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Hain Celestial Reports Fiscal Second Quarter 2026 Financial Results

globenewswire.com
HAIN The company reported mixed results with strategic progress and divestiture benefits, but also declining sales and margins in key segments like North America snacks and baby formula. While the CEO expresses confidence, the financial highlights show significant decreases in gross profit and adjusted EBITDA.

HOBOKEN, N.J., Feb. 09, 2026 (GLOBE NEWSWIRE) -- The Hain Celestial Group, Inc. (Nasdaq: HAIN), a leading global health and wellness company whose purpose is to inspire healthier living through better-for-you brands, today reported financial results for its fiscal second quarter ended December 31, 2025.

“We demonstrated meaningful strategic and operational progress in the second quarter and are advancing our turnaround strategy with urgency. We took bold steps to sharpen our portfolio and strengthen our balance sheet through the divestiture of our North American snack business, giving us greater financial flexibility alongside an improved margin and cash flow profile. Our core categories are stable, our operational execution is improving, and we demonstrated strong cash delivery in the quarter. The actions underway across simplification, pricing, innovation, and productivity provide a clear path to sequential improvement in the back half of the year. We remain confident in our path forward,” stated Alison Lewis, President and CEO.

FINANCIAL HIGHLIGHTS *

Summary of Fiscal Second Quarter Results Compared to the Prior Year Period

Cash Flow and Balance Sheet Highlights

______________________________

*This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. Reconciliations of non-GAAP financial measures to GAAP financial measures and other non-GAAP financial calculations are provided in the tables included in this press release.

SEGMENT HIGHLIGHTS

The company operates under two reportable segments: North America and International.

North America

Fiscal second quarter organic net sales decreased by 10% year-over-year, primarily driven by snacks and baby formula, partially offset by growth in beverages.

Segment gross profit and adjusted gross profit were each $41 million in the fiscal second quarter, representing decreases of 28% and 29%, respectively, from the prior year period. Gross margin was 20.6%, a 420-basis point decrease from the prior year period, and adjusted gross margin was 20.8%, a 440-basis point decrease from the prior year period. The decreases in margin were primarily driven by lower volume/mix, cost inflation, and unfavorable fixed cost absorption, partially offset by productivity savings and pricing.

Adjusted EBITDA in the fiscal second quarter was $11 million, compared to $25 million in the prior year period, a decrease of 57%. The decrease was primarily driven by lower gross margins, as discussed above, partially offset by a reduction in SG&A. Adjusted EBITDA margin was 5.5% of net sales compared to 11.0% of net sales in the prior year period.

International

Fiscal second quarter organic net sales decreased by 3% year-over-year, primarily driven by lower sales in baby & kids. This demonstrates sequential improvement from the 4% decrease year-over-year in organic net sales in the fiscal first quarter of 2026.

Segment gross profit and adjusted gross profit in the fiscal second quarter were both $34 million, each representing an 8% decrease from the prior year period. Gross margin and adjusted gross margin were both 18.1%, each representing a 200-basis point decrease from the prior year period. The decreases in margin were primarily driven by cost inflation, unfavorable fixed cost absorption, and lower volume/mix, partially offset by productivity savings and pricing.

Adjusted EBITDA in the fiscal second quarter was $19 million, compared to $23 million in the prior year period, a decrease of 16%. The decrease was primarily driven by lower gross margins, as discussed above. Adjusted EBITDA margin was 10.2% compared to 12.4% in the prior year period.

CATEGORY HIGHLIGHTS

Snacks

The fiscal second quarter organic net sales decline of 20% year-over-year was driven by distribution losses and velocity challenges in North America.

Baby & Kids

The fiscal second quarter organic net sales decline of 14% year-over-year was driven primarily by industry-wide volume softness in purees in the UK and by formula in North America, which was lapping supply recovery from last year.

Beverages

The fiscal second quarter organic net sales increase of 3% year-over-year was driven by growth in tea in North America. This demonstrates acceleration from the 2% year-over-year growth in organic net sales in the fiscal first quarter of 2026.

Meal Prep

The fiscal second quarter organic net sales decline of 1% year-over-year was driven primarily by spreads and drizzles in the UK, partially offset by strength in yogurt in North America.

Conference Call and Webcast Information

Hain Celestial will host a conference call and webcast today at 8:00 AM ET to discuss its results and business outlook. The live webcast and accompanying presentation are available under the Investors section of the company’s corporate website at www.hain.com. Investors and analysts can access the live call by dialing 800-715-9871 or 646-307-1963. The conference ID is 5099081. Participation by the press and public in the Q&A session will be in listen-only mode. A replay of the call will be available shortly after the conclusion of the live call through Monday, February 16th, 2026, and can be accessed by dialing 800-770-2030 or 609-800-9909 and referencing the conference access ID: 5099081.

About The Hain Celestial Group, Inc.

Hain Celestial is a leading 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. Our 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. For more information, visit www.hain.com and LinkedIn.

Forward-Looking Statements

This press release 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, our results 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 strategy, our future results of operations, our capital and cost structure, and the macroeconomic environment.

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; the ability to satisfy the conditions to the closing of the contemplated disposition of our North American snacks business, which may include conditions outside of our control; our ability to successfully separate the North American snacks business and realize the benefits of the contemplated disposition; compliance with our credit agreement and our ability to refinance, retire and/or extend the maturity of the Company’s existing debt; 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 conflicts or events; our reliance on independent certification for a number of our products; our ability to attract and retain highly skilled people; risks related to tax matters; foreign currency exchange risk; general economic conditions; impairments in the carrying value of goodwill or other intangible assets; the reputation of our company and our brands; our ability to use and protect trademarks; cybersecurity incidents; disruptions to information technology systems; pending and future litigation, including litigation relating to Earth’s Best® baby food products; potential liability if our products cause illness or physical harm; the highly regulated environment in which we operate; our ability to manage our financial reporting and internal control systems and processes; compliance with data privacy laws; the adequacy of our insurance coverage; climate impacts; liabilities, claims or regulatory change with respect to environmental matters; and other risks and matters described in our most recent Annual Report on Form 10-K and our other filings from time to time with the U.S. Securities and Exchange Commission.

We undertake no obligation to update forward-looking statements to reflect actual results or changes in assumptions or circumstances, except as required by applicable law.

Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures, including, among others, organic net sales; adjusted gross profit and its related margin; adjusted operating income and its related margin; adjusted net (loss) income and its related margin; diluted net (loss) income per common share, as adjusted; adjusted EBITDA and its related margin; free cash flow; and net debt. The reconciliations of historic non-GAAP financial measures to the comparable GAAP financial measures are provided in the tables below. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the company’s consolidated financial statements presented in accordance with GAAP.

We define our non-GAAP financial measures as follows:

We believe that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the company’s operations and are useful for period-over-period comparisons of operations. We provide:

We discuss the Company’s net secured leverage ratio as calculated under our credit agreement as a measure of our financial condition, liquidity and compliance with our credit agreement. For a description of the material terms of our credit agreement and risks of non-compliance with our credit agreement, see “Liquidity and Capital Resources” under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in our most recent Annual Report on Form 10-K and our subsequent quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission.

Investor Relations Contact:

Alexis Tessier

Investor.Relations@hain.com

Media Contact:

Justin Godley

Justin.Godley@hain.com