The Hain Celestial Group (HAIN) investor relations material

Executive summary

• Fiscal 2026 marked a pivotal year with decisive actions to simplify the portfolio, reduce debt, and improve cash generation, highlighted by the announced sale of the International business for $323 million in cash and a sharpened focus on North America.

• North America returned to organic sales growth in Q4, with significant gross margin and adjusted EBITDA expansion, reflecting benefits from portfolio simplification and cost discipline.

• Substantial improvement in free cash flow and working capital management was achieved, with $58 million in free cash flow for the year.

• Reduced net debt by $151 million in fiscal 2026, totaling $500–$505 million at year-end.

• Fiscal 2027 will focus on aligning cost structure, managing capital, and investing in core North American brands amid ongoing strategic review.

Financial highlights

• Q4 net sales were $263 million, down 28% year-over-year, mainly due to divestitures; organic net sales decreased 2%.

• Q4 adjusted gross margin was 22.7%, up 230 basis points year-over-year; adjusted EBITDA margin was 7.1%, up 160 basis points.

• Adjusted EBITDA for Q4 was $19 million, slightly down from $20 million last year, but North America adjusted EBITDA rose 55% year-over-year to $16 million.

• Full-year free cash flow was $58 million, compared to a $3 million outflow last year.

• Net debt reduced to $500–$505 million, a $151 million decrease year-over-year.

Outlook and guidance

• Proceeds from the international sale expected to reduce total debt by approximately 55%, with pro forma debt at $250 million post-transaction.

• Fiscal 2027 priorities include aligning cost structure, delivering $16 million in annual run-rate cost improvements, and increasing marketing investment by 100 basis points of net sales.

• One-time implementation costs of ~$20 million, with 70% incurred in FY27.

• No traditional guidance provided due to ongoing strategic review and pending transactions.