Hain Celestial cuts full-year sales outlook as Q2 sales plunges 9%
USA – Hain Celestial has revised its full-year sales outlook downward after reporting lower-than-expected results for the second quarter of the 2025 fiscal year.
The company, known for brands such as Celestial Seasonings tea and Terra Chips, now expects organic net sales to decline by 2 to 4 percent.
In its first-quarter report, Hain Celestial had projected that annual organic net sales would remain “flat or better” compared to the previous year.
However, following weaker performance in the second quarter, the company has also lowered its forecast for adjusted EBITDA, which was initially expected to rise by a mid-single-digit percentage. The company now anticipates that this metric will remain “flat year-over-year.”
For the quarter, Hain Celestial reported net sales of US$411.5 million, a 9 percent decline from the prior year and below the consensus estimate of US$430 million. Organic net sales fell by 7 percent, driven by a 5-percentage-point drop in volume/mix and a 2-percentage-point decline in price.
The company’s adjusted gross profit for the quarter was US$94.3 million, down 11.7 percent from the previous year, leading to a 60-basis-point contraction in the adjusted gross margin to 22.9 percent.
Adjusted EBITDA also fell 9.2 percent year-over-year to US$37.9 million, compared to US$47.1 million in the same quarter last year.
Hain Celestial’s North America segment saw net sales drop by 14.3 percent to US$229.3 million, while the international segment experienced a smaller decline of 2.3 percent, bringing sales down to US$182.2 million.
Among product categories, the Snacks division reported a 13 percent year-over-year decline in organic net sales, impacted by in-store marketing activation and promotional effectiveness.
The Baby & Kids category recorded a 1 percent decline, showing improvement from the 3 percent drop in the first quarter. This improvement was attributed to the regained supply of infant formula across all formulations and sizes, though it was partially offset by SKU simplification efforts in the U.S. baby food market.
The Beverages segment saw organic net sales decline by 3 percent, affected by supply-chain ingredient challenges in the tea category, which have since been resolved, as well as channel mix dynamics in the European non-dairy beverage market.
In Personal Care, organic net sales fell sharply by 38 percent due to SKU simplification initiatives as part of the company’s ongoing stabilization efforts.
Hain Celestial President and CEO Wendy Davidson stated that the company is “exploring strategic options for our personal-care business” as part of efforts to streamline operations.
“We believe this is the best path to focus the organization, simplify our business, and create long-term value for shareholders,” Davidson said.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
