Organic and natural product company Hain Celestial noted that its second-quarter net sales remained unchanged, at $454.1 million (€422.33 million), compared to the same period a year earlier.
On a quarter-by-quarter basis, the Cully & Sully-maker saw an improvement in net sales from a 3.3% decline in the first quarter.
Hain Celestial’s organic net sales increased by 0.2%, compared to a year ago.
Adjusted EBITDA amounted to $47.1 million (€43.80 million), registering a decline from $49.8 million (€46.2 million) a year ago, while the adjusted EBITDA margin dropped by 60 basis points, year on year, to 10.4%.
Net loss for the period was $13.5 million (€12.56 million), down from a net income of $11.0 million (€10.2 million) the previous year.
Divisional Performance
In North America, Hain Celestial registered a 5.2% year-on-year decline in net sales, to $267.7 million (€248.88 million), while organic net sales decreased by 4.8%.
The company attributed this decline to lower sales in baby formula, as well as a shift in promotional strategy in the snacks category.
Gross profit in the segment amounted to $62.0 million (€57.66 million) – a decrease of 12.9%, compared to a year ago.
Adjusted EBITDA of the divisions declined by 18.9%, year on year, to $31.2 million (€29.02 million), due to lower volume, inflation, and marketing investments.
International net sales increased by 8.5%, year on year, to $186.4 million (€173.59 million), driven by growth in its meal prep and beverage segments.
Commenting on the company’s performance, Wendy Davidson, president and chief executive officer of Hain Celestial, stated, “We are pleased with the continued progress we are making on key pillars of our Hain Reimagined strategy, generating fuel through working capital management and productivity savings, driving growth through channel expansion, and building our organisational capabilities to scale our brands, expanding our margins, and transform our business, for sustained performance.”
Outlook 2024
The company revised its guidance for organic net sales growth to approximately 1% or more – down from its previous forecast of 2% to 4%.
It expects adjusted EBITDA to range between $155 million and $160 million (€144.15 million and €148.80 million), compared to previous guidance of $155 million to $165 million (€144.15 million to €153.45 million).
