Hain Celestial Reports $20.6 Million Net Loss and 6.8% Revenue Decline for Quarter Ending September 30, 2025

The Hain Celestial Group, Inc. reported a net loss of $20.6 million, or $0.23 per diluted share, for the quarter ending September 30, 2025, compared to a net loss of $19.7 million, or $0.22 per diluted share, in the same period last year. The company's revenue for the quarter was $367.9 million, a decrease of 6.8% from $394.6 million in the prior year. This decline was attributed to a combination of factors, including a $12.3 million negative impact from held-for-sale businesses and exited product categories, as well as a 7% decrease in volume/mix, partially offset by a 1% increase in pricing.

In terms of operational performance, Hain Celestial's gross profit fell to $68.1 million, down 16.6% from $81.6 million a year earlier, resulting in a gross profit margin of 18.5%, down from 20.7%. The decrease in gross profit was primarily driven by challenges in the International segment, where lower volume and cost inflation were significant factors. Selling, general, and administrative expenses also decreased by 8.2% to $65.5 million, reflecting the company's efforts to implement cost discipline and overhead reductions.

Strategically, Hain Celestial is undergoing a multi-year transformation program aimed at optimizing its portfolio and improving profitability. The company incurred $8.2 million in productivity and transformation costs during the quarter, a 63.8% increase from the previous year, as it continues to streamline operations and focus on core food and beverage brands. The company is also exploring strategic alternatives for its personal care business, which has been classified as held for sale, and is conducting a comprehensive review of its overall portfolio.

Geographically, net sales in North America decreased by 11.8% to $203.9 million, while the International segment saw a slight increase of 0.3% to $164.0 million, aided by favorable foreign exchange impacts. The company reported an Adjusted EBITDA of $19.7 million, down from $22.4 million in the prior year, reflecting the challenges faced in both segments. The company’s total assets decreased to $1.58 billion from $1.60 billion at the end of the previous fiscal year, with cash and cash equivalents at $47.9 million.

Looking ahead, Hain Celestial remains focused on enhancing its digital capabilities and driving productivity improvements. The company anticipates that the ongoing restructuring efforts will yield annualized pretax savings of $130 million to $150 million. However, it also acknowledges the potential risks posed by inflation volatility, changing consumer behavior, and geopolitical tensions, which could impact future performance. The company is committed to navigating these challenges while executing its strategic initiatives to foster long-term growth.