Following the company's poor Q3 earnings and underscoring a moderate full-year projection, Hain Celestial Group (HAIN, Financial) shares fell as much as 20% Thursday.
Maintaining its full-year projection, Hain Celestial projected flat to modest organic net sales increase and mid-single-digit adjusted EBITDA increase. To a minimum of $60 million, the company also forecasts free cash flow and at least 125 basis point improvement in gross margin.
The company ascribed its growth predictions to elements including brand investment, restored infant formula supply, changed marketing timing in snacks, and increased distribution. “Supported by targeted marketing on key brands and increased distribution to drive product availability and brand visibility, we expect stronger growth in the later half of the year," the company stated.
Lower snack and meal prep sales pulled down North American sales by 6% in Q3. Slower performance in the categories of meal prep, baby, and children caused a 3% decline in international sales. From $10 million, or $0.12 per share, a year earlier, net loss for the quarter stretched to $20 million, or $0.22 per share. Missing analyst projections of a $0.02 loss, adjusted loss per share was $0.04. Revenue dropped 7.5% to match estimates—$394.6 million.In offering electric air taxi services in Ja
