Hain Celestial (HAIN) Q3 2026 Earnings Transcript

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Date

Monday, May 11, 2026 astatine 8:00 a.m. ET

Call participants

• Chief Executive Officer — Alison Lewis

• Chief Financial Officer — Lee Boyce

Full Conference Call Transcript

Alison Lewis: Thank you, Alexis. Good morning, everyone, and convey you each for joining the call. Our 3rd 4th show reflects improved execution and fiscal subject arsenic we proceed to fortify our instauration and beforehand our turnaround strategy. We stay focused connected our near-term priorities, optimizing currency strengthening the equilibrium sheet, improving profitability and stabilizing sales. As a reminder, our extremity is to presumption Hain for sustainable growth. The roadworthy representation to achieving that maturation is guided by our 5 actions to win: Portfolio streamlining, accelerating marque renovation and innovation; gross maturation absorption and pricing; productivity and moving superior management; and enhanced integer capabilities.

During the quarter, beardown currency procreation and full indebtedness simplification of $155 cardinal materially improved our fiscal presumption with a large publication coming from the completion of the North America Snacks concern divestiture. From an operating perspective, we delivered Q3 adjusted EBITDA of $26 million, reflecting disciplined execution. Overall profitability improved sequentially with some gross borderline and adjusted EBITDA borderline improving versus Q2. While our integrated nett income show was not arsenic beardown arsenic we expected, the resilience we are seeing crossed overmuch of the portfolio based connected the actions we person enactment successful spot is encouraging, and we recognize and are actively addressing respective isolated challenges.

Importantly, the enactment we person accelerated successful innovation arsenic a wide differentiator successful our turnaround. We person importantly stronger renovation and innovation pipelines, meaningful caller quality to reenergize halfway categories. Recent launches delivering aboriginal stock gains and a wide absorption connected continuing to standard these wins to thrust sustainable growth. I'll present drill down into the nett income drivers, including the advancement connected innovation arsenic we reappraisal each of our regions. Q3 was a pivotal 4th for North America. We completed the divestiture of the Snacks concern and made bully advancement successful eliminating associated stranded costs, which Lee volition grow on.

The remaining halfway North American concern is much focused, unchangeable and profitable portfolio susceptible of generating gross margins exceeding 30% and debased double-digit adjusted EBITDA margin. In the 3rd quarter, North America integrated nett income declined 3%, which was accordant with Q2 trends, excluding the interaction of that divestiture. Importantly, our halfway concern is unchangeable with integrated nett income maturation crossed yogurt, tea, babe & kids: digit foods and cereal. And we delivered enlargement successful some gross borderline and adjusted EBITDA borderline year-over-year. Sales unit successful the 4th was mostly confined to prime smaller brands and included the interaction of portfolio simplification arsenic we volition discuss. Notably, we proceed to spot improving innovation, driving momentum and stock gains.