By | May 5, 2022

  • Hain Celestial Group Inc HAIN reported third-quarter FY22 sales growth of 2.1% year-on-year to $502.94 million, missing the consensus of $521.54 million.
  • Net sales from North America increased 13.3% Y/Y, and International sales declined 14%.
  • Adjusted gross margin for the quarter fell 400 basis points Y/Y to 23.4%. The gross margin contracted 340 basis points to 23%.
  • The operating margin was 7%, and operating income for the quarter was $35.2 million versus $49.6 million last year.
  • Adjusted EBITDA of $58.7 million decreased 20.5% Y/Y with an adjusted EBITDA margin decline of 330 basis points to 11.7%.
  • Adjusted EPS of $0.33 missed the analyst consensus of $0.45.
  • The company held $57.8 million in cash and equivalents as of March 31, 2022. Net cash provided by operating activities totaled $31.2 million.
  • Outlook: Hain Celestial expects FY22 adjusted net sales to be flat (prior view: Low single-digit growth), modest adjusted gross margin reduction, and low double-digit adjusted EBITDA decline (prior view: flat).
  • For Q4, HAIN sees low to mid-single-digit adjusted net sales growth, modest adjusted gross margin reduction, and adjusted EBITDA to be down low to mid-single digits.
  • Price Action: HAIN shares are trading lower by 18.4% at $27.38 on the last check Thursday.