Hain Celestial Shifts Focus, Explores Personal Care Exit

TL;DR

**HAIN is shedding its personal care dead weight to double down on food and beverages; expect a leaner, more focused play.**

AI Summary

Hain Celestial Group Inc. reported a fiscal year ending June 30, 2025, with a significant strategic shift towards its better-for-you food and beverage portfolio. The company's Board of Directors initiated a comprehensive portfolio review in Q4 2025 to enhance value, following an announcement in Q3 2025 to explore strategic alternatives for its personal care business. Sales outside the U.S. grew to approximately 50% of consolidated net sales in fiscal 2025, up from 46% in 2024 and 43% in 2023, indicating a growing international footprint. Walmart Inc. and its affiliates remained a major customer, accounting for approximately 18% of consolidated sales in fiscal 2025. The company is focused on five key actions: streamlining its portfolio, accelerating brand renovation and innovation, implementing price increases and revenue growth management, driving productivity and working capital efficiency, and enhancing digital capabilities. Risks include challenges from competition, changes in consumer preferences, and input cost inflation. The closure of the Yves Veggie Cuisine business is expected in Q2 2026, further refining the portfolio.

Why It Matters

Hain Celestial's strategic pivot to divest its personal care business and streamline its food and beverage portfolio signals a clearer, more focused direction for investors, potentially unlocking value by concentrating on core, higher-growth segments. This move could improve profitability and market share in the competitive health and wellness food sector, impacting employees through potential restructuring but offering customers a more refined product offering. The emphasis on 'better-for-you' brands aligns with broader market trends, positioning Hain Celestial to better compete against larger CPG players and agile startups in the natural and organic space.

Risk Assessment

Risk Level: medium — The risk level is medium due to the ongoing comprehensive portfolio review and exploration of strategic alternatives for the personal care business, which introduces execution risk and potential for disruption. Additionally, the company's reliance on Walmart Inc. for 18% of consolidated sales in fiscal 2025 presents customer concentration risk. The closure of the Yves Veggie Cuisine business in Q2 2026 also indicates ongoing portfolio adjustments that could impact short-term performance.

Analyst Insight

Investors should monitor the progress of Hain Celestial's portfolio review and the divestiture of its personal care business closely. This strategic shift could lead to a more focused and potentially more profitable company, but successful execution is key. Consider HAIN if you believe management can effectively streamline operations and capitalize on the 'better-for-you' food trend.

Key Numbers

• $552,228,088 — Aggregate market value of common equity held by non-affiliates (as of December 31, 2024)
• 90,292,752 — Shares outstanding of Common Stock (as of September 9, 2025)
• 18% — Percentage of consolidated sales from Walmart Inc. (for fiscal year ended June 30, 2025)
• 50% — Percentage of consolidated net sales from outside the U.S. (for fiscal year ended June 30, 2025, up from 43% in 2023)
• 2,600 — Total employees (as of June 30, 2025)
• 43% — Percentage of employees in North America (as of June 30, 2025)
• 57% — Percentage of employees outside North America (as of June 30, 2025)
• 70 — Number of countries where products are marketed and sold (global reach)
• 30 — Years in business (since founding in 1993)
• Q2 2026 — Expected closure of Yves Veggie Cuisine business (strategic portfolio streamlining)

Key Players & Entities

• Hain Celestial Group Inc. (company) — registrant
• Walmart Inc. (company) — major customer, 18% of consolidated sales in fiscal 2025
• The Nasdaq Stock Market LLC (regulator) — exchange where common stock is registered
• Securities and Exchange Commission (regulator) — filing oversight
• Garden Veggie Snacks (company) — leading brand
• Earth's Best Organic (company) — leading baby and kid's food brand
• Celestial Seasonings (company) — leading tea brand
• Yves Veggie Cuisine (company) — business segment being closed
• Hoboken, N.J. (location) — company headquarters
• June 30, 2025 (date) — fiscal year end

FAQ

Risk Factors

• Intense Competition and Changing Consumer Preferences [high — market]: The company faces significant competition in the better-for-you food and beverage market. Shifts in consumer preferences towards healthier or alternative products, or away from the company's brands, could materially impact sales and profitability. For instance, the strategic shift towards better-for-you products indicates a recognition of these evolving tastes.
• Supply Chain and Input Cost Volatility [medium — operational]: Fluctuations in the cost and availability of raw materials and packaging can significantly affect gross margins. The company's reliance on a global supply chain exposes it to risks associated with inflation, geopolitical events, and logistical disruptions, impacting its ability to maintain competitive pricing and product availability.
• Portfolio Streamlining and Business Divestitures [medium — operational]: The ongoing review and potential divestiture of certain business segments, such as the personal care business and the closure of Yves Veggie Cuisine in Q2 2026, introduce operational complexities and potential disruptions. Successfully executing these strategic shifts while maintaining focus on core brands is critical.
• Customer Concentration Risk [medium — market]: Walmart Inc. and its affiliates represented approximately 18% of consolidated sales in fiscal 2025. A significant reduction in business with this major customer, or any adverse changes in their relationship, could have a material negative impact on the company's financial performance.
• Cybersecurity Threats [medium — operational]: The company's increasing reliance on digital capabilities and data management exposes it to cybersecurity risks. A breach could lead to significant financial losses, reputational damage, and operational disruptions, impacting customer trust and business continuity.

Industry Context

The better-for-you food and beverage sector is characterized by intense competition and rapidly evolving consumer preferences driven by health and wellness trends. Companies in this space must continuously innovate and adapt their product offerings to meet demand for natural, organic, and plant-based options. The market also faces challenges from input cost inflation and supply chain disruptions, requiring robust operational management and strategic pricing.

Regulatory Implications

While no specific regulatory issues are detailed in the provided context, companies in the food and beverage industry are subject to stringent regulations regarding food safety, labeling, and marketing claims. Changes in these regulations, or non-compliance, could lead to fines, product recalls, and reputational damage. The focus on 'better-for-you' products may also attract scrutiny regarding health claims.

What Investors Should Do

1. Monitor the execution of the portfolio streamlining strategy.
2. Analyze the impact of international growth on margins and revenue.
3. Assess the company's ability to manage input cost inflation and pricing.
4. Evaluate the company's relationship and reliance on major customers like Walmart.

Key Dates

• 2025-06-30: Fiscal Year End — Marks the end of the reporting period for the 10-K, reflecting the company's financial performance and strategic initiatives, including the growing international footprint (50% of sales outside U.S.) and major customer concentration (18% from Walmart).
• 2025-09-09: Shares Outstanding Record Date — Indicates the number of common shares outstanding (90,292,752) as of this date, crucial for per-share calculations and investor ownership analysis.
• 2024-12-31: Market Capitalization Measurement Date — The aggregate market value of common equity held by non-affiliates was $552,228,088 as of this date, providing a snapshot of the company's valuation.
• 2026-06-30: Expected Closure of Yves Veggie Cuisine Business — This date signifies the completion of a portfolio streamlining initiative, aimed at focusing on core better-for-you food and beverage segments.

Glossary

Better-for-you

A category of food and beverage products marketed as having improved nutritional profiles or health benefits compared to conventional alternatives. (Hain Celestial is strategically focusing on this growing segment, indicating a shift in its product portfolio and market strategy.)

Portfolio review

A systematic evaluation of a company's business units and product lines to assess their performance, strategic fit, and potential for value creation, often leading to divestitures or acquisitions. (The company initiated a comprehensive portfolio review in Q4 2025, signaling a significant strategic reorientation to enhance shareholder value.)

Revenue Growth Management

A strategic approach to optimizing pricing, promotions, and product mix to drive sustainable revenue growth and profitability. (This is one of the five key actions Hain Celestial is implementing to improve financial performance.)

Working Capital Efficiency

The effective management of a company's current assets and liabilities to ensure sufficient liquidity and optimize operational cash flow. (Driving productivity and working capital efficiency is a key strategic focus for Hain Celestial to improve its financial health.)

Year-Over-Year Comparison

The provided context highlights a strategic shift towards the better-for-you food and beverage portfolio, with international sales increasing to 50% of consolidated net sales in fiscal 2025, up from 43% in fiscal 2023, indicating a growing global presence. The company is actively streamlining its portfolio, evidenced by the planned closure of the Yves Veggie Cuisine business in Q2 2026 and exploration of strategic alternatives for its personal care segment. While specific year-over-year financial metric comparisons are not detailed, these strategic actions suggest a focus on improving profitability and market positioning compared to prior periods.

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share HAIN The Nasdaq Stock Mar

Filing Documents

• hain-20250630.htm (10-K) — 5210KB
• hain-ex10_5.htm (EX-10.5) — 125KB
• hain-ex10_8.htm (EX-10.8) — 37KB
• hain-ex10_9.htm (EX-10.9) — 93KB
• hain-ex10_1-4.htm (EX-10.1-4) — 129KB
• hain-ex10_1-5.htm (EX-10.1-5) — 2000KB
• hain-ex10_2-15.htm (EX-10.2-15) — 75KB
• hain-ex10_6-2.htm (EX-10.6-2) — 104KB
• hain-ex19_1.htm (EX-19.1) — 108KB
• hain-ex21_1.htm (EX-21.1) — 73KB
• hain-ex23_1.htm (EX-23.1) — 14KB
• hain-ex31_1.htm (EX-31.1) — 15KB
• hain-ex31_2.htm (EX-31.2) — 14KB
• hain-ex32_1.htm (EX-32.1) — 10KB
• hain-ex32_2.htm (EX-32.2) — 10KB
• img107441267_0.jpg (GRAPHIC) — 271KB
• img107441267_1.jpg (GRAPHIC) — 38KB
• img132305034_0.jpg (GRAPHIC) — 32KB
• img135075597_0.jpg (GRAPHIC) — 253KB
• 0001193125-25-203534.txt ( ) — 27187KB
• hain-20250630.xsd (EX-101.SCH) — 2426KB
• hain-20250630_htm.xml (XML) — 5499KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 22 Item 1C. Cybersecurity 22 Item 2.

Properties

Properties 25 Item 3.

Legal Proceedings

Legal Proceedings 25 Item 4. Mine Safety Disclosures 25 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26 Item 6. [Reserved] 27 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 45 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 92 Item 9A.

Controls and Procedures

Controls and Procedures 92 Item 9B. Other Information 96 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 96 PART III Item 10. Directors, Executive Officers and Corporate Governance 97 Item 11.

Executive Compensation

Executive Compensation 97 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 97 Item 13. Certain Relationships and Related Transactions, and Director Independence 97 Item 14. Principal Accountant Fees and Services 97 PART IV Item 15. Exhibit and Financial Statement Schedules 98 Item 16. Form 10-K Summary 100 Exhibit Index 101

Signatures

Signatures 105 2 Table of Contents

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K for the fiscal year ended June 30, 2025 (the "Form 10-K") 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, the results of The Hain Celestial Group, Inc. (collectively with its subsidiaries, the "Company," "Hain Celestial," "we," "us" or "our") 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 future performance, results of operations and financial condition; our strategic initiatives and business strategy, including statements related to our personal care business; our supply chain, including the impact of tariffs and the availability and pricing of raw materials; our brand portfolio; pricing actions and product performance; inflation rates; and current or future macroeconomic trends. 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 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 o

Bu siness

Item 1. Bu siness Overview The Hain Celestial Group, Inc., a Delaware corporation (collectively with its subsidiaries, the "Company," "Hain Celestial," "we," "us" or "our") was founded in 1993. Hain Celestial is a leading global 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 snacks, baby/kids, beverages and meal preparation are marketed and sold in over 70 countries around the world. The Company's leading brands include Garden Veggie Snacks, Terra chips, Garden of Eatin' snacks, Hartley's jelly, Earth's Best Organic and Ella's Kitchen baby and kid's foods, Celestial Seasonings teas, Joya and Natumi plant-based beverages, The Greek Gods yogurt, Cully & Sully , Yorkshire Provender , New Covent Garden and Imagine soups, among others. Our Strategy We are focused on five actions to win in the marketplace and drive growth: aggressively streamlining our portfolio, accelerating brand renovation and innovation, implementing price increases along with broader revenue growth management, driving productivity and working capital efficiency, and enhancing our digital capabilities, inclusive of ecommerce. During the fourth quarter of fiscal year 2025, we announced that our Board of Directors was conducting a comprehensive review of the Company's portfolio with the assistance of our independent financial advisor. The Board is considering a broad range of strategic options to enhance value. Also, in the third quarter of fiscal year 2025, we announced that we were exploring strategic alternatives regarding our personal care business to focus on our portfolio of better-for-you food and beverages. Human Capital Resources As of June 30, 2025, we had approximately 2,60

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View this 10-K filing on SEC EDGAR