HAIN

A month has gone by since the last earnings report for Hain Celestial (HAIN). Shares have lost about 9.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Hain Celestial due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for The Hain Celestial Group, Inc. before we dive into how investors and analysts have reacted as of late. Hain Celestial reported fourth-quarter fiscal 2026 results, with an adjusted loss wider than the Zacks Consensus Estimate and net sales above the consensus mark. The quarter reflected a steep reported sales decline following the divestiture of the North American snacks business. However, organic sales trends improved sequentially, North America returned to growth and companywide margins expanded. HAIN reported an adjusted loss of 5 cents per share, wider than the consensus estimate of a loss of 3 cents and the adjusted loss of 2 cents recorded in the prior-year quarter. The adjusted net loss was $4.4 million compared with $1.7 million a year ago. On a GAAP basis, the company reported a loss of 68 cents per share compared with a loss of $3.06 in the prior-year period. The GAAP net loss narrowed to $61.9 million from $272.6 million, reflecting a smaller goodwill impairment charge than a year ago. Net sales were $263.1 million, exceeding the consensus estimate of $257 million. Sales declined 27.6% from $363.3 million in the year-ago quarter, primarily due to the North American snacks divestiture. Organic net sales decreased 2% year over year to $246.7 million. The decline reflected a 2-point reduction in volume and mix, while pricing was flat. A 26.2-point drag from divestitures, held-for-sale businesses, discontinued brands and exited categories accounted for most of the reported sales decline, while foreign currency contributed 0.4 points. Management said sales trends improved sequentially across the business. North America grew organically, while the International segment's decline moderated from the third quarter. E-commerce sales with HAIN's largest pure-play and omnichannel customers in North America also grew at a double-digit rate during the quarter. Adjusted gross profit fell 19.6% year over year to $59.8 million. Still, the adjusted gross margin expanded 230 basis points to 22.7%. Favorable volume and mix and productivity savings supported the margin improvement, while cost inflation remained a headwind. The quarter also included a $1.9 million benefit from tariff refunds.  Selling, general and administrative (SG&A) expenses declined 7.2% to $62.5 million, mainly due to lower employee-related costs. However, SG&A represented 23.8% of net sales compared with 18.6% in the prior-year quarter, reflecting strategic-review costs and the smaller sales base. Adjusted EBITDA decreased 5.8% to $18.7 million from $19.9 million. The adjusted EBITDA margin nonetheless increased 160 basis points to 7.1%, as lower SG&A and productivity savings partly offset inflation and lower volume and mix. Interest and other financing expense declined to $11.9 million from $12.8 million. North America net sales were $111.8 million, down 45.7% year over year because the prior-year comparison included the divested snacks business. Organic net sales rose approximately 2%, driven by strength in Meal Prep, particularly yogurt, partly offset by lower Baby and Kids sales. The segment's adjusted gross profit declined 12% to $34.8 million, but adjusted gross margin jumped 1,190 basis points to 31.1%. The increase reflected a more favorable portfolio mix following the snacks sale and productivity savings, partly offset by inflation. Adjusted EBITDA rose 55% to $16.1 million and the margin expanded to 14.4% from 5% a year earlier. Management highlighted strong double-digit growth at Greek Gods yogurt and Earth's Best finger foods. Celestial Seasonings also delivered growth, aided by its Wellness tea portfolio. HAIN plans to concentrate future investment on Greek Gods, Celestial Seasonings and the Earth's Best finger foods and cereal platforms. International net sales decreased 4% to $151.3 million, while organic net sales also fell 4%. Weakness in Meal Prep and Baby and Kids more than offset growth in Beverages. The organic decline moderated from 8% in the fiscal third quarter, reflecting sequential improvement across Baby and Kids, Beverages and Meal Prep. Adjusted gross profit fell 28% to $25 million, while adjusted gross margin contracted 555 basis points to 16.6% as cost inflation outweighed productivity savings. Adjusted EBITDA declined 41% to $12.2 million and the adjusted EBITDA margin fell to 8.1% from 13.3% in the prior-year period. In Baby and Kids, net sales were $52.3 million and organic net sales declined 11% year over year. Lower formula and puree sales in North America and weaker U.K. purees more than offset growth in North American finger foods. HAIN said its simplified Earth's Best puree portfolio produced a 30% increase in base sales velocity. Beverages generated net sales of $55.4 million, with organic sales down 2%. Growth of 3% in both North American tea and International private-label non-dairy beverages was more than offset by lower sales elsewhere, including the effect of reduced promotional activity in North America. Wellness teas continued to post high-single-digit dollar-sales growth and gain market share. Meal Prep net sales totaled $135 million, while organic sales rose 3% on yogurt strength in North America. Greek Gods grew dollar sales at a high-teens rate and gained share. Snacks net sales were $8.5 million and organic sales fell 7% as HAIN rationalized SKUs ahead of a brand relaunch. Following the North American snacks sale, the category consists only of jellies in the International segment. HAIN ended the quarter with cash and cash equivalents of $58.1 million. Total debt was $557.8 million, down from $704.8 million at the beginning of the fiscal year, while net debt declined to $499.8 million from $650.5 million. The company reported $186 million of available liquidity under its revolving credit facility and remained in compliance with its covenants. Its net secured leverage ratio was 4.5 times, below the covenant maximum of 5.5 times. Net cash provided by operating activities was $11.4 million in the fiscal fourth quarter compared with a $2.6 million outflow in the prior-year period. Free cash flow improved to $6.8 million from an outflow of $8.9 million. For fiscal 2026, operating cash flow rose to $78.3 million from $22.1 million, while free cash flow reached $57.7 million compared with an outflow of $3.2 million. Inventory discipline supported the cash improvement. Days inventory outstanding declined to 80 from 88 in the prior-year quarter, though it increased from 73 in the fiscal third quarter. Capital expenditures fell to $4.6 million from $6.2 million and management expects fiscal 2027 capital spending to decline year over year because the future North American business is less capital intensive. HAIN agreed to sell its International business to affiliates of AURELIUS for an estimated aggregate gross price of about $323.2 million. Net proceeds of $305 million to $310 million would be used to repay the entire outstanding term loan and more than 35% of the revolver balance. On a June 30, 2026 pro forma basis, total debt would decline to approximately $250 million. The sale is expected to close in the second quarter of fiscal 2027, subject to closing conditions. Closing requires regulatory approvals and an amendment to HAIN's credit agreement by Oct. 12, 2026. The amendment must extend the current Dec. 22, 2026 maturity by at least nine months. If the amendment is not executed by the October deadline, AURELIUS may terminate the agreement.  HAIN plans to deliver more than $16 million of annual run-rate cost improvements, with most of the savings expected by the end of fiscal 2027. Implementation is expected to cost approximately $20 million, with 70% incurred in fiscal 2027 and the remainder in fiscal 2028. Management plans to increase marketing investment by approximately 100 basis points of net sales.  Assuming the International sale closes and the debt maturity is extended, the cost actions are expected to support a pro forma gross margin of about 30% or higher and a low-double-digit adjusted EBITDA margin for the go-forward North American business. Management did not provide traditional fiscal 2027 guidance while the strategic review, lender discussions and pending sale remain active. In the past month, investors have witnessed a upward trend in fresh estimates. Currently, Hain Celestial has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Hain Celestial has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Hain Celestial is part of the Zacks Food - Miscellaneous industry. Over the past month, United Natural Foods (UNFI), a stock from the same industry, has gained 2.2%. The company reported its results for the quarter ended July 2026 more than a month ago. United Natural reported revenues of $7.64 billion in the last reported quarter, representing a year-over-year change of -0.7%. EPS of $0.69 for the same period compares with -$0.11 a year ago. For the current quarter, United Natural is expected to post earnings of $0.67 per share, indicating a change of +19.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for United Natural. Also, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Net cash provided by operations increased by approximately 250% year-over-year in fiscal 2026 HOBOKEN, N.J., Sept. 14, 2026 (GLOBE NEWSWIRE) -- The Hain Celestial Group, Inc. (Nasdaq: HAIN) (“Hain” or the “Company”), 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 fourth quarter and fiscal year ended June 30, 2026. In a separate press release issued today, the Company announced it has reached a definitive agreement to sell its International business. “Fiscal 2026 was a pivotal year for Hain. We simplified our portfolio, reduced debt, significantly improved free cash flow and exited the year with improving momentum across the business. Our fourth quarter results reflected encouraging sequential improvement, including organic net sales growth in North America, gross margin and adjusted EBITDA margin expansion, and continued progress on productivity and cost discipline initiatives,” stated Alison Lewis, President and CEO. Lewis continued, “Assuming we successfully complete the transaction announced today to sell our International business and that we reach an agreement with our lenders to extend of our December debt maturity, we would expect to become a more focused North American company with leading brands in attractive categories and a streamlined operating model.” FINANCIAL HIGHLIGHTS* Summary of Fiscal Fourth Quarter Results Compared to the Prior Year Period Net sales were $263 million, down 28% year-over-year, driven primarily by the divestiture of our North American snacks business. Gross profit margin was 22.5%, a 200-basis point increase from the prior year period. Net loss was $62 million, compared to a net loss of $273 million in the prior year period. Adjusted EBITDA was $19 million, compared to $20 million in the prior year period. Loss per diluted share was $0.68, compared to a loss per diluted share of $3.06 in the prior year period. Summary of Fiscal Year 2026 Results Compared to the Prior Year Net sales were $1,353 million, down 13% year-over-year. Gross profit margin was 20.1%, a 130-basis point decrease from the prior year. Net loss was $305 million, compared to a net loss of $531 million in the prior year. Adjusted EBITDA was $89 million, compared to $114 million in the prior year. Loss per diluted share was $3.36, compared to a loss per diluted share of $5.89 in the prior year. Cash Flow and Balance Sheet Highlights Net cash provided by operating activities was $11 million in the fiscal fourth quarter, compared to net cash used in operating activities of $3 million in the prior year period; net cash provided by operating activities was $78 million in fiscal 2026 compared to $22 million in the prior year. Free cash flow was $7 million in the fiscal fourth quarter, compared to an outflow of $9 million in the prior year period; free cash flow was $58 million in fiscal 2026 compared to an outflow of $3 million in the prior year. Total debt was $558 million at the end of the fiscal fourth quarter, down from $705 million at the beginning of the fiscal year. Net debt was $500 million at the end of the fiscal fourth quarter, compared to $650 million at the beginning of the fiscal year. The company ended the fiscal fourth quarter with a net secured leverage ratio of 4.5x as calculated under our credit agreement. ____________________ *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 AmericaFiscal fourth quarter organic net sales increased by 2% year-over-year, primarily driven by growth in meal prep on strength in yogurt, partially offset by lower sales in baby & kids. Segment gross profit was $34 million and adjusted gross profit was $35 million in the fiscal fourth quarter, representing decreases of 14% and 12%, respectively, from the prior year period. Gross margin was 30.6% and adjusted gross margin was 31.1%, representing increases of 1,140 and 1,190 basis points, respectively, from the prior year period. The increases in margin were primarily driven by an increase in volume / mix and productivity savings, partially offset by cost inflation. Adjusted EBITDA in the fiscal fourth quarter was $16 million, an increase of 55% compared to the prior year period. The increase was driven primarily by SG&A reduction and productivity savings, partially offset by lower volume/mix and cost inflation. Adjusted EBITDA margin was 14.4% of net sales, a 940-basis point increase compared to the prior year period. Fiscal 2026 organic net sales were effectively flat year-over-year, as growth in meal prep and beverages was offset by lower sales in baby & kids. Segment gross profit was $157 million and adjusted gross profit was $162 million in fiscal 2026, representing decreases of 19% and 17%, respectively, from the prior year. Gross margin was 22.9% and adjusted gross margin was 23.7%, representing increases of 120 and 180 basis points, respectively, from the prior year. The increases in margin were primarily driven by productivity savings and pricing, partially offset by cost inflation. Adjusted EBITDA in fiscal 2026 was $61 million, a decrease of 7% compared to the prior year. The decrease was driven primarily by lower volume / mix and cost inflation, partially offset by productivity savings, reduction in SG&A, and pricing. Adjusted EBITDA margin was 8.9% of net sales, a 160-basis point increase compared to the prior year. InternationalFiscal fourth quarter organic net sales decreased by 4% year-over-year, primarily driven by lower sales in meal prep and baby & kids, partially offset by growth in beverages. Segment gross profit and adjusted gross profit in the fiscal fourth quarter were both $25 million, each representing a 28% decrease from the prior year period. Gross margin and adjusted gross margin were both 16.6%, each representing a 555-basis point decrease from the prior year period. The decreases in margin were primarily driven by cost inflation, partially offset by productivity savings. Adjusted EBITDA in the fiscal fourth quarter was $12 million, compared to $21 million in the prior year period, a decrease of 41%. The decrease was primarily driven by cost inflation and lower volume/mix, partially offset by productivity savings. Adjusted EBITDA margin was 8.1% compared to 13.3% in the prior year period. Fiscal 2026 organic net sales decreased by 4% year-over-year, primarily driven by lower sales in baby & kids and meal prep. Segment gross profit and adjusted gross profit in fiscal 2026 were both $115 million, each representing an 18% decrease from the prior year. Gross margin and adjusted gross margin were both 17.2%, each representing a 380-basis point decrease from the prior year. The decreases in margin were primarily driven by cost inflation, partially offset by productivity savings. Adjusted EBITDA in fiscal 2026 was $63 million, compared to $86 million in the prior year, a decrease of 26%. The decrease was primarily driven by cost inflation and lower volume / mix, partially offset by productivity savings and pricing. Adjusted EBITDA margin was 9.5% compared to 12.8% in the prior year. CATEGORY HIGHLIGHTS Baby & KidsThe fiscal fourth quarter organic net sales decline of 11% year-over-year was driven primarily by formula and purees in North America and purees in the UK, partially offset by growth in finger foods in North America. The fiscal 2026 organic net sales decline of 12% year-over-year was driven primarily by purees in both regions and by formula in North America, partially offset by growth in finger foods and cereal in North America. BeveragesThe fiscal fourth quarter organic net sales decline of 2% year-over-year was due to promotional activity in North America. Fiscal fourth quarter organic net sales grew 3% year-over-year in both tea in North America and in private label non-dairy beverage in Europe. Fiscal 2026 organic net sales increased by 1% year-over-year driven by tea in North America and private label non-dairy beverage in Europe, partially offset by branded non-dairy beverage in Europe. Meal PrepFiscal fourth quarter organic net sales increased by 3% year-over-year driven primarily by growth in yogurt in North America. Fiscal 2026 organic net sales were flat year-over-year as growth in yogurt in North America was offset by private label contract losses in spreads & drizzles and softness in plant-based meat internationally. SnacksFollowing the disposition of the North American snacks business, the snacks category is comprised of jellies in the International segment. Organic net sales declined 7% year-over-year in both the fiscal fourth quarter and fiscal 2026. Conference Call and Webcast Information Hain Celestial will host a conference call and webcast today at 8:00 AM ET to discuss its results. 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 833-461-5787 or 585-542-9983. The conference ID is 942039942. Participation by the press and public in the Q&A session will be in listen-only mode. A webcast replay of the call will be available shortly after the conclusion of the live call and archived for one year. About The Hain Celestial Group, Inc. Hain Celestial is a leading global 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 beverages, yogurt, baby/kids and meal preparation are marketed and sold around the world. Our leading brands include Celestial Seasonings® teas, The Greek Gods® yogurt, Earth’s Best® Organic and Ella’s Kitchen® baby and kids foods, Joya® and Natumi® plant-based beverages, Hartley’s® jelly, as well as Cully & Sully®, Yorkshire Provender®, New Covent Garden® 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 future performance, results of operations and financial condition; and our strategic initiatives and business strategy, including the pending sale of our International business. Risks and uncertainties that may cause actual results to differ materially from forward-looking statements include: compliance with our credit agreement and our ability to refinance, retire and/or extend the maturity of our existing debt; our ability to execute our business strategy; our ability to complete the pending sale of our International business and manage the challenges and uncertainty facing our remaining business following the sale; challenges and uncertainty resulting from the impact of competition; changes to consumer preferences; 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; compliance with data privacy laws; the adequacy of our insurance coverage; climate impacts; liabilities, claims or regulatory change with respect to environmental matters; the potential cessation of our common stock’s listing on The Nasdaq Stock Market LLC; and other risks and matters described in our most recent Annual Report on Form 10-K, our Annual Report on Form 10-K expected to be filed today 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: Organic net sales: net sales excluding the impact of acquisitions, divestitures, held for sale businesses, discontinued brands, exited product categories and foreign exchange. To adjust organic net sales for the impact of acquisitions, the net sales of an acquired business are excluded from fiscal quarters constituting or falling within the current period and prior period where the applicable fiscal quarter in the prior period did not include the acquired business for the entire quarter. To adjust organic net sales for the impact of divestitures, held for sale businesses, discontinued brands and exited product categories, the net sales of a divested business, held for sale business, discontinued brand or exited product category are excluded from all periods. To adjust organic net sales for the impact of foreign exchange, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. Adjusted gross profit and its related margin: gross profit, before plant closure related costs, net and warehouse and manufacturing consolidation and other costs, net. Adjusted operating income and its related margin: operating loss before goodwill impairment, costs associated with acquisitions, divestitures and other transactions, productivity and transformation costs, certain litigation expenses, net, long-lived asset and intangibles impairment, plant closure related costs, net, proceeds from insurance claim, CEO succession costs, warehouse and manufacturing consolidation and other costs, net. Adjusted net (loss) income and its related margin and diluted net (loss) income per common share, as adjusted: net loss, adjusted to exclude the impact of goodwill impairment, costs associated with acquisitions, divestitures and other transactions, productivity and transformation costs, certain litigation expenses, net, long-lived asset and intangibles impairment, plant closure related costs, net, proceeds from insurance claim, CEO succession costs, warehouse and manufacturing consolidation and other costs, net , unrealized currency losses, loss (gain) on sales of assets, and the related tax effects of such adjustments. Adjusted EBITDA and its related margin: net loss before depreciation and amortization, equity in net loss of equity-method investees, net interest expense, income taxes, stock-based compensation, net, unrealized currency losses, certain litigation expenses, net, proceeds from insurance claim, productivity and transformation costs, plant closure related costs, net, warehouse and manufacturing consolidation and other costs, net, CEO succession costs, costs associated with acquisitions, divestitures and other transactions, loss (gain) on sales of assets, goodwill impairment and long-lived asset and intangibles impairment. Free cash flow: net cash provided by (used in) operating activities less purchases of property, plant and equipment. Net debt: total debt less cash and cash equivalents. 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: Organic net sales to demonstrate the growth rate of net sales excluding the impact of acquisitions, divestitures, held for sale businesses, discontinued brands, and exited product categories and foreign exchange, and believe organic net sales is useful to investors because it enables them to better understand the growth of our business from period to period. Adjusted results as important supplemental measures of our performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of our Company and companies in our industry. Free cash flow as one factor in evaluating the amount of cash available for discretionary investments. Net debt as a useful measure to monitor leverage and evaluate the balance sheet. 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, our subsequent Quarterly Reports on Form 10-Q, our Annual Report on Form 10-K expected to be filed today and our other filings from time to time with the U.S. Securities and Exchange Commission. Investor Relations Contact:Alexis [email protected] Media Contact:Justin [email protected]

Interested in The Hain Celestial Group, Inc.? Here are five stocks we like better. Hain agreed to sell its international business to Aurelius for $323 million in cash, with closing expected in fiscal Q2 subject to lender approval extending its credit agreement. Net proceeds would repay all term loans and more than 35% of its revolver, reducing pro forma debt by roughly 55% to about $250 million. North America returned to organic sales growth, rising 2% in the fourth quarter, while adjusted EBITDA increased 55% to $16 million. International sales declined 4%, with adjusted EBITDA falling 41% amid cost inflation and margin pressure. Full-year free cash flow improved to $58 million from a $3 million outflow, supported by working-capital and productivity initiatives. Hain plans more than $16 million in annual cost savings, but withheld fiscal 2027 guidance because of the pending divestiture, lender discussions and related one-time costs. The Hain Celestial Group (NASDAQ:HAIN) said it has agreed to sell its international business to private equity firm Aurelius for $323 million in cash, a transaction that would leave the company focused on a streamlined North American portfolio. The company expects the sale to close in its fiscal second quarter, subject to closing conditions including an amendment to extend the maturity of its credit agreement. President and Chief Executive Officer Alison Lewis called fiscal 2026 “a pivotal year” marked by portfolio simplification, debt reduction, stronger cash generation and efforts to improve operating execution. The planned sale follows Hain’s fiscal third-quarter divestiture of its North American snacks business. → MarketBeat Week in Review – 09/07 - 09/11 “Once the transaction is closed, the resulting portfolio would be a North American business comprised of leading brands in attractive categories with a more streamlined operating model and a greater focus on core growth opportunities,” Lewis said. Hain said net proceeds from the international sale are expected to range from $305 million to $310 million, based on current foreign-exchange rates. The company intends to use the funds to repay all outstanding term-loan borrowings and more than 35% of its revolver balance. → Rocket Lab Tackles a Supply Chain Bottleneck as the Stock Hunts for a Bottom. Time to Buy? Chief Financial Officer Lee Boyce said the transaction would reduce pro forma total debt as of June 30, 2026, to approximately $250 million, a reduction of roughly 55%. The sale remains contingent on Hain obtaining an amendment from lenders to extend the current maturity of its credit agreement. If an amendment is not obtained within 30 days of signing, Aurelius has the right to terminate the agreement, according to Boyce. The company said it remains in active discussions with lenders and could not assure investors that an amendment will be reached. → Oil Above $100 Is Creating a New Opportunity Beyond the Major Producers Hain ended the quarter with $58 million of cash, $500 million in net debt and $186 million of available revolver liquidity. Net debt declined by $151 million, or about 25%, during fiscal 2026. The company reported net leverage of 4.5 times, compared with a covenant threshold of 5.5 times. For the fiscal fourth quarter, Hain reported a 2% year-over-year organic net sales decline overall, as lower international sales offset a 2% organic sales increase in North America. The company attributed the consolidated decline to a two-point reduction in volume mix and flat pricing. North America’s fourth-quarter growth was led by meal-prep products, including yogurt, while baby and kids sales declined. North American adjusted gross margin rose nearly 1,200 basis points year over year to 31.1%, aided by the absence of the divested snacks business in the segment mix, productivity savings and a $1.9 million benefit from tariff refunds. North American adjusted EBITDA increased 55% to $16 million. Lewis said The Greek Gods yogurt brand recorded strong double-digit growth and market-share gains. Celestial Seasonings tea also grew in the quarter and for the full year, supported in part by wellness tea innovation. Earth’s Best finger foods posted strong double-digit growth, according to the company. In the international segment, organic net sales fell 4% year over year, an improvement from the 8% decline posted in the third quarter. The company cited sequential improvement in meal prep, beverages, and baby and kids, while spreads and drizzles continued to face pressure. International adjusted gross margin declined 555 basis points to 16.6%, primarily because of cost inflation, and adjusted EBITDA fell 41% to $12 million. Hain generated $7 million of free cash flow in the fourth quarter, compared with a $9 million outflow in the prior-year period. Full-year free cash flow was $58 million, compared with a $3 million outflow a year earlier. Boyce attributed the improvement to working-capital management, inventory reduction, productivity actions and cost control. Days inventory outstanding improved to 80 days from 88 days a year earlier, though it increased from 73 days in the prior quarter. Boyce said each inventory day is worth approximately $3 million. The company also said it has initiated actions to remove all $25 million of stranded costs associated with the North American snacks sale, ahead of its initial timeline. Proceeds from transition services provided to the divested business, combined with those actions, have “essentially eliminated” near-term stranded-cost effects, according to Boyce. Looking ahead, Hain plans to implement more than $16 million in annual run-rate cost improvements following a zero-based budgeting review. The company expects the vast majority of savings to be captured by the end of fiscal 2027, with full implementation within 18 months. One-time implementation costs are estimated at approximately $20 million, with 70% expected in fiscal 2027 and the remainder in fiscal 2028. Hain expects pro forma gross margin of approximately 30% or more. It expects a low-double-digit adjusted EBITDA margin for the future North American business. Marketing investment is expected to increase by about 100 basis points of net sales, supporting Celestial Seasonings, The Greek Gods and Earth’s Best. Management did not provide traditional fiscal 2027 guidance, saying the ongoing strategic review, planned divestiture and related one-time costs make such guidance challenging. The company also did not hold a question-and-answer session, citing ongoing lender discussions and the pending sale. The Hain Celestial Group, Inc (NASDAQ: HAIN) is a leading global producer and marketer of natural and organic branded products. The company operates through two principal segments—Grocery and Personal Care—offering a diversified portfolio that spans shelf-stable foods, snacks, beverages, condiments and natural personal care items. Its product lineup addresses growing consumer demand for clean-label, plant-based and ethically sourced offerings in everyday categories. Within its Grocery segment, Hain Celestial markets well-known brands such as Celestial Seasonings teas, Earth's Best organic baby foods, Rudi's organic bakery items, Terra vegetable chips and Sensible Portions snacks. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "The Hain Celestial Group Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

This article first appeared on GuruFocus. Release Date: September 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. North America returned to organic sales growth in Q4, up 2% year over year, with full-year organic sales effectively flat, a meaningful improvement from prior years. North America gross margin expanded by nearly 1,200 basis points and adjusted EBITDA increased 55% year over year in Q4, driven by portfolio simplification and productivity savings. Free cash flow for fiscal 2026 was $58 million, a significant improvement from an outflow of $3 million in the prior year, driven by better working capital management and inventory reduction. Net debt was reduced by $151 million (approximately 25%) during fiscal 2026, with further debt reduction expected from the international divestiture proceeds. The company identified over $16 million in annual run-rate cost improvements through a zero-based budgeting review, with plans to increase marketing investment by approximately 100 basis points of net sales behind key brands. Total organic net sales declined 2% year over year in Q4, as international declines offset North America growth. International organic net sales declined 4% year over year in Q4, with adjusted EBITDA down 41% and gross margin contracting 555 basis points due to cost inflation and unfavorable mix. Adjusted EBITDA decreased to $19 million in Q4 from $20 million a year ago, and adjusted net loss widened to $4 million ($0.05 per diluted share) from $2 million ($0.02 per diluted share). The international divestiture is contingent on securing an amendment to the credit agreement to extend maturity, and there is no assurance the amendment will be obtained; if not obtained within 30 days of signing, the buyer has the right to terminate. The company faces significant one-time costs of approximately $20 million to implement cost savings, with 70% incurred in fiscal 2027, and ongoing challenges in categories like Baby & Kids (down 11%) and Snacks (down 7%). Warning! GuruFocus has detected 6 Warning Signs with HAIN. Is HAIN fairly valued? Test your thesis with our free DCF calculator. Q: What is the strategic rationale behind the sale of the international business, and what is the expected impact on Hain Celestial's portfolio and debt? A: CEO Alison Lewis announced a definitive agreement to sell the international business to Aurelius for $323 million in cash. This transaction, following the divestiture of the North American snacks business, marks a significant milestone in simplifying the portfolio. The proceeds will be used to further reduce debt, with net proceeds expected between $305 million and $310 million. This will pay down the entirety of the outstanding term loan and over 35% of the revolver balance, reducing pro forma total debt to approximately $250 million, a 55% reduction. The sale is expected to close in the fiscal second quarter, subject to a credit agreement amendment. Q: Can you provide details on the financial performance of the North America segment in Q4 2026, particularly regarding organic sales growth and profitability? A: CEO Alison Lewis reported that North America returned to organic sales growth in Q4, increasing 2% year over year. This was driven by strong performance in yogurt (Greek Gods) and meal prep produce, partially offset by lower Baby & Kids sales. Adjusted gross margin for North America expanded by nearly 1,200 basis points to 31.1%, and adjusted EBITDA increased by 55% to $16 million, representing 14.4% of net sales. This improvement reflects the benefits of a streamlined portfolio and productivity savings. Q: What are the key components of the $16 million cost improvement plan, and what is the expected timeline for implementation? A: CFO Lee Boyce stated that a zero-based budgeting review identified specific actions to align the cost structure with the future North America business, targeting over $16 million in annual run-rate cost improvements. The vast majority of savings are expected to be captured by the end of fiscal 2027, with full completion within 18 months. One-time implementation costs are estimated at approximately $20 million, with 70% incurred in fiscal 2027 and the remainder in fiscal 2028. These actions are expected to support a pro forma gross margin of approximately 30%+ and low double-digit adjusted EBITDA margin. Q: What was the performance of the International segment in Q4, and what are the key challenges and opportunities? A: CEO Alison Lewis noted that International organic net sales declined 4% year over year in Q4, though this was a sequential improvement of roughly 400 basis points from Q3. The decline was driven by lower sales in meal prep and Baby & Kids, partially offset by growth in beverages. Adjusted gross margin decreased 555 basis points to 16.6%, and adjusted EBITDA fell 41% to $12 million. Challenges include inflation and productivity shortfalls, but early response to Hartley's renovation and innovation is encouraging. Q: How does the company plan to address its capital structure and the upcoming credit facility maturity? A: CFO Lee Boyce stated that the company remains in active discussions with lenders to amend the credit agreement and extend the maturity date. The international divestiture is contingent on securing this amendment. Proceeds from the sale will be used to reduce debt, and the company is exploring all opportunities to further deleverage. Net leverage was 4.5 times in Q4, with headroom under the 5.5 times covenant. The company has reduced net debt by $277 million over the past 12 quarters. Q: What drove the improvement in free cash flow for fiscal 2026, and what are the expectations for capital expenditures going forward? A: CFO Lee Boyce reported full-year free cash flow of $58 million, a significant improvement from an outflow of $3 million in the prior year. This was driven by favorable working capital performance, including inventory reduction (80 days vs. 88 days) and improved accounts payable. CapEx was $5 million in Q4, down from $6 million. Looking ahead, capital expenditures are expected to decrease year-over-year as the North American business is less capital-intensive than the international business. Q: Can you elaborate on the performance of key brands like Greek Gods, Celestial Seasonings, and Earth's Best? A: CEO Alison Lewis highlighted that Greek Gods yogurt delivered strong double-digit growth with share gains. Celestial Seasonings tea delivered growth in both the quarter and the year, driven by wellness tea innovation. Earth's Best Finger Foods, the largest piece of the Earth's Best business, saw strong double-digit growth. The company plans to increase marketing investment by approximately 100 basis points of net sales behind these key brands. Q: What is the status of the stranded costs from the North American snacks divestiture? A: CFO Lee Boyce stated that the company has made significant progress in eliminating stranded costs. In fiscal 2026, actions were initiated to remove the entirety of the $25 million in stranded costs, ahead of the initial timeline. Additionally, the transition services agreement (TSA) is generating proceeds, essentially eliminating any near-term stranded cost impact. Q: What are the main priorities for fiscal 2027? A: CEO Alison Lewis outlined three key priorities: 1) Aggressively align the organization and cost structure with the future North America business, targeting $16 million in cost improvements. 2) Remain disciplined in managing the financial position, including debt reduction and addressing the credit facility maturity. 3) Shift investment behind the strongest brands (Celestial Seasonings, Greek Gods, Earth's Best) with a planned increase in marketing investment of approximately 100 basis points of net sales. Q: What was the impact of tariff refunds on the quarter's results? A: CFO Lee Boyce noted that there was a $1.9 million positive impact from tariff refunds in the fourth quarter, which contributed to the adjusted gross margin improvement. Q: Why is the company not hosting a Q&A session this quarter? A: CEO Alison Lewis explained that due to ongoing discussions with lenders and the pending international sale, the company will not be hosting a Q&A session. The update provided on the call and in SEC filings is the extent of the detail that can be shared publicly at this time. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is executing a fundamental shift to a North American-centric model, highlighted by the definitive agreement to sell the International business for $323 million in cash. Performance attribution for the quarter was driven by the North American segment's return to organic growth, specifically fueled by double-digit gains in The Greek Gods yogurt and Earth's Best finger foods. Operational context for the margin expansion in North America (nearly 1,200 basis points) reflects the successful removal of the lower-margin snacks business and the realization of productivity initiatives. The International segment remains a drag on overall profitability due to persistent inflation, productivity shortfalls, and unfavorable product mix, justifying the strategic exit. Management highlighted an improved Innovation Renewal Rate (IRR) reaching high single digits in North America, validating that recent product relaunches are effectively capturing market share. Digital transformation efforts resulted in strong double-digit e-commerce growth, particularly with pure-play and omni-channel retail partners. The company is implementing a zero-based budgeting framework to deliver $16 million in annual run-rate cost savings, aligning the organization with its smaller North American scale. Management plans to increase marketing investment by approximately 100 basis points of net sales to support core growth brands like Celestial Seasonings and Earth's Best. Financial guidance for the pro forma business targets a gross margin of approximately 30-plus percent and adjusted EBITDA margins in the low double-digit percentage range. Future capital allocation will prioritize debt reduction, with proceeds from the International sale intended to pay down the entire term loan and over 35% of the revolver balance. Execution of the cost reduction program is expected to require approximately $20 million in one-time implementation costs, with 70% incurred during fiscal 2027. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The International divestiture is strictly contingent upon securing a credit agreement amendment to extend debt maturity; failure to do so within 30 days gives the buyer termination rights. Management successfully eliminated $25 million in stranded costs ahead of schedule following the North American snacks divestiture, aided by Transition Services Agreement (TSA) proceeds. Net debt was reduced by $151 million during fiscal 2026, though leverage remains elevated at 4.5x, necessitating the current focus on aggressive deleveraging. A $1.9 million positive impact from tariff refunds provided a non-recurring boost to North American gross margins during the fourth quarter.

Hain Celestial reported lower fiscal 2026 sales and adjusted EBITDA, while fourth-quarter North America organic growth, margin expansion and stronger free cash flow highlighted progress ahead of the planned sale of its International business. Hain Celestial (NASDAQ:HAIN) reported fiscal 2026 net sales of $1.35 billion, down 13%, while organic net sales declined 3%. Fourth-quarter North America organic net sales increased 2%, with adjusted EBITDA rising 55% and adjusted EBITDA margin expanding to 14.4%. Fiscal-year free cash flow improved to $58 million from a $3 million outflow, while net debt declined to $500 million from $650 million at the start of the year. Full-year adjusted EBITDA fell to $89 million from $114 million, showing that profitability remains below the prior-year level despite fourth-quarter North America margin improvement. Hain said its transition toward a focused North American business depends on completing the separately announced International business sale and reaching an agreement with lenders to extend its December debt maturity. Hain Celestial’s fiscal 2026 results showed a business that became smaller following portfolio changes but generated substantially more cash and reduced debt during the year. Fourth-quarter net sales fell 28% year over year to $263 million, primarily reflecting the divestiture of the North American snacks business. On an organic basis, sales declined 2%, with volume and mix down two percentage points and pricing flat. The quarterly gross margin increased 200 basis points to 22.5%, while adjusted gross margin rose 230 basis points to 22.7%. Adjusted EBITDA was $19 million versus $20 million a year earlier. North America provided a more positive operating signal. Organic sales increased 2%, led by meal prep and strength in yogurt. Adjusted EBITDA rose 55% to $16 million, while adjusted EBITDA margin expanded 940 basis points to 14.4%, reflecting SG&A reductions and productivity savings alongside other factors. For the full year, however, adjusted EBITDA declined to $89 million from $114 million and Hain recorded an adjusted net loss of $16 million, compared with adjusted net income of $8 million in fiscal 2025. The fourth-quarter North America performance may carry additional significance given Hain’s proposed sale of its International operations. Management said that, assuming the transaction closes and the company reaches an agreement with lenders over its December debt maturity, Hain expects to emerge as a more focused North American company. That puts greater investor attention on whether the North American segment can sustain its recent margin improvement. Its fiscal 2026 adjusted EBITDA margin increased 160 basis points to 8.9%, even though adjusted EBITDA declined 7% for the year. Cash generation also changes part of the financial picture. Fiscal-year operating cash flow increased to $78 million from $22 million, while free cash flow reached $58 million compared with a $3 million outflow in the previous year. Hain used the year to reduce total debt to $558 million from $705 million and net debt to $500 million from $650 million. However, its net secured leverage ratio remained 4.5x at year-end, and management specifically identified an extension of the December debt maturity as a condition in its planned transition. Category performance remains uneven. Fiscal 2026 organic sales fell 12% in Baby & Kids and 7% in Snacks, while Beverages increased 1% and Meal Prep was flat. Those differences suggest future performance may depend partly on whether growth in selected North American categories can offset continued pressure elsewhere. The main near-term issues are completion of the International business sale and the outcome of discussions with lenders over the December debt maturity. Investors may also watch whether North America’s fourth-quarter organic growth and margin expansion continue after the portfolio restructuring, alongside further progress in free cash flow and debt reduction. Separately, trends in Baby & Kids remain relevant after another double-digit organic sales decline, while Meal Prep and Beverages provide indicators of whether Hain can generate broader organic growth within its remaining portfolio. Hain Celestial stock price

Natural food company Hain Celestial (NASDAQ:HAIN) will be announcing earnings results this Monday morning. Here’s what investors should know. Hain Celestial missed analysts’ revenue expectations last quarter, reporting revenues of $338.4 million, down 13.3% year on year. It was a slower quarter for the company, with a slight miss of analysts’ EBITDA estimates. Is Hain Celestial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Hain Celestial’s revenue to decline 26% year on year, a further deceleration from the 13.2% decrease it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Hain Celestial has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Hain Celestial’s peers in the shelf-stable food segment, some have already reported their Q2 results, giving us a hint as to what we can expect. J. M. Smucker delivered year-on-year revenue growth of 5%, beating analysts’ expectations by 4.3%, and Hershey reported revenues up 6.6%, topping estimates by 5.7%. J. M. Smucker traded up 5.1% following the results while Hershey was down 4.8%. Read our full analysis of J. M. Smucker’s results here and Hershey’s results here. In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the shelf-stable food stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.3% on average over the last month. Hain Celestial is up 8% during the same time and is heading into earnings with an average analyst price target of $1.33 (compared to the current share price of $0.63). WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.

United Natural Foods (UNFI) came out with quarterly earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to a loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.29%. A quarter ago, it was expected that this organic and specialty foods distributor would post earnings of $0.81 per share when it actually produced earnings of $0.77, delivering a surprise of -4.94%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. United Natural, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $7.64 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.87%. This compares to year-ago revenues of $7.7 billion. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. United Natural shares have added about 30.5% since the beginning of the year versus the S&P 500's gain of 12.8%. While United Natural has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for United Natural was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.64 on $8.03 billion in revenues for the coming quarter and $3.06 on $31.94 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Hain Celestial (HAIN), has yet to report results for the quarter ended June 2026. The results are expected to be released on September 14. This organic and natural products company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Hain Celestial's revenues are expected to be $256.51 million, down 29.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Hain Celestial (HAIN). Shares have lost about 18.6% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Hain Celestial due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for The Hain Celestial Group, Inc. before we dive into how investors and analysts have reacted as of late. Hain Celestial delivered third-quarter fiscal 2026 results that beat the Zacks Consensus Estimate for an adjusted loss but missed the same for revenues. The company’s performance reflected ongoing volume and mix pressure and portfolio effects from the recent North American snacks divestiture.HAIN reported an adjusted loss of 1 cent per share, surpassing the Zacks Consensus Estimate for an adjusted loss of 2 cents and declining from adjusted earnings of 7 cents reported in the prior-year quarter. Net sales were $338.4 million, lagging the consensus of $353 million and falling 13% year over year as volume/mix weakness and divestiture impacts outweighed pricing.Organic net sales decreased 6% from the prior-year period, driven by an 11-point decline in volume and mix that more than offset a 5-point benefit from pricing. The mix shift underscored continued demand pressure across key categories even as the company leaned on price actions to protect dollars.Management emphasized operational execution and indicated that profitability improved sequentially, helped by portfolio actions and ongoing productivity initiatives. Still, the quarter’s organic contraction shows that volume recovery remains a central swing factor for the near-term story. Adjusted gross profit declined to $71 million from $85.2 million in the prior-year quarter. The adjusted gross margin contracted 90 basis points year over year to 21% due to cost inflation and unfavorable volume mix, partly offset by productivity savings and pricing actions.  SG&A expenses declined 6.1% year over year to $59.1 million from $62.9 million in the year-ago quarter, mainly driven by lower employee-related expenses. However, SG&A as a percentage of net sales increased to 17.5% from 16.1% in the prior-year period. Management also noted that stranded cost impacts tied to the snacks divestiture were negligible during the third quarter.Adjusted EBITDA decreased 22% year over year to $26 million from $34 million in the prior-year quarter. The adjusted EBITDA margin contracted 90 basis points to 7.8%. North America’s net sales were $171 million and declining 23% year over year, with organic net sales down 3%. The reported decline was mainly due to weakness in baby & kids, partially offset by growth in beverages.Adjusted EBITDA in the segment was $17 million, down 1% year over year, while the adjusted EBITDA margin improved 220 basis points to 10%. The gross margin expanded 100 basis points to 23.4%, supported by pricing and productivity initiatives. Management noted that, excluding the snacks business, North America would have delivered stronger profitability, with a gross margin of 30%.International’s net sales were $167 million and falling 1% year over year. Organic net sales declined 8%, driven by softness in meal prep and baby & kids categories. The geographic split highlights that demand headwinds were not confined to one market, though currency provided a partial cushion outside the U.S.Adjusted EBITDA declined 12% to $20 million and the adjusted EBITDA margin contracted to 11.7% from 13.2% in the prior-year quarter. The gross margin decreased 270 basis points to 18.5%, impacted by inflationary pressures and lower volumes. In the Snacks category, organic net sales declined 7% year over year following the divestiture of the North American snacks business. The category primarily consists of jellies within the International segment.Organic net sales in Baby & Kids decreased 14% year over year, mainly reflecting continued industry-wide softness in purees in the U.K., as well as weakness in purees and formula in North America. However, growth in finger foods across both regions and cereal in North America partially offset the decline.Beverages remained relatively resilient, with organic net sales remaining flat year over year. Growth in tea in North America and private-label non-dairy beverages in the International business was offset by weakness in branded non-dairy beverages.For Meal Prep, organic net sales declined 5% year over year due to weakness in pantry brands in North America, including oil, soup and nut butter products, along with softness in spreads and drizzles in the U.K. Strength in yogurt in North America partly offset the decline.Management highlighted innovation as a major focus area, with product launches across Celestial Seasonings wellness teas, Earth’s Best finger foods, Greek Gods yogurt and Ella’s Kitchen products supporting brand momentum. The company also emphasized accelerated renovation initiatives in the Hartley’s and Yorkshire Provender brands within its International segment. The company ended the quarter with cash and cash equivalents of $44.3 million. Total debt stood at $549.5 million at quarter-end, down significantly from $704.8 million at the beginning of the fiscal year, while total stockholders’ equity was $215.5 million. Net debt declined to $505 million from $650 million at the beginning of fiscal 2026, reflecting strong cash generation and debt-reduction efforts.The company also highlighted that it had $196 million in available liquidity under its revolving credit facility and remained in compliance with all credit agreement covenants. Management noted that leverage stood at 4.3X during the quarter, comfortably below the covenant limit of 5.5X, while reiterating its disciplined capital allocation strategy and continued focus on debt reduction. Net cash provided by operating activities was $38.3 million in the fiscal third quarter compared with $4.6 million in the prior-year period, reflecting improved working capital management and stronger operating discipline.The free cash flow was an inflow of $34.5 million during the quarter against an outflow of $2.3 million in the prior-year period. Management highlighted that stronger free cash flow generation remains a key priority as the company continues to focus on balance-sheet improvement and deleveraging initiatives. Hain Celestial stated that its ongoing strategic review has produced a multi-stage plan focused on materially improving liquidity and reducing leverage while enhancing long-term shareholder value. Management described the sale of the North American snacks business as an important first step in this process and noted that the company continues to pursue additional initiatives, including further asset sales and operational improvement actions. The company also confirmed that it remains actively engaged with lenders as it evaluates potential strategic transactions and refinancing alternatives. Management expressed confidence in its ability to refinance, extend or repay outstanding debt before maturity, while aligning the timing of any maturity solution with execution of the broader strategic plan.Regarding fiscal 2026, Hain Celestial reiterated that it is not providing numeric guidance due to uncertainty surrounding the timing and outcome of the strategic review. However, management expects the divestiture of the North American snacks business to be both gross margin and EBITDA accretive. The streamlined North American portfolio is projected to generate a gross margin above 30% and an EBITDA margin in the low-double-digit range in fiscal 2026. The company also expects a positive free cash flow for fiscal 2026.For fiscal 2027, management emphasized that its key priorities will include stabilizing sales through execution of its “five actions to win” strategy, improving gross and EBITDA margins compared with fiscal 2026, generating stronger cash flow, and fully eliminating stranded costs associated with the snacks divestiture. The company added that the formal fiscal 2027 guidance is expected to follow the completion of the strategic review process. It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -40% due to these changes. Currently, Hain Celestial has a strong Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Hain Celestial has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Hain Celestial is part of the Zacks Food - Miscellaneous industry. Over the past month, Mondelez (MDLZ), a stock from the same industry, has gained 2%. The company reported its results for the quarter ended March 2026 more than a month ago. Mondelez reported revenues of $10.08 billion in the last reported quarter, representing a year-over-year change of +8.2%. EPS of $0.67 for the same period compares with $0.74 a year ago. For the current quarter, Mondelez is expected to post earnings of $0.69 per share, indicating a change of -5.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.5% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Mondelez. Also, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Hain Celestial Group, Inc. (HAIN) : Free Stock Analysis Report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research