Hain Celestial’s first quarter results were met with a sharp negative market reaction, following revenue and profit figures that fell well short of Wall Street’s expectations. Management pointed to underperformance in its North American Snacks and Baby and Kids categories, softer-than-anticipated recovery for Earth's Best formula, and execution challenges in promotional activities as key reasons for the shortfall. Interim CEO Alison Lewis acknowledged, “Our third quarter results were disappointing and fell short of our expectations. We are not where we need to be, and we cannot afford to stand still.” This candid assessment set the tone for a quarter defined by operational setbacks and a need for decisive action.
Is now the time to buy HAIN? Find out in our full research report (it’s free).
Hain Celestial (HAIN) Q1 CY2025 Highlights:
- Revenue: $390.4 million vs analyst estimates of $409.4 million (11% year-on-year decline, 4.7% miss)
- Adjusted EPS: $0.07 vs analyst expectations of $0.13 (44.5% miss)
- Adjusted EBITDA: $33.62 million vs analyst estimates of $42.35 million (8.6% margin, 20.6% miss)
- EBITDA guidance for the full year is $125 million at the midpoint, below analyst estimates of $150.1 million
- Operating Margin: 5.6%, in line with the same quarter last year
- Organic Revenue fell 5.3% year on year (-3.7% in the same quarter last year)
- Market Capitalization: $149.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Hain Celestial’s Q1 Earnings Call
- David Palmer (Evercore ISI) pressed on what needs to change in Snacks and Baby and Kids execution; CFO Lee Boyce cited underperformance in promotional events and execution issues, especially in major retail channels, and highlighted planned marketing and innovation efforts.
- Jim Salera (Stephens Inc.) asked about visibility into demand trends and forecasting improvements; Boyce said investments in commercial talent and digital tools would enhance real-time data and improve future execution.
- Kaumil Gajrawala (Jefferies) questioned the scope of the portfolio review and the influence of macro versus company-specific issues; Chair Dawn Zier said all strategic options are on the table, while Boyce acknowledged both external category softness and internal execution challenges.
- Ken Goldman (JPMorgan) challenged management on what will be different in this turnaround given repeated strategic resets; Interim CEO Alison Lewis pledged to focus on actionable priorities and leverage her experience with consumer brands, while Zier emphasized new leadership and enhanced digital and pricing capabilities.
- Michael Lavery (Piper Sandler) queried brand positioning and the ability to command premium pricing; Lewis stated the focus would be on building brand value through innovation, marketing, and packaging to justify higher prices and improve margins.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) signs of improvement in North American Snacks and Baby and Kids sales trends, (2) progress on execution of pricing and revenue management initiatives, and (3) updates on the strategic portfolio review, including any divestitures or restructuring decisions. The impact of new product launches and the effectiveness of cost reduction efforts will also be key indicators of management’s ability to regain momentum.
Hain Celestial currently trades at $1.69, down from $2.77 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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