The Hain Celestial Group, Inc. (HAIN) Market Cap
The Hain Celestial Group, Inc. has a market capitalization of $72.1M.
Financials based on reported quarter end 2025-12-31
Price: $0.79
▼ -0.03 (-3.42%)
Market Cap: 72.06M
NASDAQ · time unavailable
CEO: Alison E. Lewis
Sector: Consumer Defensive
Industry: Packaged Foods
IPO Date: 1994-01-20
Website: https://www.hain.com
The Hain Celestial Group, Inc. (HAIN) - Company Information
Market Cap: 72.06M · Sector: Consumer Defensive
The Hain Celestial Group, Inc. manufactures, markets, and sells organic and natural products in United States, United Kingdom, and internationally. It operates through two segments, North America and International. The company offers infant formula; infant, toddler, and kids' food; plant-based beverages and frozen desserts, such as soy, rice, oat, almond, and coconut; and condiments. It also provides cooking and culinary oils; cereal bars; canned, chilled fresh, aseptic, and instant soups; yogurts, chilis, chocolate, and nut butters; and juices. In addition, the company offers hot-eating desserts, cookies, refrigerated and frozen plant-based meat-alternative products, jams, fruit spreads, jellies, honey, natural sweeteners, and marmalade products, as well as other food products. Further, it provides snack products comprising potato, root vegetable and other exotic vegetable chips, straws, tortilla chips, whole grain chips, pita chips, and puffs; and personal care products that include hand, skin, hair, and oral care products, as well as deodorants, baby food, body washes, sunscreens, and lotions under the Alba Botanica, Avalon Organics, Earth's Best, JASON, Live Clean, and Queen Helene brands name. Additionally, the company offers herbal, green, black, wellness, rooibos, and chai tea under the Celestial Seasonings brand. It sells pantry products under the Spectrum, Spectrum Essentials, MaraNatha, Imagine broths, Hain Pure Foods, Health Valley, and Hollywood brands. It sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and clubs, and drug and convenience stores in approximately 80 countries worldwide. The company was incorporated in 1993 and is headquartered in Lake Success, New York.
Analyst Sentiment
Based on 44 ratings
Analyst 1Y Forecast: $1.40
Average target (based on 3 sources)
Consensus Price Target
Low
$1
Median
$1
High
$2
Average
$1
Potential Upside: 47.7%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"Hain Celestial Group reported revenue of $384.1M, while net income stood at a loss of $116.0M. Profitability remains a challenge, as evidenced by the negative EPS of -$1.28. The cash flow statement shows operating cash flow of $36.97M and free cash flow of $29.98M, indicating some capacity to fund operations despite the net loss. However, capital expenditures were negative at -$6.99M, reflecting tight capital management. With total assets of $1.48B against total liabilities of $1.15B, the company has a reasonable equity position of $330.25M. Despite these figures, leverage is concerning with a net debt of $698.37M. The company's market performance has deteriorated significantly, with a 1-year change of -81.1%. There are no dividends paid, resulting in a minimal shareholder return. The price target consensus is $1.17, significantly above the current price of $0.71. Overall, the combination of declining revenues, increasing losses, and high leverage raises red flags. Investors should proceed with caution."
Revenue Growth
Revenue is significant but declining sharply.
Profitability
The company is currently unprofitable with negative net income.
Cash Flow Quality
Positive operating and free cash flow, but capital expenditures are high.
Leverage & Balance Sheet
Reasonable equity position but high net debt raises concerns.
Shareholder Returns
No dividends offered and significant share price decline.
Analyst Sentiment & Valuation
Current price below targets suggests potential, but risks are high.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management is framing Q2 2026 as an early turnaround inflection point—cash flow strong ($30m FCF, +22% YoY), net debt down ($32m), inventory DIO improved (75 days vs 83 in Q1), and progress on SG&A efficiency (120 bps lower as % of sales). However, the analyst-facing pressure shows up in the earnings mechanics: organic net sales fell 7% with a -9 point volume mix headwind and gross margin dropped ~340 bps YoY to 19.5% due to cost inflation and fixed-cost absorption. The core problem is not just category demand; it’s deleverage from volume/mix in parts of the portfolio. The snacks sale to Snackrupters ($115m cash) is positioned as strategic simplification, but Q&A highlights an operational hurdle: stranded cost impact of ~$20m–$25m that must be mitigated in 6–12 months, and near-term financing/maturity complexity despite covenant headroom (4.0x pro forma vs 5.5x covenant through Dec 22).
Growth Catalysts
- Tea wellness innovation (Celestial Seasoning Bad Tea wellness innovation) driving share growth; wellness launches in June referenced in Q&A
- Yogurt strength in whole milk / whole-fat niche; cited as double-digit growth
- Greek Gods innovation (high teens % dollar/unit sales growth) and single-serve yogurt/brand renovation
- Earth’s Best finger foods and cereal delivering low double-digit YoY dollar sales growth
- Avocado innovation and multipack optimization cited as improving snacks velocity
Business Development
- Definitive agreement to sell North American snacks business to Snackrupters (family-owned food/baked goods manufacturer in Canada) for $115 million cash
Financial Highlights
- Organic net sales: -7% YoY; driven by -9 points volume mix and +2 points price
- Adjusted gross margin: 19.5% in Q2, down ~340 bps YoY (cost inflation, lower volume mix, unfavorable fixed cost absorption partially offset by productivity and pricing)
- SG&A: -13% YoY to $61 million; SG&A as % of net sales 15.9% vs 17.0% prior year (~120 bps improvement)
- Adjusted EBITDA: $24 million vs $38 million prior year; adjusted EBITDA margin 6.3% (volume/mix impact and cost inflation)
- Free cash flow: $30 million (+22% vs $25 million prior year), driven by inventory delivery, higher cash earnings, improved payables (partly offset by lower AR recovery)
- Net debt: $637 million, down $32 million in quarter
- Inventory: DIO improved to 75 days vs 83 days in Q1 2026 (and 77 days prior year); ~+$3.5m value per inventory day
- Service level: North America >96% (best in recent history)
- Restructuring charges: $103 million taken to date; excluding inventory write-downs, total charges now expected $115m–$125m, with $15m increase tied to anticipated snacks sale actions
- Interest expense: +22% YoY to $16 million, driven by spread and increased amortization from amended credit agreement; hedged >50% of loan facility at fixed 7.1%
Capital Funding
- North American snacks sale proceeds: $115 million cash (used to reduce debt)
- Available liquidity under revolver: $144 million
- Cash on hand: $68 million
- CapEx: $7 million in quarter; fiscal 2026 CapEx now expected in the low $20 million range
- Insurance proceeds: $26 million expected/collected in January (collection referenced as ongoing cash support)
Strategy & Ops
- Strategic review execution: simplify North America portfolio; divest snacks to sharpen focus on tea, yogurt, and baby/kids plus meal prep platform
- Turnaround 'five actions to win' emphasized: streamline portfolio, accelerate brand renovation/innovation, pricing/revenue management, productivity & working capital efficiency, strengthen digital capabilities
- Forecast accuracy improvement: US +4 points QoQ; December reached highest level in several years
- Days payable outstanding: 57 days in quarter (in line with Q1; +1 day improvement vs 56 days prior year)
Market Outlook
- No numeric fiscal 2026 operating guidance provided (per management: uncertainty due to strategic review outcome/timing)
- Divestiture closure timing: expected in February
- Post-divestiture expectations: go-forward North America gross margin >30% and EBITDA margin in the low double digits; management calls divestiture gross margin and EBITDA accretive
Risks & Headwinds
- Gross margin pressure: ~340 bps decline YoY driven by cost inflation, lower volume mix, and unfavorable fixed cost absorption (partially offset by productivity/pricing)
- International and North America volume pressure: organic net sales -7% overall; -10% in North America and -3% internationally
- North America snacks organic net sales: -20% YoY attributed to club distribution losses and velocity challenges; ongoing velocity improvements cited but near-term headwind acknowledged
- Baby & kids headwinds: -14% YoY driven by industry-wide wet baby food softness in the UK and formula lapping the return-to-market pipeline in North America
- Liquidity/credit maturity risk: revolver/credit facility maturity in December 2026; borrowings classified as current liability in 10-Q (per CFO commentary)
- Leverage/covenant sensitivity: pro forma leverage expected to fall from 4.9x to ~4.0x; covenant headroom noted vs 5.5x covenant through Dec 22
Sentiment: MIXED
Note: This summary was synthesized by AI from the HAIN Q2 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.