The Hain Celestial Group, Inc. reported its financial results for the three months ended September 30, 2024, revealing a decline in net sales and an increase in net loss compared to the same period in the previous year. Net sales totaled $394.6 million, down 7.2% from $425.0 million in Q3 2023. This decrease was attributed to a $13.1 million impact from divestitures and a 5.1% decline in organic net sales, primarily due to a 4% decrease in volume/mix and a 1% decrease in price.
The company's gross profit for the quarter was $81.6 million, a decrease of 2.8% from $83.9 million in the prior year, although the gross profit margin improved to 20.7% from 19.7%. The North America segment experienced lower sales volume, while the International segment benefited from improved margins despite lower volume.
Operating income for the quarter was $3.1 million, a significant improvement from an operating loss of $2.3 million in Q3 2023. However, the company reported a net loss of $19.7 million, compared to a net loss of $10.4 million in the same period last year, marking an increase in loss of 89.5%. The diluted net loss per share was $(0.22), up from $(0.12) in the prior year.
Adjusted EBITDA decreased to $22.4 million from $24.1 million, reflecting a decline in profitability. Selling, general, and administrative expenses were reduced by 7.6% to $71.3 million, primarily due to lower marketing and employee-related expenses. The company also reported a pretax loss of $3.9 million on the sale of its ParmCrisps® business, which was divested for $12 million in cash.
Cash and cash equivalents increased to $56.9 million as of September 30, 2024, from $54.3 million at the end of June 2024. However, net cash used in operating activities was $(10.8) million, a stark contrast to the $14.0 million provided in the same period last year. Free cash flow was negative $16.5 million, down from positive $7.1 million in Q3 2023.
The company continues to implement its Hain Reimagined Program, aimed at optimizing its portfolio and improving profitability, with cumulative pretax charges expected to reach between $115 million and $125 million. As of September 30, 2024, total assets were $2.1 billion, with total liabilities of $1.2 billion, resulting in stockholders' equity of $963.7 million.
About HAIN CELESTIAL GROUP INC
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