBITDA Margin

15.0%

Previous: 11.0%+36.4%
Capital Expenditures

-$53.1M

Previous: -$47M-13.0%
Free Cash Flow

-$18.8M

Previous: -$22.6M+16.9%
Net Income

$34.3M

Previous: $24.3M+40.7%
Operating Income

$49.6M

Previous: $19.1M+159.1%
Gross Profit

$130M

Previous: $132M-1.9%
Cash & Equivalents

$53M

Previous: $41.5M+27.6%
Total Assets

$2.24B

Previous: $2.24B+0.2%
Stock-Based Comp

$3.7M

Previous: $3.76M-1.7%

Revenue & EPS history

Hain Celestial · Revenue · Quarterly

$493M

Q3 2021-11%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Hain Celestial · $493M total across 2 segments · Q3 2021

  • North America
    $288M-10.3%
  • International
    $205M-11.9%

Forward guidance

The company reaffirms its expectation for gross and adjusted EBITDA margin expansion as well as strong double-digit adjusted EBITDA and operating free cash flow growth for fiscal year 2021. For the fourth quarter fiscal year 2021, in comparison to the prior year period, the Company expects (a) strong gross margin and EBITDA margin improvement, (b) adjusted EBITDA growth near 10% and (c) 5% to 8% decline in net sales when adjusted for foreign exchange, divestitures and discontinued brands.

Tailwinds

  • Strong gross margin improvement expected.
  • EBITDA margin improvement expected.
  • Adjusted EBITDA growth near 10% expected.
  • Mid-single digit growth in net sales when adjusted for foreign exchange, divestitures and discontinued brands compared to the fourth quarter of fiscal year 2019
  • Reaffirms expectation for gross and adjusted EBITDA margin expansion

Headwinds

  • 5% to 8% decline in net sales expected when adjusted for foreign exchange, divestitures and discontinued brands.
  • Net sales decreased 11% to $492.6 million compared to the prior year period.
  • When adjusted to exclude the effects of foreign exchange, divestitures and discontinued brands, net sales decreased 6% compared to the prior year period.
  • North America net sales in the third quarter were $287.5 million, a decrease of 10% compared to the prior year period.
  • International net sales in the third quarter were $205.1 million, a decrease of 12% compared to the prior year period.

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 Q3 2021

Historical avgQ3 2021

-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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