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1. Company Snapshot

1.a. Company Description

The Hain Celestial Group, Inc.manufactures, markets, and sells organic and natural products in United States, United Kingdom, and internationally.It operates through two segments, North America and International.


The company offers infant formula; infant, toddler, and kids' food; plant-based beverages and frozen desserts, such as soy, rice, oat, almond, and coconut; and condiments.It also provides cooking and culinary oils; cereal bars; canned, chilled fresh, aseptic, and instant soups; yogurts, chilis, chocolate, and nut butters; and juices.In addition, the company offers hot-eating desserts, cookies, refrigerated and frozen plant-based meat-alternative products, jams, fruit spreads, jellies, honey, natural sweeteners, and marmalade products, as well as other food products.


Further, it provides snack products comprising potato, root vegetable and other exotic vegetable chips, straws, tortilla chips, whole grain chips, pita chips, and puffs; and personal care products that include hand, skin, hair, and oral care products, as well as deodorants, baby food, body washes, sunscreens, and lotions under the Alba Botanica, Avalon Organics, Earth's Best, JASON, Live Clean, and Queen Helene brands name.Additionally, the company offers herbal, green, black, wellness, rooibos, and chai tea under the Celestial Seasonings brand.It sells pantry products under the Spectrum, Spectrum Essentials, MaraNatha, Imagine broths, Hain Pure Foods, Health Valley, and Hollywood brands.


It sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and clubs, and drug and convenience stores in approximately 80 countries worldwide.The company was incorporated in 1993 and is headquartered in Lake Success, New York.

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1.b. Last Insights on HAIN

The recent performance of The Hain Celestial Group, Inc. has been negatively impacted by a decline in organic sales, which fell 7% year-over-year in Q2. This decline was partly offset by strong operating cash flow and a reduction in debt. The company's Q2 earnings also missed estimates, with a net loss of $0.04 per share, compared to a net income of $0.12 per share in the same period last year. Furthermore, Hain Celestial's FY25 guidance was lowered due to a challenging macroeconomic backdrop, which has further dampened investor confidence. The company's financial health is also a concern, with $56m in cash against $721m in long-term debt, posing sustainability risks if declines continue.

1.c. Company Highlights

2. Hain Celestial's Strategic Divestiture and Operational Focus

The Hain Celestial Group, Inc. reported its fiscal second quarter 2026 results, with organic net sales declining 7% year over year to $494.3 million. Adjusted gross margin was 19.5%, a decrease of approximately 340 basis points year over year. The company's adjusted EBITDA was $24 million, compared to $38 million a year ago. The actual EPS came out at '-0.03', in line with estimates. The decline in revenues and margin was largely due to the challenges faced by the North American snacks business, which was subsequently divested.

Publication Date: Feb -10

📋 Highlights
  • Organic Net Sales Decline:: Fell 7% YoY to $494.3 million in Q2 2026.
  • Adjusted Gross Margin Drop:: Declined 340 basis points to 19.5%, driven by divestiture-related costs.
  • Snacks Divestiture Impact:: Sale to Snackrupters for $115 million cash reduced pro forma leverage from 4.9x to ~4x.
  • Adjusted EBITDA Decline:: Fell to $24 million vs. $38 million YoY, reflecting snack business exit and stranded costs.
  • Free Cash Flow Growth:: Rose 22% to $30 million, with net debt reduced by $32 million to $637 million.

Divestiture of North American Snacks Business

The company announced the sale of its North American snacks business to Snackrupters for $115 million in cash, which will be used to reduce debt. The divestiture is expected to free up resources for investment in other areas and is anticipated to be gross margin and EBITDA accretive. The company's North America business will now focus on three flagship categories: tea, yogurt, and baby and kids.

Operational Improvements and Cost Management

The company expects to mitigate $20-25 million of stranded costs within 6-12 months. The Snacks business was not a significant cash-generating business, and the company is focused on inventory reductions and payables to improve cash delivery. The company has a disciplined approach to capital management and prioritizes debt reduction. Pro forma for the transaction, leverage would fall from 4.9 times at quarter end to approximately four times.

Valuation and Outlook

With a P/E Ratio of -0.17 and an EV/EBITDA of -1.84, the market is pricing in significant challenges for the company. However, the divestiture of the Snacks business and the focus on core categories are expected to drive growth and improve profitability. Analysts estimate next year's revenue growth at 1.0%. The company's Free Cash Flow Yield is 5.72%, indicating a potential upside. The ROE is -111.73%, but this is expected to improve as the company focuses on cost reduction and innovation.

Growth Drivers and Innovation

The company's yogurt business is doing well, with single-serve Greek yogurt driving about 100% incremental growth. In the Earth's Best business, seven new SKUs are being launched in the big kids snacks area, adding protein and fiber. The company expects sequential improvement in the fiscal second half, both on a reported and pro forma basis, driven by innovation in the international segment and cycling of challenges in North America.

3. NewsRoom

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HAIN Stock Falls 20% After Reporting Q2 Loss & Y/Y Sales Decline

Feb -10

Source: zacks.com

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The Hain Celestial Group, Inc. (HAIN) Q2 2026 Earnings Call Transcript

Feb -09

Source: seekingalpha.com

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Hain Celestial: Debt Overhang Remains After A Mixed Q2

Feb -09

Source: seekingalpha.com

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Hain Celestial (HAIN) Reports Q2 Loss, Tops Revenue Estimates

Feb -09

Source: zacks.com

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Hain Celestial Reports Fiscal Second Quarter 2026 Financial Results

Feb -09

Source: globenewswire.com

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HAIN to Divest North American Snacks Business to Focus on Core Areas

Feb -03

Source: zacks.com

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Hain Celestial to Sharpen Strategic Focus; Enters Into Agreement to Sell North America Snacks Business

Feb -02

Source: globenewswire.com

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The Hain Celestial Group (HAIN) to Release Earnings on Monday

Feb -02

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Organic and Natural Products

Expected Growth: 1.0%

The 1.0% growth of Organic and Natural Products from The Hain Celestial Group, Inc. is driven by increasing consumer demand for healthy and sustainable living, rising popularity of plant-based diets, and expanding distribution channels in the natural and organic food market.

7. Detailed Products

Natural Food

The Hain Celestial Group offers a wide range of natural food products, including organic and non-GMO options, under various brands such as Celestial Seasonings, Terra Chips, and Garden of Eatin'.

Snacks

The company provides a variety of snack products, including nuts, seeds, and dried fruits, under brands like Sensible Portions and FruitWorx.

Personal Care

Hain Celestial offers a range of natural personal care products, including skincare, haircare, and baby care, under brands like Alba Botanica and Jason Natural.

Tea and Beverages

The company offers a variety of tea and beverage products, including herbal, green, and black tea, under brands like Celestial Seasonings and The Hain Celestial Group.

Baby and Kids

Hain Celestial provides a range of natural and organic baby and kids' products, including food, formula, and personal care, under brands like Earth's Best and TenderCare.

8. The Hain Celestial Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The Hain Celestial Group, Inc. is medium due to the presence of various natural and organic food products in the market. While there are some substitutes available, they are not significantly cheaper or more convenient, which reduces the threat.

Bargaining Power Of Customers

The bargaining power of customers for The Hain Celestial Group, Inc. is low due to the company's strong brand portfolio and the lack of concentration of buyers in the natural and organic food market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The Hain Celestial Group, Inc. is medium due to the presence of some large suppliers of natural and organic ingredients. However, the company's scale and diversification of suppliers reduce the bargaining power of individual suppliers.

Threat Of New Entrants

The threat of new entrants for The Hain Celestial Group, Inc. is low due to the high barriers to entry in the natural and organic food market, including the need for significant investment in brand development and distribution networks.

Intensity Of Rivalry

The intensity of rivalry for The Hain Celestial Group, Inc. is high due to the presence of several established players in the natural and organic food market, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.44%
Debt Cost 5.60%
Equity Weight 52.56%
Equity Cost 7.67%
WACC 6.68%
Leverage 90.26%

11. Quality Control: The Hain Celestial Group, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 2.6/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.9$

Current Price

0.9$

Potential

-0.00%

Expected Cash-Flows