Hain Celestial Group Inc HAIN reported a fourth-quarter FY23 sales decline of 2% year-on-year to $447.84 million, beating the analyst consensus of $442.40 million.
Net sales from North America decreased 5.1% Y/Y. When adjusted for foreign exchange, acquisitions, divestitures and discontinued brands, net sales decreased by 4.3%, mainly due to lower sales in personal care and ParmCrisps as a result of reduced customer distribution and promotion, partially offset by higher sales in yogurt, baby and tea.
Adjusted gross margin for the quarter expanded 325 basis points Y/Y to 22.7%.
The operating income for the quarter was $12.1 million versus $11.9 million last year. The operating margin was 2.7%.
On a constant currency basis, Adjusted EBITDA of $43.5 million decreased 22.8% Y/Y with an adjusted EBITDA margin expansion of 200 basis points to 9.7%.
Adjusted EPS of $0.11 beat the analyst consensus of $0.10.
The company held $53.4 million in cash and equivalents as of June 30, 2023. Operating cash flow for the quarter was $40.5 million, with a free cash flow of $34.1 million.
Hain Celestial has appointed Lee Boyce as the new Chief Financial Officer, effective September 5, 2023. Boyce will succeed Chris Bellairs, who will remain with the company through a transition.
Outlook: Hain Celestial sees FY24 adjusted net sales growth of 2% to 4% and adjusted EBITDA of $155 million - $165 million.
Price Action: HAIN shares closed higher by 1.93% at $12.16 on Wednesday.
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