HOBOKEN, N.J., May 11, 2026 (GLOBE NEWSWIRE) -- The Hain Celestial Group, Inc. (Nasdaq: HAIN), a leading global health and wellness company whose purpose is to inspire healthier living through better-for-you brands, today reported financial results for its fiscal third quarter ended March 31, 2026.

“Third quarter results reflect improving execution and financial discipline as we continued to strengthen our foundation and advance our turnaround strategy. Strong cash generation and debt reduction materially improved our financial position, while the completion of the North American snacks divestiture further enhances our margin and cash flow profile going forward. In North America, our core business remains resilient, and we are making progress in addressing stranded costs. Our near-term priorities remain the same: optimize cash, strengthen the balance sheet, improve profitability, and stabilize sales, while our five actions to win position Hain for sustainable, profitable growth,” stated Alison Lewis, President and CEO.

FINANCIAL HIGHLIGHTS^*

Summary of Fiscal Third Quarter Results Compared to the Prior Year Period

• Net sales were $338 million, down 13% year-over-year.
  • Organic net sales decreased 6% compared to the prior year period.
    • The decrease in organic net sales was comprised of an 11-point decrease in volume/mix, partially offset by a 5-point increase in pricing.
• Gross profit margin was 20.8%, a 90-basis point decrease from the prior year period.
  • Adjusted gross profit margin was 21.0%, a 90-basis point decrease from the prior year period.
• Net loss was $106 million, compared to a net loss of $135 million in the prior year period.
  • Net loss included a pre-tax loss on sale of $51 million related to the sale of our North American snacks business.
  • Net loss included pre-tax non-cash impairment charges of $46 million ($45 million after-tax) related to goodwill and certain intangible assets, as well as assets held for sale.
  • Adjusted net loss was $1 million, compared to adjusted net income of $6 million in the prior year period.
• Adjusted EBITDA was $26 million, compared to $34 million in the prior year period.
• Loss per diluted share was $1.17, compared to a loss per diluted share of $1.49 in the prior year period.
  • Adjusted loss per diluted share was $0.01, compared to adjusted earnings per diluted share of $0.07 in the prior year period.

Cash Flow and Balance Sheet Highlights

• Net cash provided by operating activities was $38 million in the fiscal third quarter, compared to $5 million in the prior year period.
• Free cash flow was $35 million in the fiscal third quarter, compared to an outflow of $2 million in the prior year period.
• Total debt was $549 million at the end of the fiscal third quarter, down from $705 million at the beginning of the fiscal year.
• Net debt was $505 million at the end of the fiscal third quarter, compared to $650 million at the beginning of the fiscal year.
• The company ended the fiscal third quarter with a net secured leverage ratio of 4.3x as calculated under our credit agreement. 
  

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^{*This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. Reconciliations of non-GAAP financial measures to GAAP financial measures and other non-GAAP financial calculations are provided in the tables included in this press release.}

SEGMENT HIGHLIGHTS 

The company operates under two reportable segments: North America and International.

North America
Fiscal third quarter organic net sales decreased by 3% year-over-year, primarily driven by baby & kids, partially offset by growth in beverages.     

Segment gross profit and adjusted gross profit were each $40 million in the fiscal third quarter, representing decreases of 20% and 19%, respectively, from the prior year period. Gross margin was 23.1% and adjusted gross margin was 23.4%, each a 100-basis point increase from the prior year period. The increases in margin were primarily driven by productivity savings and pricing, partially offset by lower volume/mix and cost inflation.

Adjusted EBITDA in the fiscal third quarter was $17 million, a decrease of 1% compared to the prior year period. The decrease was driven primarily by lower volume/mix and cost inflation, nearly offset by SG&A reduction, pricing, and productivity savings. Adjusted EBITDA margin was 10.0% of net sales, a 220-basis point increase compared to the prior year period.

International
Fiscal third quarter organic net sales decreased by 8% year-over-year, primarily driven by lower sales in meal prep and baby & kids.      

Segment gross profit and adjusted gross profit in the fiscal third quarter were both $31 million, each representing a 13% decrease from the prior year period. Gross margin and adjusted gross margin were both 18.5%, each representing a 270-basis point decrease from the prior year period. The decreases in margin were primarily driven by cost inflation, partially offset by productivity savings and pricing.

Adjusted EBITDA in the fiscal third quarter was $20 million, compared to $22 million in the prior year period, a decrease of 12%. The decrease was primarily driven by cost inflation and lower volume/mix, partially offset by productivity savings and pricing. Adjusted EBITDA margin was 11.7% compared to 13.2% in the prior year period.

CATEGORY HIGHLIGHTS

Baby & Kids
The fiscal third quarter organic net sales decline of 14% year-over-year was driven primarily by continued industry-wide volume softness in purees in the UK and by purees and formula in North America, partially offset by growth in finger foods in both regions and cereal in North America.   

Beverages
Fiscal third quarter organic net sales growth was flat year-over-year as growth in tea in North America and private label non-dairy beverage in International was offset by a decline in branded non-dairy beverage.

Meal Prep
The fiscal third quarter organic net sales decline of 5% year-over-year was driven primarily by pantry in North America, which is comprised of oil, soup, and nut butter brands, and by spreads and drizzles in the UK, partially offset by strength in yogurt in North America.   

Snacks
Following the disposition of the North American snacks business, the snacks category is comprised of jellies in the International segment. Organic net sales declined 7% year-over-year in the fiscal third quarter.

Conference Call and Webcast Information

Hain Celestial will host a conference call and webcast today at 8:00 AM ET to discuss its results and business outlook. The live webcast and accompanying presentation are available under the Investors section of the company’s corporate website at www.hain.com. Investors and analysts can access the live call by dialing 800-715-9871 or 646-307-1963. The conference ID is 5099081. Participation by the press and public in the Q&A session will be in listen-only mode. A replay of the call will be available shortly after the conclusion of the live call through Monday, May 18th, 2026, and can be accessed by dialing 800-770-2030 or 609-800-9909 and referencing the conference access ID: 5099081.  

About The Hain Celestial Group, Inc.

Hain Celestial is a leading health and wellness company whose purpose is to inspire healthier living for people, communities and the planet through better-for-you brands. For more than 30 years, Hain Celestial has intentionally focused on delivering nutrition and well-being that positively impacts today and tomorrow. Headquartered in Hoboken, N.J., Hain Celestial's products across beverages, yogurt, baby/kids and meal preparation are marketed and sold in over 70 countries around the world. Our leading brands include Celestial Seasonings® teas, The Greek Gods® yogurt, Earth's Best® Organic and Ella's Kitchen® baby and kids foods, Joya® and Natumi® plant-based beverages, Hartley’s® jelly, as well as Cully & Sully®, Yorkshire Provender®, New Covent Garden® soups, among others. For more information, visit www.hain.com and LinkedIn.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. The words “believe,” “expect,” “anticipate,” “may,” “should,” “plan,” “intend,” “potential,” “will” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include, among other things, our beliefs or expectations relating to our strategy, our future results of operations, our capital and cost structure, our ability to optimize cash, strengthen our balance sheet, improve flexibility, stabilize sales and achieve sustainable and profitable growth, and the macroeconomic environment.

Risks and uncertainties that may cause actual results to differ materially from forward-looking statements include: challenges and uncertainty resulting from the impact of competition; changes to consumer preferences; our ability to execute our business strategy; our ability realize the benefits of the North American snacks disposition; compliance with our credit agreement and our ability to refinance, retire and/or extend the maturity of the Company’s existing debt; our ability to manage our supply chain effectively; input cost inflation, including as a result of tariffs; reliance on independent contract manufacturers; disruption of operations at our manufacturing facilities; customer concentration; reliance on independent distributors; risks associated with operating internationally; risks associated with outsourcing arrangements; risks associated with geopolitical conflicts or events; our reliance on independent certification for a number of our products; our ability to attract and retain highly skilled people; risks related to tax matters; foreign currency exchange risk; general economic conditions; impairments in the carrying value of goodwill or other intangible assets; the reputation of our company and our brands; our ability to use and protect trademarks; cybersecurity incidents; disruptions to information technology systems; pending and future litigation, including litigation relating to Earth’s Best® baby food products; potential liability if our products cause illness or physical harm; the highly regulated environment in which we operate; our ability to manage our financial reporting and internal control systems and processes; compliance with data privacy laws; the adequacy of our insurance coverage; climate impacts; liabilities, claims or regulatory change with respect to environmental matters; and other risks and matters described in our most recent Annual Report on Form 10-K and our other filings from time to time with the U.S. Securities and Exchange Commission.

We undertake no obligation to update forward-looking statements to reflect actual results or changes in assumptions or circumstances, except as required by applicable law.

Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures, including, among others, organic net sales; adjusted gross profit and its related margin; adjusted operating income and its related margin; adjusted net (loss) income and its related margin; diluted net (loss) income per common share, as adjusted; adjusted EBITDA and its related margin; free cash flow; and net debt. The reconciliations of historic non-GAAP financial measures to the comparable GAAP financial measures are provided in the tables below. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the company’s consolidated financial statements presented in accordance with GAAP.

We define our non-GAAP financial measures as follows:

• Organic net sales: net sales excluding the impact of acquisitions, divestitures, held for sale businesses, discontinued brands, exited product categories and foreign exchange. To adjust organic net sales for the impact of acquisitions, the net sales of an acquired business are excluded from fiscal quarters constituting or falling within the current period and prior period where the applicable fiscal quarter in the prior period did not include the acquired business for the entire quarter. To adjust organic net sales for the impact of divestitures, held for sale businesses, discontinued brands and exited product categories, the net sales of a divested business, held for sale business, discontinued brand or exited product category are excluded from all periods. To adjust organic net sales for the impact of foreign exchange, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year.
  
  
• Adjusted gross profit and its related margin: gross profit, before plant closure related costs, net and warehouse and manufacturing consolidation and other costs, net.
  
  
• Adjusted operating income and its related margin: operating loss before goodwill impairment, long-lived asset and intangibles impairment, productivity and transformation costs, certain litigation expenses, net, costs associated with acquisitions, divestitures and other transactions, plant closure related costs, net, warehouse and manufacturing consolidation and other costs, net, and proceeds from insurance claim.
  
  
• Adjusted net (loss) income and its related margin and diluted net (loss) income per common share, as adjusted: net loss, adjusted to exclude the impact of goodwill impairment, long-lived asset and intangibles impairment, productivity and transformation costs, certain litigation expenses, net, costs associated with acquisitions, divestitures and other transactions, plant closure related costs, net, warehouse and manufacturing consolidation and other costs, net, proceeds from insurance claim, losses (gains) losses on sales of assets, unrealized currency losses and the related tax effects of such adjustments.
  
  
• Adjusted EBITDA and its related margin: net loss before depreciation and amortization, equity in net loss of equity-method investees, net interest expense, income taxes, stock-based compensation, net, unrealized currency losses, certain litigation expenses, net, proceeds from insurance claim, productivity and transformation costs, plant closure related costs, net, warehouse and manufacturing consolidation and other costs, net, losses (gains) on sales of assets, costs associated with acquisitions, divestitures and other transactions, goodwill impairment and long-lived asset and intangibles impairment.
  
  
• Free cash flow: net cash provided by operating activities less purchases of property, plant and equipment.
  
  
• Net debt: total debt less cash and cash equivalents.
  
  

We believe that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the company’s operations and are useful for period-over-period comparisons of operations. We provide:

• Organic net sales to demonstrate the growth rate of net sales excluding the impact of acquisitions, divestitures, held for sale businesses, discontinued brands, and exited product categories and foreign exchange, and believe organic net sales is useful to investors because it enables them to better understand the growth of our business from period to period.
  
  
• Adjusted results as important supplemental measures of our performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of our Company and companies in our industry.
  
  
• Free cash flow as one factor in evaluating the amount of cash available for discretionary investments.
  
  
• Net debt as a useful measure to monitor leverage and evaluate the balance sheet.
  
  

We discuss the Company’s net secured leverage ratio as calculated under our credit agreement as a measure of our financial condition, liquidity and compliance with our credit agreement. For a description of the material terms of our credit agreement and risks of non-compliance with our credit agreement, see “Liquidity and Capital Resources” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in our most recent Annual Report on Form 10-K and our subsequent quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission.

Investor Relations Contact:
Alexis Tessier
Investor.Relations@hain.com

Media Contact:
Justin Godley
Justin.Godley@hain.com

Source: The Hain Celestial Group, Inc.