Hain Celestial's 'Reimagined Strategy': Unveils Bold Plan To Supercharge Profits By FY27

Hain Celestial Group Inc HAIN unveiled its Hain Reimagined strategy to accelerate its profitable growth path at its 2023 Investor Day event in New York.

The company expects organic net sales CAGR of 3%+, adjusted EBITDA CAGR of 10%+, adjusted EBITDA margin of 12%+ by FY27 and a net debt leverage ratio of 2 - 3X by FY27.

In connection with the strategy, the company announced a formal restructuring program planned to expand operating margins by optimizing the brand portfolio, organization, end-to-end supply chain, and working capital.

The proposed restructuring program targets $130 million - $150 million of annualized savings and a $165 million conversion of working capital cash by FY27.

The company expects one-time restructuring and related costs of $115 million - $125 million across fiscal 2024 and 2025.

Also Read: Natural Food Company Hain Celestial's Q4: Earnings Beat, 2.0% Sales Decline, CFO Transition & More

The company also plans to fund and pace investments to be profit accretive over the period.

Hain Celestial plans to focus and materially simplify its footprint, maintaining a direct presence in 5 key markets, including U.S., Canada, U.K., Ireland, and Europe.

The company said growth will be predominantly driven by three key platforms namely BFY Snacks, BFY Baby & Kids, and BFY Beverages.

Hain Celestial sees its fuel program to reach about 400-500 basis points of adjusted gross margin improvement and $400 million in cumulative free cash flow by FY27.

Hain Celestial also revealed its new company logo and corporate identity.

Price Action: HAIN shares are trading higher by 8.18% at $10.58 on the last check Wednesday.