Why Is Hain Celestial Stock Slumping Today?

The Hain Celestial Group, Inc. HAIN shares are diving on Wednesday after the company announced second quarter fiscal 2024 results.

Quarterly net sales were flat year over year at $454.1 million, missing the analyst consensus of $462.05 million.

North America net sales in the fiscal second quarter were $267.7 million, down 5.2% year over year, owing to lower sales in baby formula stemming from continued industry-wide challenges in organic formula supply.

International net sales in the fiscal second quarter rose 8.5% year over year to $186.4 million, driven by growth in Meal Prep as well as in Beverages.

The adjusted gross profit margin was 23.5%, a 60-basis point increase from the prior year.

Adjusted net income was $10.9 million compared to adjusted net income of $18.3 million in the prior year period. The adjusted net income margin was 2.4%, as compared to 4.0% in the prior year.

The adjusted EBITDA margin was 10.4%, a 60-basis point decrease compared to the prior year’s period.

Adjusted EPS was $0.12, in line with the analyst consensus. 

Net debt at the end of the fiscal second quarter was $755.6 million.

Outlook: Hain Celestial revised FY24 organic net sales growth outlook to approximately 1% or more, compared to previous guidance of 2% to 4% growth.

Adjusted EBITDA is expected between $155 million and $160 million, compared to previous guidance of $155 million to $165 million.

Price Action: HAIN shares are trading lower by 15.43% to $9.59 on the last check Wednesday. 

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