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Investing.com -- Hain Celestial Group Inc. (NASDAQ:HAIN) on Friday reported first quarter fiscal 2026 results that fell short of analyst expectations on earnings while slightly exceeding revenue forecasts.
The health and wellness company posted an adjusted loss of $0.08 per share, missing the analyst estimate of $0.05 per share, while revenue came in at $368 million, modestly above the consensus estimate of $364 million.
Revenue declined 7% YoY, with organic net sales falling 6% compared to the same period last year. The decrease was driven by a 7-point decline in volume/mix, partially offset by a 1-point increase in pricing. Following the earnings release, Hain Celestial shares slipped 0.9%.
"First quarter results met our expectations on the top- and bottom-line. During the quarter, organic net sales trends demonstrated sequential improvement in both our North America and International segments," said Alison Lewis, interim President and CEO. "Cost discipline and the decisive actions taken to streamline our cost structure drove a reduction in SG&A, and we are seeing early results from the execution against our ’5 actions to win’."
The company’s gross profit margin contracted to 18.5%, a 220-basis point decrease from the prior year period, while adjusted gross profit margin was 19.5%, down 120 basis points.
North America segment sales fell 11.8% YoY, though its adjusted EBITDA improved 37% to $17 million. International segment sales remained relatively flat with a 0.3% increase, but its adjusted EBITDA declined 38% to $13 million.
By category, snacks saw the steepest decline with a 17% drop in organic sales, while beverages were a bright spot with 2% organic growth. The company ended the quarter with a net secured leverage ratio of 4.8x.
Lewis added, "Our near-term priorities remain clear: stabilizing sales, improving profitability, optimizing cash, and deleveraging our balance sheet. We continue to make good progress against the strategic review work with Goldman Sachs."
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