However, the company’s revenue fell short of forecasts, coming in at $438.4 million against a consensus estimate of $465.77 million. This represents a 3.7% decline in net sales compared to the same quarter last year.
The company’s President and CEO, Wendy Davidson, acknowledged the challenges faced, particularly in the North American segment, attributing the revenue shortfall to underperformance in the baby formula and personal care businesses, as well as execution issues in the snacks category.
Despite these setbacks, Davidson expressed confidence in the company’s ongoing transformation strategy, “Hain Reimagined,” and its potential for future growth.
Hain Celestial’s adjusted gross profit margin improved by 90 basis points from the prior year period to 22.3%, and its adjusted EBITDA saw a year-over-year increase of 17.5% to $43.8 million. The adjusted EBITDA margin also expanded by 180 basis points compared to the prior year period. The company’s net loss narrowed significantly to $48.2 million from a net loss of $115.7 million in the prior year period.
Looking ahead, Hain Celestial has revised its fiscal 2024 guidance. Organic net sales are expected to decline by 3 to 4% year-over, with adjusted EBITDA projected to be between $150 million and $155 million. The midpoint of the adjusted EBITDA guidance range is $152.5 million, which is a detail to watch as it compares to analyst expectations. The company reaffirmed its free cash flow guidance, anticipating it to be between $40 million to $45 million.
CFO Lee Boyce commented on the revised guidance, citing the slower than expected recovery in the infant formula business, subpar execution in the snacks category, and the prolonged stabilization of the personal care business as contributing factors.
Boyce emphasized the company’s proactive measures to address these issues, including leadership changes and strategic plans to improve execution in North America.
While the company’s stock movement was not provided, the financial results and future guidance are critical indicators of Hain Celestial’s performance and trajectory. The company’s efforts to simplify its portfolio and improve operational efficiency are key to navigating the current challenges and achieving long-term success.
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Source: Economy - investing.com
