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Hain Celestial (HAIN)

Filed: 25 Aug 20, 7:12am

Exhibit 99.1

haincelestialnewlogoa0.jpg
Hain Celestial Reports Fourth Quarter and Fiscal Year 2020 Financial Results

Profitability at the High-End of Company Expectations

Strong Margin Improvement Through Continued Execution of Transformational Plan

Generated $92.8 Million in Operating Cash Flow During the Quarter

Lake Success, NY, August 25, 2020—The Hain Celestial Group, Inc. (Nasdaq: HAIN) (“Hain Celestial”, “Hain” or the “Company”), a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East providing consumers with A Healthier Way of Life™, today reported financial results for the fourth quarter and fiscal year ended June 30, 2020. The results contained herein are presented with the Hain Pure Protein and Tilda operating segments being treated as discontinued operations.

Mark L. Schiller, Hain Celestial’s President and Chief Executive Officer, commented, “We are pleased to report profitability at the high-end of our expectations for the fiscal year. Our results were strong because of our team’s execution of our transformational strategic plan, which resulted in strong margin improvement and operating cash flow generation. In this dynamic operating environment, we believe we will maintain our positive momentum and remain committed to sustainable long-term growth as we deliver on our four key pillars for growth - portfolio simplification, capability building, cost control and sales acceleration.”

FINANCIAL HIGHLIGHTS1

Summary of Fourth Quarter Results from Continuing Operations2
Net sales increased 1% to $511.7 million, or 3% on a constant currency basis, compared to the prior year period.
When adjusted for Foreign Exchange, Divestitures, discontinued brands and Stock Keeping Unit (“SKU”) rationalization3, net sales increased 7% compared to the prior year period.
Gross margin of 25.4%, a 658 basis point increase from the prior year period.
Adjusted gross margin of 25.3%, a 257 basis point increase from the prior year period.
Operating income of $25.3 million compared to an operating loss of $2.6 million in the prior year period.
Adjusted operating income of $47.9 million compared to $34.4 million in the prior year period.
Net income of $3.7 million compared to a net loss of $7.3 million in the prior year period.
Adjusted net income of $32.3 million compared to $19.9 million in prior year period.
Adjusted EBITDA of $62.2 million compared to $49.4 million in the prior year period.
Adjusted EBITDA margin of 12.1%, a 237 basis point increase compared to the prior year period.
Earnings per diluted share (“EPS”) of $0.04 compared to a loss of $0.07 in the prior year period.
Adjusted EPS of $0.32 compared to $0.19 in the prior year period.
Repurchased 0.1 million shares, or 0.1% of the outstanding common stock, at an average price of $24.97 per share.
Net cash provided by continuing operations of $92.8 million compared to $21.0 million in prior year period.
Operating free cash flow4 from continuing operations of $78.9 million compared to $0.3 million in prior year period.





1This 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 are provided herein in the tables “Reconciliation of GAAP Results to Non-GAAP Measures.”
2Unless otherwise noted all results included in this press release are from continuing operations.
3Refer to “Net Sales Growth at Constant Currency" and "Adjusted for Divestitures, discontinued brands and SKU Rationalization” provided herein.
4Refer to Non-GAAP Financial Measures below for definition of operating free cash flow from continuing operations.















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
1


Summary of Fiscal Year 2020 Results from Continuing Operations2
Net sales decreased 2% to $2,053.9 million compared to the prior year.
Net sales decreased 1% on a constant currency basis compared to the prior year.
When adjusted for Foreign Exchange, Divestitures, discontinued brands and “SKU” rationalization3, net sales increased 3% compared to the prior year.
Gross margin of 22.7%, a 374 basis point increase over the prior year.
Adjusted gross margin of 23.2%, a 257 basis point increase over the prior year.
Operating income of $56.0 million compared to operating loss of $32.5 million in the prior year.
Adjusted operating income of $140.0 million compared to $109.9 million in the prior year.
Net income of $25.6 million compared to net loss of $53.4 million in the prior year.
Adjusted net income of $87.1 million compared to $62.1 million in prior year.
Adjusted EBITDA of $200.0 million compared to $165.1 million in the prior year.
Adjusted EBITDA margin of 9.7%, a 189 basis point increase compared to the prior year.
EPS of $0.25 compared to a loss of $0.51 in the prior year.
Adjusted EPS of $0.84 compared to $0.60 in the prior year.
Repurchased 2.6 million shares, or 2.4% of the outstanding common stock, at an average price of $23.59 per share.
Net cash provided by continuing operations of $156.9 million compared to $39.3 million in prior year.
Operating free cash flow4 from continuing operations of $96.0 million compared to negative operating free cash flow of $36.4 million in prior year.

SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS

Historically, the Company had three reportable segments: United States, United Kingdom and Rest of World. Effective July 1, 2019, the Company reassessed its segment reporting structure, pursuant to which the Company’s Canada and Hain Ventures operating segments, which were included within the Rest of World reportable segment, were moved to the United States reportable segment and renamed the North America segment. Additionally, the Europe operating segment, which was included in the Rest of World reportable segment, was combined with the United Kingdom reportable segment and renamed the International reportable segment. Accordingly, the Company now operates under two reportable segments: North America and International. Prior period segment information included herein has been adjusted to reflect the Company’s new reporting structure.

North America
North America net sales in the fourth quarter were $298.6 million, an increase of 5% compared to the prior year period. When adjusted for Foreign Exchange, Divestitures, discontinued brands and SKU rationalization3, net sales increased 13% from the prior year period.

Segment gross profit in the fourth quarter was $83.6 million, a 65% increase from the prior year period. Adjusted gross profit was $82.9 million, an increase of 20% from the prior year period. Gross margin was 28.0%, a 1,021 basis point increase from the prior year period and adjusted gross margin was 27.7%, a 354 basis point increase from the prior year period.

Segment operating income in the fourth quarter was $31.9 million, compared to a loss of $2.7 million in the prior year period. Adjusted operating income was $38.9 million, a 57% increase from the prior year period.

Adjusted EBITDA in the fourth quarter was $43.8 million, a 46% increase from the prior year period. As a percentage of sales on a constant currency basis, North America adjusted EBITDA margin was 14.7%, a 418 basis point increase from the prior year period.

North America net sales in fiscal year 2020 were $1,171 million, a decrease of 2% compared to the prior year. When adjusted for Foreign Exchange, Divestitures, discontinued brands and SKU rationalization3, net sales increased 5% from the prior year.

Segment gross profit in fiscal year 2020 was $293.5 million, a 30% increase from the prior year. Adjusted gross profit was $300.9 million, an increase of 17% from the prior year. Gross margin was 25.1%, a 619 basis point increase from the prior year and adjusted gross margin was 25.7%, a 422 basis point increase from the prior year.

Segment operating income in fiscal year 2020 was $95.9 million, a 194% increase from the prior year. Adjusted operating income was $121.0 million, a 53% increase from the prior year.
















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
2


Adjusted EBITDA in fiscal year 2020 was $140.9 million, a 43% increase from the prior year. As a percentage of sales on a constant currency basis, North America adjusted EBITDA margin was 12.0%, a 381 basis point increase from the prior year.

International
International net sales in the fourth quarter were $213.1 million, a decrease of 3% compared to the prior year period. When adjusted for Foreign Exchange, Divestitures, discontinued brands and SKU rationalization3, net sales were flat compared to the prior year period.

Segment gross profit in the fourth quarter was $46.3 million, a 5% increase from the prior year period. Adjusted gross profit was $46.4 million, an increase of 2% from the prior year period. Gross margin was 21.7%, a 162 basis point increase from the prior year period and adjusted gross margin was 21.8%, a 104 basis point increase from the prior year period.

Segment operating income in the fourth quarter was $14.7 million, a 19% decrease from the prior year period. Adjusted operating income was $22.7 million, a decrease of 1% from the prior year period.

Adjusted EBITDA in the fourth quarter was $29.9 million, a 3% decrease from the prior year period. As a percentage of sales, International adjusted EBITDA margin was 14.0%, a 9 basis point increase from the prior year period.

International net sales in fiscal year 2020 were $882.4 million, a decrease of 3% when compared to the prior year. When adjusted for Foreign Exchange, Divestitures, discontinued brands and SKU rationalization3, net sales increased 1% compared to the prior year.

Segment gross profit in fiscal year 2020 was $172.2 million, flat when compared to the prior year. Adjusted gross profit was $174.9 million, a decrease of 1% from the prior year. Gross margin was 19.5%, a 50 basis point increase from the prior year and adjusted gross margin was 19.8%, a 37 basis point increase from the prior year.

Segment operating income in fiscal year 2020 was $55.3 million, a 6% decrease from the prior year. Adjusted operating income was $73.9 million, a decrease of 1% from the prior year.

Adjusted EBITDA in fiscal year 2020 was $105.7 million, flat when compared to the prior year. As a percentage of sales on a constant currency basis, International adjusted EBITDA margin was 12.0%, a 32 basis point increase from the prior year.

CAPITAL MANAGEMENT

During fiscal year 2020, the Company repurchased 2.6 million shares, or 2.4% of the outstanding common stock, at an average price of $23.59 per share for a total of $60.2 million, excluding commissions. As of June 30, 2020, the Company had $189.8 million remaining authorization under the share repurchase program.

SALE OF RUDI’S BAKERY

Effective May 1, 2020, the Company completed the divestiture of its Rudi’s business, a component of the United States reporting unit to an affiliate of Promise Gluten Free. Details of the transaction were not disclosed.

SALE OF DANIVAL

Effective July 21, 2020, the Company completed the divestiture of Danival® to a subsidiary of Wessanen N.V. Details of the transaction were not disclosed.

FISCAL YEAR 2021 GUIDANCE

Due to the uncertainty around the duration and impact of the COVID-19 pandemic, the Company is not providing specific financial guidance for fiscal 2021. For fiscal 2021, the Company expects continued margin expansion, strong double digit adjusted EBITDA growth and double digit operating free cash flow growth. The Company believes that the first half of fiscal 2021 will yield stronger net sales and adjusted EBITDA growth than the second half of the year due to its strong consumer and customer plans as well as increased at home eating occasions related to COVID-19. For the first quarter, based on actual results to date, the Company expects mid-single digit net sales growth after adjusting for divestitures and discontinued brands, and several hundred basis points of margin improvement and adjusted EBITDA growth.















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
3




Contacts:
Katie Turner and Ashley DeSimone
ICR
646-277-1228

Webcast Presentation
Hain Celestial will host a conference call and webcast today at 8:30 AM Eastern Time to discuss its results and business outlook. The call will be webcast and the accompanying presentation will be available under the Investor Relations section of the Company’s website at www.hain.com.

About The Hain Celestial Group, Inc.
The Hain Celestial Group (Nasdaq: HAIN), headquartered in Lake Success, NY, is a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East. Hain Celestial participates in many natural categories with well-known brands that include Celestial Seasonings®, Clarks™, Cully & Sully®, Dream®, Earth's Best®, Ella's Kitchen®, Farmhouse Fare™, Frank Cooper's®, GG UniqueFiber®, Gale's®, Garden of Eatin'®, Hain Pure Foods®, Hartley's®, Health Valley®, Imagine®, Joya®, Lima®, Linda McCartney® (under license), MaraNatha®, Natumi®, New Covent Garden Soup Co.®, Orchard House®, Robertson's®, Sensible Portions®, Spectrum®, Sun-Pat®, Sunripe®, Terra®, The Greek Gods®, William's™, Yorkshire Provender® and Yves Veggie Cuisine®. The Company's personal care products are marketed under the Alba Botanica®, Avalon Organics®, Earth's Best®, JASON®, Live Clean®, One Step® and Queen Helene® brands.

Safe Harbor Statement
Certain statements contained in this press release constitute “forward-looking statements” within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements are predictions based on expectations and projections about future events and are not statements of historical fact. You can identify forward-looking statements by the use of forward-looking terminology such as “plan”, “continue”, “expect”, “anticipate”, “intend”, “predict”, “project”, “estimate”, “likely”, “believe”, “might”, “seek”, “may”, “will”, “remain”, “potential”, “can”, “should”, “could”, “future” and similar expressions, or the negative of those expressions, or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of the Company’s strategic initiatives, including productivity and transformation, the Company’s guidance for fiscal year 2021 and our future performance and results of operations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, levels of activity, performance or achievements of the Company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). Such factors include, among others, challenges and uncertainty resulting from the COVID-19 pandemic, the impact of competitive products and changes to the competitive environment, changes to consumer preferences, general economic and financial market conditions, the United Kingdom’s exit from the European Union, consolidation of customers or the loss of a significant customer, reliance on independent distributors, risks associated with our international sales and operations, our ability to manage our supply chain effectively, volatility in the cost of commodities, ingredients, freight and fuel, our ability to implement cost reduction initiatives, the impact of our debt covenants, the potential discontinuation of LIBOR, our ability to manage our financial reporting and internal control system processes, potential liabilities due to legal claims, government investigations and other regulatory enforcement actions, costs incurred due to pending and future litigation, potential liability, including in connection with indemnification obligations to our former officers and members of our Board of Directors that may not be covered by insurance, potential liability if our products cause illness or physical harm, impairments in the carrying value of goodwill or other intangible assets, our ability to consummate divestitures, the availability of organic ingredients, disruption of operations at our manufacturing facilities, loss of one or more independent co-packers, disruption of our transportation systems, risks relating to the protection of intellectual property, the risk of liabilities and claims with respect to environmental matters, the reputation of our brands, our reliance on independent certification for a number of our products, and other risks detailed from time-to-time in the Company’s reports filed with the United States Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and our subsequent reports on Forms 10-Q and 8-K. As a result of the foregoing and other factors, the Company cannot provide any assurance regarding future results, levels of activity and achievements of the Company, and neither the Company nor















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
4


any person assumes responsibility for the accuracy and completeness of these statements. All forward-looking statements contained herein apply as of the date hereof or as of the date they were made and, except as required by applicable law, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors or new methods, future events or other changes.
Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including net sales adjusted for the impact of Foreign Exchange, Divestitures, discontinued brands and certain other items, including SKU rationalization, as applicable in each case, adjusted operating income and its related margin, adjusted gross margin, adjusted net income, adjusted earnings per diluted share, Adjusted EBITDA and its related margin and operating free cash flow. The reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are presented in the tables “Reconciliation of GAAP Results to Non-GAAP Measures” for the three and twelve months ended June 30, 2020 and 2019 in the paragraphs below. Management believes 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. 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 Statements of Operations presented in accordance with GAAP.

The Company defines Operating Free Cash Flow as cash provided by or used in operating activities from continuing operations (a GAAP measure) less capital expenditures. The Company views Operating Free Cash Flow as an important measure because it is one factor in evaluating the amount of cash available for discretionary investments.

For the three and twelve months ended June 30, 2020 and 2019, Operating Free Cash Flow from continuing operations was calculated as follows:
Three Months Ended June 30,Twelve Months Ended June 30,
2020201920202019
(unaudited and in thousands)
Cash flow provided by operating activities from continuing operations$92,822 $21,001 $156,914 $39,333 
Purchases of property, plant and equipment(13,932)(20,719)(60,893)(75,792)
Operating Free Cash Flow from continuing operations$78,890 $282 $96,021 $(36,459)

The Company’s Operating Free Cash Flow from continuing operations was $78.9 million for the three months ended June 30, 2020, an increase of $78.6 million from the three months ended June 30, 2019. The Company’s Operating Free Cash Flow from continuing operations was $96.0 million for the twelve months ended June 30, 2020, an increase of $132.5 million from the twelve months ended June 30, 2019. The improvement in Operating Free Cash Flow for both periods resulted primarily from an improvement in net income adjusted for non-cash charges in the current year and a decrease in our capital expenditures.

The Company believes presenting net sales at constant currency provides useful information to investors because it provides transparency to underlying performance in the Company’s consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present this information for historical periods, 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. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

The Company provides net sales adjusted for constant currency, divestitures, discontinued brands, and certain other items including SKU rationalization, as applicable in each case, to understand the growth rate of net sales excluding the impact of such items. The Company’s management believes net sales adjusted for such items is useful to investors because it enables them to better understand the growth of our business from period-to-period.

The Company defines Adjusted EBITDA as net income (loss) before income taxes, net interest expense, depreciation and amortization, impairment of long-lived and intangible assets, equity in net loss of equity-method investees, stock-















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
5


based compensation, net, stock-based compensation expense in connection with the Company’s former CEO Succession Plan, Productivity and transformation costs, SKU rationalization and certain inventory write-downs, unrealized currency gains and losses and other adjustments. The Company’s management believes that these presentations provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the Company as well as a component of performance-based executive compensation.

For the three and twelve months ended June 30, 2020 and 2019, Adjusted EBITDA from continuing operations was calculated as follows:
Three Months Ended June 30,Twelve Months Ended June 30,
2020201920202019
(unaudited and in thousands)
Net income (loss)$3,239 $(13,551)$(80,407)$(183,314)
Net loss from discontinued operations(460)(6,215)(106,041)(129,887)
Net income (loss) from continuing operations$3,699 $(7,336)25,634 $(53,427)
Provision (benefit) for income taxes15,958 (1,306)6,205 (3,232)
Interest expense, net2,467 5,484 14,351 19,450 
Depreciation and amortization12,019 13,350 52,088 50,898 
Equity in net loss of equity-method investees770 264 1,989 655 
Stock-based compensation, net3,497 3,982 13,078 9,471 
Stock-based compensation expense in connection with Former Chief Executive Officer Succession Plan   429 
Goodwill impairment394  394  
Long-lived asset and intangibles impairment12,079 10,010 27,493 33,719 
Unrealized currency losses (gains)355 (3,401)543 (850)
Productivity and transformation costs10,194 10,494 47,596 39,958 
Former Chief Executive Officer Succession Plan expense, net   29,727 
Proceeds from insurance claim (4,460)(2,962)(4,460)
Accounting review and remediation costs, net of insurance proceeds   4,334 
Loss (gain) on sale of business1,448 (534)3,564 (534)
Warehouse/manufacturing facility start-up costs385 8,107 3,440 17,636 
Plant closure related costs3 1,232 2,357 4,734 
SKU rationalization and inventory write-down(1,103)10,346 4,175 12,381 
Litigation and related expenses 455 48 1,517 
Realized currency loss on repayment of international loans 2,706  2,706 
Adjusted EBITDA$62,165 $49,393 $199,993 $165,112 
















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
6



THE HAIN CELESTIAL GROUP, INC.
Net Sales, Gross Profit and Operating Income (Loss) by Segment
(unaudited and in thousands)
North AmericaInternationalCorporate/OtherTotal
Net Sales
Net sales - Three months ended 6/30/20$298,644 $213,102 $ $511,746 
Net sales - Three months ended 6/30/19$284,893 $220,412 $ $505,305 
% change - FY'20 net sales vs. FY'19 net sales4.8 %(3.3)%1.3 %
Gross Profit
Three months ended 6/30/20
Gross profit$83,589 $46,348 $ $129,937 
Non-GAAP adjustments(1)
(728)13  (715)
Adjusted gross profit$82,861 $46,361 $ $129,222 
Gross margin28.0 %21.7 %25.4 %
Adjusted gross margin27.7 %21.8 %25.3 %
Three months ended 6/30/19
Gross profit$50,659 $44,371 $ $95,030 
Non-GAAP adjustments(1)
18,308 1,284  19,592 
Adjusted gross profit$68,967 $45,655 $ $114,622 
Gross margin17.8 %20.1 %18.8 %
Adjusted gross margin24.2 %20.7 %22.7 %
Operating income (loss)
Three months ended 6/30/20
Operating income (loss)$31,867 $14,667 $(21,273)$25,261 
Non-GAAP adjustments(1)
7,020 8,056 7,521 22,597 
Adjusted operating income (loss)$38,887 $22,723 $(13,752)$47,858 
Operating income margin10.7 %6.9 %4.9 %
Adjusted operating income margin13.0 %10.7 %9.4 %
Three months ended 6/30/19
Operating (loss) income$(2,745)$18,112 $(18,008)$(2,641)
Non-GAAP adjustments(1)
27,500 4,878 4,706 37,084 
Adjusted operating income (loss)$24,755 $22,990 $(13,302)$34,443 
Operating (loss) income margin(1.0)%8.2 %(0.5)%
Adjusted operating income margin8.7 %10.4 %6.8 %

(1) See accompanying table of "Reconciliation of GAAP Results to Non-GAAP Measures"






















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
7




THE HAIN CELESTIAL GROUP, INC.
Net Sales, Gross Profit and Operating Income (Loss) by Segment
(unaudited and in thousands)
North AmericaInternationalCorporate/OtherTotal
Net Sales
Net sales - Twelve months ended 6/30/20$1,171,478 $882,425 $ $2,053,903 
Net sales - Twelve months ended 6/30/19$1,195,979 $908,627 $ $2,104,606 
% change - FY'20 net sales vs. FY'19 net sales(2.0)%(2.9)%(2.4)%
Gross Profit
Twelve months ended 6/30/20
Gross profit$293,545 $172,225 $ $465,770 
Non-GAAP adjustments (1)
7,309 2,679  9,988 
Adjusted gross profit$300,854 $174,904 $ $475,758 
Gross margin25.1 %19.5 %22.7 %
Adjusted gross margin25.7 %19.8 %23.2 %
Twelve months ended 6/30/19
Gross profit$225,707 $172,790 $ $398,497 
Non-GAAP adjustments (1)
30,952 3,948  34,900 
Adjusted gross profit$256,659 $176,738 $ $433,397 
Gross margin18.9 %19.0 %18.9 %
Adjusted gross margin21.5 %19.5 %20.6 %
Operating income (loss)
Twelve months ended 6/30/20
Operating income (loss)$95,934 $55,333 $(95,225)$56,042 
Non-GAAP adjustments (1)
25,083 18,559 40,296 83,938 
Adjusted operating income (loss)$121,017 $73,892 $(54,929)$139,980 
Operating income margin8.2 %6.3 %2.7 %
Adjusted operating income margin10.3 %8.4 %6.8 %
Twelve months ended 6/30/19
Operating income (loss)$32,682 $58,808 $(123,983)$(32,493)
Non-GAAP adjustments (1)
46,430 16,143 79,780 142,353 
Adjusted operating income (loss)$79,112 $74,951 $(44,203)$109,860 
Operating income (loss) margin2.7 %6.5 %(1.5)%
Adjusted operating income margin6.6 %8.2 %5.2 %

(1) See accompanying table of "Reconciliation of GAAP Results to Non-GAAP Measures"

















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
8


THE HAIN CELESTIAL GROUP, INC.
Consolidated Balance Sheets
(unaudited and in thousands)
June 30,June 30,
20202019
ASSETS
Current assets:
Cash and cash equivalents$37,771 $31,017 
Accounts receivable, net170,969 209,990 
Inventories248,170 299,341 
Prepaid expenses and other current assets104,024 51,391 
Current assets of discontinued operations 110,048 
    Total current assets560,934 701,787 
Property, plant and equipment, net289,256 287,845 
Goodwill861,958 875,881 
Trademarks and other intangible assets, net346,462 380,286 
Investments and joint ventures17,439 18,890 
Operating lease right-of-use assets88,165  
Other assets24,238 58,764 
Noncurrent assets of discontinued operations 259,167 
Total assets$2,188,452 $2,582,620 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$171,009 $219,957 
Accrued expenses and other current liabilities127,612 114,265 
Current portion of long-term debt1,656 17,232 
Current liabilities of discontinued operations 31,703 
    Total current liabilities300,277 383,157 
Long-term debt, less current portion281,118 613,537 
Deferred income taxes51,849 34,757 
Operating lease liabilities, noncurrent portion82,962  
Other noncurrent liabilities28,692 14,489 
Noncurrent liabilities of discontinued operations 17,361 
Total liabilities744,898 1,063,301 
Stockholders' equity:
Common stock1,092 1,088 
Additional paid-in capital1,171,875 1,158,257 
Retained earnings614,171 695,017 
Accumulated other comprehensive loss(171,392)(225,004)
1,615,746 1,629,358 
Treasury stock(172,192)(110,039)
    Total stockholders' equity1,443,554 1,519,319 
    Total liabilities and stockholders' equity$2,188,452 $2,582,620 















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
9



THE HAIN CELESTIAL GROUP, INC.
 Consolidated Statements of Operations
 (unaudited and in thousands, except per share amounts)
Three Months Ended June 30,Twelve Months Ended June 30,
2020201920202019
Net sales$511,746 $505,305 $2,053,903 $2,104,606 
Cost of sales381,809 410,275 1,588,133 1,706,109 
Gross profit129,937 95,030 465,770 398,497 
Selling, general and administrative expenses79,171 78,439 324,376 314,000 
Amortization of acquired intangibles2,192 3,188 11,638 13,134 
Productivity and transformation costs10,840 10,494 48,789 40,107 
Former Chief Executive Officer Succession Plan expense, net   30,156 
Proceeds from insurance claim (4,460)(2,962)(4,460)
Accounting review and remediation costs, net of insurance proceeds   4,334 
Goodwill impairment394  394  
Long-lived asset and intangibles impairment12,079 10,010 27,493 33,719 
Operating income (loss)25,261 (2,641)56,042 (32,493)
Interest and other financing expense, net3,190 6,781 18,258 22,517 
Other expense (income), net1,644 (1,044)3,956 994 
Income (loss) from continuing operations before income taxes and equity in net loss of equity-method investees20,427 (8,378)33,828 (56,004)
Provision (benefit) for income taxes15,958 (1,306)6,205 (3,232)
Equity in net loss of equity-method investees770 264 1,989 655 
   Net income (loss) from continuing operations$3,699 $(7,336)$25,634 $(53,427)
   Net loss from discontinued operations, net of tax(460)(6,215)(106,041)(129,887)
Net income (loss)$3,239 $(13,551)$(80,407)$(183,314)
Net income (loss) per common share:
Basic net income (loss) per common share from continuing operations$0.04 $(0.07)$0.25 $(0.51)
Basic net loss per common share from discontinued operations (0.06)(1.02)(1.25)
   Basic net income (loss) per common share$0.04 $(0.13)$(0.77)$(1.76)
Diluted net income (loss) per common share from continuing operations$0.04 $(0.07)$0.25 $(0.51)
Diluted net loss per common share from discontinued operations (0.06)(1.02)(1.25)
   Diluted net income (loss) per common share$0.04 $(0.13)$(0.77)$(1.76)
Shares used in the calculation of net income (loss) per common share:
Basic101,895 104,167 103,618 104,076 
Diluted102,280 104,167 103,937 104,076 

















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
10



THE HAIN CELESTIAL GROUP, INC.
 Consolidated Statements of Cash Flows
 (unaudited and in thousands)
 Three Months Ended June 30,Twelve Months Ended June 30,
 2020201920202019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)$3,239 $(13,551)$(80,407)$(183,314)
   Net loss from discontinued operations(460)(6,215)(106,041)(129,887)
   Net income (loss) from continuing operations3,699 (7,336)25,634 (53,427)
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities from continuing operations:
Depreciation and amortization12,019 13,350 52,088 50,898 
Deferred income taxes45,195 818 36,160 (23,706)
Former Chief Executive Officer Succession Plan expense, net (29,727)  
Equity in net loss of equity-method investees770 264 1,989 655 
Stock-based compensation, net3,497 3,982 13,078 9,900 
Goodwill impairment394  394  
Long-lived asset and intangibles impairment12,079 10,010 27,493 33,719 
Other non-cash items, net1,571 (2,504)3,906 1,193 
Increase (decrease) in cash attributable to changes in operating assets and liabilities:
Accounts receivable64,726 31,124 33,856 26,658 
Inventories(14,044)18,920 33,236 30,550 
Other current assets(55,639)(6,992)(45,337)(7,215)
Other assets and liabilities7,152 (1,571)5,986 3,635 
Accounts payable and accrued expenses11,403 (9,337)(31,569)(33,527)
Net cash provided by operating activities from continuing operations92,822 21,001 156,914 39,333 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment(13,932)(20,719)(60,893)(75,792)
Proceeds from sale of businesses and other1,337 3,282 15,765 7,145 
Net cash used in investing activities from continuing operations(12,595)(17,437)(45,128)(68,647)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings under bank revolving credit facility65,000 45,000 262,000 285,000 
Repayments under bank revolving credit facility(147,169)(82,000)(401,669)(268,791)
Repayments under term loan (78,750)(206,250)(90,000)
Proceeds from discontinued operations entities(538)(477)305,645 56,643 
Repayments of other debt, net398 90,458 (2,040)(2,166)
Share repurchases(2,815) (60,221) 
Shares withheld for payment of employee payroll taxes(425)(461)(1,931)(3,532)
Net cash used in financing activities from continuing operations(85,549)(26,230)(104,466)(22,846)
Effect of exchange rate changes on cash from continuing operations1,544 (748)(566)(1,522)
CASH FLOWS FROM DISCONTINUED OPERATIONS
Cash provided by (used in) operating activities398 15,563 (5,748)1,936 
Cash provided by investing activities 70,166 297,592 36,605 
Cash used in financing activities(398)(88,352)(299,816)(57,770)
Effect of exchange rate changes on cash from discontinued operations (129)(537)(580)
Net cash flows used in discontinued operations (2,752)(8,509)(19,809)
Net decrease in cash and cash equivalents(3,778)(26,166)(1,755)(73,491)
Cash and cash equivalents at beginning of period41,549 65,692 39,526 113,017 
Cash and cash equivalents at end of period$37,771 $39,526 $37,771 $39,526 
Less: cash and cash equivalents of discontinued operations (8,509) (8,509)
Cash and cash equivalents of continuing operations at end of period$37,771 $31,017 $37,771 $31,017 
















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
11



THE HAIN CELESTIAL GROUP, INC.
 Reconciliation of GAAP Results to Non-GAAP Measures
 (unaudited and in thousands)
Three Months Ended June 30,
2020 GAAPAdjustments2020 Adjusted2019 GAAPAdjustments2019 Adjusted
Net sales$511,746  $511,746 $505,305  $505,305 
Cost of sales381,809 715 382,524 410,275 (19,591)390,684 
Gross profit129,937 (715)129,222 95,030 19,591 114,622 
Operating expenses (a)93,442 (12,079)81,363 91,637 (11,459)80,179 
Productivity and transformation costs10,840 (10,840) 10,494 (10,494) 
Proceeds from insurance claims   (4,460)4,460  
Goodwill impairment394 (394)    
Operating income (loss)25,261 22,597 47,858 (2,641)37,084 34,443 
Interest and other expense (income), net (b)4,834 (1,803)3,031 5,737 882 6,619 
Provision (benefit) provision for income taxes15,958 (4,243)11,715 (1,306)8,962 7,656 
   Net income (loss) from continuing operations3,699 28,644 32,343 (7,336)27,240 19,904 
   Net (loss) income from discontinued
operations, net of tax
(460)460  (6,215)6,215  
Net income (loss)3,239 29,104 32,343 (13,551)33,455 19,904 
Diluted net income (loss) per common share from continuing operations0.04 0.28 0.32 (0.07)0.26 0.19 
Diluted net (loss) income per common share from discontinued operations   (0.06)0.06  
   Diluted net income (loss) per common share0.04 0.28 0.32 (0.13)0.32 0.19 

(a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset impairment.
(b) Interest and other expense (income), net includes interest and other financing expenses, net and other expense, net.




















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
12


THE HAIN CELESTIAL GROUP, INC.
 Reconciliation of GAAP Results to Non-GAAP Measures
 (unaudited and in thousands)
Detail of Adjustments:
Three Months Ended June 30,
20202019
Warehouse/manufacturing facility start-up costs$385 $8,107 
Plant closure related costs3 1,138 
SKU rationalization and inventory write-down(1,103)10,346 
Cost of sales(715)19,591 
Gross profit(715)19,591 
Long-lived asset impairment12,079 10,010 
Stock-based compensation acceleration 875 
Litigation and related expenses 455 
Plant closure related costs 119 
Operating expenses (a)12,079 11,459 
Productivity and transformation costs10,840 10,494 
Productivity and transformation costs10,840 10,494 
Proceeds from insurance claims (4,460)
Proceeds from insurance claims (4,460)
Goodwill impairment394  
Goodwill impairment394  
Operating income (loss)22,597 37,084 
Loss (gain) on sale of business1,448 (534)
Unrealized currency losses (gains)355 (3,401)
Realized currency loss on repayment of international loans 2,706 
Deferred financing cost write-off 347 
Interest and other expense (income), net (b)1,803 (882)
Income tax related adjustments4,243 (8,962)
Provision (benefit) provision for income taxes4,243 (8,962)
   Net income (loss) from continuing operations$28,644 $27,240 

(a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset impairment.
(b) Interest and other expense (income), net includes interest and other financing expenses, net and other expense, net.

















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
13


THE HAIN CELESTIAL GROUP, INC.
Reconciliation of GAAP Results to Non-GAAP Measures
(unaudited and in thousands)
Twelve Months Ended June 30,
2020 GAAPAdjustments2020 Adjusted2019 GAAPAdjustments2019 Adjusted
Net sales$2,053,903  $2,053,903 $2,104,606  $2,104,606 
Cost of sales1,588,133 (9,988)1,578,145 1,706,109 (34,900)1,671,209 
Gross profit465,770 9,988 475,758 398,497 34,900 433,397 
Operating expenses (a)363,507 (27,730)335,777 360,853 (37,316)323,537 
Productivity and transformation costs48,789 (48,789) 40,107 (40,107) 
Former Chief Executive Officer Succession Plan expense, net   30,156 (30,156) 
Proceeds from insurance claim(2,962)2,962  (4,460)4,460  
Accounting review and remediation costs, net of insurance proceeds   4,334 (4,334) 
Goodwill impairment394 (394)    
Operating income (loss)56,042 83,938 139,980 (32,493)142,353 109,860 
Interest and other expense (income), net (b)22,214 (5,082)17,132 23,511 (1,669)21,842 
Provision (benefit) for income taxes6,205 27,575 33,780 (3,232)28,499 25,267 
   Net income (loss) from continuing operations25,634 61,445 87,079 (53,427)115,521 62,094 
   Net (loss) income from discontinued operations,
   net of tax
(106,041)106,041  (129,887)129,887  
Net (loss) income(80,407)167,486 87,079 (183,314)245,408 62,094 
Diluted net income (loss) per common share from continuing operations0.25 0.59 0.84 (0.51)1.11 0.60 
Diluted net (loss) income per common share from discontinued operations(1.02)1.02  (1.25)1.25  
   Diluted net (loss) income per common share(0.77)1.61 0.84 (1.76)2.36 0.60 

(a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset and intangibles impairment.
(b) Interest and other expense (income), net includes interest and other financing expenses, net and other expense, net.











































The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
14







THE HAIN CELESTIAL GROUP, INC.
Reconciliation of GAAP Results to Non-GAAP Measures
(unaudited and in thousands)
Detail of Adjustments:
Twelve Months Ended June 30,
20202019
SKU rationalization and inventory write-down$4,175 $12,381 
Warehouse/manufacturing facility start-up costs3,251 17,636 
Plant closure related costs2,562 4,883 
Cost of sales9,988 34,900 
Gross profit9,988 34,900 
Long-lived asset impairment17,954 15,819 
Intangibles impairment9,539 17,900 
Warehouse/manufacturing facility start-up costs189  
Litigation and related expenses48 1,517 
Plant closure related costs 622 
Stock-based compensation acceleration 1,458 
Operating expenses (a)27,730 37,316 
Productivity and transformation costs48,789 40,107 
Productivity and transformation costs48,789 40,107 
Former Chief Executive Officer Succession Plan expense, net 30,156 
Former Chief Executive Officer Succession Plan expense, net 30,156 
Proceeds from insurance claims(2,962)(4,460)
Proceeds from insurance claims(2,962)(4,460)
Accounting review and remediation costs, net of insurance proceeds 4,334 
Accounting review and remediation costs, net of insurance proceeds 4,334 
Goodwill impairment394  
Goodwill impairment394  
Operating income (loss)83,938 142,353 
Loss (gain) on sale of business3,564 (534)
Unrealized currency losses (gains)543 (850)
Deferred financing cost write-off975 347 
Realized currency loss on repayment of international loans 2,706 
Interest and other expense (income), net (b)5,082 1,669 
Income tax related adjustments(27,575)(28,499)
Provision (benefit) for income taxes(27,575)(28,499)
   Net income (loss) from continuing operations$61,445 $115,523 
a) Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and long-lived asset and intangibles impairment.
(b) Interest and other expense (income), net includes interest and other financing expenses, net and other expense, net.















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
15



THE HAIN CELESTIAL GROUP, INC.
Net Sales Growth at Constant Currency
(unaudited and in thousands)
Hain ConsolidatedNorth AmericaInternational
 Net sales - Three months ended 6/30/20$511,746 $298,644 $213,102 
 Impact of foreign currency exchange8,192 1,463 6,729 
 Net sales on a constant currency basis - Three months ended 6/30/20$519,938 $300,107 $219,831 
Net sales - Three months ended 6/30/19$505,305 $284,893 $220,412 
Net sales growth (decline) on a constant currency basis2.9 %5.3 %(0.3)%
Hain ConsolidatedNorth AmericaInternational
 Net sales - Twelve months ended 6/30/20$2,053,903 $1,171,478 $882,425 
 Impact of foreign currency exchange27,471 2,227 25,244 
 Net sales on a constant currency basis - Twelve months ended 6/30/20$2,081,374 $1,173,705 $907,669 
Net sales - Twelve months ended 6/30/19$2,104,606 $1,195,979 $908,627 
Net sales decline on a constant currency basis(1.1)%(1.9)%(0.1)%
Net Sales Growth at Constant Currency and Adjusted for Divestitures and SKU Rationalization
Hain ConsolidatedNorth AmericaInternational
 Net sales on a constant currency basis - Three months ended 6/30/20$519,938 $300,107 $219,831 
Net sales - Three months ended 6/30/19$505,305 $284,893 $220,412 
Divestitures and discontinued brands(13,667)(13,667) 
SKU rationalization(6,835)(6,335)(500)
 Net sales on a constant currency basis adjusted for
divestitures and SKU rationalization - Three months ended 6/30/20
$484,803 $264,891 $219,912 
 Net sales growth on a constant currency basis adjusted for
divestitures and SKU rationalization
7.2 %13.3 % %
Hain ConsolidatedNorth AmericaInternational
 Net sales on a constant currency basis - Twelve months ended 6/30/20$2,081,374 $1,173,705 $907,669 
Net sales - Twelve months ended 6/30/19$2,104,606 $1,195,979 $908,627 
Divestitures and discontinued brands(32,895)(32,895) 
SKU rationalization(50,257)(41,885)(8,372)
 Net sales on a constant currency basis adjusted for
divestitures and SKU rationalization - Twelve months ended 6/30/20
$2,021,454 $1,121,199 $900,255 
 Net sales growth on a constant currency basis adjusted for
divestitures and SKU rationalization
3.0 %4.7 %0.8 %





















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
16


THE HAIN CELESTIAL GROUP, INC.
Net Sales Growth at Constant Currency Continued
(unaudited and in thousands)
Adjusted EBITDA Growth at Constant Currency
Hain ConsolidatedNorth AmericaInternational
 Adjusted EBITDA - Three months ended 6/30/20$62,165 $43,786 $29,909 
 Impact of foreign currency exchange1,214 275 938 
 Adjusted EBITDA on a constant currency basis - Three months ended 6/30/20$63,379 $44,061 $30,847 
Net sales on a constant currency basis - Three months ended 6/30/20$519,938 $300,107 $219,831 
Adjusted EBITDA growth on a constant currency basis12.2 %14.7 %14.0 %
Hain ConsolidatedNorth AmericaInternational
 Adjusted EBITDA - Twelve months ended 6/30/20$199,993 $140,886 $105,696 
 Impact of foreign currency exchange3,430 363 3,067 
 Adjusted EBITDA on a constant currency basis - Twelve months ended 6/30/20$203,423 $141,249 $108,763 
Net sales on a constant currency basis - Twelve months ended 6/30/20$2,081,374 $1,173,705 $907,669 
Adjusted EBITDA growth on a constant currency basis9.8 %12.0 %12.0 %



















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
17



THE HAIN CELESTIAL GROUP, INC.
Operating Income (Loss) and Adjusted EBITDA
Three Months Ended
(unaudited and in thousands)
North America
June 30, 2020June 30, 2019
Operating income (loss)$31,867 $(2,745)
Depreciation and amortization4,101 4,203 
Long-lived asset impairment6,196 5,617 
Other(664)(1,062)
Productivity and transformation costs1,553 3,549 
Loss (gain) on sale of business1,448 (534)
Warehouse/manufacturing facility start-up costs385 8,133 
Plant closure related costs3 126 
SKU rationalization and inventory write-down(1,103)10,075 
Realized currency loss on repayment of international loans 2,563 
Adjusted EBITDA$43,786 $29,925 
International
June 30, 2020June 30, 2019
Operating income$14,667 $18,112 
Depreciation and amortization7,179 8,142 
Goodwill impairment394  
Long-lived asset impairment4,883 4,393 
Other21 (515)
Productivity and transformation costs2,765 (913)
Plant closure related costs 1,058 
SKU rationalization and inventory write-down 271 
Realized currency loss on repayment of international loans 105 
Litigation and related expenses 68 
Adjusted EBITDA$29,909 $30,721 
















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
18



THE HAIN CELESTIAL GROUP, INC.
Operating Income (Loss) and Adjusted EBITDA
Twelve Months Ended
(unaudited and in thousands)
North America
June 30, 2020June 30, 2019
Operating income$95,934 $32,682 
Depreciation and amortization16,890 16,993 
Long-lived asset impairment8,499 7,120 
Other(486)268 
Productivity and transformation costs9,053 8,333 
SKU rationalization and inventory write-down3,996 12,111 
Warehouse/manufacturing facility start-up costs3,440 17,661 
Loss (gain) on sale of business3,485 (534)
Plant closure related costs75 1,205 
Realized currency loss on repayment of international loans 2,563 
Adjusted EBITDA$140,886 $98,402 
International
June 30, 2020June 30, 2019
Operating Income$55,333 $58,808 
Depreciation and amortization31,437 31,515 
Goodwill impairment394  
Long-lived asset impairment8,454 8,698 
Other583 (174)
Productivity and transformation costs7,034 3,186 
Plant closure related costs2,282 3,467 
SKU rationalization and inventory write-down179 271 
Realized currency loss on repayment of international loans 105 
Litigation and related expenses 87 
Adjusted EBITDA$105,696 $105,963 
















The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
516-587-5000 • www.hain.com
19