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Hain Celestial (HAIN)

Participants
Anna Kate Heller Investor Relations
Mark Schiller President & Chief Executive Officer
Javier Idrovo Executive Vice President & Chief Financial Officer.
Alexia Howard Bernstein
Bill Chappell Truist
David Palmer Evercore
Anthony Vendetti Maxim
Ken Goldman JPMorgan
Michael Lavery Piper Sandler
Scott Mushkin R5 Capital
Call transcript
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Operator

Greetings. And welcome to the Hain Celestial First Quarter Fiscal Year 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure Relations. your my Heller Anna now Investor from is to host, introduce Kate It you. Thank

may You begin.

Anna Kate Heller

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

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

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

company This are the reported in of America, be is changed XXXX, our beginning remote segment. Rest corporate, been focus and call we of its website. segment available to UK fiscal and that QX conducting to the as on North US, call World year reporting previously location. webcast will international a As of and reminder, from had I'd our it also on note, respective today also being like the archive which

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

Mark Schiller

I first position to and explain our will around Anna you, color strong these XXXX. the hope morning. ourselves safe long-term fiscal some context on and and sustainable today's for in provide everyone quarter doing On some Kate, growth is good for we rest how results, I Thank well times. of our expectations turbulent give call, continue

me Let with our start QX results.

in delivered in half pleased while best brands I'm in for Conference in report second and growth. above likely would turned the we Investor to and the XXXX. that margin of EBITDA of our come that. told as up these Barclays adjusted margin divestitures XX% Our At excluding earnings for margin Clearly, work. EBITDA constant basis last was Gross X.X% strategy quarter mid-single EBITDA for I we brands. for discuss, EBITDA EBITDA very delivered opportunity - and the comparable strong plenty growth divestitures basis and adjusting points That's dollar discontinued from hundred further currency, call, I fifth the stated year. last the quarter that improvement digit points improvement. in several topline in quarter XXX on year, double-digit adjusted was we our after years. last quarter, several and of and up the dollars discontinued to growth there's brands, have adjusted XXX growth I And that all later you expect first for fiscal adjusted will over of projections quarter, a our continues margin of in was basis up XX% was transformation versus Sales points, core our last straight to growth on

XX%. versus North America EBITDA over last points, year. geographically, discontinued XX% almost brands grew top sales, growth up dollars adjusted divestitures and XXX in Looking That's excluding were percentage gross EBITDA grew XXX and year of basis very grew points margin ago. Adjusted a basis XX% adjusted a percentage QX strong on margin

delivered Bigger the XX% double-digit brands, current Get growth we almost strong and nearly expect quarter, Our represent of which continued of quarter. sales, this topline America strong in North thirds two growth

consumption in that share in picked market strong has inclusive level to to care, double-digits months over gains. harder in surge personal channels up of the it's share consumption tea, growth stable been and Get market yogurt, last grew We at for categories us continue initial eight last snacks, and deliver double-digit where stock assess relatively the March. unmeasured the up Our after Bigger

Within Alba the brands the the grew Better Sales adjusted slightly quarter. Sensible Celestial quarter, Seasoning, Gods, Get Live particularly divestitures were for Clean Greek strong. on in all Portions, discontinuances and and

recall, doubled and as you'll increased these drive goal our the brands and Importantly, profitability, in year. versus QX, to EBITDA margin adjusted for dollars is previous

had non-dairy ForEx for business points proteins growth. number of share brands, growing our our beverages X%, Net with plant-based adjusting XX%. than sale more of number in our growth International. Danival sales to with to several two the most contributing hundred strong We one Turning and of basis and the grew

saw offices remain we to had our or QX quarter, As service. limited foodservice-oriented many restaurants fruit continues business closed last struggle in and as

topline in in double-digit QX $XX international solid business, the decline the constant fruit growth delivered currency. sales million Excluding

EBITDA our gross a performance both Adjusted years. margin increases with excluding business strong last and to remainder dollars, and our performing International significant Danival second EBITDA XXX improved are divestiture, very is XX%. compared basis the of year adjusted grew half So margins almost the clearly, improvements last international well. the the Those last compared year. in several points largest also

identifying Conference, American productivity XXXX the and as opportunity Barclays the executing The North continue list of at to and restructuring fruition. to already a initiatives significant, come robust expansion mentioned in our productivity now in and we're that margin later 'XX international playbook started our business. drive As will we've initiatives is

was XXX Within Fruit business drag basis the also on point adjusted the a quarter, total margins. international EBITDA

sold diligence, previous As process we've have we're of before in discussed are there the we to the business, on end currently calls, many of fiscal expect doing and parties the it Fruit the interested year. well selling due

the very quarter, Excluding the businesses has International of business. a our the basis results the points EBITDA in XXX margins the growth team of in remaining and up Fruit, the strong year versus XX% delivered quarter delivered I am proud adjusted momentum ago.

both significant is businesses. plan Our transformation is we working, our international continue in to and believe America North and clearly there upside,

our Now give let's primary in how eliminate us consumers two, two our confidence topline and even and behavioral There's made that driving our favor to brands. Starting our One, if factors investments we SKUs ROI which set to growth. the the decision the discussing foundation well giving robust it shift changes, ourselves to our investment, transformation before made for we've with that the up and made we when started growth. brands, forward. meant continue going up growth ability in continued money-losing pandemic poor actions, strengthened remember

from. us, foundation to behind and we decisions are a now strong and have grow those Importantly, actions

driven the stronger Bigger our even Get increase increased up before purchases and of to times pandemic in innovation XX% is mix In We performance and grew second numbers XX% significant XX% marketing Since also also have year. half the household XX%. repeat QX in spending repeat Get up brands investments the versus increase brands the and year. on repeat in year, last were materially and we've with Bigger the [ph] began, repeat, ready penetration rate. continued the which accelerate the household COVID those penetration That's number of buyer this the in rate

points back migrated are Celestial service X% home Portions, by regards X% this in material With particularly repeat of as the distribution, of the Get our stronger. and our pandemic also with growth, the toward increase Bigger We're by our getting brands in occasions In eating innovation driving we levels. economy Clean are that Live recent in QX, driver categories. and penetration store most permanently and driven trends increase strong. in the average per to reopened strong gains and distribution items second Gods reinforces and that Given total Greek the future Sensible had an created believe people macro in household Seasonings, a increase seeing that brands quarter, rates out brands

their First, of people aware and health. more concerned are about

making disproportionately result, Hain is eating, we by As Since eating more lifestyle better. to exercising changes a healthier focused benefit. on clearly and expect they are significant

willing have emotional like our our are less other Second, that for up products during products brands. and price-sensitive and to for needs. many strong attributes our love to categories become non-GMO more and resulting they trial often trading Unlike become consumers know, brands and more. our this less has trust their cost That Since important, meet recessions, pay pandemic. barrier physical and are consumers products cost preservative-free, being health in organic, have

food Third, consumers online. increased significantly have purchases

the this pandemic. a expect higher in even Hain of than this highly endure sales Given have should are and assortment, after CPGs. online healthy channel offerings and much increased convenience This to and trend too percentage we its our we developed most benefit

space, and as The well with drive matters pandemic, what the how is consumers, market headed. management summary, things a and shelf growth doing market and share. disruption have new online delivered consumer right We us the them, caused our have sales gain Hain enabled proactive capture demonstrate a the consumer we're of result, consumers our the what the marketplace the on focus the strong topline retailers XX% has and to the for engage wants trends above increase is to of to understanding positioned pandemic. In where throughout and consistent by along to

going result, our momentum expect we a to continue forward. As

transformation spend quarter improvement In macro several America, we transformation every began Now and to delivered playbook our discussing drive our plenty the culture minutes of regardless our of why opportunities margins where have expansion continue productivity of will a since points basis let's we we've journey, environment. margin North hundred still few and margin ahead.

scheduling optimizing channels synergies For including culture, our and rightsizing sizes Canada, plants, and infrastructure, of consolidating years, playbook. the orders in pricing business consolidation, infrastructure. our driving rightsizing the will and almost leveraging build see In year, a our engineered robust we're now XXX In International US products, productivity fully we initiatives, be started basis Late are sizable labor North the increase points on also of delivered International, growth our around also list automation trucks. now over profit efficiency, pursuing our redesigning expect which two building entities this up strong EBITDA products fill a QX purchasing operating focus projects, as of implementing margin and and many to next we we capabilities we we we and between include redesigning to focusing productivity and gross very adjusted these American and vendor automation, last across initiatives. scale, consolidating and execution in improvement continued year, and

turn for second half. the XXXX, have with to of of we we remainder provide elected for not peers, consistent look guidance As our to ahead most specific

that of that specific complete Given business unprecedented many I in to that, some brands with make uncertainty are and the provide can foreign direction. unknowns confidence currency such said customers Brexit COVID's our our impact confidence additional in team, the and as well you Having difficult plans, on our have exchange, provide economy, consumers, there and as it we guidance. volatility too

of the marketing, again half many Of In also entrepreneurial QX, second the growth. scrappy of potential line hundred improvement non-working the in build plan quarter dollars gross we COVID note, we mid-single quarter we our year. drive third expect what inventory culture of second we execution year, supply EBITDA increase quarter, anticipation volume For in to as some points innovation, the to Despite to disruption comparable adjusted delivered and basis the adjusted in to Brexit digit reduce the the continue do and marketing move of second continued second and productivity into spending resurgence at expect top second unknowns to several to none. retailers half and chain excel the expect and to we margin last in is growth of UK.

it cash reaffirm double-digit let of solid we over margin year, operating to EBITDA turn expansion. the 'XX more expectation on and will for free you dollar with With Javier, our who details double-digit So strong give and flow expectations. growth that, our performance financial to me fiscal continue

Javier Idrovo

to first strong the the aspects Thank transformation I performance of plan. are good you, highlight demonstrate information everyone. Mark. continued want And that of in today's There quarter five our that execution from morning, financial key call

with strong third delivered topline revenue consecutive prior double-digit the year for First, America. quarter adjusted growth growth versus North in we

was growth by significant our expansion. Second, continued margin supported

remains generating we're capital and our cash much excellent our business Fourth, for continued flows. finally, stronger positioned flexibility, well allocation strong is Third, balance sheet success. with

these I mind, into starting aspects, with from the financial our discussion focus on will Keep So my let's each of drill in operations. topline. continuing results

X% net above year-over-year First to million, internal increased sales modestly expectations. quarter consolidated $XXX

$XXX improvements a overhead our sales first Currency sales, Distribution contributing gross profitability, points, of at in right as productivity and Exceeding quarter our UK than exclude operations previously to first points, plans. partially basis gross travel. the improved utilization while lowered entity to offset America These period, benefited was our the in from guidance, to for After absorption the support adjusting significant prior rationalization reduced Bigger brand American sales year, around X% XXX little our nearly improved sales discontinuations period, a improved margin. and Get a prior versus marketing XXX we by trucks these due net SG&A of tailwind driven line exchange as headcount costs of improved by increased margin efforts the warehousing over were consolidation product basis in quarter XXX basis million. guidance. factors, mix broker improved $X headwind. and net by percentage our gross spending year points period commissions, came divestitures were higher a lower roughly falling reduced year Foreign one brands our SKU the our of XXX net gross and chain to North locations On XX.X% versus of we as versus adjusted and provided prior point increased into year shipping profit on consolidated to impact basis better North supply businesses. and profit the about XX% initiatives, million. prior with

year tax margin and First quarter based rate XX% significant tripled the Adjusted to mainly a our We $XX ability last EPS compared of adjusted $X.XX period, with claim driven Currency on tax of effective representing adjusted by million to EBITDA lower an tax just impact was million. compared tax XX.X% the increased gross margin year EBITDA rate adjusted SG&A. on EBITDA credits prior tailwind lower $X The effective than to in the points and a prior foreign of on XX% over improvement million and year-over-year, was to taxable of more deductions of $XX company's rate foreign XX.X%. a $X.XX an versus QX driven XXX in basis by year. to increase improvement income. represented

expectations. reporting Now, with North segments exceeded and where growth to all detail sales, the our some individual rate American provide and on business, starting expansion net profit margin

topline, quarter the $XXX On year-over-year increased first sales million. to net X%

divestitures as sales QX increased and versus brand expansion once on margin and were the and year-over-year perspective, we margin wasn't discontinuations, Foreign gross adjusting a adjusted prior results year. XX% From dollar the expansion. adjusted for dollar profitability and EBITDA strong material, impact exchange delivered quarter net

EBITDA SKU and Specifically, adjusted lower stronger QX margin This the points, was our million by profit over and of to mostly America nearly XX% an XXX XX.X% represented SG&A prior efficiencies basis million, costs, by points EBITDA and period, an year improvement by North XX% driven Currency minimal. initiatives our on improvement margin in increase. of increase topline chain improvements. of adjusted gross rationalization year. system. a versus supply both XXX by driven productivity versus EBITDA Adjusted of our resulting business chain in impact basis was $XX increased driven gross expanded margin last or gross Adjusted adjusted supply $XX efforts,

weather by business, our the our X% for where Now, exposure. in excluding and by sales in were Hartley's me XX% international to increased Net let in currency but the our of weakness versus a sales also segment, Net exchange to earnings offset as the favorable basis, a food Hain business, ago. non-dairy when UK in shift office and to year and on the continued declined more increased said, its share, tailwind our expectations. business our quarter That market in was last less brands Linda year-over-year adjusted improved foodservice as reported for Strength Natumi leading given compared food $XX patterns our a for our return sales most well X% a little year. business, of results decline brands was such International than decline, Joya including McCartney quarter's due conditions. million pronounced largely QX food work of Daniels last foreign constant as to ahead

playbook hand Danival net $XXX quarter in improvements XX small on capital million of our end year and adjusted in were June improvements with business International as the strong sales. and improved potential and driven end decrease measures in and basis to These working $XX the period. QX, EBITDA of capital supply million, $XX resulted year considerably $XX The QX, cash we brand a million Given second Brexit. leverage modest used stronger $X anticipation to of million European communicated, receivable inventory gross quarter, by annual the to million, the prior quarter adoption service operating in American free slightly higher by accounts of and by driven levels to a days the a at $XX margin the charge of the COVID a due $XX net million, business outstanding. end normalized $XX year cash previously operating basis times. to non-cash the at cash Cash improvement to a debt cash United At levels Shifting and build dollars and in ensure XXXX sales simplify Adjusted flow grew inventory gross versus were of sale, than and enter in versus adjusted at in margin sold because timing. debt efforts Also of implemented gross $X a due our in of defined balance adjusted below expenditures QX surge classification business our the was was customers company X.X as days higher was we of margin gross Bean our Consistent Europe, and flow in stood million was the conversion XX% flow adjusted lower that XXX sheet, cycle North a disruptions adjusted asset about States, the day and about of was resulted EBITDA accounts we all in our Hain CapEx higher XXXX. points, expect Better Continental by margin. points a ago, while than in target XX That in at trade flow business our as spending and with EBITDA $XX inventory primarily about said our be $XX improvement sold the the of Adjusted replenishment half up, EBITDA. in as our with that we $XX QX, million in cash versus a million but impairment by to a improved QX prior to decrease QX, ago million supported recorded year million, minus almost dollars productivity XXX In about due our business, an margin health the food Daniels by period. earnings, million. cash an the the as in operating prior businesses. to from from

the sheet years, been strongest as a allocation balance in have Our we it result, and significant capital is has flexibility.

as shareholders. investment and as our flow, capital We, through share external, to are risk-adjusted value basis investing balance the or value of as allocation create opportunities capital our use. philosophy our or company distributing to through each dividends. well-positioned Consistent conjunction internal sheet whether in expectations on opportunities, evaluate value Given benchmarked in to return our to repurchases balance principles million of cash sheet shares well leaving with a healthy of company's capacity. well with All against the and against quarter, and is to The our our remain during strong share remaining at of deploy allocation our best highest free back about cash an both continue price capital million Board, the as $XXX bought business us average program. reinvest routinely generate our XXXX with to capital its we under $XX.XX, additional to with $XX in we repurchases all other

that in as relates for EBITDA QX Finally, its it adjusted business, managing cash strong calls and margin performance as flow our operating double-digit fiscal controllable company gross growth. aspects of is the EBITDA expansion, our strong as confidence XXXX to given well guidance, and the and reaffirming adjusted outlook free

more on planned improvement another XX% rate our XX%. and effective during and capacity In the capital and well-positioned bottom both expenditures XXXX back of half this to to tailwind, projects, part of X% over multiple prior and net has the now to strong has or initiatives, to capital continued continue profit projects close by goods out a we Mark. momentum and made As top sales, of approximately due the year from projects will are adjusted into tax are XX% an have QX. drive year. been to expectations targeted be COVID, summary, our I full last the following, We assumed second carry year we've believe the of that productivity continue increase year call to to exceeded to will improvements expenditures of we on outlook, been translation that around which illustrated offset turn X%, of exchange inflation productivity line, deliver between cost toward foreign than we of

Mark Schiller

that well at in behalf I'd our over see, very we've Hain quarter. On to and of With pleased me they have progress. how especially our another results We're can like you achieved confidence management As team, it for to strong to our Directors environment. strong XXXX questions. this and terrific Board future we team in and operator execute, global quarter turn the team have continued the had fiscal Celestial in of our thank operating of plan, our dynamic for let that,

Operator

Thank Thank be Instructions] a you. [Operator We'll you. now conducting question-and-answer session.

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

Alexia Howard

Good morning, everybody.

Mark Schiller

Good morning, Alexia.

Javier Idrovo

morning. Good

Alexia Howard

hope I can hear you me, okay.

So topline. I guess, question on a the

didn't of going rationalization You that quarter. you getting that particularly the largely now? discontinuances? that forward? And Do to the is more the come? US proportion behind think in headwinds of quantify there rid SKU Does you're smaller mean sales what mention And of this can that's you of you the to going divestments and brands, the those be of more

Mark Schiller

Yeah.

the let So from Javier, the me the drag address can take And you part. divestitures. first

ongoing and it's to last remove now no to versus rat, SKUs. process on last refine for look, So us innovation our SKU The was portfolio difference year. we continue an year had

losing with a going a place. was because move that there on we velocities. were the SKUs, taking It SKUs SKUS, its in So no longer with nothing was were when underperforming we algorithm. it's see as smart low money them such replaced drag out innovation those we now But

to divestitures, from but it quarter, So some reshape there to than the SKU brand portfolio. continue we offset the that the by innovation rationalization in more it. replaced slight first Relative was was headwind

margin else's that than Better but Get we're portfolio to portfolio portfolio. in with the ours, year at the Get quarter, and We the from we able pleased better we doubled continue ago, we've very Better the teens In part the are and and generate the of expansion mid Better for these a brands. had EBITDA somebody look Get margins say, assets to been profitability

choiceful of which that the size. conversations lot to of still in adding in we want and benefit much There to because very some won't in brands get we think pandemic, assets still complexity our nurtured we're add shed, company people. are small without of certainly a of I more in there So really terms being but with are a

much vast drag but more of been some - do be from to has divestitures? will majority comes there forward, going Javier, it a take the how you So the done. want rationalization of

Javier Idrovo

Yeah.

XXX from For was the about was brand points. That the shutdowns. quarter, headwind it and basis divestitures

Alexia Howard

And year innings - you lot then are very a more follow-up, you've point future much. forward, quick or to Great. this in - a at it a year down still very are listed the on obviously going in going sort last you over at been expanding more Thank rapidly is than margins point. You is so levers more that? go? some the a to of slow but we foreseeable quite lot there What

Mark Schiller

still captured complex. lowest-hanging more that and is would say quite going lot after the that I to go. now What on There's a things have the we're the we more fruit tree that are

I The orders would So but the we're bigger, are more after fill initiatives of certainly our going plants whether all partners. retail or complex. which up to now, it's automation say, within consolidating to trucks, requires us work that our with

that to expansion for expansion, resources XXX several point margin every in they of margin a we terms next plus of to more the believe So middle and years ball the They continue But see in to basis game you will execute. take still execute. longer quarter. take the are we

Alexia Howard

very I'll you it Perfect. pass Thank much. on.

Operator

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

Unidentified Analyst

Hi. is This Grant actually on Thanks Bill. for the question. for taking

Mark Schiller

Sure.

Unidentified Analyst

more had the quarter little the on gains forward. outlook going distribution on a that you I noted one bit the then and in

going here? expect Just resets on how from delayed the would out fall some more looking early you then a year spring they any forward, that of Or were don't next question to right the on shelf resets in know in have reads those, trend? I spring? distribution really And now? maybe was you if

Mark Schiller

Yeah.

months of spent when category, and go that come of in SKUs and at the incrementally to that things we're things shelf. don't had too in first XX such have velocities with we really because their exiting out we the likely very it's the So underperforming now on underperforming those that we SKUs - you'll looking innovation, recall many left bottom quartile journey the that were rationalizing

yogurt, where a snacks, that seen, innovation because delays customers on well. some space launched with have we've expect come more to that's gains very more only be I going net we're are maybe biggest would the reset more are on where seeing which tea, the XX% that continue these will we distribution that we and as that because had things and And resets, gains. would we primarily So as of things. and still the innovation gainer of we've most you've tell the and out forward. really But I of doing COVID you

that then pipeline So have there is things coming that. of we top a new And the launched. already on continue items a we've of lot more to on runway

continuing So, gains to expect future. foreseeable we see for the would distribution

Unidentified Analyst

great. the margins brands. this margin here there, Get where That's you Better cutting of SKUs And Better some in brands? those And going you one bridge those on operational tail those quarter. versus Get Thanks. improvements doubled then, maybe improvements? Could see you. Thank profile on from do Obviously, that

Mark Schiller

Yeah.

brands So, co-manufactured. most Get Better of are the

of as of brands. in Improved and all brands system, improvements all dollars distribution Reallocation investments, consumer marketing to the not that service, been elimination benefits poor consumer from customer to for are manufacturing part which really old-age to ROI of discards Bigger which reduces what elimination warehousing brands. that it driven has gains well. products SKUs, of the So you're poor They pay values, the seeing forecasting, again over-engineered our reformulating by willing fines poor the are or what driven Get and benefits which relative are improvements. our performing by is of

to as opportunities tell have So, few to spending I you, to sure opportunities of we There a of lot opportunity to forward. brands. that in we expansion. higher margin is would on continue is are contributed that that make things There a the elements see going continue mentioned, to reformulate, and is generating that those there pricing quite are ROI. I money

that So, we expect see there forward. we'll going continue expansion to margin

Unidentified Analyst

Thanks. Very pass on. helpful. I'll it

Operator

Our your from Evercore. line of the comes with proceed David with question. next Palmer question Please

David Palmer

Thanks.

And to see see in a question a contribution? through from the you beyond Tea. data, your we Sensible contribution growth relatedly, broadening the if are And coming largely have growth and consumption. see just clean-up channel? of in portfolio, is we your Just a Portions wondering, am going thinking consumption measured in I How channel follow-up. what trends are Celestial on then I this measured

Mark Schiller

Yeah.

would weeks Get second brand is into So growing single every six is, I thing the the first tell Bigger you quarter, quarter-to-date.

of high see IRI much a it's in with just growth that than brands really the universal you So, data. couple more

far in that as that in the part over-developed of seeing channel the very question, channel. remember growth As plus XX% we e-commerce, and are we're

ever Sally channel Our see skews Personal in like you Maxx the street channels down in Care the heavily business, in very don't the and data. T.J. and up e-commerce and particular, and really accounts that Beauty unmeasured

pandemic. of We club also. many that obviously, performed foods, And for have large the whole has performed throughout a which has well then very have brands natural exceptionally the very business and the channel we

alone. in So when you the the it you're rates XX% about - the of that of measured data you unfortunately, such that seeing and channels see doing going look well growth the measured to are higher what we are at only than that channels, very are outside

David Palmer

that is do have digits that seeing consumption lately? sense And versus you the about IRI a in mid-single we're what

Mark Schiller

I'd for don't little my channel, off I'd It's rationalization have the you. in higher it e-commerce of channel, and the know bit the proliferated. a SKU head. It's But where for of to you. aggregate in a natural again, have was over very club. to natural top lower done in primarily lot it we aggregate were because, the I

David Palmer

- it's going growth. And you fiscal we're fiscal 'XX, No, ahead But also in is XX% and COVID-related of saying in organic low second obviously, Yeah. guidance data year your right to the big of long-term to problem. terms I your low-end so XX% EBITDA or noise keeping looking the both is this term, even. And picture get of and for of question, end Street expecting low to your targets, the that margin. revenue longer They're half from end X%. you're X% now. more then The they're much to 'XX less the the the no giving to thinking guess the there of And

as at is, you're So the more far I you think high play? big for or could question do you guess be long-term - feel end picture those like you trends? Thanks. that you as how what's my going tracking how Do the against

David Palmer

one stick with range right original going on that upsides the the just now I we within would I'm of the North tell gave. in you, what's them I think international adopting going America is Obviously, Yeah. versus the to playbook. range

some going think business originally we than what international higher deliver that's to the in I outcome contemplated.

the I on we've side. think going good margin that proving for and about. momentum obviously We're lot We we really our a the the talked about on North revenue we're where are. right were and a given the on feel distribution We're gains little the the bit do. business, and expansion we of America some way track got we've of share there, what said with to ahead side, things we

assumed volume is of thirds. thirds, have XX% It at America in now the the the Get that about original that the we Get ended brands in about algorithm were the We're Bigger XX-XX. at Better XX%. and One two one being started variables, remember, of key North

about Better got we've So Get that's in that around, growing shrinking deliver earlier the more the and shed Investor of Get Bigger on the some and Get we tail? Bigger is of becomes total, what terms the the Day. But ability Get we still to that feel a percentage to question gets brands our bigger smaller brands. out we why Better to good things there in Yes. And Alexia's want laid do as

David Palmer

Thank you.

Operator

Maxim. with Please from comes proceed with Vendetti the Anthony of Our next question. line your question

Anthony Vendetti

what bit I but innovations about? delayed in Mark, impacted? resets, some innovations, have you're talking that Thanks. you little to have been of you a or the know wondering retail little receptive could was pipeline? elaborate has on because really Have the if any not bit been those And you the of the about a COVID more of product the talked I

Mark Schiller

Yeah.

So no question, all resets have been COVID. impacted by

And of have second. is being resets. we has it's delayed happened But in a very well. you so a have in actually, performing customers where give we innovation have it received. exceptionally examples terrific what couple And I'll market, that's well

brought for So Sensible meals. of to brings example, Sensible a normally And weren't which the XX% the distribution, in because only Portions, incremental got that kind Portions Screamin' business, and heat we healthy in Hot of have plus buying velocities but many Veggie products until the It's percent top people to millennial brand. it's lot our category are not been XX March. resetting quartile, straws,

it's TeaWell the So on would liked. slower yogurt well. Gods. build where have bit we launched performing than have a We it, Greek is is But keto little just well. innovation the is good we news performing

of We on items. our hot snack more coming, including have robust other on items snacks a some pipeline

And incremental about so the turning pretty what It's the feel category. doing. we to we're good well. We're getting space. incremental It's

winning. everybody So We is just to resets need the happen.

further it little originally bit take we a we'll from have planned, than will places use that the drive into pretty because where they're don't that places the results longer so but to And we compelling distribution results.

Anthony Vendetti

or of you really you're when you bigger amount talk the that you're pace the ahead about whether you're this picture, sort of talk in? at? big has surprised think where do you general discovered at? schedule can Mark, just sort you of you or of, where just, inefficiencies about And you expected? you is picture Or came the that And just of

Mark Schiller

Yeah.

them. acquired integrated years, company over a got We So the had and I XX was when headline here. never of holding brands really any many this is

there really five no forces. complexity different We were just processes. XX It systems. on top We had And was sales so IT something had of complexity.

right this an and that the to are leading right an to world-class trying last XX what do and putting continue been operator. efficient having And the we've focusing making what structure do place, places sure that the over operating company. months initiatives, a be the prioritizing leaders, so our to change And capabilities we that resources is into building we'll in we're turn means in

we've margin we've of is much actually about very short very quickly. optimistic that been long of enhancement proud period And to a very way the of still generate amount equally I'm that in And us. come so of time. a very able I would I'm in say how front

robust of years. next serve We have us amount well a pipeline very a and will productivity several initiatives huge for that the

I innovation. were on weren't the and moving really buying terms just we doing and We much to topline, marketing of in one. on next think the brands

over companies by understanding brands been these passed that and of needs. some other had and in brands meeting had terms so of more been And aggressive consumer

So in and with marketing playing repeat a we catch-up the were on share accelerating. the script, the bit that gains but starting market that achieve, that to the now to that's side, robust trial it's out, the see starting the articulated of coming you're little data innovation and I fact that we're

our the like well are think, now. like moving right we that control, feel within in the very that right blazing I we we're feel everything guns So and And direction. have all really we we're executing

Anthony Vendetti

work. great it. the Appreciate Thanks, up Keep Excellent. Mark.

Mark Schiller

you. Thank

Operator

of Goldman comes with next the JPMorgan. your proceed Our Please question question. from line Ken with

Ken Goldman

Hi. Good morning.

Mark Schiller

Good morning.

Ken Goldman

heard hear Do I very quickly? that sold didn't mind that Javier, you just it brand a mentioned quick one. brand. you you a which was. I repeating just

Javier Idrovo

so million about was sold of year. Yeah, quarter it QX a in that It's Bean. - was this small this brand. of Better in $X QX It's sales,

Ken Goldman

a see. just clarification quick you. then, something. for to great it. you It's guys. Mark, Got And Thank good are on Obviously, things going

advantage is consumers channel as modest bit, if channel little Obviously, that vaccine, if that next into But reversal again? potentially you year, talking back strength. you all? for a consumers that's to its shift more have to is over a that a headwind temporary for were Meaning, over-index we maintaining se. get mortar You going per of given one-time there successful an online, comfortable your and about brick stores maybe at a sort back the

Mark Schiller

other just away it's e-commerce can shifting fine. between I distribution it for as we'll isn't in on count would Yeah. hard US that to mean, as channels, the What is, changing, so say do love, really me and calorie just find we I If the it's long that. think robust the from shifts channels. they speculate to have I people look, products

is all eating, has channels. had benefit going XX% us. in growth for us I which channel, we've a will don't a think be away. think e-commerce toward Certainly, in is I the think which tailwind consumer the healthier And I e-commerce is gravitating served well. But that consistent

repeat to you online, tend you have convenient whether a a experience, it and good you lot presents or lot I it's because have and think Christmas assortment. it's food or furniture once a for more more you buy

dramatically. So it's anticipate that I change don't to going

we've going I years was that quickly but take it's going stay. what's saying to have migration to think think inevitable is e-commerce seen to turbo-charging I what and the very, XX of it it a happened to people very here to and happen, happen, been

Ken Goldman

sense. you Make much. so Thank

Operator

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

Michael Lavery

morning. Thank you. Good

Mark Schiller

Good morning.

Michael Lavery

Just follow a piece. e-commerce on up the

to similar on you've your I broadly, momentum if that one see margins for of pointed believe are there. to there's much also And the Is business? where as of more you case? you roughly levers can well? side that's where e-commerce pull can over the upside how the levers some You comparable, margin indexed confirm the

Mark Schiller

Yes.

with is end So thing e-commerce picking good doing full reasons profitable. is unprofitable points that a more the given do. that shipping SKUs with individual that improvement There you products would were margin one take margin-neutral say, SKUs as of year for I out potential in to for to opposed like up basis were retailer. we many and truckloads replace of of X,XXX that had you And it's that us, margin which a in lot retailers case margin-dilutive everything e-commerce, working a we of was do because to last companies, them is

on was the And some pumps end they the to that that over having all the spray and it were example lotion and to so - throw Personal retailers and out. were our e-commerce the of I pump tops up have concerned going in case we gave open before would lotions the Care, they'd

tops individual a on. tops the That adds we solve open. that bubble So wrap make took regular to didn't every cost. of put was, to and amount around they the just were and requiring packaging, off it us massive pump imagine tremendous And complexity sure put almost unit

having again, right is conversation this - incredible figure solve love. so how on that they to and improvement this And just consumer needs, we with did. was say got item, issue to based get it the product you like your to but still in margin, happy dramatic retailer a it's the the a out cost And they we've

the margin where supplier. as working club your configure of as just the programs the lot needs and a of saying, that programs we needs well differently doing as margin as your in that a by how we're so with We're of of consumer doing lot by And meet been do lower retailer again, well, replaced have that. higher to we had us this

Michael Lavery

construe some then thinking Is you did And capital? we on Or a brewing deal M&A quarter, there simply of sense and buybacks your of still shares? this buy can allocation? about should back your to the color. some why want on Helpful to Or how you your there radar? that capital you mean us there's a of do maybe and in the not use the give was just think we best that

Mark Schiller

Yeah.

So tell as stronger, let cash better, company shot of gets our generating you me is low. are is, lot take extremely in. EBITDA would we can debt I gets chime What you our a a obviously, the level and at it then Javier,

how business. assess and to our have knowing and coming that debt cash plenty to have the of we a as in run so, we we problem that that's best capital don't use And

we're As the looking that Javier get for we where return capital. said, best at do

foundation. stable ready and so that relatively an we're under-valued, in have we market same So been right have we've one If the got along, But at are time, acquisitions. our we to a believe, be now been buying. shares, the the we at comes looking acquirer,

the Javier, there? So marketplace it really add want available and decide is you just utilize how continuing the anything best cash. to to to monitor

Javier Idrovo

Yeah.

that thing would that, only add as exclusive. I the mutually on I M&A view wouldn't is share So repurchases

balance sheet. a have we strong think I

if so, return of can based that along, would we out to come that right opportunity opportunity evaluate think the we what get were we on opportunity. And

So investments. think repurchases that's how versus internal M&A versus about share would we

Michael Lavery

you, Okay. Great. Thank very much.

Operator

comes question. Scott your Mushkin proceed next Capital. Our with from with question RX line the Please of

Scott Mushkin

Hey, guys. Thanks for taking my questions.

revenue growth? something anticipate the a just about brands think question. was of talked already more we guys I eventually balancing Get profit Get not be Better know about? And the actually I Or should one is and to have there Bigger. we will - and do Get just So wondering, versus transition that growth you that Better then I

Mark Schiller

Yeah.

in that the number pandemic brands within those of at-home the Get a during is they performed cooking, were better given surge Better previously. considerably have So the obviously, than brands, there

brands Better manage are we at the were an well sustainable amalgamation - going to looking Investor profit. we as really that Get contributors bucket, you was to if Day so, And for of go as back

are think Get potential, think not which margins So rebalancing but potential there's the or the necessarily these kind topline margin between we sustainable of where Bigger are can the good, term, be brands. we of we long of same topline contributors some doing where brands do

likely that But are be And and long-term. role in managed long so still consistent retained Hain profit have those don't will others the for some growth. a that stable, for for haul there of brands likely portfolio

positioned margin are focus to So, hey, also and of got them that. within Bigger all expansion. the them. brands, get there grow to need they've we re-evaluating bigger, heck just we out There are we've continue got where as, the Get Similarly, brands within that some initially, to to on

we're changes so based And the in consumer in targeted portfolio more the re-evaluating and role terms brands, the performance we're and and constantly overall. dynamics a our the little bit getting on individual marketplace competitive of of the

Scott Mushkin

roll I which one. into and think a lied I misspoke I'll And bit. may had terrific. little I more, two That's actually have

on to are XXXX track you or you should facings answers So, going the after that I reinvesting growing half think have back faster XXXX? a thinking at about question but retail thinking we the were spill this know are confident we revenues you about - into talked that given. about pandemic? of the dollars already, pace how some in also, gross at then the additional were will Thanks. margin these you into And margin How of margin get

Mark Schiller

Yeah.

and been So, - continue in have to we in we we reinvest marketing. will reinvesting marketing, are

sales, Our I it expenditure when our X.X% which quarter, got I what here. was believe Get Bigger marketing is in double almost was brands the of

examples So believe that have a in we regard domestic in continue And regardless growth. will do telling I'm expand With the pandemic, agenda. allow reinvest gave those the so. confident And you expansion. to international and that will are robust pipeline things in question, to margins control. half robust we the will we continue but we second are such of brand of to We we to us within our we a margin productivity have script, of lots very productivity that the

Are to to consolidate the that have is things topline, occurs you're because to that shelves? restaurants? many trucks, plants, going whether there you're are they we lot don't or harder control consumer If warehouses they products, a something is going if of we over. don't or over. control. up home How your are pandemic the you're that's we out When to not. retailer and automate something That's reformulate eating if have That's does of control, our does thing the the control fill the But behave? going your eating the at reset within call don't

we because many them. and margin very see so year the control, on the that of margin So we strong our going to going haven't to but guidance topline, given have against you're volatility see EBITDA continued because the reinforce well this we've to of robust double-digit things executing growth and expansion, you're we're within

Scott Mushkin

Perfect, it. on appreciate guys. clarity for the answer. Really Thanks those

Mark Schiller

Yeah.

Operator

Thank you.

the We the floor Schiller, you I turn session. for Mr. now comments. have reached the closing like back over question-and-answer to end to of would

Mark Schiller

who the and Board the results. to company, of under achieve circumstances this very behalf on thank I difficult exceptionally in working organization Again, everybody outstanding is hard

we and confident We our team. are continuing robust deliver as we go confident in forward. numbers to look to forward plan, in our We're

thanks, you today. And all later talking everyone. to forward So we to look

Javier Idrovo

you. Thank

Operator

does teleconference. this gentlemen, and Ladies today's conclude

And lines day. for a your this wonderful time. have you disconnect Thank may You at participation. your