Hain Celestial +7% After Q3 Earnings: Read Why

The Hain Celestial Group, Inc. (NASDAQ:HAIN) shares are trading higher in the morning session on Wednesday.

The company reported third quarter adjusted earnings per share of 13 cents, beating the analyst consensus of 7 cents. 

Quarterly revenues of $438.358 million missed the street view of $463.39 million, falling 3.7% year over year.

North America net sales in the quarter were $268.1 million, down 6.5% year over year. International net sales in the quarter grew 1.0% year-over-year to $170.3 million.

Snacks category net sales in the quarter were $111.2 million, down 0.4%, while Baby & Kids category net sales in the quarter were $64.3 million, down 4%. Meal Prep category net sales in the third quarter were $165.7 million, down 2.1% year over year.

Adjusted gross profit margin was 22.3%, a 90-basis point increase from the prior year period.

Adjusted EBITDA was up 17.5% year-over-year to $43.8 million, while adjusted EBITDA margin was 10%, a 180-basis point increase compared to the prior year period.

Total debt at the end of the fiscal third quarter was $777.5 million, down from $828.7 million at the beginning of the fiscal year.

Outlook:

For FY24, organic net sales are expected to decline 3% to 4% year over year (prior view: growth of approximately 1%).

Adjusted EBITDA is expected to be between $150 million-$155 million (prior view: $155 million-$160 million).

Free cash flow guidance is reaffirmed and expected to be $40 million to $45 million, the company said.

Price Action: HAIN shares are trading higher by 7.36% to $7.15 at last check Wednesday.