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.
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