Hain Celestial Gains On Q1 Bottom-Line Beat, North American Momentum

  • Hain Celestial Group Inc HAIN reported a first-quarter FY23 sales decline of 3% year-on-year to $439.35 million, missing the consensus of $446.45 million.
  • Net sales from North America increased 9% Y/Y, driven by stronger sales in the snacks, yogurt, baby, and other product categories in the U.S.
  • International sales declined 20% due to continued softness in plant-based categories and the loss of a large non-dairy co-manufacturing customer in Europe.
  • Adjusted gross margin for the quarter fell 240 basis points Y/Y to 21.5%. The gross margin contracted 170 basis points to 21.5%.
  • The operating margin was 3.6%, and the operating income for the quarter was $15.82 million.
  • On a constant currency basis, Adjusted EBITDA of $38.6 million decreased 18.4% Y/Y with an adjusted EBITDA margin decline of 210 basis points to 8.3%.
  • Adjusted EPS was $0.10, beating the consensus of $0.08.
  • The company held $51.7 million in cash and equivalents as of September 30, 2022.
  • "While we expect continued volatility, we remain confident in our fiscal 2023 outlook and expect to return to profitable growth later in the year," said CEO Mark L. Schiller.
  • Outlook: Hain Celestial reaffirmed its FY23 adjusted net sales and adjusted EBITDA on a constant currency basis of -1% to +4% Y/Y.
  • Price Action: HAIN shares are trading higher by 10.05% at $20.91 on the last check Tuesday.
  • Photo Via Company

Posted In: EarningsNewsGuidanceSmall CapMoversTrading IdeasGeneralBriefs