The Hain Celestial Group (HAIN) Q2 2025 earnings summary

Executive summary

• Q2 FY25 net sales were $411–$411.5 million, down 9–9.4% year-over-year, with organic net sales down 6.8–7% due to declines in North America, snacks, and personal care categories.

• Net loss was $104 million ($1.15/share), driven by $91–$107 million in non-cash goodwill and intangible asset impairment charges, mainly in U.S. and personal care.

• Adjusted EBITDA was $38 million (9.2% margin), down 19–20% year-over-year, reflecting lower sales and margin pressure.

• Free cash flow reached $24.5–$25 million in Q2, with net debt reduced by $12–$15.4 million to $672 million.

• Strategic review of the personal care business is underway, with divestiture targeted within the fiscal year.

Financial highlights

• Adjusted gross margin was 22.9%, down 60 basis points year-over-year; gross profit margin was 22.7%, up 20 basis points.

• SG&A decreased 5% year-over-year to $70–$70.2 million, representing 17% of net sales.

• Adjusted net income was $8 million ($0.08 per diluted share), down from $11 million ($0.12) last year.

• Interest costs fell 20.7–21% year-over-year to $12.8–$13 million due to lower borrowings and rates.

• Operating loss was $91.9 million, compared to $0.8 million in the prior year, due to impairment charges.

Outlook and guidance

• Fiscal 2025 outlook revised: organic net sales expected down 2–4%, adjusted EBITDA flat year-over-year, gross margin to expand by at least 90 basis points, and free cash flow of at least $60 million.

• Sequential improvement in gross margin and adjusted EBITDA expected, with a material step up in Q4.

• Long-term targets reaffirmed: 3%+ organic net sales growth exit rate, 26%+ gross margin, 12%+ adjusted EBITDA margin, and leverage between 2–3x by 2027.