Hain Celestial Group Inc (HAIN) Reports Decrease in Net Sales and Net Loss in Fiscal First ...
Hain Celestial Group Inc (NASDAQ:HAIN) reports a decrease in net sales by 3.3% compared to the prior year period, amounting to $425.0 million.
The company's net loss was $10.4 million, compared to a net income of $6.9 million in the prior year period.
Adjusted EBITDA was $24.1 million, a decrease from $36.0 million in the prior year period.
Despite the decrease in net sales and net income, the company's new strategy, Hain Reimagined, shows early signs of progress.
On November 7, 2023, The Hain Celestial Group Inc (NASDAQ:HAIN) released its financial results for the fiscal first quarter ended September 30, 2023. The company reported a decrease in net sales by 3.3% compared to the prior year period, amounting to $425.0 million. The company's net loss was $10.4 million, compared to a net income of $6.9 million in the prior year period. Despite these challenges, the company's new strategy, Hain Reimagined, shows early signs of progress.
Financial Highlights
The company's gross profit margin was 19.7%, a 170-basis point decrease from the prior year period. The adjusted gross profit margin was 20.5%, a 95-basis point decrease from the prior year period. The net loss margin was 2.4%, a 400-basis point decrease compared to the prior year period. The adjusted net loss margin was 0.8%, a 290-basis point decrease compared to the prior year period.
Adjusted EBITDA was $24.1 million compared to $36.0 million in the prior year period. The adjusted EBITDA margin was 5.7%, a 250-basis point decrease compared to the prior year period. The loss per diluted share was $0.12 compared to earnings per diluted share (EPS) of $0.08 in the prior year period. The adjusted loss per diluted share was $0.04 compared to EPS of $0.10 in the prior year period.
Cash Flow and Balance Sheet Highlights
Net cash provided by operating activities in the first quarter was $14.0 million compared to net cash used in operating activities of $5.1 million in the prior year period. Free cash flow in the first quarter was $7.1 million compared to negative free cash flow of $12.3 million in the prior year period.
Total debt at the end of the fiscal first quarter was $815.0 million down from $828.7 million at the end of fiscal fourth quarter. Net debt at the end of the fiscal first quarter was $776.7 million compared to $775.4 million at the end of the fiscal fourth quarter.
Company's Outlook
Despite the decrease in net sales and net income, the company's new strategy, Hain Reimagined, shows early signs of progress. The company is maintaining its guidance for the full year, with organic net sales expected to increase by 2% to 4% versus the prior year, and adjusted EBITDA to be between $155 million and $165 million.
Explore the complete 8-K earnings release (here) from The Hain Celestial Group Inc for further details.
This article first appeared on GuruFocus.
