Hain Celestial (HAIN)

Anna Kate Heller Investor Relations
Mark Schiller President and Chief Executive Officer
Javier Idrovo Executive Vice President and Chief Financial Officer
Michael Lavery Piper Sandler
Ken Goldman JPMorgan
Anthony Vendetti Maxim
Eric Larson Seaport Global Securities
Scott Mushkin R5 Capital
David Palmer Evercore ISI
Call transcript
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Greetings, and welcome to the Hain Celestial Third Quarter 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. It is now my pleasure to introduce your host, Anna Kate Heller. Kate. Anna you, Thank

begin. may You

Anna Kate Heller

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

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

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

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

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

Mark Schiller

quarter Thank On on I good color doing Kate, you, ourselves give explain how for is we to continue everyone some our morning. results hope third and Anna profitable call, and I'll well. today's growth. sustainable position

with another me start our results, Hain. great quarter QX which marks Let for

line in. guided top As quarter, on is be where down which the we XX%, we around we to last came first expected

and EBITDA margin deliver at points. adjusted we of in margin point said, and Second, of the a adjusted margin gross would We we XXX margin point gross straight This marks basis XXX delivered basis in our of EBITDA fifth least our than improvement. a improvement XXX margin guide. adjusted quarter basis of ahead far XXX more basis improvement improvement point a

growth. Third, XX% results with of our growth, results with continued year-over-year top terrific we deliver we international around told you XX% delivered further, this the I'd have that and growth, and seventh beyond. adjusted globe, adjusted momentum the strategy straight we in fact making double-digit working starting sector minutes a take is into like EBITDA going importantly, margin would EBITDA profit and expansion, delivered QX our few across in considerable further North line. quarter the and demonstrating America to Both

account we guidance that provided recall took factors. the several into You'll

X%. QX impacted QX First, revenue into Brexit of anticipation international pulled about in volume that by disruptions retailers

that program a of lapping due quarter. revenue merchandising this year the moved to in was COVID. hair XXXX care X% generated next the headwind This Second, a from sizable to year fiscal customer

Greek our signs measured despite growth quarter, lotion revenue on items, baby in Seasonings, MULO Celestial sales grew look Gods. like with share this And more see and driven of last shared weeks, this industry say volumes than those North personal rebounded were an four slowdown and and in deliver growing in also in division, mention good to impacted wash after projection temporarily strong When our XX% year. currency, Best Live to Sensible that and sales most slightly unplanned addition report quarter body for I by In that In congressional the Earth's temporarily big underlying on growth. quarter because our best channels consumption and Portions, Earth's significantly. actually sales recent we seeing and of have we're divestitures should the we on we like versus and Clean care a our QX, again Alba adjusting by up I segments the brand, lotions. brands been food our significantly able would up sales have we body also body America, revenue.

program, care up largely was sells which unmeasured in X% channels in QX has stronger. the and also sun Alba even started quarter Our

the QX impacted to shipments XXXX to QX, inventory where care volume had In In presence, outpacing than a far compared has earlier through was re-ordering channel pulled factors are the the QX, brands XX% up consumption have usual. XX%, quarter, we the Brexit revenue hair into In brands were get compared this Hain XXXX, quarter, fact, already in this and shipments several which the in shipments. bigger with initial entirely consumption growth up X% customers e-commerce even up out in our get sold bigger past program by strong international, consumption lagging was where with XX% quarter. very the their our past much

the quarter. in and Pots and plant-based three biggest Spreads, We in Hartley's our growth a which our soup held business, share brands, beverage. collectively non-dairy McCartney more meat, of seven label their delivered XX% non-dairy all of gaining Our brands Jelly private X% our represent enjoy sales, international Linda than

some business past continue pleased future. quarter the about revenue be this clouded So the progress was I to optimistic and in our conclusion, performance in by non-recurring with Switching there margins great events. industry it the remained storms, despite COVID-related additional to among things. leading margin an were exceptional other additional and EBITDA, and snow quarter. headwinds deliver costs, growth, We challenges, able like significant was Brexit transportation costs underlying

Investor our to we XX% fiscal recall years of EBITDA to half improve you that we year. to XX% X% two expected on somewhere You'll next Day, the from adjusted margins about second by ago told between

XX% was importantly, a year delivered were of we productivity the achievable. as to Some just revenue whether projections EBITDA to skeptical margin have not people or any management They doubts And ahead great puts and capability. a this Hopefully, rest. progress execute North and margins in now doing international our short, we said in continue on we're expect in during what moving In well. playbook we XXXX exactly we to would forward. America continued Investor Day our as do and

strong to We beyond. as for as to QX be bodes future, with optimistic. very which momentum, the QX, well Turning continue and exited I well FXX

still Three, are believe And get front momentum. Here us: significant that are four bigger our trends opportunities reasons our productivity Two, of in macro key to brands One, the our in strengthen. best four, our days continue business favor. significant. are international I has are

sentiment a the take trends. macro me behavior. number hit, it quickly in caused consumer changes Let starting When one the time, and of them with at pandemic a

and more more evidence elevated their cooking discussed trends pandemic far remain items home. are these will they're consumers will as wanes, the before, see online, more health, Specifically, about We've benefit. that concerned that they're these from but shopping we Hain

brands, bigger double QX America second XXXX, categories digits, about our and up represent two-thirds sales almost The than our the consumption in strengthen. I'm our reason, is get grew of bullish to Compared which with that more continue was X%. future North our

we we earning top just Cold resetting share on categories. improvements like Celestial Veggie of are product consumers in many these mainstream Terra, high short, distribution new in finally have innovation, several more Sensible launches new additional tea, K-Cups resets. slotted bringing more flavors Customers we of great also that's growth to And are have on on hitting our brands our Brew and So, and Pre-pandemic and and great Portions’ by that, gaining shelves snack Puffs, Seasonings’ brands. customers. now getting are innovation

result, coming this past brands X% quarter, grew gains the distribution points year with on the total biggest versus As prior that a are innovating.

the games health Importantly, loyalty we're seeing and and for in future. which also of us households, well are e-commerce set factors and with household more less-price sensitive, affluent Both are these penetration strongest our consumers up who focused. younger

future third accelerating. is performance international I'm the have portfolio and about tremendous a optimistic is that The reason our we

plant are We categories, one well-positioned have alternatives the XX and two like based in or highest in share growth brands non-dairy beverages. number and some of meat the number categories

quarter collectively versus These profits and volume pulled XX% Brexit private the EBITDA. stated than double-digits year and over Their XXXX. X% biggest I ago, versus quarter XX% versus last and XXXX. business more also our earlier, this year, than this non-dairy XX% label than brands were international collective As despite of more the forward, deliver six up grew businesses more versus

savings of redesign trucks, have eight businesses excellent last among most will plant is because sell will the and In just points continuing margin and identified agenda. improvement initiatives after reinvesting increased like continue consolidations, on almost redesign architecture and that help starting future. are I America significant simplified sizable North building margin initiatives marketing bottom productivity price North and long momentum. future ensure significant of about remain the reinvigorate management list one. that of also off a management margin pricing In now recent money growth top we execute like North the and So clearly, playbook to into potential XXX will excited the yield very benefits demonstrating the robust some there America and now processes, to we successful starting have America continued opportunities. generating significant up many pursuing quarters, to projects automation, And as over the and product to of the into materialized, we all line. international, others. we're expansion the top size quarter organization lean like a we've productivity strong basis manufacturing, begin lastly, both margin and In delivered Things revenue And those

from momentum, in QX great our QX well-positioned With another provide to let accelerate conclusion, and We challenges with more me expectations significant face will performance we've QX. of had financial Javier to the who in here. turn said, of performance color we're quarter. So, for a over it that lot and about enter

Javier Idrovo

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

margin was continued First, significant expansion. by supported our performance

continue to we strong flows. generate Second, cash

continued our for will balance I our success. top my with Third, well-positioned sheet our with finally, and each mind; of allocation capital will flexibility. business excellent our strong results Keep financial focus of in discussion operations. these into discussion on line continuing then remains will from And I results I start drill is aspects. a

Third quarter year-over-year net decreased XX% consolidated $XXX sales million. to

percentage That basis brand XXX program and factor quarter brand versus net movements, Foreign that XXX and like points skew hair product year versus our QX rationalization sale gross improved Adjusted the and costs the result year. headwind more truck up of further said, XX.X% XXX supply these a XXXX. started chain X%. period and adjusting the XX in by as came divestitures food in and sales the for comparing mix improved net costs the of the XX% exchange utilization impacts margin year than skew fiscal consolidation points, currency prior net the for improved of of and benefited The QX, slightly positive increased lower impact to points. a volume versus at XXXX basis discontinuations efforts, our travel. SG&A XXX largely the quarter for our SG&A levels, higher initiatives. prior Distribution initiatives, the points in pull points was we driven significant X plus by QX basis XXXX. proactively quarter. sales factors, care offset a as broker of were the from North after increased all freight productivity efficiency by points. you by growth pulled sales driven divestitures year versus the lower related unit, and The the of we reduced by when sales discontinuations, our due partially by to close basis The adjusting represented business. than to planned of were one When sales percentage program rationalization as of American prior of up net costs warehousing period, in inventory into gave labor of our higher third business lower When our sales about timing underlying commissions, U.S. is into Brexit lower forward services while third-party X,XXX when consolidated in volume by and we Brexit basis and by operations our performance reduced

quarter $XX a margin EBITDA XX% compared prior increase Third year. million million, of SG&A. margin EBITDA adjusted of improvement significant representing increased the XX% last year a by XXX points basis period, Adjusted $XX to driven lower to represented versus QX about gross year-over-year, improvements and in

rate of mainly EPS elimination guilty effective XX.X% rate XX% the compared to was the from an year We by the XX.X%, by tax benefited the prior to in in year adjusted of The quarter. compared adjusted impact $X.XX the in Our driven current increased prior period. lower $X.XX period. tax of

the on regions Personal margin million, XXX gross and expansion North divestitures, year contributed From were significant were a movements, and EBITDA reporting currency Now line, XXXX. profit year-over-year pantry year margin basis provide club improvement. loading QX adjusted in our top of year-over-year some and to program period. the we lapping Note for North to delivered America expansion. the EBITDA as adjusted a both the profitability the prior the decreased adjusting versus personal points After X% on detail prior COVID-XX XX% headwind sales results region. of a discontinuations due and Starting net adjusted American brand segments with margin business, March the and about that strong lapping to of represented program perspective, mainly for $XXX.X care sales net dollar with decreased growth Care individual the

efficiencies was America the basis gross our net $XX adjusted versus despite by margin in mentioned profit Specifically, X% of QX sales North by the for year a points. expanded decrease improve Adjusted million earlier. We decrease business adjusted gross decrease profit XXX driven margin last of reasons basis chain a in gross gross margin productivity year driven to represented of points in and and our an lower system. strong our a by program, Adjusted SG&A. increase. about million, XX% efforts, prior margin $XX driven versus EBITDA period, increased improvements of XXX improvement rationalization skew Adjusted XX.X% by EBITDA gross supply the

a bigger year decrease net achieved American of components points, two-thirds and brand brands, personal American period of represented brands. several North basis X%. the profitability, to compared net consistent brands they driven margins of the was sales We Looking margin prior yielding core Bigger This growth versus about portfolio, a XXX headwind investment year Get Celestial last robust the expenses. into Sensible Gross the marketing Care a which stronger lapping and XX.X%. Personal margin products. care lower get include North about show Portions, the sales close largely Adjusted QX portfolio call-outs of the The to points. of with Teas, in EBITDA our of sales to continue for showed improvement decrease the initiatives, club of by slightly year, role, Get gross in program their Better support improvement. higher productivity to and prior our innovation Notable very offset activity of increased partially basis notwithstanding brands, launches this profit adjusted represented a impact and distribution warehousing to profit XXX that by due their improved and

strongly brand. XXX XX% EBITDA of long-term EBITDA target in the Get exceeds adjusted an of points, level Specifically, improvement grew XX% with XX%. more to in This close for Better of margin to our margin X%, by basis yielding than profitability

non-dairy These growth announced sale of $XX the of million profit beverage the impacting previously its This without about company North business. the its net American represented improved company completed annualized in April transactions business sales. XX, on As the margin. profile

loading of to reported year shift the of driven retailers our the minimize from Now, net to and Brexit largely the let business, QX prior lapping QX decreased volume on disruptions pantry because XXXX, basis. sales me XX% by versus international March to a in shifts

for by net sales Foreign by divestitures effect sales sales X%. about and reduced movement of XX%. excluding X.X%, Brexit the After disruption approximately adverse of while increased by increased close to adjusting the When currency exchange sales X%. X%, further decreased net divestitures

Daniels strong by growth, Hain our sales Our European our UK. net strength divestitures McCartney, business brands delivered like non-dairy Hartley's driven excluding and of businesses, and and the beverage Linda the in brands

as to gross the lower by productivity in playbook year $XX level costs productivity of improved the $X Capital efficiencies ago. given operating versus supply During was the the cash of more XX%, by Business low Shifting strength our for levels million, by $XX also balance disruptions. and downs. prior business. high initiatives of levels That quarter, by flow we of the Adjusted in sheet, of margin adjusted to last result avoid a higher chain of avoiding North year, was at year, due in of and long-term our COVID spending disruptions and the million, adjusted the $X two to mainly to of December international expect EBITDA supported grew points, million an as than adoption low divestiture million we due prior our ROI million decrease International system, supply end lock inventory lower margin driven SG&A. fiscal years we about inventory improvement XXXX. nearly business. as projects. builds profit a saw ensure while versus basis levels supply to QX a said, prior XXX period, EBITDA target the well to XX% EBITDA investments, to $XXX QX, million, the gross $X than of segment the exceeds higher XXX the driven inventory American in than versus the announced a by margin reduction customer million service, At resulting cash support multiple profitability higher end XX% the and XXXX productivity Adjusted flow XX% to margin period year decrease in $XX in to chain of points basis was of This QX supply food an margin

stated XX in Our cycle below capital cash a usage driven days. prior working and Cash cycle only the net account XX-day at QX lower gross X.X inventory The was hand, quarter days, QX target versus by other increase while days, conversion reasons of than inventory four debt was but by times. resulted stood the leverage end earlier, driven conversion that $XX higher quarter debt of was sales the million, million. higher in by net and And our cash at our $XXX XXXX. on was the

remains balance a allocation have significant flexibility. strong. sheet result, And Our incredibly as we capital

we the third Given to we our million the our average repurchase the to authorized as shares both healthy balance price the generate in well-positioned remaining of about at program program remain to $XX.XX, of board bought the quarter. million repurchase Consistent during sheet, capital authorization principles, pursuant by under as allocation continue XXXX, of expectations free $X.X $XXX.X and to additional strong an flow, back return value to well XXXX end our reinvest cash in us quarter the our shareholders. at leaving business of and our with with

brand exchange XXXX a to improvement X% to X% we surge, and up by to guidance mid-single-digits partially from divestitures QX quarter, QX to into move COVID X% X%. decline includes XX% shutdowns movement, of offset divestitures line representing our be Compared versus XXXX, growth, for from discontinuations. year-ago to year-ago will brand our fourth adjusting the unexpected expect revenues estimated top an through versus sequential we and This relative a foreign and the headwind currency after benefits. X% As headwind

also another margin at of of and We basis growth points XX%. forecast near quarter adjusted improvement least XXX gross EBITDA

effective resulting plan of of environment have XXXX be year next more the currently at drive detail Cost than expenditures expect around inflation into which an expansion. initiatives, of Again, the to momentum to tax discuss to productivity. believe fiscal were deliver been prior X%, demonstrated we inflationary the to that via now net In productivity in part and the XX% increased carry As between performance we more and than margin continued and fiscal in XX%. remain summary, has projects quarter of for pricing of more We X% and fiscal year. has our outlook, call but ability due our sales, inflation projects out the the we over will for than delayed year – are expansion well-positioned our balance last year that strong COVID-XX, to to to the our year increase in following: as that assumed the to that fourth offset adjusted I offset close productivity will we from to continued and rate fiscal multiple continue continued profitability, by Capital earnings we by growth back confident goods XXXX, Mark. call. QX margin turn and more

Mark Schiller

Thank you, Javier.

our that, has you operator one excited was it business thank remain at optimistic the in see, and our environment. directors of behalf management With On like Together global team to As I'd quarter a transforming this another questions. job over team, to another of safe, road can terrific let about of the of board team we strong our a and Hain ahead. and for now keeping turn challenging Celestial. done the me it


Instructions] Thank Thank you. you. [Operator

Piper your proceed Please with Our Lavery comes first Sandler. from question Michael question. with

Michael Lavery

Thank you. morning. Good

Mark Schiller

Good morning.

Javier Idrovo

morning. Good

Michael Lavery

top right little XX% conservative line moving there wanted understand, the have quarter your context you about it give how for for and fourth how us? cushion tougher much gave a little may any bit exceeded just, just EBITDA guide, of just well put of thinking guidance in the you bit there? the that, some you about can help you be you can know, parts, thinking how growth and obviously, a know, but for QX your all us a is, thoughts to us guess you outlook comp, Specifically, near adjusted Just you're better touch on I for you sense and

Mark Schiller


would know, what You of the to behaviors tell first headwind we're a are forecast. know a to be but the is, thing it be yet We be, very will because don't know it'll that like COVID obviously, QX, you hard headwind in going much the exactly how after I not pandemic situation is we sure wanes.

a XX it's us a XX and precise X% range, what hard a bit be number in So, some significant little range. to than have minus we which you you. adjustment basis, to on have gets to minus give in a divestitures given into Basically, favorability the reported currency, more it'll and that then we X% for

You strong that believe very in We the deliver momentum know, we see confident we in business, international. it. that will results we're

of in hair in was there timing in associated QX care be The that QX headwind risks QX. America in in won't that the be Brexit QX. with were things than program And starting a Some the won't North we're talked at we've those see we're about. four-week data the you gains And the is and data. stronger sequential XX-week seeing look to data, consumption that distribution there if

we're bullish. So,

are, where look businesses, factored of be you some versus XXXX, three fiscal than that of with going get of had of unfortunately billion first factors is business, that out, there's guidance line at dollars have higher looking which invested any you in being, you when health part these which underlying part We QX for worth quarters you of things of the X% even this when top is adjust year. a a of minus to but we've know, the to at, know, in to we're X%, transformation, growth the we mid-single-digit adjusted

to it. there momentum we guidance we – want are be you we we confident deliver. So, that want give that is to can Hopefully, deliver built you over know, will forecast. into we But

Michael Lavery

helpful just previously there, touched talked Did very looming? give you X% gains come some in done? sense – mostly Thank a there Can some how about expecting can you and or still just us gains March on, growth, is April. some resets you. that distribution those ahead mentioned you and And resets Should give shelf? color. Are more distribution of all that TDP shelf That's the but expecting you that status we us expected? on as you you've be more shelf through

Mark Schiller

is come. There to No. more

So the had distribution that on things now got which, on business. a into see getting only not Veggie we're in significant snacks, the although an the we've move year. example on on and know, the of that has baby, gave some that we And business know, through the numbers. that year March Best sensible is distribution. categories, fuller at a are we know, picked significant most if last you'll you numbers, ratted that. on of of on reset And new taken fuller see a did fiscal growth portions We And and brand some there In you margins those certainly straws, Earth's exceptionally X% point launched of were baby we've where we're for the which that skew just only up innovating Screamin' we've up percentage we're the at resets that distribution moving sales gains basically getting of retailers, distribution the will margin. toward also Hot very you lunch end the business. snacks retailers Puffs, Veggie and ACV look because April, the into you huge XX% this of like still from EBITDA And the a We're about to segment. that but business to you XX% back XX% COVID. And extends well,

bolt-on rate We drive the as the early huge a we same quarter customer least as first straws, preliminarily the that to shipped and are which distribution. incremental have turning in one at the at it puffs that to be business would looks continue like

and the So, you're Eatin' going particular, sensible, snacks, the tea distribution. And and as in also through of it But category of beginning start reset A timeframe. off call are lot in Garden of we significant wins year. getting see on yogurt the some gains in, in I'll into till some as you'll August very reset baby, care later very those but Terra the it of businesses some of kind cycle up get personal the we're gains reset to June year, picking fiscal again, category on significant categories next see doesn't well.

So, brands on Get for sure. Best and you will Earth's continued on the TDPs momentum see Bigger

Michael Lavery

That's great. Thanks so much.


you. Thank

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

Ken Goldman

and morning you. good thank Hi,

Mark Schiller

Hi, Ken.

Javier Idrovo

Ken. morning, Good

Ken Goldman

not I guidance quarter. to for wanted ask if growth organic the sales I'm the – Hi, fully understand I I fourth sure

by The on headwinds, right? quarter’s organic So, quarter, you items, here, mean, if promo. two-year then X% Brexit was growth the these organic timing your about third exclude talked of past indulge I you'll lapping me sales stacked non-recurring and right. by some this we hit X% math If being

quarter plus this X%, before had some X% pretty meaningful minus that And again, math the shift from guidance. your year doesn't two Mark. fourth this rate, about just [X% this X% adding year last from last talked year your you've plus hit], slowdown X% would the third to You to say in include my guiding underlying Earth’s you're the I'm that guided you to Best, excluding to the quarter, stuff of year,

what's it I'm deceleration? put right? live not So, driving there, here, math I a my is that? call I'm it And two-year fully onto right but if understand second, math is sure first, right, [indiscernible] sorry to that

Mark Schiller

as line QX is out, difference were the COVID. top in So, a one-timers basis on growth as much overlap mid-single-digit about some to we're in just QX, have QX X% there we but you in a two-year point was guiding QX, bigger on in it

overlap. of two-weeks have We COVID

homes. terms quarter far from the surge in in down first were You COVID impact were months people of the quarter QX by their locked overlapping know two that non-COVID. quarter the of biggest in as was Fourth volume and

a for headwind to depress, numbers the actual that's in going And you entire quarter. reported know, the so, the is that industry,

Brexit points terms care of in X versus the mid-single hair the in underlying becomes we're going rate to So, QX have growth and but something the in digit still QX, COVID program XXXX. similar overlapping of

Ken Goldman

offline, I'll don’t number. second be, to up I not things that XXXX’s quick quote Street would clear. my darn guess I a up on said fiscal follow here. think I'm below question XX%. that up, you'd two-year you is was up maybe I'll because I'm I The to the expect follow well this quarter asking pretty just tight being be, the margin close Okay, follow Mark. want to gross on last

outlook, don't fair little that yes, it since but inflation is to a want the last You know statement COGS detail around you given comfortable you quarter. and a just you time. much with that seen? bit give I hopefully there. poke guess know, Are brought But this I to wanted some answer too still would I game it's of the up at you've

Mark Schiller

than this given opportunities. point. haven't you we more confident we so see to guidance them. margin I would more at on while expansion we What will robust is, we're inflation, XXXX offset will tell And continue Yeah, any that have we

close certainly the you delivering look if at margins getting now, doable you So, kinds of reasonable. know, to we are XX% that is and

So, and the close. but I don't we'll get as XX, said to I way all before, we'll think get

more another, when points And can know, So, you we're a at more XXX that gross detail that tack next putting or on maybe to the year, plan you we XX more? range we summer. on the little margin get We're of together give we'll plus as speak. now, on we margin,

Ken Goldman

Thanks so much.


you. Thank

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

Anthony Vendetti

you. Thank

at beverage on EBITDA Just the for that business non-dairy terms brands about quarter this you the in and growth that that and Thanks. this if the two online then of revenues year-over-year one talk you then revenue could how terms business, of and percent just annual that fared in point? on sold adjusted questions, of business

Mark Schiller


beverages, non-dairy it's in about sales. million the on So, XX

not after beginning sale] the were the that you brands, a had brands first the of at since this what say, about know, I have billion the journey revenue. [till We actually the dollars of but selling was, positive. that These are very publicized will EBITDA XX profit

So, In growth business. think growth get had opening in the With they on e-commerce, dollars the on the was America I in of of in top bigger And gave higher very but number that's the comments, the of in average. particular, last XX% is a industry it up it’s my to in XXX% million sales, robust exact for number. XX% to I – we year given And quarter. North couple was range. it range. brands the exact about haven't our We an XX% much the than had regard EBITDA,

to be as that year of in have performance we continue see this business. fiscal Consumers end society will a continue So, e-commerce And shopping we expect reopens. there to the online some very robust not even FXX. stopped elevated into through and

Anthony Vendetti

Mark, [that really article addressing baby attain]? can levels, arsenic you're quick, recently just on how And that food, was you comment can you the and on published

Mark Schiller


litigation they as everything has some the I [eat the much as in is, only in with some say it's supply], The only the are FDA so are air, the the are in the this levels it's arsenic levels rice and that have metals in can there's that on cereal, but I and because metals compliant what regulations government level heavy have we say in the going specified. will has are on XXX% everything there, eating, from a and it's food them. water, confirmed we So, we in planet in soil, of we

last XX% rejected is finished goods of have the compliant. make we that fact, year In to we everything sure

confident right that is metals the them way to like FDA the some we're reduce But work altogether we're doing supply. to known things want further. no the who non-NGOs of help to there food would in .We eliminate with So, and our us

we work FDA. will So, the with

regulation with has collaboratively get only of a work and But really we're that totally this both And point. food. metals get complying baby will down We that. cereal rice to to the on rest regulations it's at

Anthony Vendetti

Okay, Appreciate excellent. Thanks. it.


Thank you.

Eric from with Global question comes Seaport Please Our proceed your Larson next Securities. with question.

Eric Larson

you. thank Good everyone. morning, Yeah,

Mark Schiller

Good morning, Eric.

Eric Larson

you ACV you varies know, today? over you general all more that What percentages, down have, sure, Mark, help timeframe? You by I of guess, little what I the So, products? I it you I'm drill on for, those distribution, of, to, know, sort a what go bit sort your know, do overall could could know penetration you and you distribution us potential the and have know, ACV have question product,

Mark Schiller


our ranges things like from get ACV So, to Portions for Sensible XX% about Celestial and brands, bigger on our up Seasonings. to about XX%

we to the millions it for make things potential dollars. year. the every get rate buying retailer. bigger during COVID by biggest brands. of distribution is penetration of continue know, great away the buying in And, these get at XX of We've penetration We growth and got had consumers can hundreds brands. know, drive more is upside see and these have. rates. We've on You channels, run chip a still mainstream nice going in ubiquitous we're to Realistically, the items products we've you to we got far must opportunity to over have last months increasing to the If the

third in brands the I'll give of example, next combined. than an Celestial our repeat the Some more competitors you Seasonings, quarter had four buyers

in I get picking earlier across we're innovation making have velocities people we're It's few in, few most to you we're it's segment. of confident confident the all as our categories, distribution. be category, are winners. on XX, distribution progress to are get XX% points of turn sudden that the going bigger compete reset a And there, the be a will all at bringing as that while and light expand a we our going to say categories distribution strong to So switch as like the points is And to not there. that new a It's think good continue you brands we're to strong, going me though. net heard of take and we a that bigger be up here, every sudden in we are a the

Eric Larson

just quick great, question. thanks. And a follow-up Okay, then

that I that's down running you taken cover road have X% the yet, your is something or productivity? FXX further taking that you talk a ability right cost think higher a be now, that bit can but to bit your in it with what about Javier about little that without quantifying inflation would giving said are pricing or is

Javier Idrovo

out portfolio what portfolio So, netting all and margin architecture. been it revenue it And been the margin. as list price calls, that is, haven't taking We selling items of things has skew more you our we management, We pricing things that via, have. via previous pricing. on We've I taking we've the of less we of We've would I look I low are increases. think of effectiveness know, via lower necessarily higher been the the certainly pricing margin that mentioned, the you along. on tell trade incremental rationalize that been taking of lot taking a size at are that it rest

data, you'll weeks. than pricing in than XX-weeks, in So, getting again, gotten more actually, we XX we're And weeks, that we've been more most look you recent see have getting pricing. the if syndicated the the is which in four the

price going it's but up So that of as we're that as is be necessarily you architecture, I all pricing data which out of like to materialize, starting said, evident. coming pricing to not the if just is things in taking syndicated show know, size the wouldn't

So, to next and we inflation move not that's talked robust offset very slow we're because that pricing, calls. are because And productivity the that we year. also agenda year taking can but this confident year, a into previous down going about have we that's we've we on selective coming exit next as

Eric Larson

really last you were question. this you Obviously, the that warehouse lot might the drastic your in last year? year, up of those, know, just lay fourth we or year, everybody next a in from, you think events, promotion just had of that know, didn't or of in to activity expect final happen big not and from kind a year what happened the changes have didn't of of year first coming about in you should that did either you or a promotional is And promotional we quick that last do year half the terms there may quarter, you last Okay. COVID promotion timing there club may with and either repeat, anything out

Javier Idrovo

of club from we because you that first that retailer. have constraints the this We the getting I the have we're year. year is program next would merchandising tell program confirmation not thing The did do

probably a late tailwind QX, it's in it'll or next QX a while QX magnitude. headwind So, this year of be a similar year,

people is, you that and tell when servicing So anytime there know, trouble that's months. X keeping news unique, because no you were going in last we're algorithm. next for business the shelf lap good having pandemic would What I industry to in sizable less There's like the stuck. hit, FXX on the going the promotion the was year the promoting many that

you third year elevated when FXX was quarter in we versus considerably year of the spending down was activity. back go still little the up add trade probably versus ago. trade trade we ago, six spending, started eliminating, people our it's months as the case, next uneconomic will So, year kind our it bit in versus see ROI what spending of In as but through a

see years be it was forward, but you'll than still us, activity going ago. it'll two promotion less more So, for

Eric Larson

Thank comments. I appreciate Perfect. your you.

Javier Idrovo



you. Thank

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

Scott Mushkin

for my Thanks taking thanks. questions. guys, Hey,

So, place there. are I know you, about and shelf Mark some feel talked gaining about taking you them resets that pretty and good

later have know and Just wondering it as good you they sell-through then to they mean, would going and, what the know is great support that before make you're wasn't I of should joined, you kind been. obviously at sure shelf getting is as guys to kind get of plans, on you the a do retail were, maybe year Hain off

that [indiscernible]? on that on are you what So, guys doing

Mark Schiller


things. a few So,

for when last increasing bigger years our two brands, every the increasing of get moving just all, the its we've non-working came also of came First got marketing brand part spending the bigger, from it the agency. had from I own from brands dramatically ad Because money of the better have on dollars. that get we absolute reduced costs. been part get And to here,

amount that we consumer. being agency on fees now spent of So, the the spending against money were is

it brands So, the than actual was is spending on much higher previously. these

get this do their very them marketing to category these be that get display is, be of, trial. thing Sleepytime out new around our now to on combination are It's the you instead flavor ubiquitous. all say high will of stores, of that got geo-targeting just be trial. To get shopper We partner know, into that on innovation, a are real in repeat, retailer pointed as is happening doing other tea, going specific very distribution the bringing in The shelf, is channel. their the to proving to got circulars and again, do we here's We’ve resets. getting benefits to to get their I because the e-commerce we're XX incremental, of which not get job to now we're would to you to

just surgical and be terms doing is we'll very how a I e-commerce target a list shopping So, for awareness mobile, sure lot the we in where we among make then get long to social and which in generate digital, trial, do the alluded we audience. then to gain the on been products part to time. e-commerce, is great will And you do you another stay lot continue way these of other And that. on there have a to

So, where are. the a that's conscious there's are, high millennials are, where consumers marketing lot that's that's e-commerce because consumers the channel of income our health where are in focused dollars

of lot dollars generate marketing putting we're so, a there and And our well. as awareness trial to

Scott Mushkin

My color. that else guess past. regarding, follow in is the Hain’s for something thanks kind was I up of question Terrific,

of that opportunistic I guys’ Is just food that's I little snacks is was about radar? specifically fashion. but thinking business, know, you kind been You acquisitions. the guys very is making know a – organic, but natural you've always divesting, kind in way know entire have the you that something that's something the play know, I of bit on being you know, you been guess your business, not?

Mark Schiller

radar. our on absolutely it's No,

acquisitions we we is for are we you sizeable know, and shed, categories. a few So, would be much more still What sure. of assets. find to our to them do looking brands in one core need for Snacks while interested very have

don't repeat, already XXX where sales, in the and things buy X know, to brands. I go million many the in we what have want We is we're to sales, So, nurture past XX do that you million expectation with that them going to too are million.

some have along. the We've a cleaned the balance it. dramatically we allows find up which do us the need make comes if it's of finding what ready a right one we matter to when So, find just to And sizable have sheet, acquisition that is to flexibility assets scale. them. We're

Scott Mushkin

the to Thanks collar, guys. Terrific.


Thank you.

with ISI. Evercore Our question. comes David next your Palmer with proceed from question Please

David Palmer

Thanks. Question SKU… Good on morning.

Mark Schiller

morning. Good

David Palmer

sort in, that rather and the rationalization on question of A net rate, fiscal When transition year some SKU type other points, talked the of XXXX think you're at of bit new you into versus the little type just you course the doing stuff. you've and coming I products run not products, more a heavy do happens? about guys. being but of lifting think ongoing new rationalization each when Morning, a where SKU maybe SKUs, certain get business a

Mark Schiller

we're didn't item year, internal this We that ready for think the and were now again, least we're taking But now. but at I getting innovation, one last launched, reset. every requirement to our be we we're out. there is there item So, categories

significant see you with really there’s many, shampoos not personal of and segments. a I so, expect segments. When sun just exception SKUs it's across deodorants and the hair rationalization And many don't category. think of hundreds possible we SKU you multiple and and personal about and It's will that got characters, lotions many, department care, a

we've which will contributing into of been place we some first we're and line why confident probably that gaining of cleaned also we've really the a distribution rationalization these that's what the of X,XXX since some know, where there I've been that a see here, we, to But you SKUs divestitures years look up going and couple rest at in things really do there. the SKU So, the growth will eventually top lap doing. as turn last all the at do we're complexity, just that for rationalized of is mess. portfolio, adding we're and the We've on aren't smaller time

David Palmer


have And of personal margins. of you as side, care – certain wanted angling ask it for about a XX% And You maybe a making with type we targets, comment, I gross think was and XX% gross be innovation not in when about that the thing. of also which much have you'll reinvestment how one you've comment targets, not to example, sort wouldn't sunscreen, one maybe goes there, but just then gross a the you that but I more one, of snacks margin towards, in you that like the know, be a is, if comments about is to see long-term alongside to some margin with think regard COVID-related headwinds I gross your have that interesting talked will What margins elements EBITDA should know you be that? of these like margin? these Thanks.

Mark Schiller


to know, line if kind Day, laid of clear So, targets. EBITDA very out, back Investor go you top you we in

in within range years years two well three that instead of in. We’re

had You laid range is out. of three-year know, we're certainly the year, toward on pace to get what this top end by time the that which next meeting

know, going continue You invest that is my margins. marketing, are to while increasing to we in intent we're

just that generating. is So, bottom isn't for and the in line, these reinvesting it take it great the to all the about margin growth about brands innovation we're great

margin, to improve So, you know, to you gross as going to expect go should bottom it's continue we of some the line.

going into propel to future is the it of go some business And to supporting growth.

David Palmer

you. Thank


back to like the turn floor Schiller I Mark to closing There over are further this would time. no questions for comments. at

Mark Schiller

Thank you.

that was is strong. but we of a look, the where takes quarter we as would. us. the So call, a International strength the in business top The health it certainly lot laid would line it came in business, underlying The said we on Business this terrific of for Get business stronger. There's out very puts we and the that start fruit bullish to Bigger are brands of growing are you you future. getting told see sold the know, and The we you on when

to this one And know quarter then look I a the FXX ones you we forward summer laying like. So, today. of we have great and on another what out for plan looks lot

time. answer I'll questions you So, you. have additional at that any Thank


conference. today's concludes This

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