Hain Celestial +7% After Q3 Earnings: Read Why

The Hain Celestial Group, Inc. 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.