Hain Celestial Reports Fiscal First Quarter 2027 Financial Results
HAIN CELESTIAL GROUP INC (HAIN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Hain Celestial Reports Fiscal First Quarter 2027 Financial Results Final required regulatory approvals received for the sale of the Company’s International business HOBOKEN, N.J., November 9, 2026 — The Hain Celestial Group, Inc. (Nasdaq: HAIN) ("Hain" or the "Compan
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on sales trends, margin improvements, and debt levels, informing short‑term trading decisions.
Market read
The Q1 miss may trigger a pullback in Hain and related consumer‑goods stocks, while the pending divestiture could create upside if completed.
What to watch
Improved gross margins and flat adjusted EBITDA suggest operational efficiencies that may be undervalued.
Hain Celestial Q1 FY27 net sales fell 29.3% to $260,274 thousand; final regulatory approvals received for the International sale, but the credit agreement amendment condition was not satisfied
Net sales fell 29.3% with organic net sales down 6.7%, GAAP net loss was $(11,303) thousand, adjusted EBITDA declined 10.9%, and the company reports that the credit agreement amendment condition for the International sale was not satisfied while total debt rose to $586,205 thousand. Gross margin improved 330 basis points, which is the main positive in the filing.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, Q1 FY27GAAP | $260.3M | – | (29.3)% |
| Organic net sales, Q1 FY27non-GAAP | $247.0M | – | (6.7)% |
| Cost of sales, Q1 FY27GAAP | $203.6M | – | – |
| Gross profit, Q1 FY27GAAP | $56.66M | – | (16.8)% |
| Gross margin, Q1 FY27GAAP | 21.8% | – | +330 basis points |
| Adjusted gross profit, Q1 FY27non-GAAP | $59.29M | – | (17.5)% |
| Adjusted gross margin, Q1 FY27non-GAAP | 22.8% | – | +320 basis points |
| Selling, general and administrative expenses, Q1 FY27GAAP | $61.87M | – | – |
| Amortization of acquired intangible assets, Q1 FY27GAAP | $5.10M | – | – |
| Productivity and transformation costs, Q1 FY27GAAP | $4.67M | – | – |
| Operating loss, Q1 FY27GAAP | −$14.98M | – | – |
| Operating income, as adjusted, Q1 FY27non-GAAP | $3.02M | – | – |
| Interest and other financing expense, net, Q1 FY27GAAP | $12.30M | – | – |
| Other income, net, Q1 FY27GAAP | $16.88M | – | – |
| Net loss, Q1 FY27GAAP | −$11.30M | – | – |
| Net loss, as adjusted, Q1 FY27non-GAAP | −$6.63M | – | – |
| Diluted net loss per common share, Q1 FY27GAAP | $(0.12) | – | – |
| Diluted net loss per common share, as adjusted, Q1 FY27non-GAAP | $(0.07) | – | – |
| Adjusted EBITDA, Q1 FY27non-GAAP | $17.58M | – | (10.9)% |
| Net cash used in operating activities, Q1 FY27GAAP | −$18.92M | – | – |
| Free cash flow, Q1 FY27non-GAAP | −$22.84M | – | – |
| Total debt, September 30, 2026 vs June 30, 2026GAAP | $586.2M | – | – |
| Net debt, September 30, 2026 vs June 30, 2026non-GAAP | $523.2M | – | – |
| Cash and cash equivalents, September 30, 2026 vs June 30, 2026GAAP | $63.02M | – | – |
| Total assets, September 30, 2026 vs June 30, 2026GAAP | $1.11B | – | – |
| Total stockholders' equity, September 30, 2026 vs June 30, 2026GAAP | $143.6M | – | – |
| Net secured leverage ratio, September 30, 2026other | 5.3x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North AmericaOrganic net sales decreased 6% year over year, which the company attributes primarily to lower sales in baby & kids, beverages and meal prep. Segment gross margin was 31.1% (prior year 20.8%), and the company states that the improvement was primarily driven by the North American Snacks transaction, partially offset by lower volume/mix. Adjusted EBITDA was $17,314 thousand (prior year $17,009 thousand, +1.8%), which the company attributes primarily to SG&A reduction, productivity savings and pricing, partially offset by lower volume/mix. | $110.8M | – | (45.7)% |
| InternationalOrganic net sales decreased 7% year over year, primarily driven by lower sales in meal prep, partially offset by growth in baby & kids and beverages. Gross margin was 14.9% (prior year 15.7%), and the company attributes the decline primarily to cost inflation and lower volume/mix, partially offset by productivity savings. Adjusted EBITDA was $8,959 thousand (prior year $12,555 thousand, (28.6)%), which the company attributes primarily to lower gross profit from lower volume/mix and cost inflation, partially offset by productivity savings. | $149.5M | – | (8.8)% |
| Baby & KidsOrganic net sales decline of 1% per the release text (organic table shows (0.6)%), driven primarily by purees in North America, partially offset by growth in snacks in North America. | $52.55M | – | (5.8)% |
| BeveragesOrganic net sales decline of 1% per the release text (organic table shows (1.4)%), driven by tea in North America and International, partially offset by private label non-dairy beverage in International. | $58.15M | – | (2.4)% |
| Meal PrepOrganic net sales decreased 10% per the release text (organic table shows (10.3)%), driven primarily by spreads & drizzles and soup in International, partially offset by growth in yogurt in North America. | $134.1M | – | (16.0)% |
| SnacksFollowing the disposition of the North American snacks business, the snacks category is comprised of jellies in the International segment. Organic net sales declined 16% per the release text (organic table shows (16.3)%). | $6.70M | – | (91.6)% |
| Personal CareThe release prints no organic growth figure for this category (shown as n/a). The release prints no driver commentary for this category. | $8.73M | – | (32.2)% |
Capital returns
- No share repurchases or dividends are reported in this filing.
- Basic and diluted shares used were 91,002 thousand in Q1 FY27 versus 90,309 thousand in Q1 FY26.
What drove it
- Net sales decline of 29.3% includes an impact of (22.3)% from divestitures, discontinued brands and exited product categories, per the organic net sales table.
- Organic net sales decline of (6.7)% consists, per the release, of a 7-point decrease in volume/mix partially offset by a 1-point increase in pricing.
- The company states that gross margin improved meaningfully year over year, reflecting progress on both its commercial and portfolio actions.
- Gross margin of 21.8% was 330 basis points above the prior year period. Adjusted gross margin of 22.8% was 320 basis points above the prior year period.
- Adjusted EBITDA margin in North America was 15.6% compared with 8.3% in the prior year, which the company attributes primarily to SG&A reduction, productivity savings and pricing.
- Transaction and integration costs, net were $8,419 thousand versus $2,173 thousand, and are excluded from adjusted results.
- Productivity and transformation costs were $4,666 thousand versus $8,219 thousand.
Concerns
- The credit agreement amendment condition for the International sale, due by October 12, 2026, was not satisfied, and the company states it remains in discussions with its lenders regarding its capital structure.
- Net secured leverage ratio of 5.3x as calculated under the credit agreement.
- Total debt increased to $586,205 thousand from $557,844 thousand at June 30, 2026, with current portion of long-term debt at $585,934 thousand.
- Net sales fell 29.3% and organic net sales fell 6.7%, with Snacks down (91.6)% and Meal Prep down (16.0)% on a reported basis.
- International adjusted EBITDA declined (28.6)% and International gross margin declined to 14.9% from 15.7%.
- GAAP net loss was $(11,303) thousand and operating loss was $(14,976) thousand.
- Operating cash outflow was $(18,917) thousand and free cash flow was $(22,835) thousand.
What to watch
- Outcome of discussions with lenders on the capital structure and the credit agreement amendment.
- Path forward for the sale of the International business to AURELIUS, which the company says would allow it to reduce debt if completed.
- Further updates on material developments, which the company says it will provide as they occur.
- Whether gross margin improvement continues while organic net sales declines persist in Meal Prep and Snacks.
- The risk factor listed in the release regarding the potential cessation of the common stock's listing on The Nasdaq Stock Market LLC.
Balance sheet and cash flow
- Net cash used in operating activities was $(18,917) thousand versus $(8,480) thousand in the prior year period.
- Purchases of property, plant and equipment were $(3,918) thousand versus $(5,227) thousand, and free cash flow was $(22,835) thousand versus $(13,707) thousand.
- Total debt was $586,205 thousand at September 30, 2026 versus $557,844 thousand at June 30, 2026. Current portion of long-term debt was $585,934 thousand.
- Net debt was $523,190 thousand at September 30, 2026 versus $499,766 thousand at June 30, 2026.
- The company reports a net secured leverage ratio of 5.3x as calculated under its credit agreement.
- Other income, net of $16,876 thousand includes a gain on remeasurement of assets reclassified to held and used of $14,769 thousand, which the company excludes from adjusted results.
- Inventories rose to $166,736 thousand from $149,275 thousand at June 30, 2026. Total stockholders' equity fell to $143,592 thousand from $154,795 thousand.
- The company states that the regulatory approval condition for the sale of the International business to AURELIUS was satisfied in early November 2026, and that the separate condition requiring an amendment to the credit agreement by October 12, 2026 was not satisfied.
Analysis
Hain Celestial reported Q1 FY27 net sales of $260,274 thousand, down from $367,883 thousand, a decline of (29.3)%. The release attributes (22.3)% of this decline to divestitures, discontinued brands and exited product categories. Organic net sales were $246,996 thousand versus $264,754 thousand, a decline of (6.7)%, which the company describes as a 7-point decrease in volume/mix partially offset by a 1-point increase in pricing. The category data shows the sharpest organic pressure in Snacks, which is now limited to jellies in International, and in Meal Prep, where organic net sales fell 10% per the release text.
Gross profit fell to $56,660 thousand from $68,078 thousand, but gross margin rose to 21.8% from 18.5%, a 330-basis point increase. Adjusted gross margin was 22.8% versus 19.5%. The CEO attributes the improvement to commercial and portfolio actions. The segment detail shows that North America gross margin rose to 31.1% from 20.8%, which the company says was primarily driven by the North American Snacks transaction, partially offset by lower volume/mix. International gross margin fell to 14.9% from 15.7%, which the company attributes to cost inflation and lower volume/mix, partially offset by productivity savings.
Profitability was mixed at the line level. Operating loss was $(14,976) thousand versus $(6,865) thousand on a GAAP basis, and operating income, as adjusted, was $3,019 thousand versus $8,190 thousand. Other income, net of $16,876 thousand includes a $14,769 thousand gain on remeasurement of assets reclassified to held and used, which the company excludes from adjusted results. GAAP net loss was $(11,303) thousand versus $(20,625) thousand, and diluted loss per share was $(0.12) versus $(0.23). Adjusted net loss was $(6,628) thousand versus $(7,242) thousand, and adjusted diluted loss per share was $(0.07) versus $(0.08). Adjusted EBITDA was $17,582 thousand versus $19,732 thousand, down (10.9)%, with North America flat to up 1.8% and International down (28.6)%.
Cash generation and leverage weakened. Net cash used in operating activities was $(18,917) thousand versus $(8,480) thousand, and free cash flow was $(22,835) thousand versus $(13,707) thousand. Total debt rose to $586,205 thousand from $557,844 thousand at June 30, 2026, with current portion of long-term debt at $585,934 thousand. Net debt was $523,190 thousand versus $499,766 thousand, and the net secured leverage ratio under the credit agreement was 5.3x. Total stockholders' equity declined to $143,592 thousand from $154,795 thousand.
The central item in the filing is the capital structure. Regulatory approvals for the sale of the International business to AURELIUS were received in early November 2026, satisfying the regulatory condition to closing. The separate condition requiring a credit agreement amendment by October 12, 2026 was not satisfied, and the company says it remains in discussions with its lenders and with AURELIUS on a path forward. The filing says a completed sale would allow debt reduction and a more focused North America business. The release contains no outlook or guidance for the coming periods.
Management, verbatim
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,
Alison Lewis, President and CEO
Receiving the final required regulatory approvals is an important step toward completing the sale of our International business.
Alison Lewis, President and CEO
Not in the filing
stated, not guessed- No outlook or guidance for future periods is provided in this filing, and no prior outlook was supplied.
- Prior-year cost of sales change, SG&A change, operating loss change, net loss change in percentage terms and operating cash flow change in percentage terms are not printed.
- Prior-quarter (June 30, 2026 quarter) income statement figures are not printed, so sequential changes are null.
- Consolidated adjusted EBITDA margin is not clearly printed: the margin row shows three values (15.6%, 6.0%, 6.8%) against four columns, so it is not assigned.
- Prior-year consolidated adjusted EBITDA margin is not clearly printed for the same reason (8.3%, 7.7%, 5.4%).
- Organic growth percentages for the categories differ between the highlights text and the organic table; the table values are cited with the text value noted.
- Share price reaction, analyst consensus and analyst expectations are not contained in the document.
- Credit agreement terms, covenant levels and the amount of any waiver or forbearance are not described beyond the statements in the release.
- The text does not describe the terms of the AURELIUS transaction, such as price or closing timetable.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Hain Celestial is a Nasdaq‑listed health and wellness company that recently sought to sell its International business to Aurelius.
Ticker impact
Hain Celestial disclosed its FY27 Q1 results, reporting a 29% YoY sales decline and a net loss of $11M.
downward pressure as investors digest lower sales and higher debt levels
The company posted a significant revenue drop and widened losses, which typically trigger a sell‑off in the near term.
Market effects
Highlights softness in the health‑and‑wellness consumer sector, especially snack and personal‑care categories.
North American segment shows larger sales decline, suggesting regional pressure on similar consumer stocks.
The International business sale process may affect peers with exposure to private‑equity divestitures.
Counterpoint
If the debt reduction from the pending International sale materializes, the stock could rebound on a longer horizon.
Key entities
- Private Equity FirmAurelius
Potential buyer of Hain's International business.
