Hain Celestial's Q1 Loss Widens Amid Sales Dip, Strategic Review Underway

Ticker: HAIN · Form: 10-Q · Filed: Nov 7, 2025 · CIK: 910406

Sentiment: bearish

Topics: Consumer Staples, Food & Beverage, Earnings Miss, Strategic Review, Net Loss, Sales Decline, Debt Increase

Related Tickers: HAIN, K, GIS, SJM

TL;DR

**Hain Celestial's Q1 results are a red flag; the widening loss and sales drop mean their strategic pivot needs to deliver fast or this stock is dead money.**

AI Summary

Hain Celestial Group Inc. reported a net loss of $20.625 million for the three months ended September 30, 2025, an increase from the $19.663 million net loss in the same period of 2024. Net sales decreased by 6.77% to $367.883 million from $394.596 million year-over-year. Gross profit also declined to $68.078 million in Q1 2025 from $81.610 million in Q1 2024. Operating loss widened significantly to $6.865 million from an operating income of $3.053 million in the prior year, primarily due to increased productivity and transformation costs, which rose to $8.219 million from $5.018 million. The company is actively streamlining its portfolio and exploring strategic alternatives for its personal care business to focus on better-for-you food and beverages, as announced in Q3 fiscal year 2025. Long-term debt increased to $708.563 million from $697.168 million at June 30, 2025, while cash and cash equivalents decreased to $47.886 million from $54.355 million. Accounts receivable increased to $170.731 million from $154.440 million, and inventories decreased to $229.498 million from $248.731 million.

Why It Matters

Hain Celestial's widening net loss and declining sales signal ongoing challenges in a competitive health and wellness market, impacting investor confidence and potentially future stock performance. The strategic review of its portfolio, including the potential divestiture of its personal care business, could reshape the company's focus and competitive positioning against larger food and beverage conglomerates. Employees in the personal care division face uncertainty, while customers may see a more concentrated product offering. The broader market will watch to see if this strategic pivot can reverse the negative financial trends and create sustainable value.

Risk Assessment

Risk Level: high — The company reported a net loss of $20.625 million for the three months ended September 30, 2025, an increase from a $19.663 million net loss in the prior year. Net sales decreased by $26.713 million, or 6.77%, to $367.883 million. The operating loss of $6.865 million, compared to an operating income of $3.053 million in the prior year, indicates deteriorating operational efficiency.

Analyst Insight

Investors should exercise caution and consider reducing exposure to HAIN given the widening net loss and declining sales. Monitor the progress of the strategic portfolio review and any potential divestitures, as these could significantly impact future financial performance and valuation.

Financial Highlights

debt To Equity
2.55
revenue
$367.883M
operating Margin
-1.87%
total Assets
$1.583B
total Debt
$716.210M
net Income
-$20.625M
eps
-$0.23
gross Margin
18.51%
cash Position
$47.886M
revenue Growth
-6.77%

Revenue Breakdown

SegmentRevenueGrowth
North AmericaN/AN/A
InternationalN/AN/A

Key Numbers

Key Players & Entities

FAQ

What were Hain Celestial's net sales for the quarter ended September 30, 2025?

Hain Celestial's net sales for the three months ended September 30, 2025, were $367.883 million, a decrease from $394.596 million in the same period of 2024.

Did Hain Celestial report a profit or loss in Q1 2025?

Hain Celestial reported a net loss of $20.625 million for the three months ended September 30, 2025, which is an increase from the $19.663 million net loss reported in Q1 2024.

What is Hain Celestial's strategic outlook for its business segments?

Hain Celestial is focused on streamlining its portfolio, accelerating brand renovation, implementing price increases, driving productivity, and enhancing digital capabilities. The company is also exploring strategic alternatives for its personal care business to focus on better-for-you food and beverages.

How have Hain Celestial's operating expenses changed year-over-year?

Hain Celestial's selling, general and administrative expenses decreased to $65.512 million in Q1 2025 from $71.328 million in Q1 2024. However, productivity and transformation costs increased significantly to $8.219 million from $5.018 million.

What are the key risks identified in Hain Celestial's 10-Q filing?

Key risks include challenges from competition, changes in consumer preferences, ability to execute business strategy, supply chain management, input cost inflation, reliance on contract manufacturers, and geopolitical conflicts. Litigation related to Earth's Best baby food products is also noted.

What is the current outstanding share count for Hain Celestial?

As of November 3, 2025, there were 90,567,218 shares outstanding of Hain Celestial's Common Stock, par value $.01 per share.

How has Hain Celestial's cash position changed in the last quarter?

Hain Celestial's cash and cash equivalents decreased to $47.886 million at September 30, 2025, from $54.355 million at June 30, 2025.

What is Hain Celestial doing to improve its financial performance?

Hain Celestial is implementing five key actions: aggressively streamlining its portfolio, accelerating brand renovation and innovation, implementing price increases and broader revenue growth management, driving productivity and working capital efficiency, and enhancing digital capabilities, including e-commerce.

What is the impact of foreign currency translation on Hain Celestial's comprehensive income?

Foreign currency translation adjustments resulted in a pretax loss of $10.798 million for the three months ended September 30, 2025, contributing to a total other comprehensive loss of $11.325 million.

Where is Hain Celestial Group Inc. headquartered?

The Hain Celestial Group, Inc. is headquartered at 221 River Street, Hoboken, NJ 07030.

Risk Factors

Industry Context

Hain Celestial operates in the highly competitive health and wellness food and beverage sector, characterized by evolving consumer preferences towards natural, organic, and plant-based products. The industry faces pressures from private label brands, intense promotional activity, and the need for continuous innovation to maintain market share. Companies are increasingly focusing on portfolio optimization and supply chain efficiency to navigate these dynamics.

Regulatory Implications

As a global food and beverage company, Hain Celestial is subject to various regulations concerning food safety, labeling, and marketing claims across different jurisdictions. Changes in these regulations, such as stricter ingredient disclosure or environmental standards, could necessitate costly adjustments to product formulations, packaging, and operational processes.

What Investors Should Do

  1. Monitor the progress and outcome of the strategic review and exploration of alternatives for the personal care business.
  2. Analyze the drivers behind the increased productivity and transformation costs and assess their impact on future profitability.
  3. Evaluate the company's ability to improve sales trends and gross margins in its core food and beverage segments.
  4. Assess the company's liquidity and debt management strategy given the increased debt and decreased cash position.

Key Dates

Glossary

Productivity and transformation costs
Expenses incurred as part of initiatives aimed at improving operational efficiency, streamlining processes, and restructuring the business. (These costs significantly increased in the current quarter, contributing to the wider operating loss and indicating investment in future efficiency gains.)
Assets held for sale
Assets that management has committed to selling and are expected to be sold within one year. They are reported at the lower of their carrying amount or fair value less costs to sell. (The presence of these assets suggests ongoing portfolio management and potential future divestitures.)
Goodwill
An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. (A significant portion of the company's assets are goodwill, which is subject to impairment testing and can be a source of future write-downs.)
Operating lease right-of-use assets, net
Assets recognized under accounting standards for leases, representing the right to use an underlying asset for the lease term. (These represent long-term commitments for leased assets, impacting the balance sheet and future cash flows.)
Accumulated other comprehensive loss
A component of equity that includes unrealized gains and losses on certain investments, foreign currency translation adjustments, and pension adjustments that have not yet been realized in net income. (A substantial accumulated other comprehensive loss indicates significant unrealized negative impacts on equity from various factors.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Hain Celestial Group Inc. has experienced a notable downturn. Net sales have decreased by 6.77% to $367.883 million, and gross profit has fallen from $81.610 million to $68.078 million. The company has shifted from an operating income of $3.053 million to an operating loss of $6.865 million, largely due to a significant increase in productivity and transformation costs. Consequently, the net loss has widened to $20.625 million from $19.663 million, and basic net loss per share has also increased.

Filing Stats: 4,334 words · 17 min read · ~14 pages · Grade level 17.4 · Accepted 2025-11-07 16:03:06

Filing Documents

- Financial Information

Part I - Financial Information Page Item 1.

Financial Statements

Financial Statements 3 Consolidated Balance Sheets - September 30, 2025 and June 30, 2025 3 Consolidated Statements of Operations - Three months ended September 30, 2025 and 2024 4 Consolidated Statements of Comprehensive Income (Loss) - Three months ended September 30, 2025 and 2024 5 Consolidated Statement of Stockholders' Equity - Three months ended September 30, 2025 and 2024 6 Consolidated Statements of Cash Flows - Three months ended September 30, 2025 and 2024 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 32 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 44

- Other Information

Part II - Other Information Items 3 and 4 are not applicable Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46 Item 5. Other Information 46 Item 6. Exhibits 47

Signatures

Signatures 49 1 Table of Contents

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (the "Form 10-Q") 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 conflic

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS THE HAIN CELESTIAL GROUP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 30, 2025 AND JUNE 30, 2025 (In thousands, except par values) September 30, June 30, 2025 2025 ASSETS Current assets: Cash and cash equivalents $ 47,886 $ 54,355 Accounts receivable, less allowance for doubtful accounts of $ 1,298 and $ 1,337 , respectively 170,731 154,440 Inventories 229,498 248,731 Prepaid expenses and other current assets 46,131 43,169 Assets held for sale 28,773 29,603 Total current assets 523,019 530,298 Property, plant and equipment, net 255,992 264,730 Goodwill 498,159 500,961 Trademarks and other intangible assets, net 207,321 210,905 Operating lease right-of-use assets, net 69,993 71,171 Other assets 28,415 25,213 Total assets $ 1,582,899 $ 1,603,278 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 175,667 $ 188,307 Accrued expenses and other current liabilities 81,321 68,426 Current portion of long-term debt 7,647 7,653 Liabilities related to assets held for sale 12,202 12,987 Total current liabilities 276,837 277,373 Long-term debt, less current portion 708,563 697,168 Deferred income taxes 41,404 40,332 Operating lease liabilities, noncurrent portion 63,798 65,284 Other noncurrent liabilities 47,308 48,116 Total liabilities 1,137,910 1,128,273 Commitments and contingencies (Note 17) Stockholders' equity: Preferred stock - $ .01 par value, authorized 5,000 shares; issued and outstanding: none — — Common stock - $ .01 par value, authorized 150,000 shares; issued: 112,584 and 112,491 shares, respectively; outstanding: 90,344 and 90,284 shares, respectively 1,126 1,125 Additional paid-in capital 1,240,405 1,238,402 Retained earnings 26,053 46,678 Accumulated other comprehensive loss ( 92,378

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (Amounts in thousands, except par values and per share data) 1. BUSINESS 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 operates under two reportable segments: North America and International. 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 kids 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. Strategic Review 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 str

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