The Hain Celestial Group, Inc. (NASDAQ:HAIN) shares are trading higher on Friday, following the release of its first-quarter adjusted earnings per share, which came in at an eight-cent loss, missing the analyst consensus estimate of a five-cent loss.
Quarterly sales of $367.883 million (down 7% year over year) outpaced the Street view of $364.012 million.
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Metrics
Organic net sales fell 6% from the prior-year period. A 7-point drop in volume/mix drove the decline, partly offset by a 1-point price increase.
In the North America segment, organic net sales decreased by 7% year-over-year, primarily driven by volume softness in snacks, partially offset by growth in beverages, baby & kids, and meal prep.
Organic net sales decreased by 4% year-over-year in the International segment, primarily driven by lower sales in baby & kids.
“Cost discipline and the decisive actions taken to streamline our cost structure drove a reduction in SG&A, and we are seeing early results from the execution against our ‘5 actions to win’, including benefits from pricing initiatives beginning to build,” said Alison Lewis, interim president and CEO.
The adjusted gross margin came in at 19.5%, a 120-basis-point decrease from the prior-year period. Adjusted EBITDA was $20 million compared to $22 million in the prior year period.
“We continue to make good progress against the strategic review work with Goldman Sachs,” Lewis added.
Hain exited the quarter with cash and cash equivalents worth $47.886 million.
Long-term debt (less current portion) increased to $708.563 million from $697.168 million as of June 30.
Outlook
Hain declined to issue numeric guidance due to ongoing uncertainty around the strategic review. The company cited unclear timing and outcomes as key reasons.
Management plans aggressive cost cuts and execution on five “actions to win.”
The company expects stronger revenue and profit in the second half of 2026 versus the first half. Hain also anticipates positive free cash flow in the year.
Price Action: HAIN shares are trading higher by 7.48% to $1.160 at last check on Friday.
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