Hain Celestial Group, Inc. (HAIN) reported its fourth-quarter fiscal 2024 results, showcasing a mixed bag of performance. While the company surpassed earnings estimates, its top line declined year-over-year. Despite the sales dip, Hain Celestial demonstrated resilience, with adjusted earnings exceeding expectations and showcasing progress in its Hain Reimagined strategy.
The Hain Reimagined strategy, implemented throughout fiscal 2024, focused on streamlining operations and driving growth. The company successfully transitioned to a global operating model, reducing geographic complexities, enhancing scale, and fostering a performance-driven culture.
HAIN achieved adjusted earnings of 13 cents per share, surpassing the Zacks Consensus Estimate of 8 cents. This represents an increase from the 11 cents per share reported in the previous year’s quarter. Net sales, while declining 6% year-over-year, still came in at $419 million, exceeding the consensus estimate of $418.2 million.
The company’s gross margin expanded by 70 basis points year-over-year to 23.4%, exceeding the expected 40 basis point expansion. However, adjusted EBITDA decreased to $40 million from $44 million in the previous year.
Looking ahead to fiscal 2025, Hain Celestial is focusing on commercial execution to drive both top- and bottom-line growth. Management remains optimistic about the Hain Reimagined strategy, highlighting the strength of its diversified portfolio and global presence.
In its North America segment, net sales declined 8% year-over-year to $260 million, primarily due to reduced personal care sales and a decline in infant formula sales. While the snacks segment experienced growth, these gains were partially offset by declines in other categories.
The International segment also experienced a 4% year-over-year decline in net sales, primarily driven by lower sales in plant-based meat alternatives and snacks. These declines were partially offset by growth in the beverages segment.
Despite the challenges, Hain Celestial is optimistic about its future. The company expects organic net sales to remain stable or show improvement in fiscal 2025. Adjusted EBITDA is projected to grow by mid-single digits, and gross margin is anticipated to increase by at least 125 basis points. Additionally, Hain Celestial anticipates generating at least $60 million in free cash flow for the year.
While the company’s shares have faced a recent decline, investors will be closely watching its progress in the coming quarters to assess the effectiveness of its strategies and its ability to achieve its growth targets.
