Hain Celestial Group Reports Fiscal Fourth Quarter and FullYear 2024 Financial Results
Intellectia.AI2024-08-27
Hain Celestial Group Reports Fiscal Fourth Quarter and Full-Year 2024 Financial Results
Hain Celestial Group (NASDAQ: HAIN), a global leader in health and wellness products, today announced its financial results for the fourth quarter and fiscal year ended June 30, 2024.
Consolidated Financial Metrics
| Metric | Q4 2024 | Q4 2023 | % Change YoY | Full Year 2024 | Full Year 2023 | % Change YoY |
|---|---|---|---|---|---|---|
| Net Sales | $419 million | $445.2 million | -6% | $1,736 million | $1,789.7 million | -3% |
| Gross Profit Margin | 23.4% | 22.5% | +0.9% | 21.9% | 22% | -0.1% |
| Adjusted Gross Profit Margin | 23.4% | 22.7% | +0.7% | 22.4% | 22.1% | +0.3% |
| Net Loss | $3 million | $19 million | -84% | $75 million | $117 million | -36% |
| Adjusted Net Income | $11 million | $10 million | +10% | $30 million | $45 million | -33% |
| Loss per Diluted Share | $0.03 | $0.21 | -86% | $0.84 | $1.30 | -35% |
| Adjusted EPS | $0.13 | $0.11 | +18% | $0.33 | $0.50 | -34% |
| Net Cash from Operations | $39 million | $41 million | -5% | - | - | - |
| Free Cash Flow | $31 million | $34 million | -8% | - | - | - |
| Total Debt | $744 million | $829 million | -10% | - | - | - |
| Net Debt | $690 million | $775 million | -11% | - | - | - |
Commentary: Despite a year-over-year decline in net sales, Hain Celestial showed improvement in net loss reduction and increased adjusted net income. Key achievements include higher gross profit margins and successful debt reduction efforts.
Segment Revenues
| Segment | Metric | Q4 2024 | Q4 2023 | % Change YoY | FY 2024 | FY 2023 | % Change YoY |
|---|---|---|---|---|---|---|---|
| North America | Segment Gross Profit | $59 million | $63.44 million | -7% | $231 million | $262.5 million | -12% |
| Adjusted Gross Profit | $59 million | $64.84 million | -9% | $239 million | $262.5 million | -9% | |
| Gross Margin | 22.6% | 22.4% | +0.2% | 21.9% | 23.1% | -1.2% | |
| Adjusted EBITDA | $21 million | $27 million | -22% | $99 million | $123 million | -19.5% | |
| International | Segment Gross Profit | $39 million | $37.14 million | +5% | $150 million | $133.93 million | +12% |
| Adjusted Gross Profit | $39 million | $37.14 million | +5% | $151 million | $133.93 million | +13% | |
| Gross Margin | 24.8% | 23.4% | +1.4% | 22.1% | 20.4% | +1.7% | |
| Adjusted EBITDA | $27 million | $27 million | 0% | $95 million | $82.6 million | +15% |
Commentary: North America faced challenges due to lower sales in personal care and infant formula, mitigating with some gains in snacks and beverages. The International segment showed stronger growth, particularly in soups and beverages, despite struggles in the plant-based meat sector.
Key Developments and Operational Highlights
- Debt Reduction: Reduced net debt by $86 million across the fiscal year.
- Free Cash Flow: Generated $31 million in free cash flow in Q4.
- Gross Margin Improvement: Increased adjusted gross profit margin to 22.4% for the full fiscal year.
Executive Commentary
Wendy Davidson, President, and CEO: - "Fiscal 2024 was a foundational year for our Hain Reimagined strategy." - "Focused on simplifying our business and generating fuel for growth." - "Confident in delivering sustainable top- and bottom-line growth in fiscal 2025."
Lee Boyce, CFO: - "Significant free cash flow generation allowed significant net debt reduction." - "Reduction remains a priority, aiming for a leverage goal between 2x to 3x by 2027."
Forward Guidance
- Organic Net Sales Growth: Expected to be flat or better.
- Adjusted EBITDA: Forecasted to grow by mid-single digits.
- Gross Margin: Anticipated to increase by at least 125 basis points.
- Free Cash Flow: Projected to be at least $60 million.
Stock Price Movement
- After earnings release, Hain Celestial stock saw a 5.93% increase.
Overall, Hain Celestial Group showcased a resilient financial performance amidst market challenges, focusing on debt reduction, margin improvement, and setting a solid foundation for future growth.
For more detailed information, visit the Hain Celestial Investor Relations page .
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