Hain Celestial (HAIN)

Anna Kate Heller Investor Relations
Mark Schiller President Chief Executive Officer
Javier Idrovo Executive Vice President and Chief Financial Officer
Ken Goldman JPMorgan
Michael Lavery Piper Sandler
Alexia Howard Bernstein
Anthony Vendetti Maxim Group
Rebecca Scheuneman Morningstar
Eric Larson Seaport Research Partners
Call transcript
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Thank you for standing by. This is the conference operator. Welcome to the Hain Celestial First Quarter 2022 Earnings Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions, to join the question queue. now Heller, turn Investor would to conference I Kate Anna Relations. Instructions] like the to over [Operator Please go ahead.

Anna Kate Heller

XXXX Thank you. Celestial's Year Hain joining us Conference Good morning and First thanks Quarter for on Earnings Call. Fiscal

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

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

Mark Schiller

you, Kate, good Thank and morning. Anna

in by me and continued challenges. to face On thanking on last Starting their collaboratively both for our one continued with and growth, QX, guided other give performance, addressing our X.X we basically progress deliver flat on down our states of with bottom-line. work regard start results. excellent are low employees adjusted earnings With of in today's the sales EBITDA, Investor macro Let urgency call, we top-line strong decline color how than call and our and adjusted came on the XX.X%. being many year strategy of guidance ago, about to we Day and macro versus will delivered worked better environment. versus mid-single-digits. the and a We've than had performance we X,XXX teens the some laid year-over-year down guided I kept against top-line high better out the that QX mid we performance On we net were to challenging to hard to Hain

America versus sanitizer North our from headwinds of include down with $X up X% This growth and year-ago largest sales of fiscal overlapping adjusted segments, the Looking million comparisons significant X%, several and performance, categories. net strong reporting at pandemic-driven year-ago that is hand in explosive were given XXXX. compared sales

American two of also sales. growth across year accelerated we and throughout many Particularly versus Our our growth years compared encouraging delivered make up growth brand QX sales ago, were to the into strong our of that double-digit consumption ago. which XX% and collectively up brands, quarter XX% up about X% North

Seasonings per penetration, up growth our XX% household growing. ago average ACV, last XX recent Sensible versus years year weeks Earth's share. our XX% pre line October North items fact, versus are for the were and EBITDA XXth, -pandemic Alba decline. years X X Best, were two compared America, or on In ago were Portions, all ending most expectations. gaining There drivers and more in in XX% down store, Adjusted velocity with with the and brands to XX% Celestial primary and excluding up all divestitures, was

First, we the last our year that so overlap grew was and in guidance. planned remember XX%, significant COVID-related for

ago. ago, which inflation up versus P&L performance X continued up year that versus long pricing. ago refrigerated adjusted up industry-wide important these compared price strong the supply FYXXXX. versus and also all International, results lead timing consumption in due XX% a productivity XX% XX% our a Adjusted numerous And of to year market, Europe. ago, times, adjusted versus were with discuss we and leading in execution saw between in years We our increases Second, when particularly grew there was and year impacted divestitures, Ella's I'll In Hartley's, kitchen, reflecting delivered It's note share years another compared our two sales Third, to the and hitting X% XX% of soup to significant Which was double-digits EBITDA, projects by on ago. our after strong chain shares to later. brands. quarter gained detail September the was successful EBITDA challenges, excluding lag hit our three net

basis margins ago up adjusted EBITDA year and basis with adjusted respectively. versus considerably expanded XXX margin points and margins points Importantly, XXX gross

we're today. X.X to our the While have process internal metrics do reflect in some of strategy, you our Hain with we reporting all share new to converting

You simplify Day will recall brands, that segmented our we globally fuel into brands, Investor brands and growth investment from brands. for

Company of total make our of up brands Our roughly profit. sales XX% and XX% growth

first and to in time grew group Our brands is after adjusting aggregate. divestitures, grow for year ago this two these compared near the consistently quarter, of versus for brands double-digits. X% last over to In years aspiration XX%

years year-over-year ago. tea, versus investment baby, net Within and comprised XX% the segments, brands. comprised targeted grew versus and and X% two brands, beverage of we grew brands, and two brands, ago. distinct turbocharged personal our two sales group years nondairy yogurt, growth of brands snack group investment year The turbocharged care created versus X.X% meat-free and adjusted last The XX%

increasing our and summary, -pandemic our strong brands. in on is extremely our sales performance versus growth is So, pre top-line momentum

Let touch and and inflation plan a companies, me switch the challenges them. about our pricing and to chain on When then few minutes impacting improvements talking are all the and and North more each than that spend offset we topics inflationary communicated here have inflation we crops and finalized Since our we pursuing America supply mid-single-digit international. highly and anticipated costs productivity inflation anticipated. initially in single-digit inflation expected come case, skyrocket, costs, time, in have in transportation in to continued low we

now to $XX to this inflation commodities take of on hit it. result, covered we XX% expect additional for fully the balance pricing As actions fiscal year. year to we million $XX and to packaging We're additional offset a and of intend million P&L our the

On exposure sources and is and The both or unprecedented here X/X progress chain QX we've of we impacts and to we filled the that backup our costs to importantly, and found with continue we've ensure our and products, labor, progress with Europe. open about made made self-manufactured record the had are we've Company, of running since With as with supply alternative primarily are of we disruptions, lies remaining starting last shortages, transportation in We good very faced in that levels. to products, we keeping which demand. regard Coke and in where the manufactured had materials supply. supply well news terrific challenges. at high both our QX, positions factories at Our locations every service other inbound labor up beginning year, elevated

this warehousing is and drivers service impacting entire here resulting materials, shortage inbound have increasing remains costs. currently side, occurs, distribution we're scheduled up to keep trucks, transportation biggest in of challenge. our staffed on and not up the of picked the capacity abroad secure the time. known, On sales. fully and with The well it Also orders both impacts to being inability and and receipt many delayed When industry,

to windows levels share we're refine customers We to keep high of and collaborating needed, ensure and we service number reduce trucks consolidate orders costs. continue to and delivery with the to pickup to

you're these are P&L. probably impacting challenges So, our wondering how

First, increased to service X. our dollars and significant especially disruptions, we're additional strengthens because merchandising opportunities, generate X. requires the prioritizing X. in supply service struggling go-to-partner in many to and will costs customer reliable help a strong when space as offset it growth increased with it even the shelf future, leads sales times levels. are inflation, us relationships profit service and when positions their of

QX early pricing. challenges, cost every on impact is we but significant list low our taking XX%. effective retailers. by taken we've Europe, Thus in elasticities North be the by on been accepted has about minimal way X% far, virtually very pricing most price and are the to volume. America, In of In average increase increases brand already we've managing been will have seen and with second The the

include similar every of Again, We virtually low pricing levers. increases fiscal expect to new will and that be their elasticities hitting multiple plans we announced pricing our many additional in the inflation to across effective take second Company P&L, take unplanned these brands. price brands across With be since expect the half has increases year. will

we way managing cost via are The is challenges third productivity.

year. have close an on with million of of active to that achieve hundreds discussed we we $XX projects Investor fiscal implemented, will this As Day, expectation being productivity

labor in benefits money productivity the our factories, furthering our agenda, saving simplifying our by Importantly, other like projects and go our reducing additional providing sustainability for need Company. beyond

expect fiscal Looking We're we year. confident momentum forward, because this see sales we X. to accelerating are:

earnings we're we're merchandising to on challenges; and making gained X. accelerated items events that strategy, growth. expected; incremental secured the have processes line top line building significant in sizable strong more distribution X. X.X we've service X. previous had have discussed We capabilities calls; progress changes that our embedding Hain enable with and we've with to addressing on already

here strategies over top-line consistently from culture provide In growth productivity the by supply right On delivers on to bottom Javier execution mentioned. top high mentioned. macro our Company to challenges our nimble have scrapping With for QX and we said, side, line. go-forward the and our the more to summary, on turn And excited that solutions me continue creative the and to a we're we brands growth accelerate I've now that surgical momentum create detail performance our continue I've disruptions pricing offset of to cost leverage it find chain. and let in and outlook. and of supply we'll both confident that to

Javier Idrovo

Morning, Thank you, Mark. and Good everyone.

few at operating execution guidance And the on journey. by platform we into top top-line strong Let a move key highlighting a of X. first-quarter Hain X.X aspects that again results delivered solid our plan. and We our growth me results bottom-line. of of of solid as transformation building our demonstrate end start the

performance, financial while improved Second, despite North the international our entire supply American chain challenges delivered operations our the strong quarter. industry, quarter impacting the another business throughout of

strong during long-term as finally, Third, we flexibility. start September. excellent balance well-positioned will and allocation each our on sheet the our with to as our line algorithm into remains will then laid full-year results, these out discussion aspects. new capital top deliver And of well we our Day I Investor the of presentation in drill with I guidance, are

As sales we consolidated decreased surge, to X% year-over-year year's net quarter last overlapped COVID demand first million. $XXX

sales net X% first-quarter sales divestitures, an and - brand COVID growth. mid-single-digit mid-to-high after year, Foreign close was XX%. X XXXX, prior a factors, were comparing discontinuations for divestitures This versus to net increased by better our pre low by exchange versus single-digit adjusted of brands on QX sales reduced guidance When of When net adjusted than net exchange, guidance our for our exceeding adjusting to and basis. sales these QX while flat discontinuations, performance XX% benefit foreign decrease by

gross slight adjusted carrier in resulted expansion adjusted pressures, distribution industry-wide delivering quarter, the gross shortages, a we our While availability, by year-over-year and freight margin to in cost cost margin. driven trade and other for labor warehousing guided continued issues reduction

basis increase first pricing of in more P&L overall compared in actions XXX American the the began Company gross we the North September, to during than the points period. round of The quarter, year margin late to prior month total an benefit implemented with

sales slightly controlling compared business as and prevalent they year XX.X% line expenditures we Despite sales slightly to still most XXXX. are of were lower the to were percent the beverage these gross Marketing was a challenges product spending expansion meat-free SG&A, support QX largely excluding expenses. U.S. net higher than from range UK. year, also chain prior impacting XXX labor-related basis third-party headwinds, in launch supply our of year prior in period. came SG&A margin nondairy McCartney percent operations. our of a of Total of prior at sales, costs, marketing, than the our in deliver to including net as Linda international and operations, when the the with While points marketing in adjusted able were

spending. than adjusted decreased SG&A of a First-quarter by our compared guidance EBITDA improvement driven to high-teens to million, our point XXX year driven XX-basis XXXX, EBITDA ago to adjusted lower was versus margin better performance EBITDA decrease margin QX decrease. $XX comparing XX% a to year-over-year, points. our basis the margin our decrease slightly improved XX% of actions in by took or EBITDA the When The already mid pre-pandemic by mentioned. gross we versus guidance mainly

year EPS for decreased period. the the was quarter in $X.XX rate. $X.XX The the Our consistent to of tax adjusted tax rate prior compared quarter effective year with XX.X% prior first adjusted

before, America North supply basis. in discussed provide business, we me segments. are the to seeing chain sequential on with the issues industry-wide where continue our reporting have some Let detail but improvement we our face individual Starting

increases the had elasticity market, demand. better price are U.S. hit as the sticking, evidenced in planned Our by of and

growth sanitizer year reported On After in for X% close the versus versus American movements, to and the versus of the due and In with strong 'XX, -home versus category, consumption north versus years year divestitures elevated sales delivered year to first performance year, brand category targeted period products strong XXXX, at quarter foreign the hand business. performance prior North XX% X% by foreign sales tea prior and baby net adjusting the ago. sales food top-line, divestitures, year food driven our XX% investment our same snacks single-digit versus after growth also period by prior decreased the year-over-year fiscal our turbocharged and of $XXX.X -XX. movements and prior increased discontinuations, decreased the two for mid-to-high mainly delivering to exchange net adjusting X%. QX due When for lapping QX million, growth comparing exchange of our growth X% sales delivered the The COVID tea period. to

close personal when delivering to compared Our business to performed care XX% ago, growth. well years two

million. margin business our the QX offset margin Adjusted these last decrease U.S. adjusted multiple have in to basis While margin challenges, points EBITDA period services XX% a Most late XXX a by driven of strong decreased and X our perspective, by the X.X% maintain began P&L challenges taken XXX operational productivity gross in discussed, quarter, actions the has for profitability represented basis by of initiatives. supply From in gross been prior EBITDA versus in points, $XX we relatively benefit to pricing our of customer America to quarters decreased Adjusted presented the partially the pricing chain year September. able already the driven North by decrease.

initiatives. actions prior September's points EBITDA productivity driven Specifically, by increased our basis a margin the largely XXX to these relative year by pricing about supported period, by and

quarter in period versus decreased expectations. XX% our the Net me to a let basis strong Now we business line prior shift the reported with results. first on international for overall delivered the sales where year

baby X% Foreign the compared currency to behind quarter kitchen, high the were while XX% -pandemic year XXXX, by divestitures, after movement about versus most growth XX% in for Ella's by of X% Soup our U.K.. reduced recent up the increased exchange Jill on sales businesses sales period, divestitures period. and increased Sales food, the first prior net pre up the sales quarter and and for adjusting

XX%, million, through not the and of to profit year flow beverage, EBITDA and profitability X.X prior of was food the as American adjusted management. million. first reflects quarter chain growth adjusted by plant-based, Capital in improved the flow of to Shifting basis X.X% million by $XX EBITDA generated global $XX.X end brands margin quarter by and we This spending under the spending despite for grew was From adjusted X to same sheet, facing operating net for points the to points versus effect XX% EBITDA the debt inventory This while our was constant challenges yet North Ella XX% into inflation, or million. having low on and sales $XX our versus balance net of taken XXX by divestiture pricing category years baby Gross playbook versus decrease margin the implementation went sales. the business. debt growth period period, but businesses. supply Cash-on-hand standpoint, growth from an quarter year ago, X.X% the cover XXX of adjusted period, leverages the expansion, margin driven cash basis Our a of existing a is in the at full-year productivity credit currency stood cash was delivered prior strength which relative non-dairy quarter. about gross the improvement track primarily the acceleration QX agreement times. at calculated $XXX a net the of of X% for the decrease given and of second

our $XX.XX million and reinvest sheet shareholders. have as stock per return the us shares about at million price the average or of our with of balance the both to leaving the million allocation remains with during quarter. a value a authorization end of excluding outstanding of result, X.X% first Consistent share flexibility $XXX commissions, capital XXXX and principles, we repurchase total quarter, strong repurchased additional $XXX.X X.X we the program for to Our significant business in remaining common under at an of

XX gross about EBITDA our margin our net fiscal currency year reflecting points Now, expect divestitures, adjusted growth, growth. a XXXX. we XXX-basis adjusted XXXX, full-year from and small year expansion, a we to modest reaffirming headwind benefit bps low mid-to-high adjusted Compared and of from single-digit sales outlook, turning single-digit are fiscal to guidance for

the expect announced initial increases by half. forward to incremental XXXX of Brexit XXXX, in events first growth the year half. in fiscal and mid-to-high year net and single an volume improvement half first-half EBITDA overlapping low of of inflationary sales confirm that adjusted 'XX fiscal our down basis and QX half down initially in we're following: timing than the QX net XXXX, in double-digits adjusted benefited second be by year year half first the hitting guidance market, fiscal higher the over we in digits volume-generating environment the the in year Given second a X%, of fiscal the fiscal price forecasted, on single-digits second during sales related about mid-single-digits pull note, 'XX, be and up-low to the To the

part the estimate to we pricing our outlook, first-quarter be able plan full-year are we previously, north inflation inflationary over and the facing, and will recover adjusted levels deliver the and strong time chain we of continue better in deliver As adjusted XXXX now of top-line, and turn goods beyond. through additional summary, even Mark. EBITDA, momentum generally to In actions. we that I of X%, updating expansion outlined industry-wide given are challenges. which of cost margin We and than and to significant are we supply challenges results to well-positioned guidance to to the of global growth in chain believe supply call have back face were we the

Mark Schiller

continue our how of challenges macro performance proud all We're companies the many we are Javier. to you, facing. overcome strong Thank and QX

the it to over to environment. now this and that let brands, growth take to your compelling me and culture We operator turn team an terrific thrive have exceptional With Hain a in questions. strategy, X.X said,


Thank you.

Instructions] now join pause begin as moment session. a will will question-and-answer [Operator for callers the We queue. the We

of from JPMorgan. comes question Please first Goldman Ken go Our ahead.

Ken Goldman

of sense last the morning. guidance. a cadence XXX -- three wanted the year-on-year an points to for higher then to specific, of to increase to little a I similar specifically bit better numbers? little on little grown as to your has each for basis idea to back Is get you and the get know model of a basis. quarter. bit a us, the a just assume be international been things. how more a about you points the second segment-by-segment we some less for the trying a start it that maybe to on of the basis get EBITDA including wanted I'm Thank especially on increase Thank in you. quarters. me, of to ask second of some more fair I margin help quarter. challenging how year, as Good sector better think international XXX Javier, you side just the lap of half on to a it's Hi. I for

Javier Idrovo

the question. Thanks for

I What yes, driven, but is and would say same magnitude QX a same You and margin largely QX. international. as muted, for not international should improvement the in would I QX as in really level inflation least -- QX relative for from and inflation in would it QX. put is be will did will but QX, ingredient say to the the though I was see say, be we at even international rate will QX at will the to pricing decreasing benefit to there up working because fairly experience is for QX through its it in you inflation improvement, the will what same will be beyond. QX, not margin environment, picking -- expect And I still gross a low QX. QX see QX, for at wouldn't margin And would way have QX, through QX they

Mark Schiller

in Just second we remember, that half. was we Ken, divested low-margin to the which fruit when the start last that lap business, year business, a very

And the don't business, that divesting So, of true performance. international, we part half the to just the half, we it about get of margin other fruit favorability. productivity fruit as and was expansion was QX have half second the and

Ken Goldman

being you and you the about that be you COGS goal then productivity. pricing, regaining X%, with and now expecting inflation follow-up. time of quick think mentioned are north a to Javier, Got over it. And I then that talked

to regain clear, the because be the to Just profit the is margin or mentioned it goal you dollars? terms, on percentage percentage

Javier Idrovo

profit is now right goal to dollars. regain the The

Ken Goldman

much. so Thanks Perfect.


Please from Michael Sandler. Lavery ahead. of comes question Piper go next Our

Michael Lavery

you. morning. Good Thank

Mark Schiller


Michael Lavery

elasticities. to wanted touch the on Just

still early, assumptions guidance, You some it's and relative what you're so how that you've on pretty sense just you Obviously, give about there you've far. what made to can color but a seen about elasticity? gave thinking

Mark Schiller


we're So, volume. low impact on nominal that elasticities to had been pleased and the have very see very a

continuing why such that's with part X% In see robust seen of in on fact, to we've we're acceleration our to it, XX% growing volume of pricing top consumption.

balance stabilized plan offset again, would not flip fact some come that the better assumed coming Our for crops offset that it's since there by be anticipate have It's than has globe, we gone little highly we it. And than But the did a year the of assumed considerably primarily in and year, the started, or in would up modest inflationary thought. freight. they've on have the fully more side, elasticity. as inflation across been being inflation, which we

So, of we've side, than offset bit got it's on elasticity being little a by the more but benefit inflation. additional

Michael Lavery

or just just something that's in That's of have it's particularly that's minds, our that pieces, thanks. sense we looking don't good look, sure follow-up retail make about a picture, of like see. measured out think that's that. small sustainability Is pretty trying of a channel, forget anything total be that there robust a percentage country, the but or we just rest we're should can it? as call total there to line. the can great, got the know And where you some to Okay just may any we at or to particularly notable top the I portfolio on a your in a give U.S. back sales, quick the

Mark Schiller


care of we've to doing particularly well percentage and very we found has its have personal which on calls. in and on sunscreens, measured benzene sales care previous total do We're So talked were about small channels of sun exceptionally the a business, number we're their a Alba manufacturers which in not.

would we see. other I that so, shops distribution that picked in say e-commerce channels from up from won't Everything people one growth. be you to seeing would that a to we're robust surf And certainly place of lot clubs,

volume different meat-free care, visibility lot international, We the again, a of and a to countries many you'd robust. and of have is, part place very to is don't on that business, also a have syndicated do e-commerce of e-commerce, particularly every The data that baby. is personal you at which other lot our snacks, In channel in big the buy so all in business we're and UK, we really to to talked the into are that's country, which the and, distribution beverages numbers. because in also half a under the the talked brand to new tailwind we Linda remember, get visibility. McCartney versus second Linda Those sales McCartney Europe. But country about our brand, starting expanding expand incremental on some strategy, about new have non-dairy baseline into revenue our X.X will

Michael Lavery

great. so much. Okay, Thanks


next Alexia Howard Please go comes of Our question Bernstein. from ahead.

Alexia Howard

Good morning, everyone.

Mark Schiller


Javier Idrovo

Good morning.

Alexia Howard

supply having a follow-up. so truckloads. there? chain am from COGS you that typically though from freight on the to? get rates contract that, full disruption market the real I and what dig just situation? I as of with there. proportion to on What there the now. that that know moment? go side, messing Because And the half one of are at in Hi, the in Can past, that's you've talked spot that remind I about that us and benefits going sounds Is full, it wondering can't versus gone cost have Can into percentage that's And full just mechanics is? truckloads then the the the pain points really are the quarter freight I to you then where you're what truckloads through moving going exactly

Mark Schiller

costing pick when driver second, specific than way One which speak up show more numbers is they Javier up. just cost problem. a show truck multifaceted a don't each different orders, adds up freight and to Yes. costs is, in I'll let in the just but to sometimes for a each trucks

someone the So, up you've be and notice dock to that's contract and go number front pick costs of market in doors. to on ancillary spot short there of very come when your that are robust can load got a to then try a sitting

filling massive to continue With trucks. up progress costs. trucks, up there's we but there's on filling also those to yes, ancillary regard inflation, So make

had more We're working consolidate So, shortage, a of when truck truck. X than to with pallets given an average full, are years we we started retailers couple we per of ago, half the orders. driver journey a now our about and

of ordering many week, in trucks. other instead cost of and out who burden it of it full it makes some labor be So, the a week, receive truck also so half to kind as every a order having not takes customers how may easier issues every truck warehouses that their thing, for about

driver filling good Us making So, progress we it's you some we're good us color want cost? road, off both add that. the win-win on on work a up of to solution, and trucks agnostic which the takes shortage. Javier, there, of to and the is trucks continue really for that's

Javier Idrovo


Let we you X. framework inflation energy about for finished freight, our X. to here the the inflation: of and cost. costs. X. labor, at Company we our the me But ingredients, and we bucket goods, packaging, use also X. at use evaluate think that components X. that the look give our to X. international,

but X. one ingredients so, would now, and the highest X. that as you seeing America, America, united call internationally. the in we're it's permeating North say -- right North where is X. is places just the would not And points, packaging. say, what And then I freight pain obviously I it's it in also

would would international. then also -- those in freight, are to in points in X. in pain are big pinpointed So international, I the again, it's energy And add that add then costs addition America. ingredients. also X and North

the up of kind of our that's how that's have being full evaluating we X% basket and the costs, look around how at we to impact that we end year. for So,


comes ahead. Please Vendetti from question next Anthony of Maxim Group. Our go

Anthony Vendetti

you. Thank

considers cost increases the it. accepting price accepting it? accept potentially to Are able that aren't there's mentioned that you're all increase. of volume assume taking retailers reiterating revenues said Are lower the price the ones you terms increases, be by of your you increases this almost the another fact retailers offset guidance, going to that able price for to it? set offset you for are In all Particularly, the won't you the I and

you based talking were go-forward the just all about. it's I how So, just factors on -- was look you'd wondering the at guidance

Mark Schiller

a guidance there. against and that are of on conversation, So, as about have seeing. go-forward the everyone know to inflation, Obviously, elasticities is and taking pricing round we some We've our assumed pricing, we're inflation pressures go The cases large, we the certainly But pricing the everything same and retailers the as retailers negotiation. in that have it's by increase we that both, in is in to success well having of based includes first are. today. that cost

is on this pricing. environment an of so, pass ability terms to And unusual in

relative are we We our conscious pricing do are are points very take of competitors. what versus price when

edible not we're obviously. costs on to some oils, increase XXX%. So, a XXX% not arbitrarily take a costs. In like our going passing price up just categories, are We're

around on of what by it brand brand, by around look long best the short the we do is think going do the decisions to consciously category by make what's right for really the we the and very So, And, do to category, for channel we us. channel, term brand, thing term. both

well incremental in QX, round to North So, the that now the very the in additional seen. pricing Canada first we've implementing so we've half of with of far and in pricing the done offset went will Europe second and -- beginning inflation come back we that U.S. We're in America, pricing in

are And of Anthony, elasticities than because so, originally margin little that assumed lower because we we're a but modest revenues some extra more But assumed of bit still to than was might of be this seeing growth, the higher guidance, expect inflation. initially also the pricing. on we see part our it

bit gets parts the on the it top P&L. moving to place of same but So, there's the the some line and little both middle -- of a EBITDA, us on

Anthony Vendetti


in topic. products X.X, today, s quick has there -- roll to or a launch mentioned these products you you this environment? starting to out new that as follow-up. by Hain Separate at in issues able you're all but you the outlined hampered are Just been new all

Mark Schiller

it's that, they and in much severe issues getting continue America reset, spring, resetting more innovation increasing our and North bit recipients In QX more having we with In the Europe, because and space. shortages. labor to of very actually other are products in resets successful like shortages snacks categories having and were of in terms customers of our we number challenging TDPs been not any and the accounts a as expect carrying driver shelves be little we've that us will

some border has on seeing the challenging would products still distribution are get anyway. not setting innovation over the we're Brexit but to like more not we -- from the same changes some up they categories Continental retailers also that have just the the implementing so, of which Europe UK, macro spotty make aren't, Some the challenges are, normally the more they're as everybody, particularly it in -- only

more a getting in pattern and an planned. U.S on the innovation the little a as UK. bit bit growing say So, pains more of unusual now, we're in But particular, reset Europe I'd right and little in going

Anthony Vendetti

Excellent, that was helpful. thanks Mark,


Our of Please go next from comes Rebecca ahead. Morningstar. question Scheuneman

Rebecca Scheuneman

and, in -- Hi. we've was that In some coming that's of fourth have X% have I Good for new morning. percentage for previous trends That the the that question. third Thanks in quarter? in disclosed seeing X% quarter, first the you quarters, statistic the from -- been you products, it regard quarter. sales Do good the think

Mark Schiller

Yes. It first about was X.X% quarter, in FY'XX FY'XX. in X.X% and about about from in up X% the

with in QX X.X% volume were why that but So versus little had we things in is launching sticking previous have out up down more number, Was of the QX? categories want well. perform good We to repeat to inflated rates, X% so innovation, high top the didn't incremental we have a QX, that a we is of big is We keep start. resetting. stuff coming a that off high-single-digits. little the And for at pipeline bit just us. innovation, lot a coming which on as be good -- trading bit opposed very and to was number as categories, been a to were it Because

pleased from we're from both We the percentage rate doing. distribution which happy the getting a at we're what we're with incrementality that like getting we're of we're innovation, standpoint. and So, very -- getting with sales we're and a consumer

Rebecca Scheuneman

And my it's if to if getting picture. add the then just situation a could I know improving, color on some I is thanks. worse. seems Great, as or possibly, Okay. be wonder there the labor follow-up lot you of looking be color there up staff to there is are if of add getting you Thanks. worse. world Amazons wondering could just potential and the the some for problem holiday, retailers there. that I'm could so the

Mark Schiller


about So, we the had end we as I QX. opened in of the filled remarks, mentioned X/X that positions at of the prepared

fully behind QX example, that labor So, factories severe we we we shift. that didn't couldn't labor all -- distribution And resolving of quarter We've our for some have an a we of terms people run of had the shortage so third facilities. warehousing the challenges the in have. staffed terrific That's some XX/X, enough up us. because we've and in a as actually was

We've to get seeing getting the trouble in significant the enough and We on that have And, other We've with it sure our we're up good trucks things A B. to on I so done and in we make We've plants, long in and terms control openings, having have where in get drivers, through manufacture were a to -- industry. internally, good. done done pay, we're still position again, in we we're the challenged as benefits. which with better as things so having it impacting business through preferred to made still to increased side, town. we're the keep progress that we've incentive manufacturing through still but from far of would point say it wages. manufacturer our We the everybody made carriers particularly terrific it demand, solving our the But we keep to it. some third-party demand. progress freight product point up can ability we're is

Rebecca Scheuneman

much. you Great. Thank so Okay.


Larson Partners. Seaport Our Research Eric is Please ahead. go from next question of

Eric Larson

question. maybe in entail? to give prepared of your that more clarity of events my significant number Mark, think both lot to innovation are promotional I tied reductions taking this it a a might I what's more on of that, you year, But you events mentioned the for and promotional what be comments bit as timing can have those us well. a and you little closely Thanks think tends

Mark Schiller

was took we would last I thing remembering, adding having the that and year spending the pandemic, lot of demand you is trade we're the In supply cases, last so on we a merchandising were robust. that back of out back some some pulling year promotional was challenges So, events because spending of just with. the height first at brands the tell people there on

some you the our do promotions on the and that that year with the make mentioned to we has boats events. the of bundling ongoing big rise, activity. where money significant But major and merchandising half sure get if caps, in visible in right we That that's channels having picked to of some we're on half second will. going together great continue all behind get I in year. We've sunscreen, putting we're year, second brands end So And, to now the mentioned the the helped big And in distribution snacks success specifically, in going I both up significant were to distribution. second-half. we're and up and we're picking promotional gains channel throughout the where distribution, the got club

that's sizable confident of and a the going half are second got of we're of we've we're growth see in part incremental that events number year. so in secured reason the to the So, that the

Eric Larson

And than question. else. Okay. Thanks. might my It be more clarification then follow-up just anything

is in bit sure am some those are a COGS be that effective pricing to take extra here, clarification, I got the which or just half take had of you additional And up you what you two -- going you'd So, inflation think not little pricing transportation you more a to thought. that than second that'll answer. I second is the beginning correct the going additional half? said

Mark Schiller


then about to to right it's now. the customer lead on out we're a time, XX-day it this actually retailers before shelf. our XX We'll the go finalizing and hits the plans So, month later depending

hit, aware we'll and of be that that is the will in and hits pricing there wave the that expect when well. of see as So, mid-third fourth pricing quarter quarter of we're a second international little bit will

Eric Larson

the Thanks clarification. for Okay. Perfect.


turn Mr. to remarks. the any for would I question like the and answer closing back concludes over conference Schiller session. This to

Mark Schiller

Hain And very time your about is the for fact Thanks, the of we're on that this taken questions in the to S looking and everyone, Operator. been excited we're for day. proud away excited the the know unprecedented Thank we today. Will these I'll starting with guys a we're to challenging focused for that Hopefully, for, Obviously, your be has you. you've o that time I I everybody well year, times on. perform our balance from you back deliver I'm presentation and that about environment. that, and are it X.X today. strategy topline to throughout much thank continue accelerated future, of turn available


This concludes conference call. today's

you You participating day. may lines. Thank for and disconnect your pleasant have a