Q1 2026 Hain Celestial Group Inc Earnings Call Transcript
Key Points
- The Hain Celestial Group Inc (HAIN) demonstrated sequential improvement in organic net sales trends in both North America and International segments.
- The company made tangible progress in laying operational and financial foundations to drive improved performance, focusing on stabilizing sales, improving profitability, optimizing cash, and deleveraging the balance sheet.
- Cost discipline and decisive actions to streamline the cost structure led to a reduction in SG&A expenses, with early results from pricing initiatives beginning to build.
- The company has accelerated its innovation pipeline, launching new products in every category, including a significant relaunch of Garden Veggie snacks.
- The shift to a digital-first marketing model is delivering positive returns on advertising spend, with new digital partnerships driving community relationships and household penetration.
- Organic net sales declined by 6% year over year, driven by lower sales in both North America and International segments.
- Adjusted gross margin decreased by approximately 120 basis points year-over-year due to lower volume mix and cost inflation.
- The Snacks category faced a 17% year-over-year decline in organic net sales, driven by velocity challenges and distribution losses in North America.
- The Baby and Kids category experienced a 10% year-over-year decline in organic net sales, primarily due to industry-wide softness in purees in the UK.
- Interest expense rose 13% year over year to $15 million, primarily due to higher financing fees related to the amendment of the credit agreement.
Ladies and gentlemen, thank you for standing by. My name is Christa, and I will be your conference operator today. At this time, I would like to welcome you to the Hain Celestial Group first quarter 2026 earnings conference call. (Operator Instructions)
I would now like to turn the conference over to Alexis Tessier, Head of Investor Relations. Alexis, you may begin.
Good morning, and thank you for joining us for a review of our fiscal first quarter 2026 results. I am joined this morning by Alison Lewis, our Interim President and Chief Executive Officer; and Lee Boyce, our Chief Financial Officer. Slide 2 shows our forward-looking statements disclaimer. As you are aware, during the course of this call, we may make forward-looking statements within the meaning of federal securities laws. These include expectations and assumptions regarding the company's future operations and financial performance.
These statements are based on our current expectations and involve risks and
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