- Hain Celestial Group Inc HAIN reported a third-quarter FY23 sales decline of 9.5% year-on-year to $455.24 million, missing the consensus of $484.13 million.
- Net sales from North America decreased 12% Y/Y. When adjusted for foreign exchange, acquisitions, divestitures and discontinued brands, net sales decreased by 11%, mainly due to lower sales in snacks, personal care, and tea, partially offset by higher sales in yogurt. International sales declined 5%.
- Adjusted gross margin for the quarter fell 200 basis points Y/Y to 21.4%.
- The operating loss for the quarter was $(140.9) million versus an income of $35.2 million last year.
- On a constant currency basis, Adjusted EBITDA of $39.3 million decreased 33% Y/Y with an adjusted EBITDA margin decline of 340 basis points to 8.3%.
- Adjusted EPS of $0.08 missed the consensus of $0.16.
- The company held $43.7 million in cash and equivalents as of March 31, 2023.
- "While our Q3 results were weaker than expected, mainly driven by topline performance in our North America business, we saw strong double-digit growth among our Greek Gods® yogurt and Earth's Best® brands in the U.S., and our International business continues to stabilize and improve in better-for-you snacking and non-dairy beverage," said CFO Chris Bellairs.
- Outlook: Hain Celestial cut its FY23 adjusted net sales guidance on a constant currency basis from -1% to +4% Y/Y to -4% to -3%.
- It cut FY23 adjusted EBITDA guidance at constant currency from -1% to +4% to -15% to -13%.
- For Q4, the company expects adjusted net sales to be down low single digit percentages and adjusted EBITDA at constant currency of $40 million - $44 million.
- Price Action: HAIN shares are trading lower by 9.3% at $15.97 in premarket on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
