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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. Disappointing Q1 Earnings: A Deeper Dive into the Numbers

The company's Q1 financial performance was a mixed bag, with net sales of $368 million and adjusted EBITDA of $20 million coming in line with expectations. However, the adjusted gross margin was 19.5%, a decrease of approximately 120 basis points year-over-year, driven by lower volume mix and cost inflation, partially offset by productivity and pricing and trade efficiencies. The actual EPS came out at '-0.02' relative to estimates at '0.04', a clear miss. With a P/E Ratio of -0.19 and an EV/EBITDA of -0.29, it's clear that the market has already priced in significant challenges for the company.

Publication Date: Nov -24

📋 Highlights
  • Q1 Net Sales & EBITDA:: Reported $368M net sales and $20M adjusted EBITDA, aligning with expectations set for Q4 2025 levels.
  • North America EBITDA Growth:: Adjusted EBITDA surged 37% YoY to $17M, driven by productivity savings and SG&A cuts.
  • Cost Reduction Target:: Aimed for over 12% reduction in people-related SG&A expenses through operational streamlining.
  • Free Cash Flow Improvement:: Outflow reduced to -$14M (vs. prior year), with DPO improved to 57 days (from 65 days in Q4 2025).
  • International Performance:: Organic sales declined 4%, with adjusted EBITDA down 38% to $13M, but margin recovery expected in H2.

Segment Performance: North America Shows Promise

In North America, the company demonstrated sequential improvement in organic net sales trends, with Beverages, Baby and Kids, and Meal Prep all turning to growth. Adjusted EBITDA in North America was $17 million, an increase of 37% from the year-ago period, resulting primarily from productivity savings, a reduction in SG&A expenses, and pricing and trade efficiencies. This is a positive sign, and the company's '5 actions to win' strategy, including streamlining its portfolio and accelerating brand renovation and innovation, is starting to bear fruit.

International Business: Challenges Persist

The International business continued to face challenges, with organic net sales declining 4% in the quarter, primarily driven by lower sales in Baby and Kids. Adjusted EBITDA was $13 million or 7.7% of net sales, reflecting a decrease of 38% compared to the prior year period. However, the company expects its margin in International to improve, particularly in the second half, driven by operational efficiency initiatives and revenue growth management.

Cash Flow and Balance Sheet: Room for Improvement

Free cash flow for the quarter was an outflow of $14 million, an improvement from the year-ago period. The company's capital expenditures are expected to be approximately $30 million for fiscal 2026. With a Net Debt / EBITDA ratio of -0.04, the company's balance sheet leverage is relatively low, but the company still needs to focus on deleveraging. The company's priorities for cash are paying down debt and strategically investing in the business, which should help drive growth in the long term.

Outlook: Can the Company Turn it Around?

Analysts are expecting a revenue decline of 4.5% next year, but the company's '5 actions to win' strategy and focus on delivering value to consumers could help drive a turnaround. With a P/S Ratio of 0.07, the market is pricing in significant challenges, but the company's efforts to streamline its operations and improve profitability could help improve its valuation multiples over time. As the company continues to execute its turnaround plan, investors will be watching closely to see if the company can deliver on its promises.

3. NewsRoom

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Garden Veggie Snacks™ Drops Limited-Edition Snack Suit for the Ultimate Game Day Experience

Nov -12

Source: globenewswire.com

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HAIN Stock Jumps 12% Despite Reporting Q1 Loss & Y/Y Sales Decline

Nov -10

Source: zacks.com

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The Hain Celestial Group, Inc. (HAIN) Q1 2026 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Hain Celestial (HAIN) Reports Q1 Loss, Beats Revenue Estimates

Nov -07

Source: zacks.com

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Hain Celestial Reports Fiscal First Quarter 2026 Financial Results

Nov -07

Source: globenewswire.com

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Ethic Inc. Has $87,000 Stake in The Hain Celestial Group, Inc. $HAIN

Nov -01

Source: defenseworld.net

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of The Hain Celestial Group, Inc. - HAIN

Oct -28

Source: prnewswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of The Hain Celestial Group, Inc. - HAIN

Oct -23

Source: prnewswire.com

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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Hain Celestial

A-Score: 2.5/10

Value: 9.8

Growth: 0.8

Quality: 2.8

Yield: 0.0

Momentum: 0.0

Volatility: 1.7

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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

1.03$

Current Price

1.03$

Potential

-0.00%

Expected Cash-Flows