The Hain Celestial Group (HAIN) investor relations material

Executive summary

• Net sales for Q3 FY26 were $338 million, down 13% year-over-year, primarily due to the North America Snacks divestiture and lower organic sales in both segments.

• Strong cash generation and a $155 million debt reduction improved the financial position, aided by the snacks divestiture.

• Profitability improved sequentially, with gross margin and adjusted EBITDA margin up versus Q2 FY26, though net loss narrowed to $106 million from $135 million year-over-year.

• Innovation and renovation pipelines advanced, driving share gains in core categories, with half of international brands gaining or holding share.

• A multi-year restructuring program is underway, with cumulative pretax charges expected to reach $115–$125 million and annualized savings of $130–$150 million.

Financial highlights

• Q3 organic net sales declined 6% year-over-year to $267 million; total net sales were $338 million, down 13%.

• Adjusted EBITDA was $26 million, down from $34 million a year ago; adjusted EBITDA margin was 7.8%.

• Adjusted net loss was $1 million ($0.01 per share) versus adjusted net income of $6 million last year; net loss for the quarter was $106 million ($1.17 per share).

• Adjusted gross margin was 21%, down 90 bps year-over-year but up 150 bps sequentially.

• Free cash flow was $35 million, a significant improvement from a $2 million outflow last year.

Outlook and guidance

• No numeric guidance for fiscal 2026 due to ongoing strategic review; positive free cash flow still expected.

• Fiscal 2027 priorities include stabilizing sales, improving margins, generating cash, and eliminating stranded costs.

• The restructuring program is expected to conclude by fiscal 2027, with incremental actions tied to the recent divestiture.