- 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.
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