Q2 2025 Hain Celestial Group Inc Earnings Call Transcript
Key Points
- The Hain Celestial Group Inc (HAIN) reported strong operating cash flow and reduced net debt by $12 million in the quarter.
- The company saw sequential improvement in the Baby & Kids segment, driven by the recovery in infant formula supply and growth in Earth's Best brand.
- Hain Celestial's Greek Gods Yogurt showed healthy velocities and increased household penetration, contributing positively to the Meal Prep category.
- The company is expanding its distribution, particularly in the snacks category, with a 5% increase at its largest retail partner and significant gains in convenience stores.
- Hain Celestial's focus on better-for-you products, free from artificial colors and flavors, positions it well to meet increasing consumer demand for healthier options.
- The Hain Celestial Group Inc (HAIN) experienced a 7% decline in organic net sales in the second quarter, primarily due to poor in-store performance in snacks and short-term supply challenges.
- Adjusted EBITDA decreased to $38 million from $47 million a year ago, reflecting lower sales and pricing challenges.
- The company faced short-term service issues in the beverage category, impacting Celestial Seasonings sales due to a shortage of a key raw material.
- Despite distribution gains, the snacks category struggled with velocity on shelves, affecting overall sales performance.
- The macroeconomic environment remains volatile, prompting a more cautious outlook for the full fiscal year, with expected organic net sales down 2% to 4%.
Good day, everyone, and welcome to the Hain Celestial Group Inc fiscal second quarter 2025 earnings call. Today's call is being recorded. (Operator Instructions) At this time, I will now turn the call over to Alexis Tessier. Please proceed.
Good morning and thank you for joining us for a review of our second quarter results. I am joined this morning by Wendy Davidson, our President and Chief Executive Officer; and Lee Boyce, our Chief Financial Officer. Slide 2 shows our forward-looking statements disclaimer. As you are aware, during the course of this call, we may make forward-looking statements within the meaning of federal securities laws. These include expectations and assumptions regarding the company's future operations and financial performance.
These statements are based on our current expectations and involve risks and uncertainties that could cause actual results to differ materially from our expectations. Please refer to our annual report on Form 10-K, quarterly
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