Organic and natural products company Hain Celestial Group has reported a year-on-year net sales decline of 3%, to $439.4 million (€436.9 million), in the first quarter of its financial year.
However, the Cully & Sully parent has reaffirmed its previous full-year adjusted net sales and adjusted EBITDA guidance.
Despite continued volatility, especially in Europe, the company hopes to see growth in the second half of its financial year, driven by ongoing momentum in North America, price increases, improvement in its supply chain performance, new contracts on its non-dairy beverage business in Europe, and an improving retail environment in the United Kingdom.
Mark L Schiller, president and chief executive officer of Hain Celestial, commented, “Our first quarter results delivered performance better than our guidance with sequential improvements in gross margin and bottom-line growth versus the fourth quarter of fiscal 2022. [...]
"International remains extremely volatile, but we are managing what we control and making good progress against our full-year plan. While we expect continued volatility, we remain confident in our fiscal 2023 outlook and expect to return to profitable growth later in the year."
The company's adjusted EBITDA on a constant currency basis amounted to $38.6 million, down from $47.3 million the year before, while adjusted EBITDA margin on a constant currency basis stood at 8.3%, down 210 basis points year-on-year.
In North America, net sales amounted to $288.4 million, a 9% increase compared to the same period last year.
Its performance was driven by solid performance in the snacks, yoghurt, baby, and other product categories in the United States, partially offset by lower sales in personal care products and some supply shortages across several brands.
The company's international unit generated net sales of $151.0 million in the first quarter, registering a 20% decrease compared to the prior year period, mainly due to continued softness in plant-based categories and the loss of a large non-dairy co-manufacturing customer in Europe.
© 2022 European Supermarket Magazine. Article by Dayeeta Das. For more A Brands news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.