The company’s earnings per share (EPS) for the quarter were $0.13, surpassing analyst expectations by $0.05. However, revenue fell short, coming in at $438.4 million against the consensus estimate of $465.77 million.
In comparison to the same quarter last year, Hain Celestial’s net sales experienced a decline of 3.7%, with both organic net sales and overall net sales reflecting this decrease. Despite the drop in net sales, the company saw improvements in profitability metrics, with a 60-basis point increase in gross profit margin and a significant reduction in net loss from the previous year.
The company’s CEO, Wendy Davidson, acknowledged the challenges faced, particularly in the North American segment, which saw a 6.5% decrease in net sales, primarily due to lower sales in personal care and baby and kids categories. In contrast, the International segment reported a modest 1.0% year-over-year growth in net sales.
Looking ahead, Hain Celestial has revised its full-year guidance for fiscal 2024, citing slower-than-expected recovery in its infant formula business, underperformance in the Snacks category, and delays in stabilizing the Personal Care business. Organic net sales are anticipated to decline between 3 to 4%, with adjusted EBITDA expected to range from $150 million to $155 million. The company has reaffirmed its free cash flow guidance of $40 million to $45 million.
The company’s CFO, Lee Boyce, expressed determination to address the issues, stating, “We are aggressively addressing Personal Care stabilization through portfolio and operating footprint consolidation, we are working closely with our formula supplier to ensure a full recovery beginning in the second half of 2024, and we have realigned the commercial business in North America with a series of leadership changes and a clear plan to accelerate our execution in the region.”
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Source: Economy - investing.com
