The Hain Celestial Group Inc. (NASDAQ:HAIN) reported weaker-than-expected fiscal fourth-quarter 2026 sales and adjusted earnings on Monday.

However, margins and cash generation improved as the company continued to overhaul its portfolio and strengthen its North American business.

Hain Celestial Q4 Sales, Earnings Miss Estimates

Net sales fell 27.6% year over year to $263.07 million, missing the $268.94 million estimate.

Hain posted an adjusted loss of 5 cents per share, missing the 3-cent loss estimate. That compared with a 2-cent loss a year earlier. GAAP diluted loss narrowed to 68 cents from $3.06.

Organic net sales fell 1.8%, driven by a 2-percentage-point decline in volume and mix. Pricing was flat.

Gross margin expanded 200 basis points to 22.5%. Adjusted gross margin improved 230 basis points to 22.7%. Adjusted EBITDA fell 5.8% to $18.7 million.

North America Profitability Jumps

North America organic sales rose 1.7%, while adjusted gross margin climbed to 31.1% from 19.2%. Adjusted EBITDA increased 55.3% to $16.1 million.

Growth in meal preparation products, led by yogurt, helped offset weaker baby and kids sales.

International organic sales fell 4%. Adjusted gross margin declined to 16.6%, while adjusted EBITDA dropped 41.1% to $12.3 million. Cost inflation and weaker volume and mix weighed on results.

International Sale Targets Debt

Fiscal 2026 operating cash flow rose to $78.3 million from $22.1 million. Free cash flow improved to $57.7 million from a $3.2 million outflow.

Hain ended June with $58.1 million in cash and $499.8 million in net debt.

The company agreed to sell its International business to AURELIUS for an estimated $323 million.

Hain expects net proceeds of $305 million to $310 million. It plans to repay its entire term loan and more than 35% of its revolving credit facility. That would reduce pro forma debt to about $250 million.

The deal is expected to close in the second quarter of fiscal 2027. Closing depends partly on extending Hain’s December credit maturity.

Hain also targets about $16 million in annual run-rate cost savings, with most expected by the end of fiscal 2027. Implementation costs are expected to total about $20 million.

Refinancing Clouds 2027 Outlook

Management said its strategic review makes traditional fiscal 2027 guidance difficult. The company also canceled the earnings call’s Q&A amid lender discussions and the pending International sale.

Hain reported $186 million of revolver liquidity. More than 70% of its loan exposure is fixed at 7.1%. Fourth-quarter margins also benefited from a $1.9 million tariff refund.

Greek Gods dollar sales grew by a high-teens percentage. Meanwhile, changes to the Earth’s Best puree portfolio drove a 30% increase in base velocity.

Hain Celestial Price Action

HAIN Price Action: Hain Celestial shares were up 3.23% at $0.64 at the time of publication Monday, according to Benzinga Pro data.

Photo via Shutterstock