HOBOKEN, NJ. — Hain Celestial Group capped off fiscal 2024 with bottom- and top-line improvements as the better-for-you food, beverage and personal care company pushes ahead with its multiyear “Hain Reimagined” business transformation.

For the year ended June 30, Hain Celestial cut its loss to $75 million from $116.5 million in fiscal 2023. On an adjusted basis, the Hoboken, NJ-based company posted net income of $30 million, equal to 33¢ per share on the common stock, down from $44.9 million, or 50¢ per share, a year earlier.

Hain Celestial also met recalibrated guidance for 2024. Adjusted EBITDA came in at $155 million, hitting the top end of projections, but was down from $167 million in the prior year. Organic net sales declined 2% for the year, below the forecast for a 3% to 4% decrease.

“I’m pleased that we delivered on our updated guidance, with organic net sales growth ahead of our guidance and adjusted EBITDA at the upper end of our guidance, and continued progress in adjusted gross margin expansion,” Wendy Davidson, president and chief executive officer, told analysts in an Aug. 27 conference call.

“Approximately 85% of our business grew in fiscal year ’24, with organic net sales growth of 3%-plus, and we have initiatives in place to stabilize the remaining 15%,” she said. “I believe we are well-positioned as we head into fiscal year 2025 to pivot to growth.”

Fiscal 2024 marked phase one of Hain Reimagined as Hain Celestial “reset the foundation,” including the shift to a global operating model, growth investments and efforts to improve operational efficiency and capital management. Fiscal 2025-26 will usher in the “pivot to growth” phase, focusing on commercial execution, margin growth, brand building and innovation, channel expansion and speed to shelf.

“We are pivoting our focus to stronger commercial execution to deliver top- and bottom-line growth in fiscal ’25,” Davidson said. “We remain committed to the Hain Reimagined algorithm we outlined last year. So we are now using fiscal ’24 as the base for our organic net sales growth. We are confident in the strength of our diversified portfolio and geographic footprint, the benefits of scale in our operating model and our ability to deliver sustainable growth.”

Fiscal 2024 net sales fell 3.4% to $1.74 billion from just under $1.8 billion a year earlier. The decline reflected a 7.3% sales decrease in North America to $1.06 billion and a 3.5% gain internationally to $680.8 million. The results also reflected the impact of the divested Thinsters snacks and Queen Helene personal care brands, as well as discontinued brands and product categories, the company said.

By category, organic net sales were down 2% for the year in snacks, mainly due to the Terra and ParmCrisps brands but partially offset by growth in Garden Veggie Snacks, according to Hain Celestial.  The meal prep business generated a 2% gain, fueled by soup and private label spreads and drizzles in the United Kingdom yet tempered by softness in the Linda McCartney’s Foods and Yves plant-based, meat-free brands. Beverages generated organic net sales growth of 6%, driven by non-dairy beverages and Celestial Seasonings tea.

Hain Celestial’s baby and kids business saw 2024 organic net sales fall 11%, stemming from infant formula supply issues, while personal care experienced a 20% drop, which the company attributed to softness across most of that portfolio.  

“This year, we launched our agile and amped brand-building model and rolled out a number of campaigns to drive greater awareness, reach, household penetration and share on key brands such as Celestial Seasonings, Ella’s Kitchen and Earth’s Best,” Davidson said. “We will continue to drive brand campaigns that leverage the scale of a larger company with the consumer focus of smaller challenger brands.”

Hain Celestial has focused on expansion in “margin accretive channels” such as away-from-home and e-commerce, Davidson said, adding that away-from-home revenue grew by low double digits and its location count at US convenience stores by 42% in fiscal 2024.

“Garden Veggie and Terra, in particular, saw strong growth in c-stores, with Garden Veggie dollar sales up 49% and Terra up 48% this year,” Davidson said. “Within e-commerce, we saw growth in North America from key strategic brands, including Garden Veggie, up low single digits for the year, and Celestial, up mid-single digits, as well as double-digit growth in snacks and pouches for Earth’s Best.”

For fiscal 2025, Hain Celestial forecasts “flat or better” organic net sales growth and adjusted EBITDA growth in the mid-single digits.