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Hain Celestial Group (Nasdaq:HAIN), a prominent global health and wellness company known for its commitment to promoting healthier living through its better-for-you brands, has announced its financial results for the fourth quarter and fiscal year ended June 30, 2024. The results reflect a challenging market environment, marked by declining sales but improved profit margins and reduced losses.
Fiscal Fourth Quarter 2024 Highlights
In the fourth quarter of fiscal 2024, Hain Celestial reported net sales of $419 million, representing a 6% year-over-year decline. The decrease in net sales underscores the ongoing challenges the company faces in the health and wellness sector, where consumer preferences and competitive pressures continue to evolve. Organic net sales, which exclude the impact of acquisitions, divestitures, and currency fluctuations, fell by 4% compared to the same period last year, indicating a contraction in the company’s core business.
Despite the drop in sales, Hain Celestial achieved improvements in profitability. The company’s gross profit margin for the fourth quarter increased by 90 basis points to 23.4%, driven by operational efficiencies and strategic cost management. On an adjusted basis, the gross profit margin also rose by 70 basis points, reflecting the company’s focus on enhancing its profitability despite the decline in revenue.
Net loss for the fourth quarter narrowed significantly to $3 million, compared to a net loss of $19 million in the prior-year period. This improvement is largely attributed to the company’s efforts to streamline operations and reduce expenses. The net loss margin improved to (0.7%), a notable recovery from the (4.2%) recorded in the same period last year.
On an adjusted basis, net income increased to $11 million, up from $10 million in the prior-year period, with the adjusted net income margin improving to 2.7% from 2.2%. However, adjusted EBITDA for the quarter decreased to $40 million, down from $44 million in the previous year, with the adjusted EBITDA margin slightly declining by 30 basis points to 9.4%.
Fiscal Year 2024 Performance Overview
For the full fiscal year 2024, Hain Celestial reported net sales of $1.736 billion, a 3% decline compared to the prior year. Organic net sales fell by 2%, though this figure includes a 1 percentage point benefit from favorable foreign exchange rates. The company’s sales performance highlights the ongoing challenges in the health and wellness industry, where shifts in consumer behavior and economic uncertainty have impacted growth.
The gross profit margin for the fiscal year was 21.9%, reflecting a slight decrease of 10 basis points from the prior year. However, on an adjusted basis, the gross profit margin improved by 30 basis points to 22.4%, indicating the company’s ongoing efforts to optimize its cost structure and improve profitability.
Net loss for the fiscal year was $75 million, a significant improvement from the $117 million net loss reported in fiscal 2023. The net loss margin improved to (4.3%) from (6.5%) in the previous year, demonstrating the company’s progress in reducing its losses. Adjusted net income, however, declined to $30 million from $45 million in the prior year, with the adjusted net income margin decreasing to 1.7% from 2.5%.
Adjusted EBITDA for the full year decreased to $155 million, down from $167 million in fiscal 2023. The adjusted EBITDA margin also fell by 40 basis points to 8.9%, reflecting the pressure on the company’s earnings amid a challenging sales environment.
