Executive Summary
The Hain Celestial Group reported Q4 2024 results that reflect a modest decline in revenue versus prior-year periods and a narrow quarterly loss, but with meaningful cash-flow generation and a still-levered balance sheet. Revenue of $418.8 million declined 6.5% year-over-year and 4.5% quarter-over-quarter, while gross margin stood at 23.4% and operating margin at 2.87%, signaling a low-to-mid-single-digit margin profile in a highly competitive organic/natural foods landscape. Despite a negative net income of $2.94 million for the quarter, the company generated $39.4 million in operating cash flow and $30.7 million of free cash flow, supported by disciplined working capital management and manageable capital expenditures of $8.69 million.
The balance sheet remains leveraging-intensive, with total debt of $835.7 million and net debt of $781.4 million. Interest coverage was subpar at 0.88x, underscoring sensitivity to interest costs and the need for deleveraging over time. Nonetheless, the business delivered positive EBITDA of $17.99 million and a cash conversion cycle of approximately 62.6 days, indicating functional working capital efficiency even as channel mix and international exposure pose risks and opportunities.
Looking forward, there is no explicit quarterly guidance provided in the data set. Investors should monitor management commentary for indications on margin restoration, price realization, and deleveraging trajectory, particularly given the elevated debt load and sensitive interest coverage. The long-term growth thesis remains anchored in expanding the organic/natural product portfolio, expanding international reach, and investing in higher-margin SKUs and categories, while remaining mindful of macroeconomic headwinds, raw material costs, and currency volatility.
Key Performance Indicators
QoQ: 143.05% | YoY:-0.68%
Key Insights
Revenue: $418.8M, down -6.48% YoY and -4.46% QoQ. Gross Profit: $98.0M, YoY -2.72%, QoQ +1.38%, Gross Margin: 23.40%. Operating Income: $12.012M, YoY -0.68%, QoQ +143.05%. EBITDA: $17.99M, Margin: 4.30% (EBITDA). Net Income: -$2.94M, YoY -? (not provided), QoQ +93.91% (improved from prior quarter losses). EPS: -$0.0327, YoY +84.43%, QoQ +93.94%. Selling, General & Administrative Expenses: $72.279M. Interest Expense: $13.704M. Depreciation & Amortization: $10.305M. Income Before Tax: -$6....
Financial Highlights
Revenue: $418.8M, down -6.48% YoY and -4.46% QoQ. Gross Profit: $98.0M, YoY -2.72%, QoQ +1.38%, Gross Margin: 23.40%. Operating Income: $12.012M, YoY -0.68%, QoQ +143.05%. EBITDA: $17.99M, Margin: 4.30% (EBITDA). Net Income: -$2.94M, YoY -? (not provided), QoQ +93.91% (improved from prior quarter losses). EPS: -$0.0327, YoY +84.43%, QoQ +93.94%. Selling, General & Administrative Expenses: $72.279M. Interest Expense: $13.704M. Depreciation & Amortization: $10.305M. Income Before Tax: -$6.019M. Income Tax Benefit: -$3.292M. Weighted average shares, diluted: 89.845M.
Cash Flow and Capital Allocation: Net cash provided by operating activities $39.396M. Capital expenditures $-8.692M. Free Cash Flow $30.704M. Net change in cash $4.758M. Cash at end of period $54.307M. Cash conversion cycle approx. 62.61 days (CCC).
Balance Sheet Highlights: Total assets $2.118B. Total liabilities $1.175B; total stockholders' equity $943.0M. Cash and cash equivalents $54.307M. Debt: total $835.714M; long-term debt $817.386M. Net debt $781.407M. Current ratio 1.98; Quick ratio 1.01. Goodwill $929.304M; Intangibles $244.799M; Net PP&E $348.364M. Leverage metrics: Debt-to-capitalization ~0.47; Debt-to-equity ~0.886; Interest coverage ~0.88x. Net income margin -0.70%; Return on equity negative; Return on assets negative.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
418.80M |
-6.48% |
-4.46% |
| Gross Profit |
98.00M |
-2.72% |
1.38% |
| Operating Income |
12.01M |
-0.68% |
143.05% |
| Net Income |
-2.94M |
84.29% |
93.91% |
| EPS |
-0.03 |
84.43% |
93.94% |
Key Financial Ratios
operatingProfitMargin
2.87%
operatingCashFlowPerShare
$0.44
freeCashFlowPerShare
$0.34
priceEarningsRatio
-53.23
Management Commentary
No earnings call transcript provided in the supplied data. Therefore, management themes, strategic redirects, or operational remarks cannot be quoted or categorized from the transcript.
Forward Guidance
No explicit forward guidance was provided in the data set. Investors should reference the company’s subsequent filings or earnings call materials for management expectations on margin restoration, cost containment, pricing initiatives, and deleveraging plans. In absence of formal guidance, key factors to monitor include: (1) trend in gross and operating margins, (2) progression of debt levels and interest coverage, (3) free cash flow generation and capex discipline, (4) progress in international channel growth and e-commerce penetration, and (5) commodity cost inflation and currency exchange effects.