The Hain Celestial Group 2025 Q3 Earnings Misses Targets as Net Income Drops 179.3%

The Hain Celestial Group reported its fiscal 2025 Q3 earnings on May 07th, 2025. The company fell short of expectations, posting a 5% decline in organic net sales and adjusted EBITDA of $34 million, 20% below the previous year’s performance. The guidance reflects a challenging macroeconomic environment, with expectations for organic net sales growth to decline 5% to 6% for fiscal 2025. Despite some progress in international sales growth and debt reduction, the North American business underperformed, impacting overall results.

Revenue
The Hain Celestial Group experienced a 11% decline in total revenue, reaching $390.35 million in fiscal 2025 Q3 from $438.36 million in the same quarter last year. The snacks segment contributed $88.51 million, while the baby & kids division added $59.90 million. Beverage sales accounted for $62.87 million, and meal preparation reported $162.27 million. Personal care rounded off the revenue with $16.81 million.

Earnings/Net Income
The Hain Celestial Group reported a significant increase in losses, with EPS widening to $1.49 per share in 2025 Q3 from $0.54 per share in 2024 Q3, marking a 175.9% increase. Net loss expanded to $134.59 million from $48.19 million in the previous year, a 179.3% rise. The company’s EPS performance was poor, reflecting widened losses.

Price Action
The stock price of The Hain Celestial Group plummeted by 27.50% during the latest trading day, 52.30% during the most recent full trading week, and 61.44% month-to-date.

Post-Earnings Price Action Review
Investors who adopted the strategy of purchasing HAIN shares following a revenue increase and retaining them for 30 days saw a modest return of 5.26% over the past five years. This return significantly lagged behind the benchmark's impressive 84.08% gain. Furthermore, the strategy's Sharpe ratio was notably low at 0.18, underscoring its poor risk-adjusted returns. The maximum drawdown of -7.07% further emphasized the strategy’s vulnerability during market downturns. Overall, this approach has proven to be ineffective compared to broader market performance.

CEO Commentary
Alison Lewis, Interim President and CEO, acknowledged the disappointing third-quarter results, emphasizing that "we are not where we need to be, and we cannot afford to stand still." She highlighted the need to reassess the strategic plan, focusing on "clarity, focus and action" to leverage strengths and address challenges. Lewis expressed confidence in the company's potential, stating, "Hain has many of the right ingredients to succeed," while stressing the importance of innovation and operational productivity. She aims to enhance performance through targeted efforts in brand execution and market positioning, reflecting a cautious yet optimistic outlook for future growth.

Guidance
The Hain Celestial Group expects organic net sales growth to decline approximately 5% to 6% for fiscal 2025, with adjusted EBITDA targeted at around $125 million. The company anticipates a gross margin of approximately 21.5% and free cash flow of about $40 million. Lewis indicated that the organization is committed to adjusting its strategic focus to navigate current challenges and maximize shareholder value moving forward.

Additional News
Hain Celestial Group announced significant leadership changes with the departure of Wendy Davidson as President and CEO. Alison E. Lewis, a seasoned executive with extensive experience in consumer goods, has been appointed as Interim President and CEO. The Board is conducting a comprehensive strategic review of Hain's portfolio, retaining Goldman Sachs as its financial advisor. This review aims to enhance shareholder value by considering various strategic options. Meanwhile, the company is focused on simplifying operations, reducing overhead costs, and driving operational productivity to achieve sustainable growth and value creation. These changes reflect Hain's commitment to addressing challenges and positioning the company for future success.