The Hain Celestial Group (HAIN) Q1 2027 earnings summary

Executive summary

• Q1 FY27 net sales fell 29.3% to $260.3M, largely reflecting portfolio divestitures; organic sales declined 6.7%.

• Adjusted gross margin increased 320 bps to 22.8%; adjusted EBITDA was $17.6M, down 10.9% YoY.

• The International sale remains uncertain after its credit-agreement amendment condition was missed; $586.1M of debt matures in December 2026, raising substantial going-concern doubt.

Financial highlights

• Organic net sales were $247.0M, down 6.7%, as volume/mix fell 6.9%, partly offset by 0.6% pricing.

• GAAP net loss narrowed to $11.3M from $20.6M; adjusted net loss was $6.6M versus $7.2M, and adjusted diluted loss per share was $0.07 versus $0.08.

• Reported gross margin rose to 21.8% from 18.5%; adjusted gross margin increased to 22.8% from 19.5%.

• SG&A declined 5.6% to $61.9M; adjusted EBITDA margin improved to 6.8% from 5.4%.

Outlook and guidance

• Priorities include addressing the December debt maturity, advancing the International sale, aligning North America costs with its scale, and executing behind core brands.

• $8M of the $16M targeted annual SG&A savings has been achieved; most actions are expected by FY2027 year-end, with the restructuring program expected to conclude by FY2028.

• If completed, the International sale is expected to yield £225.1M–£228.8M in net cash proceeds, directed toward debt reduction.