Hain Celestial gross sales fall 7%, pronounces $115 million North American snacks divestiture – AlphaStreet Information – Imperial Wire

Hain Celestial Group (HAIN) reported a 7% decline in second-quarter income on Monday and introduced a definitive settlement to promote its North American snacks enterprise for $115 million as a part of an pressing turnaround technique to sharpen its portfolio and scale back debt.

The well being and wellness firm, identified for manufacturers like Celestial Seasonings tea and Earth’s Greatest child meals, noticed web gross sales drop to $384 million for the quarter ended Dec. 31, 2025. Natural web gross sales additionally decreased 7% year-over-year, pushed by a 9-point decline in quantity and blend that was solely partially offset by a 2-point improve in pricing.

The corporate posted a web lack of $116 million, or $1.28 per diluted share, in comparison with a lack of $104 million within the prior-year interval. Outcomes have been closely impacted by pre-tax non-cash impairment fees of $132 million associated to goodwill and sure intangible property. On an adjusted foundation, Hain reported a lack of $0.03 per share.

Strategic Divestiture and Debt Discount

The $115 million money sale of the North American snacks enterprise, which incorporates manufacturers reminiscent of TERRA, Backyard Veggie Snacks, and Backyard of Eatin’, marks a serious step within the firm’s “Reimagine Hain” technique. Administration intends to make use of the proceeds to scale back web debt, which stood at $637 million on the finish of the quarter.

We took daring steps to sharpen our portfolio and strengthen our steadiness sheet, the divestiture offers larger monetary flexibility and a clearer deal with core classes like tea, yogurt, and child/children.

Section Efficiency

• North America: Natural web gross sales plummeted 10%, primarily attributable to distribution losses in snacks and softness in child components, although drinks supplied a partial offset. Adjusted EBITDA for the phase fell 57% to $11 million.
• Worldwide: Natural web gross sales decreased 3%, exhibiting what the corporate referred to as “sequential enchancment” from the primary quarter. The phase’s adjusted EBITDA dropped 16% to $19 million.

By way of class efficiency, Drinks was a vivid spot with a 3% natural gross sales improve, fueled by tea development in North America. Conversely, Snacks noticed a 20% natural decline, whereas Child & Youngsters fell 14% attributable to industry-wide softness in UK purees and lapping provide restoration in North American components.

Money Movement and Outlook

Regardless of the income contraction, Hain highlighted improved operational effectivity, with free money movement rising 22% to $30 million. The corporate additionally reported its greatest service ranges in current historical past in North America and a major discount in stock days.

Hain Celestial declined to supply numeric steering for fiscal 2026, citing uncertainties surrounding its ongoing strategic evaluate. Nonetheless, the corporate expects stronger natural web gross sales and EBITDA tendencies within the second half of the fiscal yr in comparison with the primary, pushed by productiveness financial savings and price administration.