NASDAQ$HAIN

Hain Celestial · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Hain Celestial's Q3 2024 financial results were reported, highlighting gross margin expansion and strong operating cash flow driven by the Hain Reimagined strategy.

Hain Celestial reported a decrease in net sales by 3.7% to $438.4 million, but showcased progress in gross margin expansion with a 60-basis point increase. The company reduced its debt leverage to 3.9x and generated strong operating cash flow, reflecting strategic actions to simplify the business and strengthen the balance sheet.

  • Net sales decreased by 3.7% year-over-year to $438.4 million, with a similar decrease in organic net sales.
  • Gross profit margin increased by 60 basis points to 22.1%, and adjusted gross profit margin increased by 90 basis points to 22.3%.
  • Net loss was $48.2 million, an improvement from a net loss of $115.7 million in the prior year period.
  • Adjusted EBITDA increased by 17.5% year-over-year to $43.8 million, with an adjusted EBITDA margin of 10.0%.

Headline financials

Total Revenue

$438M

Previous: $455M-3.7%
EPS (adj)

$0.13

Previous: $0.08+62.5%
Capital Expenditures

-$24.8M

Previous: -$21.4M-15.6%
Free Cash Flow

-$73M

Previous: -$137M+46.8%
Net Income

-$48.2M

Previous: -$116M+58.4%
Operating Income

-$27.9M

Previous: -$141M+80.2%
Gross Profit

$96.7M

Previous: $97.5M-0.8%
Cash & Equivalents

$49.5M

Previous: $43.7M+13.4%
Total Assets

$2.15B

Previous: $2.27B-5.4%
Stock-Based Comp

$3.02M

Previous: $3.23M-6.5%

Revenue & EPS history

Hain Celestial · Revenue · Quarterly

$438M

Q3 2024-3.7%vs Q3 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Hain Celestial · $425M total across 2 segments · Q1 2024

  • North America
    $260M-9.8%
  • International
    $165M+9.3%

Forward guidance

Hain Celestial is revising its fiscal year 2024 guidance due to underperformance in infant formula recovery, snacks execution, and personal care stabilization. Organic net sales are expected to decline 3 to 4% year-over-year, and adjusted EBITDA is projected to be between $150 million and $155 million. Free cash flow guidance is reaffirmed at $40 million to $45 million.

Tailwinds

  • Aggressively addressing Personal Care stabilization through portfolio and operating footprint consolidation.
  • Working closely with formula supplier to ensure a full recovery beginning in the second half of 2024.
  • Realigned the commercial business in North America with a series of leadership changes.
  • Clear plan to accelerate our execution in the North America region.
  • Free cash flow guidance is reaffirmed and expected to be $40 million to $45 million.

Headwinds

  • Infant formula business did not recover as expected as our supplier did not meet their commitment.
  • Execution in our Snacks business did not meet our standards.
  • Stabilization of our Personal Care business is taking longer than expected.
  • Organic net sales are expected to decline 3 to 4% year-over-year.
  • Adjusted EBITDA is expected to be between $150 million and $155 million.

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 2024

Historical avgQ3 2024

-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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