Hain Celestial (HAIN)

Anna Kate Heller IR
Mark Schiller President and CEO
Javier Idrovo EVP and CFO
David Palmer Evercore ISI
Anoori Naughton JP Morgan
Michael Lavery Piper Sandler
Bill Chappell Truist Securities
Matthew Fishbein Jefferies
Alexia Howard Bernstein
John Baumgartner Wells Fargo
Anthony Vendetti Maxim Group
Call transcript
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Greetings and welcome to The Hain Celestial Group Fourth Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ms. opening for Heller Kate remarks. Anna Thank you.

begin. may You

Anna Kate Heller

for Thank Hain on earnings call. you fiscal you. morning, and conference Good joining Celestial’s XXXX us year thank fourth and quarter

Executive are and President Financial Officer. President On Executive Chief Mark call Javier Idrovo, today and the Chief Officer; and Vice Schiller,

assumptions During of Exchange to on measures financial release this call. non-GAAP adjusted non-GAAP accompanying financial or in the which Investor Company of remarks detailed results few future discussion made including and expectations management’s assumptions any management on The XX-K, the current focus results the Company’s this Commission those Relations Securities available Hain to differ risks to described may and risks statements under within morning performance, prepared report and for also XX-Q quarterly forward-looking additional statements Annual those actual related refer filed uncertainties and include materially posted the meaning Celestial’s laws. the forward-looking cause of release a of these website press that forward-looking based presentation Celestial’s the statements. management’s Please measures. that could and presentation materially pandemic. or These and impact course on and slides operations implied expectations of financial are will from time the Form expectations could today. expressed heading. statements financial the with and These the Please slide today note reports to in involve time on call, this in the a make federal the are and GAAP securities supplemental to and other regarding earnings events has COVID-XX Form from from differ on issued its actual Hain and are Report information, Reconciliations

and webcast, Corporate, in the and changed be to archive being reported been that is from like the on which call Company our also International as to beginning and locations. This of its fiscal website. it will conducting remote had of year respective U.S., QX are focus reminder, on today an World call North a reporting we segment America, segments. our previously As I would of note also UK XXXX, the Rest available

there such, other thank talks brief We during Mark technical you call. your turn be over call As in patience to for advance may And delays, understanding. or cross Schiller. the and I’d minor like the now, issues

Mark Schiller

morning, Thank you, and Kate, Anna good everyone.

global and for Before pandemic. compassion we agility, the our team begin, their thank collaboration, I’d throughout to like

a continue top the and our On of explain XXXX remaining fiscal to very ‘XX customers, our health fiscal of priority. expectations. and and We for ourselves we’re setting long-term sustainable in how operate the up I’ll discuss some consumers growth our with COVID-XX, strong call, dynamic our results, provide including today’s around employees, impact environment wellbeing color

Let fiscal XXXX me start with full year results. our

revised our of the with of guidance we delivered range, our at metrics the at we year For year we QX. in that the of beginning which raised EBITDA high guidance the against plan and end adjusted all provided year, ended end

two For with we sales and but exited that brands SKU in profit after in rationalization. declining consistent net adjusted discontinued as and total fiscal X% constant year excluding growth guidance ‘XX provided the margin Gross currency, top-line. X.X% margin the reported, quarters quarter, dollars grew of summer. last every sales year, Company and grew divestitures, eight EBITDA with We quarters declined consecutive of

North America, gross dollars basis resulting EBITDA of and of and the improvement, adjusted Within full grew in Better for adjusted EBITDA dollars X.X% over points dollars while Get EBITDA first The for XXXX plan points adjusted successful basis adjusted the profit, our grew margin spending. of very compares marketing our grew the the That XXX% adjusted decline year, business increasing Bigger continued its adjusted Importantly, being are with EBITDA year to The XXX and fiscal to America EBITDA our X.X%. margin XXX improvement guidance. XX% North brands, basis in brands strong grew XX.X%. which points for our in half. Day the margin XXX half Get second positively managed Investor modest with line a improvement in improved transformation,

Day had ‘XX, close that overall success. now to and significantly margin is collective with was modest oriented of which half. impacted business second adjusted of results sales fiscal per the recall XX% share brands that currency EBITDA of in constant in International by set Investor were flat increased significant just X% The exceeded our for contributing a earnings to this margin decline last our the margin You’ll despite Adjusted on year, and foodservice and our these business, year-over-year COVID fruit EBITDA gross guidance. expansion. delivered achieved We large

well, is exceptionally additional momentum million than that, second pandemic million the did with million which for $XX split a of COVID-XX, the an $XX in our tremendous for was fruit by offset accelerate of $XX year. over-delivering in performance impacted. we International America While discuss the the QX with QX. great Hain during leaving I which pandemic year into net it benefited to as and before in head fiscal sales, The will partially between business mostly few results about half North adversely the us with has the pandemic, added minutes, plan, All-in-all, and year adjusted execution an terrific performed in more EBITDA the ‘XX. business a great business QX more

Now, specifically. talking QX let to about me shift

EBITDA adjusted That’s EBITDA adjusted dollar over the our at of our we end key dollars delivered provide detail up again, metrics top quarter seventh profit points. fourth and few the minutes, in a against and basis EBITDA yet Javier raised delivered and straight of team all growth. QX. dollar margin straight were the will guidance of more of margin of end Gross quarter While and XXX gave the each adjusted improvement

Within the grew XX% North gross profit America versus grew quarter XX% ago. and in year adjusted the divisions, EBITDA

second stronger America five we low-single-digit in initial strong We relatively delivered Bigger in of guided After half. categories two-thirds consumption the grew an sales sales, that March. Get top-line compared the growth seen brands, show of in Get first to our our surge double-digit top-line the QX. of even have growth On the half last stable the all brands after double-digit Get pandemic, Bigger during our last which would North Bigger improvement quarter, the and in the months represent

was marketing in an In of almost inclusive addition, in the margin EBITDA investment XX%, quarter quarter. for the

brands, improving four, quarter also on margin our to store in for grew of basis cooking profitability, and strong flat EBITDA we XXX after Get margins our Sales brands. On brands improved XXX center and the respectively. momentum to of focus Get Better in discontinued the by adjusting points divestitures gross brands, and Better adjusted virtually continue driven and

to double-digit in we Turning continuing beverages negative two year. in strong slight and a International, number adjusted of last delivered brands growth one non-dairy that constant we margin. number modest Within our with currency currency, International, constant top-line growth in margin with started had EBITDA improvement in number

our our However, XX% business, oriented International foodservice is fruit we declines see did sales. of in significant which

XX%. been Excluding up the fruit would over QX sales have International business, net

is remainder of So business well. our clearly, International the performing

We reductions significant International fruit in EBITDA SG&A adjusted addition, significant stranded the quarter, quarters. that due the input will impact, to during costs. and In on margins future was seen quarter in drag fourth of those undertook the overhead business the changes a to fourth in and mitigate XXX-point benefit be

and our International, results within pleased much to with best share opportunity significant still but expand our margin of resources, We’re believe there’s practices. we focus

As joined XXXX. U.S. and this performance create organizational are will Hain to two in impact five, late later we playbook This our a simplification adopting down of will I much only result, opportunities financial the to have when from divisions significant year. distinct that there begin consolidated

EBITDA. business. of including of Rudi’s, in had we although also fourth month, COVID These had sales standpoint, in million. virtually QX, decline total quarter. Company, in also approximately adjusted million four sold $X business a million after business BluePrint, efforts UK. on net the EBITDA and $X we delivered brands our million were total in brands the Last From loss in by of benefit impact of In $X simplify offset Europe Fountain in $X quarter, the This million and we ended. Truth $X $XX continuing DeBoles. Danival no contributed the total discontinued a in to of top-line sold or adjusted impact to of million adjusted sales the clear fruit We a -- was EBITDA North an or America, our and million there a of For the brand quarter our about $XX successful

and of redeploy focus or Overall, selling success delivered. a So, can non-strategic add just strong as results complexity. our to that share them, and opportunity, proud strengthen quarterly and have further and we Without resources see, time annual we’re brands growth supply disproportionate can we of consume results. continue we which bigger chain will on small you the exiting our management

As transformation clearly delivering laid out on working particularly North is in and Investor our Day, plan results, America.

execution SKUs containment entity, strategies our one delivering pandemic. which North growth and plants cost the innovation, performance accelerated the Many during Canada Our Initiatives in were before marketing top-line acceleration. of initiatives assortment of into like our have low-margin simplification, the consolidation and the underway already optimization were lowering costs. have within enabled already pandemic, of building, the elimination started U.S. operating quarter, and America and exceptional capability automation profitable

improvements momentum going CPGs, future. Bigger growth believe forward. While far, benefited are the significant confidence thus the which will the particularly that and that been The before we, have pandemic have as our most of the foundation we during we from endure Get and into will continue strong agenda COVID have well brands, have made

Seasonings than buying buyers buyers pandemic Let excelled both me X.X household statistics. metrics well improved repeat categories, pandemic with try more the of new Bigger XX% with Since by Velocities priority households XX.X% since ago. increased Get repeat a our had year increase growth Bigger and a all penetration. household portfolio, began, as few the in we’ve Celestial tea category. our rate million XX% in provide nearly began, the penetration We’ve four outpacing Get by in XX%

gained with velocity growing the over most Celestial weeks, share also point full again Seasonings XX%, the category. For a XX outpacing recent

out new and XX Our fall SKUs onset Hain rates TeaWell And the bringing new the benefits. this we’re well. with performing before buyers expand virus. category In and to new was distribution growing innovation of snacks, repeat continues very is

new Sensible buyers we add growth last year. COVID, way, and top-line double-digit the growing growth on significantly purchases delivering to double-digit improved X%. top During of and continued repeat led share Portions

we strong year. more rates Screamin’ expand continue brand Terra, of in share, the Garden also Gods of on innovation other Our any have grew repeat improved ahead which In gained than to has well up we added later very leading innovation and yogurt, velocities and Greek and Hot And more category. we buyers this Eatin TDPs the ship grew and distribution, category. yogurt velocity will

with Our advertising barriers big just for data beginning and of our on to our our business including XX%. of our and brands has working point care, one have see addresses significant self new of can which at is Live impacted in personal the is e-commerce we line yogurt hemp been negatively difference, growing for all We’ve of which our the for we consumers keto like have XX-week much Within where channel XX% the the started products, MULO natural great we’ve that brand. shipping, also skews than parts when growing Clean been a of off toward -- channels, Alba launched portfolio a start. were trial channels, isolating, accounting when care Much number of consumption had the the both measured faster and club what than brand was also personal and you pandemic, strengthens more sales, success.

the have repeat in we’ve QX. our Get all pandemic across had for Bigger during significant portfolio and growing. summary, household the Sales, penetration, and time first are products strength tried new share, Consumers velocity, in repeating. the rates So, trier are margin

sharpened We’ve our Our marketing and pricing. working. are innovation

execution delivered. has supply and chain Our in-store

and confidence not execution and pandemic momentum complete the up set Given delivered, for control. the have have we peers, in first we consistent I complete culture provide fiscal credibility. to confidence day, you we you into can our unprecedented guidance. the a decided committed of difficult impact have directional as that brands my we provide terrific we’re our that I with that have guidance. during strong have the make specific business unknowns plan to great plans, said, there results some and economy, And turn confidence provide with of things many are visibility we uncertainty consumers, and customers a just year in to entering specific enough That we team, On Having our the ‘XX, and most to while ‘XX, it on information. given our of said our we COVID’s volatility the that, our

First, in dollar expansion and fiscal ‘XX. we profit margin expect continued gross

We adjusted continued in also expansion. EBITDA growth anticipate delivering dollars strong EBITDA double-digit and margin

and on of the year. top-line, of moderate the to Top-line on the digits, with grow brands current Bigger growing last the the Get delivered are and our trends discontinued should we half half, in half we impact in half, Given double stronger the continuing trends the first at-home the adjusted year. eating-at-home for it’s eating America fiscal current throughout bottom-line momentum with North second and second brands in that assuming first are top-line divestitures expecting be the both, having the ‘XX as

of half second in less the pre-COVID of growth the QX. ‘XX, wouldn’t with information dollars, current of we need way the of also profit the specific of margins. clear, the because already are EBITDA quarter, for margin, expecting growth reality, the we dollars within said, the we thirds ‘XX directional and given pandemic. guidance strong fiscal gross discussed giving the in compared and fiscal to some we’re factors two gross outlook While but second out second aren’t we lap EBITDA associated year the a through and in That for headlines slowing Normally, year the the quarter, have on expect to half macro growth half is the give

to growth, For top-line I margin When in we Hain, growth adjusting to committed with after expect the comparable of also ending I half delivered ‘XX. September quarter I XXth, to and level we new fiscal EBITDA what discontinued committed a joined second the and and divestitures mid-single-digit brands I what for adjusted deliver improvement promised. transparency provide of

both it ‘XX over to much financial our forecast Javier and reasonably continue that, I on sure I performance do detail will you fiscal to details want So, expectations. With turn make give more and time. can his I as me providing as at to let who

Javier Idrovo

key information There the transformation five aspects demonstrate and financial you, morning, Thank good today the everyone. will we performance Mark, execution from that significant are plan. of that fourth review our quarter of

second consecutive growth prior year top-line versus delivered for we First, the quarter.

margin was by growth expansion. supported our Second, continued

allocation built flows. continued better a Third, business sheet with cash And is we well-positioned are generating much flexibility. Fourth, healthy our finally, success. balance we capital excellent have for

our mind, So, let’s drill our into will discussion each of these aspects, starting increased with million, continuing the consolidated focus top-line. I on $XXX Keep line to year-over-year quarter expectations. operations. in results sales X% from with in financial Fourth my net

and basis as net adjusted headwind and brand we gross was adjusting EBITDA adjusted divestitures, impact sales XXX EBITDA on exchange increased in X% profit were of a period. improvement QX basis delivered these year-over-year versus both, profitability quarter the of perspective, and about From margin. discontinuations, have gross headwind the SKU prior year and guided, margin points, a Foreign a further XXX points. rationalizations factors, When for

helped of percentage the of sales truckloads. year consolidation also quarterly fuller initiatives. as the our fourth was Gross versus profit SKU resulting last headwind margin. that million. and in improved driven mix, XX% the locations, margin adjusted consolidated Distribution points, America prior year gross for period gross $XXX our by Currency quarter, the period, growth, impact The XXX product to by about overhead started improved increased costs top-line of Specifically, plants significant driven warehousing fuel a absorption a North basis rationalization prior productivity chain profit a million. $X on in improved better and supply versus year shipping gross

we to business further this continue portfolio simplification regular position for evaluate practice, operating dynamic ourselves to environment. our in for success As

compensation This as For by by a and QX QX increase America increased into Fourth net offset incentive increased a with the operations and EBITDA by an of lower period. SG&A, This period. lower performance in The prior North XX.X% prior right in a percent year year-over-year, adjusted rate with to year. XXX XX.X%, points Currency X% of travel reported one stronger rate XX% to was line We period. in an about compared effective Adjusted rate reductions driven our improvement the of COVID-related versus of last sales to $XX million. $X XX% about $XX of consolidating tax adjusted match in million, gross headwind impact represents achieved was EBITDA an increased on prior was our of to inclusion spending year marketing year tax entity quarter improvement. accruals performance. represented $X.XX mainly QX effective adjusted in than margin XX.X%. compared driven EBITDA about margin $X.XX EPS of on was last of yield year, basis our tax the by based million

let’s sales some American as reporting with net million. the margin well segments, to our on detail top-line, and X% Now, expansion. we individual increased growth sales where year-over-year $XXX business the fourth North quarter with provide Starting net start saw to as profit profit

exchange on margin points. dollar headwind Divestitures, were increased XXX factors, perspective, sales XX% adjusted gross XX Foreign further expansion net points. and adjusted and and brand about QX delivered From a versus prior quarter of the year-over-year period. basis rationalizations and a adjusting When margin impact EBITDA profitability for was year basis expansion. about the dollar SKU discontinuations these

to of the adjusted stronger XXX This quarter, fourth our in driven of improvement Get North increase of EBITDA or Currency $XX adjusted America impact XX.X% prior EBITDA period, the $XX increased chain $XX by period, a productivity million, brands in Bigger of mostly adjusted profit million our was for basis minimal. represented an basis gross gross system. and prior year the about XX% expanded efficiencies margin improvement increase. mix margin points, and towards XXX margin EBITDA last million our was margins Specifically points QX top-line, over Adjusted product versus higher year. the driven business resulting in year compared Adjusted XX% by gross about an by and initiatives supply to improvement.

results believe, XXXX. are delivered we far. region improvement well Our as we North And America for thus has fiscal Mark mentioned, great positioned further in

margin Our have improvement of multiple further executing focused team we opportunities that for our on identified remains against structure.

XXXX. growth as This components XX% QX American brand Get Mark year, Looking from of tailwinds improved last the Bigger COVID-XX XXX basis described last target primarily one of the X.X%. North tea, experienced points, brands the that Clean. high-end a in that earlier. an during Day Get such brands primarily range profit The adjusted points Investor which are care communicated driven yielding and of for EBITDA experienced snacks adjusted Portions, XXX of product by from it margin personal QX came is The But, yogurt lines Sensible to from Alba line, we we several of in and the portfolio, is basis product margin margin in that a Get net lines, Better managed XX.X%. as margin our only growth. Bigger being improvement yielding showed QX, compared EBITDA for QX sales the The year, Live into continued quarter the EBITDA

Net for shift were results our foreign to compared me X% and for of were QX adjusted with our expectations. the to quarter where sales let Now, consistent when year. last flat roughly exchange, business decreased International

to mixed. on were for the the million results QX, COVID-XX Similar represented exchange a quarter Foreign of impact $X headwind.

gross strong Mark during Our McCartney contrast, The leading quarter. growth non-dairy share experienced with year revenue, decreases UK versus brands to with Joya Nonetheless, prior as in Natumi and the positions up line our all robust margin with stated, channel line and the also product Linda brands the quarter the EBITDA this large were our was and in with expectations. margin foodservice delivered and business Hartley’s In market period. growth. the as dollars exposure experienced in in adjusted food such although

operating Now, operating million from cash flow million; by Fourth period. flow, $XX prior free in $XX as the shifting less CapEx, million cash about operating cash to practically to improved quarter by defined improved cash and flow. zero $XX year flow

our cash June we by $XXX to flow year, we working improvements maintaining as the full mainly while in XXXX, a by decrease flow locations $XX and improved levels resulted in demand and COVID-XX been $XXX service capital $XXX enter using in million normalized earnings, at stronger quarter, cash our primarily driven a have the million. of the inventory, of number our million lower operating million decrease was to And half than shipping capital levels. the of by end improved be at and replenishing the our to operating For the inventory a expect in At $XX QX, million the end we Throughout divestitures, products. from reduction expenditures. of our second for free cash surge levels XXXX. network in These the

Our prior just delays cycle due This consistent driven to compared equipment $XX levels inventory days. suppliers. $XX the in target mentioned. our conversion in by million period XX of cash to was year quarter COVID-related is days, the in were of below XX quarter receiving million for from the with the prior decrease Capital expenditures

result, year, of to fiscal a guidance. approximately was $XX compared the at our end CapEx fiscal million million lower the $XX As ‘XX, in for

year a of debt healthy allocation X.X. balance and the cash gross we leverage debt million This excellent $XX So, of capital million, fiscal June net is flexibility. sheet of XXth with $XXX balance on a with closed

used fiscal performance, million attractive outstanding the leverage XXXX, with and Company’s we $XXX the X.X% internal have repurchases authorized leaves all due executed to the our share X.X in we market million also are $XX of repurchase Given price. attractive XXXX investing stock. million decrease In of in repurchase shares at opportunities, strong This common with authorization. Company under additional repurchases to our us share

aspect final of business. our our our to outlook financial the turn results, Now, for let’s key

duration on ‘XX, not business, uncertainty mentioned, shopping given the we covered tremendous first more already team’s to the million half confidence $XX the of specific in and related consumer ongoing Company’s the to like full decided but of we the Mark COVID-XX, removed year manage our in perspective quarter its to have the aspects impact controllable the and to Also, discontinuations, would I Mark XXXX detail. provide and ability our of magnitude from have behaviors, fiscal ‘XX. and year for As discuss the been the divestments of days. including Because pandemic first fiscal brand for guidance have

the and profit For strong the Gross margin strong double margin dollar following. anticipate with we to operating expansion, digit full cash in year, prior free and year adjusted growth growth EBITDA expansion digit in flow. compared continued

addition capital of to for projects expect In across XXXX, This be be around chain. our will X% sales. which an is expenditures productivity net used we several increase from large XXXX, fiscal accelerate supply to

conversion in navigate even turn remains expected we I delivered long-term with delivered We consistent will We strategic cash continue transformational pandemic. the XX beyond. fiscal Our profit for plan to sheet. improvements margin growth every amount ability prior in progress tremendous now and made we days. make healthy as remain our In and Celestial is be to cycle to versus confident have We versus Mark. in generation in year, two quarter. further XXXX. top-line to of the fiscal ‘XX we call cash believe quarters. We built expansion improved Hain our target balance year of consecutive the well-positioned prior through our a back growth We a summary, flow and

Mark Schiller

Hopefully, year. momentum and had for of our we see, you fiscal results, understanding good expectations a tremendous can XXXX this got a you morning. As

achieved against dynamic journey particularly plan, two at and to of our Barclays at fiscal we behalf ‘XX have thank in operator just like I’d outlook over believe months, the in our that executed the drivers of Hain let evolving our team team, turn With fiscal success XXXX What the management and weeks. environment. On Celestial Company. it around the we’ve this and Board conference questions. collectively for provide in is for the embraced goals, how our to will that, of more the key ahead they for well global coming me beginning Directors We starting the and transformation in lies detail


of from Palmer comes [Operator David Instructions] ISI. Our lines Evercore first with question

David Palmer

fiscal was do Thanks. gross you margin reached When XX% a great. reach of expansion Hain know Good think morning. other resulted rationalization. XX% lot gross Question targeted of over gross can the sort on margin, the margin? second which and And time. that has the margins you’ve in over half I to-date, divestitures gross year, from of a you

you will into the regard course, Of during COVID, period, continue to boost year. next with this had fiscal that which

So, And you to the of Better versus Bigger improvement portfolio. think into pace we about break want down how Thanks. from should here? that Get Get maybe also the

Mark Schiller

Yes. take happy to I’ll be that one.

steady going look, see progress So, we’re on margin. to continued

You points had And in have the business, year, of the XX of of seen points expansion that growth XXX XXX points about on this something basis not saw another several quarter. you hundred margin would frankly, margin top fourth for it we been the fruit something delivered.

already we deal the of Bigger will we anticipate already Get top So, on several you take if on we And brands XX. clearly mid-XXs. will that points hundred margin at with. to have we’re basis get to level. that The have aside, an close we said issue the those into we fruit that And that But, are business that. get we XX% the more

track manufactured. self top-line on to benefits And key that. well get doing that plant. we we as those are continues because growth We’re of The to be fill tremendous do absorption up to the most

also in programs very terms of We automation. have robust

and We SKUs some to left on opportunity We have on uneconomic do. still spending. have some consolidations

those plays we as continue there’s mix well. on also to the role big So, And businesses be had Bigger brands. still the that improvement to on way, margin Get by a significant believe

brands, of our sales of America, our in the They Investor Get of they Better were zero XX% at On profit. North profit. are back our -- sales now remember, Day, virtually about percent which of and our and XX% XX%

same a the out them, taking things. basis there oil leads customer the forecasting now. consumers well continued benefit points mixed there value, of better XXX discards whistles less businesses of and products, bucket, in kinds and the as they’ve are Get we cost bells expect year, improvement. coming margin improved willing distribution They’re to through again is Better that will So, to the the and be of for warehousing and like fines. over that margin significantly Design our some the that’s high pay in management aren’t costs, growing double-digit there which there because continued reducing within And business to

within Better as And mixed Get opportunity so, there’s bucket a well. the

another short, XX% we seen So, close that next to by a margin points of -- couple margin the we we of get FXX see should hundred expect hundred year, promised. to this of expect plan, long we the be margin basis basis time you’ve story darn year. points to pretty And we that delivering couple

David Palmer

Thank helpful. you. That’s

as Just were COVID do internal out, is year a year what’s a ago? that COVID the some ‘XX your beyond period, months higher the running post-COVID think and factors think terms the for just you Thanks. playing planning, versus in months that fiscal quick reality follow-up, parallel see EBITDA you itself is in six in first if after result own ago, for of EBITDA your how about say to of year, you own probably clean fiscal the portfolio your six versus of either or management, internally EBITDA about

Mark Schiller

got these what forecast post-COVID Yes. nobody incremental at It’s a great point going that triers that how we looks are question. this to like, and Very that remain. much hard of given to knows

Bigger What it’s the I brand bend transforming see top-line hard have the pandemic. the promised Get that the is, were you before would to though question. me beforehand. I for to on say answer starting So, would the we business

the charts the think Get that today, one see Bigger think, X% I pandemic was growth I the put with there in you’ll on month before earnings brands the we started. in that of the

on when that we we And others all time of the lot like when COVID. be turn now brand back others out pulling P&L. now of we’re that growth I have a say I game at a performed that of to things we’re have come marketing, played hand can right our between in very we all out it’s Obviously, we that robust looks seeing But, entrance the if to But, innovation, the sustain there’s now, Bigger very COVID. So, picture for think the scrappy and addition in. terms into profit started given COVID, given us how growth, of like of we of during exit it. to back a a had our COVID. now right right Get will time pulling already bringing sets at from of marketing what categories the are think amount good end sanitizer, on a when premature of innovation are up And


Morgan. next Our from the of question comes Goldman JP with Ken line

Anoori Naughton

and Good is one have for then Naughton Ken. morning. one This I question Anoori follow-up.

quarter. personal benefited hand sales from is, question fourth you’ve first The care, the sanitizer in within strong

guys quarter extent what continue in to into this and sales the expecting category remain first to strong to beyond? are So, you

Mark Schiller

a to a sanitizer. hand quarter has every a if strong hand sanitizer got see of quickly So, in the in hand sanitizer opportunity had it. fourth front you was the Canada. business have did you’ll We obviously lifetime into came We U.S. in But, in go We store that much a pretty lot us. once of opportunity store America now, the in expanded in

news on good sanitizer. permanent distribution the is, So, picking are we up

the whereas are and So, of and of sanitizer. these instances using been kind had their out, alcohol lot others where have wrong of there people and are many to kind recall a in

pandemic. beforehand we don’t the that incremental pandemic. we’re very nicely think was haul. long going addition have the And it before. makes as a personal we But, to nice of for grow business a business nice as that anticipate the very steady continues a didn’t great and going that to growing are be they elevated very were So, portfolio care sanitizer beginning We sales to through it’s to have the during nicely

Anoori Naughton

Thank just to categories expectations that maybe wanted you in that or lagging areas out fiscal can great. you. follow-up, or there I are a little where improve And any you’d bit for call Okay, your ask about, brands a then, ‘XX?

Mark Schiller


in go. leader. when and food. their So, self something a standpoint, brand the format has which picked which pandemic. in pandemic call, five, about to and last food share mashing during and category we with unhappy on things carrots that we they’re when that and the from fruit, buy talked been were that the and It are have lot results isolating super a we have and good bananas categories up were in about making the they hardest Moms terrific packaged typically been two a out baby consistently had hit That would needs we six own premium We’ve the baby but baby rebound, Ella’s, a that months. -- up on brand, over the seen the we’ve a the said, start have certainly UK, category is they

Best, is fantastic Although somewhat another States, which And the have again, brand. United sales in challenged. been have Earth’s we

a X% Earth’s that only Best margin Investor had EBITDA Day. remember on You’ll

to do have profitability very business are SKU that and been doing rationalization we’ve the but digit the single top-line to growth. considerably, we returning now how get low So, we aggressively on back improved

So, some that’s to do. where we’ve work got

snacking formula margin is the and We innovation the higher and a which have particularly baby coming, than some pouches. food, in much

that start continue and we’re top-line So the we to turn to profitability optimistic see will will he expand.


Thank you.

the Piper your with question. question Please line next of with comes Michael Our from Sandler. Lavery proceed

Michael Lavery

the the that between in You takes still in digit some puts upside the U.S. at in around you virtually you the a single where called total Company had no have fruit and for had COVID on at the top-line the range. then quarter, net and UK mentioned impact level But, obviously level, total and company mid out

your growth you expectation that So, for top-line rate? a hear would run correctly that’s we normalized

Mark Schiller


is the were at did before much we business. we quarter important $XX from what pretty What’s had the what our the we the we So, what top-line. to drag a was thought note did to expectation fruit deliver? and happened we actually on So, was COVID to what deliver again, penny delivered looked going for million we

a in some some had and for COVID in several results on saw constrained. we’re We that growing So, the business by saw big bump capacity you years Daniels. has the business America. We would in in I nice frankly that tell nice the itself grocery the been teens high overall Hain results. North impact business non-dairy bump European

the it growing the business, to were But, $XX that up But has basically as impact. that do I has had it we there no as lost the we with, other and it the COVID then the hard with zero quarter. million those all been So, in that know, been. says, million XX nothing gain to sounds $XX of netting was of believe, has the fact COVID for rapidly basically given that parts math drag from fruit to up on it fruits. we offset

Michael Lavery

Yes, I think the mechanics you’ve laid out really nicely.

rate the is a So, way depending X, and on plan same, level, expect you what of want a on to get good was to arguably I I just normalized bit maybe top-line thinking which what should to kind if this mid-single-digit a just measure we world normal is it think. X for growth pace the understand in I’m trying call you little at

Mark Schiller


there declining XX% we to X% what were been So, Get expect of Day and we it quite been and on top-line. area Better said about the before promised was growing we low-single-digit COVID was half And minus Get ex-COVID. been business Investor hit. top-line Bigger to the was beginning rate range, to that in We X% going the its to that X% would X% International X%. We would it We to quarter had declining get had been on at into first mid were the not it minus mid-teens, the run moving single-digit The which have had brands, third turning brands. had yet. in

strip much the long-term toward guidance long-term the and guidance think do. already on on our we’re we and to with say I -- Get I the if more Get So, Bigger moving International work piece, everything on out, still at brands you we would our Better pretty were were top-line

pandemic, but to we’ve we’ve this in less So, muted Get because the Bigger the would been ability than I’ve bump resetting gotten now their before innovation have about when brands, and our really marketing sell is all customers right aren’t otherwise momentum has it been that had talking shelves. frankly that got biggest on great innovation we been by the

I and pandemic on low-single Get to about we and International be and on long So, were would now. top-line before performing mid Better about think short, we right high-single-digit where where COVID is digit story without Get Bigger the decline

Michael Lavery

quarter. on several know you expect lower quarter. Can called just hundred seasonally your portfolio true across for been give Okay. first I color. Just a That’s you trying this bit? a Would is year sense of basis-point lift margin rate or get margins. high a how be helpful know that run stabilizing in quick follow-up go. might little to sense? lift a has a quite your the you And historically That the quick has I out still evolved. just --

Mark Schiller

quarter. lowest typically is margin our QX Yes.

we’ve got soup a You business tea remember, business. big and

is hot in we the see And that winter. skew all retailers care, And only have so, to we the the sell through summer much sun to that they more then, spring. business sell heavily tend is during The you how oriented of months. really the and

we we’re very it momentum. plants it volume ‘XX have our really, strong lowest in said, That where with tends and our So, is because exiting be lowest less quarter, margin therefore quarter. the absorption to

then, of quarter. through we’re start. to that see margin the good some tell the the very a going are to nice And way quarter, within feel we I’ll We quarter. gave confident the pretty And the two-thirds you guidance around off that you’re expansion I


Thank you.

the your next Please Truist Our with proceed of comes from Securities. question. line question Chappell Bill with

Bill Chappell


some you I have big North of momentum, COVID. kind strong mean, certainly picture, America excluding even Just in

Just spring I off the there retail look So -- that resonate reset, recognizing just are stuff terms that, the And trying there’s ways or it’s that know everything, now that? some it’s it the per a rush and innovation say your a planogram something there to retail but understand, is out that, winners of you mad the to shelf the I to gains your for like losers just is space such so partners? partners in when fall. to right is se but before kind chaotic, planogram as of reset, the pick for coming, in thoughts, tougher

So, any there? thoughts

Mark Schiller


relationships with improved dramatically several for XX customers our So, reasons. months have last in the

talk nine and whatever, come months is were keep conversation in can personal we just foremost, keep number you had about an and months stocked, or to retailer care first any even in you a with the shelf servicing service until shelf First XX innovation I promotions business. business so the improved to when response their one. talk ago. Because don’t the our want service or our not you relationships, XX% as for ability has couldn’t to stocked the example. We We

checked that we’ve box. So,

Second, business serviced where we and pandemic. really struggled surge in the through the pandemic with the we came into nicely people other capacity, really the

able desperately So, something of hand on we points, some they when go things nobody and our kind to grounding a of people on are now to marketing and are pandemic and improved provide scrapping their the could business. at sanitizer a the when again All get we time we of is top Then, of service it, won things other ability pulling and were have service will, back the to with around ton on also their bringing like trying to innovation if you kinds them that, those the because needed. customers relationship. back innovation, they’re just pulling

exist And flavor they’re of probiotics, is things the we’re very, customers. for really that introducing XX So, another just XX% very well new within plus been growing a items tea, months, of last five example before that tea, Sleepytime we’ve received whole it’s in here’s being bunch by category melatonin, in it’s where the tea. it’s for it’s didn’t energy, not

bode the got well last the bringing we’re spending. say to at in versus others and is, we’ve to picking you eliminating bringing months, we’re aren’t remember, extensions. So, real us reducing going And last space. over terms And when would thing times SKUs I innovation just then, innovation uneconomic up is of and line been that XX

the So, we’re from what we are people are again, people pivoted the grow they that excited about on bringing. growth cutting good toward as you’re with category, the pulling very retailer money now back to we’ve a reception getting away and and from push

all up that I of just So, pandemic the to mentioned. set the and factors I very a during coming out are well be net a pandemic believe because that the winner net we winner of

Bill Chappell

Got just the back benefit you because it. margin mean, some extremely rates. gross a of gross is early No. the And high of I margin That’s follow-up, just to kind utilization clearly on, helpful. as have question

presumably, -- know so know like and it don’t will I but looks post-COVID, what we go And consumption down some.

you holding margin is margin gives or top on those I how CapEx? in of hold important you can over have, the gross the believe kind you to year on you the CapEx gross to it step this next improve actually -- do up gains, gains So, guess, that and can you of with what

Mark Schiller

will on I we of be think, what it top have.

look, we’ve -- the is if we’re that margins. that by given in fourth Investor innovation the the So, improve and all the been was will pricing. certainly They filling plant that got even have when we’re we no COVID that Get key of seeing things of we truck. marketing, here, going in should we the were and margins Day continue strong was an that one mean did been was And I are a minimum the built I on the the the driven businesses of fiscal in EBITDA lot there businesses Bigger Get to margin on in some Bigger up Even productivity the automation those those the volume pretty And there had is the grow The is do we still programs to quarter on in with manual said on ‘XX, When going things as on expansion end the future. margins seeing be we no Get there mid of back brands. mitigation bracket that further. very which to the Bigger high-single-digits EBITDA XX% was of surge in the into there that to be absorption to for bringing very is that drivers. one there lines. had theses robust then, we’ve in automation margins like seeing marketing we P&L, of with middle absorption investment demand, continued the doing

same a if whether truck. So, palette on put or was it one the truck you’ve a full you got price,

on hopefully we an being same has we with move the and people truck, to or for average moved incentive the forward one pallets for no gas now from same a full move paying was trucks, there same so, to a truck. driver, two maintenance, fill as half toward and that were up And the we’ll empty a truck

of there margin, of So, in still those plenty P&L innings middle left in delivered. that of already of will be we in terms game we’ve improvements expect top is the ball what the and on the


Please question your next comes from Our Dickerson with the Rob with line of proceed Jefferies. question.

Matthew Fishbein

this solid for team It’s on and question. on year, the Hey. Good things morning. much execution for Congrats And all thanks Rob. the considered. to very you the Matt

Mark Schiller

Thank you.

Matthew Fishbein

trends your the pointed and allows America-International North as split XX-XX, So, you successes to two compare before, strategy segments. out share between you’ve

hands look top-line significant abroad the America on potentially business trends margin getting while perspective, the like the to education North International more international a peers business on from relative pandemic trends future So, U.S. expansion you’re is without and trying to here exposure, and more in acceleration a

first, the between guess the generally, for what simply seeing European just pipe consumer So markets? World are versus the of Rest opinion, European the still the for and where the changes U.S.? situation best are that the you’re to behavior key down come COVID U.S. that in differences consumers perhaps post with And what’s macroeconomic and your lockdown

Mark Schiller

and Yes. It’s International, question. UK What’s us, a interesting Continental great for Europe. largely a do. U.S. business European the It lot behaves it’s like about states

nothing slow same in going of on. is like are states have you are lockdown and open are Europe. some that have to the there see you behavior states acting kind in So, and that very other We

one under back not lockdown, the people restaurants office. have UK, the still I most would is say So, are in the opened working yet, not the

I the very throughout much different open to very or the Restaurants When It’s pandemic. Austria it’s restrictions. is you little get business factories, masks. at like is have pandemic the And impact the as society. mean, full. People been the have They usual. office a places an going wear are through dynamic. they’ve There don’t where pandemic you we was and here. the Germany look so, more of like Europe beginning of Continental

do. depends tell together what think What So, I looking its on more than I it act would we overall really you’re has specifically. at you Europe

I versus keep out been figured where think that it’s You how the economy see or dollar. currencies and the they to have their the here. And more strengthening moving contain either of that pandemic the in

We’re or either doing one well other well. the

of And so, managing I learned think terms be they’re how it. there are lessons in to

be there Europe is into Continental Asia of have -- behind an us coming as are I -- move we’ll I don’t direction example. in indicator as usual. I think my back we the think the to is and business, getting probably is that’s think what’s of ahead and But, great and forward. us moving UK closer here. of visibility we to of society But, business best terms as leading I Europe of in kind Continental reopening and that’s for that

Matthew Fishbein

Okay. North America have forward? Yes, And North I into be repeat trends or Do International going businesses, a they visibility that’s how isolation, fair on very rates in would you topic. guess directionally and that to that any compare the proxy trends, helpful. even America would penetration household for

Mark Schiller

the we portion here. get In that panel private is Yes. which our business, is label. that driven don’t Europe data visibility I as have like much non-dairy the beverages, largely of good by a into

even don’t we So, buy data. syndicated the

anything has capacity get good some else. rally brands faster more than said, cry here. of have if we’re We relentless which XX%. grow we by I We could constrained is grow there. capacity could Like faster, our what been They kind

two one where I think from the think, than the we in brand, I share a have the number number pandemic was here. surge smaller we lot and UK of saw

brands, brands in and growth have But, on rate. the do do we Bigger increased more like United repeat of here. States. see center growth. panel households more And on of growth similar store I’m But, great the of I Get seeing the there. in see here cooking in data don’t XX% I seeing see the growth so, terms I’m high-teens into brands I like visibility

and of surge So, trends the I more are of similar. slower little a just consumer reopening muted think economy. certainly It’s the bit a a


next comes question. your Bernstein. Alexia the line question of Howard Please with with Our from proceed

Alexia Howard

CapEx to this all, of So, projects the quoting those are result are the how what dig plan pumped what then, -- over cost those alluded productivity I much I do of you’ve spend? going get that follow-up. year? think kind I can actually improvements be, [ph] as frame into out, time And first to you but just of a a have that saving to

Mark Schiller


capital. I’d say looking payback the we So, to and of a three-year on at all look projects at -- obviously you’re NPV, the average, on the IRR the two

have than probably XX% capital We more year this last year.

productivity is are projects So, and robust the the throughout number year. a there those of we have, that projects staggered of implementation

already taken have place. of Some them

productivity year is, Canada, or of FXX. in with done others The start middle the as reap there line whole stream I of other will dividends projects we’ve toward on And year end the of mention divisions will and that is later. we take finalized that international, place are the integration a in to U.S. the will varying similar of to the in with thing this fiscal being just into what get big come the would

given similar projects productivity and acceleration a going algorithm, of timing you’re the productivity expansion several-hundred the of the to of into from So, I think basis FXX year this points spending see of this year. margin lot

Alexia Howard

this much spend a expect do how was up how as ‘XX? in your year, marketing And it fiscal much Great. you be and quick to follow-up, up

Mark Schiller

interesting how number. question. marketing, the lines Javier What’s that marketing, marketing. three hotels quarters last the is, -- answer you know, you Do the on up about three marketing in it if I aren’t other of is now in much the but knew get number we’ll cruise exact airlines think of right aren’t looking ‘XX? while it you it, I up aren’t year, was grew

marketing So, the has dropped dramatically. cost of

can I did than previous the So, I XX% spending, get in for dollar flat years. XX% for to more bang

more So, impact be spend year, cost, to for on So, Alexia, marketing this we’ll to I’m starts to dependant more But, can right? If I’ll I I’m get get spending, to is up, economy back costs the that whether the or increase I spending. very for not. and probably of add the back levels the to lot amount much spend at normalized go really year. comes more same everybody this the spending then XX% won’t going more if hell evaluate and my have need a a what going we

And number, So, it’s what little impression dynamic cost to I’ve the historically. bit this paying Javier? of a depending on relative been a year, per

Javier Idrovo


this total dollar for grew for be amount Alexia, marketing overall our XXXX. that’s with grew XXXX, versus year, about XXXX will And consistent XXXX. the spending the So, in how X%, marketing we

Alexia Howard

Thank I’ll on. very pass much. it you Got it.

Mark Schiller

to comment of brands getting last but the it’s we’re close X% on sales for in North Better. marketing Bigger Alexia, The just Yes. news one and higher is, good America, lower for Get Get

our So, still across on you probably the we’re spending a of on levels. pretty a the will Care, levels North place light are one The spending. category, is tends our of But, in to we’re rest because a brands more America, higher have it’s in good if fashion spending and I little Personal good. pretty business, think

what’s to working, paid what buying cost of spending, dollars. more So, to and We’ve the relative get of consolidations non-working it improving instead I’m really of comes what agency dollars down lot the of historically. effectiveness those working done we’re putting of what more I really then, a into to dollars


you. Thank

Our the from with Fargo. Baumgartner of question comes next Wells line John

John Baumgartner

I out is that explains to of or in sales why differential? I just stimulus the excluding seen trade you International at in in come guess, purely government label you private there of was mean the something the was Europe differences think U.S. is in seeing is going think I I’m out. quarter on wanted you retail haven’t curious, off, And benefiting yet, -- the highlighted trade you in as but the label that fruit do from really else do themes Europe, this And back the to first strength Mark, business. that last private one consumer

Mark Schiller


much, private is sales percentage private is The is development double Europe label the a it than of in much, here. of is bigger in So, U.S. much what label it

You’re XX% it’s number. whereas here, looking private label, XX%, a at categories with XX%, much smaller

that used are So, coming the those buying consumers as from label. the as very are stuff branded. They to brands manufacturers private consider good

different And dynamic. so, it’s very a

business XX% of private label. the a So when because that is important tell you, is Europe, big got private category non-dairy I we’ve label in

be So, your of a label branded on have level to get even provide door want branded player, the some the probably you if you side. to to in private foot

they are trading label. a pandemic down in that where me to surprising not people they’re private cash-strapped, it’s future So, their that worried about to are

all are label think in because used don’t cash-strapped that in place there. I normal as is than Here, stimulus of it private people and we’ve put the and over is here less accepted life

and in So, people label go They’re all particularly that impact this private worried are we’ve about And is about to far anticipate very for as They’re worried a thus and we healthy. change at health staying categories. not that’s going very a virus that through seen worried we about pandemic, the immunity. don’t very big wellness. our given much

is is positioned wellness, being that the well at compete this I where which Company other and think, core we’re against. our pandemic we people relative for So, very situated, of to health

John Baumgartner

from assets. I good the Okay, great. repurchase QX the on, where times, at a with moving wasn’t for now, are you terms is Thanks be share bolt activity of do I as in what activity here? like of at in do now M&A, all very of right there How X can Is that. you integrate at And buybacks think it have you moved usage. you. already? as the bottom? And the top restructuring higher. But, about will in much point in that of terms When place you M&A mean your follow-up leverage a new have list? mentioned. order stock bandwidth, you right importance still parts still cash Thank mean, don’t the on then, if just feel the on complete you

Mark Schiller


allocation part strategy. answer Javier then about me I’ll and our the first have capital Let talk

still lifting two million there the tail lot continuing there our portfolio divestitures a last of So, additional while to $XXX And way. be of almost and are We’ve we of of has a four and to is the future. the along reshape has but in will this the is over look, lifting the we’re earlier worth at But, done, we going heavy years. gotten to been some done. fruit rid you and in the a something lot heavy -- in that have divested there the saw is that we with brands business deal that been divested QX point Danival sales quarter,

We right one are if acquisitions the ready for along. comes

of our got we’re let good number So, value we’ve capital ways to debt a looking in But, a talk allocation about now that at I’ll Javier shareholders. to strategy. return place,

Javier? So,

Javier Idrovo

said. repurchases that I So, necessarily come wouldn’t M&A. what echo Mark higher would share I than say

take into after -- our attractive, internal look look agnostic as we and money deep to of repurchases. a evaluate we M&A, think, our we otherwise, of and put we dive at opportunities, at we where if I that look to we all look and we’re I it’s at think -- sort share

of just a we our So, it’s money. attractive to most where do place it’s matter the put think


you. Thank

Our Vendetti with next comes Maxim question Anthony of Group. line from the

Anthony Vendetti

Thank you.

seen Just a know, you’re And decision trying online on on this aggressively the that? to fruit a just quick that. on during have I Mark, then, you on have a business. to there follow-up, you business, the Do quarter? you when a timeframe expect reach address follow-up what

Mark Schiller


exploring So speak. optionality as look, are we we fruit, on

masking we it’s significant non-core some and it overall of very the drag International on terrific that’s muting and asset, very performance Company. a the it’s So, become different recognize our performance has low in set, it’s performance a skill a margin,

that there. more online, So, It’s but this our were looking XX% we regard at of close -- as the of of in consistently said have the are e-commerce. we to this more on since options pandemic. It’s And and than Company beginning the on future, natural calls, very channel aggressively in significant to our sales. growing -- is been XXX% part we I’ve previous started come the to With a business.

So, there. very positioned well are we

sell considerably initial see Sensible strong was was resurgence that very personal always not business. a board, meaningful part the stabilized it’s Amazon. business very slowed one baby food The Instacart, it all. previous and and Kroger, very double a a piece We a There not calls top on a down said part of pre-pandemic. continue across has walmart.com at target.com really has that robust business what I’ve is the very which surge our I sell on of previously was now Amazon. picked of and to much that really have of we’ve on We brand kind of robust, in with we was is ton we now up and relationships. that about big e-commerce Portions on ton March think of Amazon, food had our massive the Amazon But, the growth at care one it e-commerce And of


and concludes back session. Ladies question-and-answer you. gentlemen, comments. for Schiller to Thank our floor I’ll that turn the final Mr. any

Mark Schiller

of very off have Thank you year Barclays all an hope feel for year a today. I on we are time a some strong couple a weeks. very bullish and we attend FXX. more But, you your look coming great forward Obviously, plan for the today you your all time dialog. opportunity to ahead. We’ll thank to continued in for and color bring day. Have our to


concludes Thank today’s conference. you. This

You time. you this may for your disconnect Thank lines participation. at your