Hain Celestial today (9 November) booked lower underlying first-quarter sales and earnings, contributing to another three-month period in the red.
Last month, the US food-and-beverage group was reported to be mulling potential Chapter 11 protection, although there was no mention of that prospect in the results statement issued at 07:00 ET.
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In the three months to the end of September, Hain Celestial’s net sales slid 29% to $260m.
The Greek Gods yogurt owner said asset sales, discontinued product lines and category exits amounted to 22 percentage points of the decline.
However, on an organic basis, net sales fell 7% due to a drop in “volume/mix”. Hain Celestial pointed to lower sales from “meal prep” products that were only partially offset by growth from its kids and beverages lines.
The company said its adjusted EBITDA stood at $18m compared to $20m in the same period a year earlier.
Hain Celestial booked a first-quarter net loss of $11m, which was an improvement on one of $21m a year earlier. The group benefited from factors including lower interest and plant-closure costs. The Earth’s Best owner booked an adjusted net loss of $6.6m, compared to $7.2m in the first quarter of its 2026 financial year.
President and CEO Alison Lewis highlighted an increase in gross margins, which stood at 21.8%, up 330 basis points on the year before.
In a statement, Lewis said: “During the first quarter, we made progress on our strategic actions to realign our cost structure, drive productivity and improve our commercial and innovation capabilities.
“We saw our gross margin improve meaningfully year over year, reflecting progress on both our commercial and portfolio actions. We remain focused on simplifying our operating model and creating a stronger go-forward Hain.”
In September, Hain Celestial revealed it had agreed to offload its “international” operations to private-equity firm Aurelius for $323m in cash.
However, an SEC filing Hain Celestial made on 15 October suggested the sale had not met all of the necessary conditions.
The transaction was dependent on “the company and its lenders entering into an amendment of the company’s credit agreement” by 12 October, Hain Celestial said at the time. “That condition was not satisfied,” it added.
The business said today it had secured all regulatory approvals needed but repeated the lending condition had not been met. It added: “The company remains in discussions with Aurelius and continues to pursue a path forward to complete the transaction.”
Lewis said: “Receiving the final required regulatory approvals is an important step toward completing the sale of our international business. We remain in discussions with our lenders regarding our capital structure and with Aurelius regarding a path forward for the transaction. If completed, the international sale would allow us to reduce debt and create a more focused North America business with strong brands in attractive categories. We will provide updates as material developments occur.”
